• About
  • Credit Card Basics
  • Mortgage Basics
  • $40K Challenge
  • Aunt Doris
  • Grandfather Says
  • Privacy
  • Archives
  • Insiders

Len Penzo dot Com

The offbeat personal finance blog for responsible people.

Black Coffee: The ‘One Day Late and $20 Trillion Short’ Edition

By Len Penzo

It’s time to sit back, relax and enjoy a little joe …

Welcome to another rousing edition of Black Coffee, your off-beat weekly round-up of what’s been going on in the world of money and personal finance.

Yes, I’m a day late delivering this very brief espresso edition to you. I have a good excuse though: the dog ate it!

Not buying it, huh?

Actually, I was on business travel all week and didn’t get home until Saturday evening. And I was all over the place — I visited seven airports on this trip: ONT, DFW, HSV, CLT, MCH, BOS, and PHX — which is one reason why I didn’t get home until Saturday evening. It was absolutely nuts!

In other news, I just checked my Len Penzo dot Com Facebook page and I see I’m stuck at 1999 likes … I’d be mighty grateful if somebody out there would take me to 2000!

Okay, here we go …

Credits and Debits

Debit: It was 45 years ago this week when Richard Nixon closed the gold window and, as Gary North points out, that fateful day “marked the end of America’s uncontested economic domination.” He’s right. Today, the US economy is a hollowed-out shell of its former self.

Debit: By the way, it’s also no coincidence that US money printing and price inflation took off in remarkable fashion immediately after the dollar’s final tie to gold was broken. Notice how the curve took a decidedly-steeper path in 1972? Looky here:

Gold window close

Debit: Breaking the dollar’s tie to gold essentially removed the credit limit from the US Treasury’s charge card — which is why it didn’t take too long after that for the American economy to begin transitioning from manufacturing goods for export abroad to one based almost entirely upon unabashed consumerism that’s dependent on cheap imports.

Credit: Unfortunately, as Simon Black reminds us, nations that fail to produce more than they consume are doomed to failure — and America’s long-running addiction to debt tells you everything you need to know about her future.

Debit: Of course, America’s official charge card bill is currently pushing $20 trillion. However, if you count the unfunded liabilities — like Social Security and Medicare — the bill is actually more than $127 trillion. That’s a bit disconcerting when you consider US GDP is $16 trillion, at best.

Debit: Putting that in personal finance terms, the current US debt situation is equivalent to somebody who earns $50,000 annually having a $400,000 credit card bill. Does anybody else see a problem here?

Debit: Yes, yes … I know. “But, Len, the US can print its own currency!” True. But in case you haven’t noticed, the world is losing faith in the US dollar — which has been nothing more than an IOU since its link to gold was officially broken. And you can be sure the time is fast-approaching when our trading partners will no longer want to exchange real goods for any more promissory notes.

Credit: Of course, after 45 years of unrestrained money printing, time is almost up. For his part, billionaire businessman Jim Rogers is warning that everyone needs to be prepared, “because what’s coming is going to be mess.” A mess, eh? Well … I guess that’s one way to put it.

By the Numbers

I don’t know about you, but it’s hard for me to believe that 14 years have passed since these top 10 movies (US domestic gross) of 2002 originally debuted:

1. Spider-Man ($403 million)

2. The Lord of the Rings: The Two Towers ($340 million)

3. Star Wars: Episode II – Attack of the Clones ($311 million)

4. Harry Potter and the Chamber of Secrets ($262 million)

5. My Big Fat Greek Wedding ($241 million)

6. Signs ($228 million)

7. Austin Powers in Goldmember ($213 million)

8. Men in Black II ($190 million)

9. Ice Age ($176 million)

10. Chicago ($171 million)

Source: The Movie Times

The Question of the Week

Who handled the family's personal finances when you were growing up?

View Results

Loading ... Loading ...

Last Week’s Poll Result

Which of these ice cream flavors is your favorite?

  • Chocolate (45%)
  • Vanilla (41%)
  • Strawberry (14%)

More than 900 people answered this week’s survey question and when it comes to the three most common ice cream flavors, it’s a pretty even race between chocolate and vanilla. For me, I like all three flavors, but if you forced me to choose, I’m taking the chocolate.

Other Useless News

Here are the top — and bottom — five Canadian provinces and territories in terms of the average number of pages viewed per visit here at Len Penzo dot Com over the past 30 days:

1. British Columbia (2.25 pages/visit)
2. Saskatchewan (1.93)
3. Alberta (1.82)
4. Ontario (1.79)
5. Manitoba (1.54)

9. Nunavut (1.50)
10. New Brunswick (1.37)
11. Northwest Territories (1.25)
12. Nova Scotia (1.20)
13. Yukon Territory (1.13)

Whether you happen to enjoy what you’re reading (like those crazy canucks in British Columbia, eh) — or not (you hosers living on the frozen Yukon tundra …) — please don’t forget to:

1. Click on that Like button in the sidebar to your right and become a fan of Len Penzo dot Com on Facebook!

2. Make sure you follow me on Twitter!

3. Subscribe via email too!

And last, but not least …

4. Consider becoming a Len Penzo dot Com Insider! Thank you.

(The Best of) Letters, I Get Letters

Every week I feature the most interesting question or comment — assuming I get one, that is. And folks who are lucky enough to have the only question in the mailbag get their letter highlighted here whether it’s interesting or not! You can reach me at: Len@LenPenzo.com

Tim Sanders left the following rebuttal on Len Penzo dot Com after he read my article explaining why corner lots are for suckers:

You are an idiot. I just wasted three minutes of my life reading this.

Make that four minutes of your life. I just deleted your comment.

I’m Len Penzo and I approved this message.

Photo Credit: brendan-c

Related Posts:
  • Black Coffee: The ‘Day Late and a Shamrock-Shake Short’ EditionBlack Coffee: The ‘Day Late and a Shamrock-Shake Short’ Edition
  • Black Coffee: Why 100-Trillion Zimbabwe Dollars Doesn’t Go as Far as It Used ToBlack Coffee: Why 100-Trillion Zimbabwe Dollars Doesn’t Go as Far…
  • Black Coffee: How DID We Ever Get By In the (Late) 20th Century?Black Coffee: How DID We Ever Get By In the (Late) 20th Century?

6 Comments August 21, 2016

Comments

  1. 1

    Sara King says

    Welcome back Len! This one was shorter but still very informative and entertaining too. You are opening my eyes to how our monetary system really works and it is so fascinating. I never saw the connection between currency value and imports/exports but the light bulb is now on for me. At least I think it is! lol

    Reply
    • 2

      Len Penzo says

      Thank you, Sara.

      Reply
  2. 3

    Jared says

    Len, things are beginning to speed up toward the reset just from what I e seen on the Internet, now that Schiff has merged with Gold Money I feel much safer about opening an account with them. What is your view of the Gold Money model? It’s out of the banking system and they really do hold the gold for you unlike the comex paper market where there are hundreds of contracts to one ounce of gold. Lastly I understand The Chinese Yuan is coming online as a reserve currency, in my opinion I believe this to be the final nail in the Dollars coffin. I could be wrong though and they can play this game out another decade like they have since 2008.

    Sincerely,

    Jared

    Reply
    • 4

      Len Penzo says

      Well, Jared … I think the Gold Money model is certainly safer than leaving your deposits in a regular bank. We’ll have to wait and see what is the final nail in the dollar’s coffin. There are many potential candidates, that’s for sure!

      Reply
  3. 5

    Karen Kinnane says

    ” I visited seven airports on this trip: ONT, DFW, HSV, CLT, MCH, BOS, and PHX ” Wow! How many frequent flyer miles did you accrue?

    Reply
    • 6

      Len Penzo says

      I’m not sure, Karen, but I’m guessing around 10 million.

      Reply

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Question of the Week:

How old were you when you bought your first home?

View Results

Loading ... Loading ...

Recent Posts

  • Black Coffee: Smiling Faces and Reassuring Voices
  • Expecting the Unexpected: Managing Finances When You Become Disabled
  • 100 Words On: Why Buying in Bulk Is Not Always a Smart Idea
  • The Importance of Creating Professional Invoices for Your Business
  • 7 Basic Financial Goals Everyone Should Strive For
  • 10 Key Characteristics of Debt-Free People
  • Black Coffee: Egg Nog and Seed Corn
  • 8 Clever Low-Cost Homemade Gifts Everyone Will Enjoy
  • Grandfather Says: The Story of the Cowhide Guitar
  • How to Save Money While Helping Your New Business Thrive

Disclaimer

This site is for informational and entertainment purposes only, and the content herein should not be mistaken for professional financial advice. This website accepts advertising in the form of monetary and other compensation; as such, topics of discussion are occasionally influenced by these advertisers. Occasionally, some articles may also include affiliate links, meaning, at no additional cost to you, this blog earns a commission if you click through and make a purchase (for example, as an Amazon Associate I earn from qualifying purchases). Remember, you and you alone are responsible for the decisions you make in life, so please contact an independent financial professional for advice regarding your unique personal situation.

Popular Now:

  1. 1. Sneaky Pizza Delivery Fees Are Here to Stay (and Why It’s Your Fault)
  2. 2. Debt Elimination: The Pros and Cons of Dave Ramsey’s Baby Steps
  3. 3. Drop the Guilt: How to Splurge Without Beaking the Bank
  4. 4. How to Find a Low-Priced Plumber Who Won’t Rip You Off
  5. 5. 11 Retirement Saving Tips for Twentysomethings (& Older Folks Too!)
  6. 6. 16 Extreme Ways to Increase Your Monthly Savings
  7. 7. Why I Prefer a Spreadsheet to Track Expenses and Manage My Finances
  8. 8. The 13 Most Important Items to Keep In a Fireproof Safe
  9. 9. Be Careful, Priceline Users: Name a Wrong Price and You May End Up in Jail
  10. 10. Len Penzo dot Com: Celebrating 10 Years and 10 Million Page Views!

All-Time Most Popular:

  1. 1. 19 Things Your Suburban Millionaire Neighbor Won’t Tell You
  2. 2. Dear Friend: Here Are 41 Reasons Why I’m NOT Lending You the Money
  3. 3. Why Your Expensive Luxury Car Doesn’t Impress Smart People
  4. 4. If You Can’t Live on $40,000 Annually It’s Your Own Fault
  5. 5. 21 Reasons Why Corner Lots Are for Suckers
  6. 6. 4 Smart Reasons Why College Isn’t for Everyone
  7. 7. 18 Fast Facts About Social Security Numbers
  8. 8. My Ketchup Taste Test: Upset! Guess Which Brand Topped Heinz
  9. 9. Why I Prefer a Spreadsheet to Track Expenses and Manage My Finances
  10. 10. Here’s a Simple Trick for Getting Credit Card Interest Charges Waived

Copyright © 2019 Len Penzo dot Com · All Rights Reserved · Designed by Nuts and Bolts Media

Copyright © 2019 · Penzo on Genesis Framework · WordPress · Log in