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.
A new month is upon us, so let’s get started …
To be is to do.
— Socrates
To do is to be.
— Jean-Paul Sartre
Do be do be do.
— Frank Sinatra
Credits and Debits
Debit: The Venezuelan economy is now in the terminal stages of a death spiral. In fact, societal collapse may be just around the corner. But don’t be fooled: It’s pure coincidence that the nation’s descent into the abyss increased as soon as it began doubling down on its draconian efforts to kill capitalism once and for all.
Credit: Clearly, socialism isn’t to blame for Venezuela’s troubles. No, the real problem is that socialism simply isn’t being implemented correctly there. Then again, how could it be? After all, President Nicolas Maduro’s true expertise is centered around driving buses — not guiding the people’s revolution. Forward!
Credit: Forget fighting for a “living wage” — it’s time for a guaranteed minimum income for all — regardless of people’s employment situation. Don’t scoff. Leading economists and respected climate change scientists agree: A guaranteed universal minimum income provides economic security for everyone. I just wish somebody would have thought of this 30 years ago.
Debit: If the US became more forward thinking, there’s no limit to the number illegal immigrants the economy could absorb. Yes, even as the great majority of their employment opportunities rapidly go the way of the dodo, thanks to advances in technology and automation.
Credit: I know what you’re thinking: But, Len, who’s going to pay for all of this? It’s a stupid question. Yes, the US is $20 trillion in debt — but that’s only a number. The truth is, the National Debt is irrelevant because, as The Street’s Mike Norman observes, “(The dollar) is nothing more than a tax credit.” Well … duh!
Credit: Of course, although highly unlikely, there’s always a minuscule chance that Mike Norman could be wrong. Fortunately, if we really can rack up too much debt, Microsoft founder Bill Gates assures us that the robots he’s building to replace the human workforce will pay enough taxes to keep the Utopian dream alive. See? It’s all good, people.
Debit: Frankly, with so many leading economists, forward thinkers, computer geeks, and other smart guys assuring us that Utopia is finally within our grasp, it makes me wonder how there can be so many International Monetary System deniers, annoying gold bugs, Chicken Littles, financial idiots, and other flat-earthers still worried about hyperinflation and the demise of the dollar. Losers.
Debit: The truth is, hysterical people who insist on holding gold and silver as wealth insurance are wasting their hard-earned money; it’s settled economic science. The Wall Street Journal admitted as much when they called gold nothing more than a pet rock. (Psst. There’s a reason why paper beats rock in Rochambeau.)
Credit: Besides, who needs gold — or silver — when Farmville Cash is the latest crypto-currency darling in town? Uh huh. Suddenly, canceling my Farmville account way back in 2010 doesn’t seem like such a good idea anymore.
Credit: Hey … If you’re going to dabble in alternative currencies, maybe it’s time to consider something that’s financially stable, like bitcoin. I know — the folks at Investopedia point out the exact opposite … but you don’t believe everything you read on the Internet — or do you?
Last Week’s Poll Results
Have you ever robbed a bank?
- No, but I’ve thought about it (47%)
- No (33%)
- Yes (20%)
More than 1400 Len Penzo dot Com readers answered last week’s question and I’m happy to say that only one in five respondents admit to participating in at least one bank stick-up. Frankly, I expected the percentage of admitted bank robbers to be lower; perhaps something in the low teens — but, whatever. Meanwhile, one in two readers say they’ve actually thought about pulling off a bank heist but, apparently, lack the stones to actually try it — at least so far.
The Question of the Week
[poll id="157"]
By the Numbers
Here’s are a few random facts about numbers, by the numbers:
0 Number of wild snakes in Ireland.
1 Number of times a sloth poops per week.
4 Percentage of people in the world with an “outie” belly button.
5 Number of mass extinctions that Earth has experienced.
7 Number of televisions that Micheal Lotito ate during his lifetime.
10 Percentage of the world’s population that is left handed.
$1,000,000,000 By his own estimate, the amount of Pablo Escobar’s ill-gotten cash that was consumed by rats while in storage.
Source: The Guardian
Insider Notes: The Weimar Hyperinflation
Hey! You need to be an Insider to view the rest of this section! If you’d like to join, please click “Insider Membership” at the top of my blog page.
Other Useless News
Programming note: Unlike most blogs, I’m always open for the weekend here at Len Penzo dot Com. There’s a fresh new article waiting for you every Saturday afternoon. At least there should be. If not, somebody call 9-1-1.
Hey! If you happen to enjoy what you’re reading — or not — please don’t forget to:
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And last, but not least …
4. Consider becoming a Len Penzo dot Com Insider!
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 out to me at: Len@LenPenzo.com
This week I received the following question from Wilson:
Saturday is April 1st. I was wondering if you would consider doing an April Fool’s Day version of Black Coffee?
What makes you think I’d ever want to try something like that?
I’m Len Penzo and I approved this message.
Photo Credit: brendan-c
Hopefully this is April Fool on us. Otherwise, where is Len Penzo and when do we get him back?
Len will be back next week, Kathy. I promise.
Best Black Coffee ever, Len. You never cease to amaze! “Paper always beats rock” – I wonder how long you’ve had that one in your mind waiting to use it at the right moment.
Wow. High praise indeed! Thank you, Tom.
There were a few moments there where I was thinking you lost your marbles Len!
I’m with Tom! Really enjoyed this eidition! But please come back to reality next week.
Have a great weekend!
Sara
Sara, I’ve got news for you: there are many people out there who believe I lost my marbles a long time ago. (They’re the same people who, after reading this post, probably think that my tin foil hat finally fell off.)
The article by Mike Norman that you linked to was a real eye opener. He demonstrates a complete lack of understanding of how the monetary system works or what a dollar truly is. The Street is a mainstream publication. I guess I shouldn’t be surprised that the public is ignorant to what’s happening.
I know, WA. Scary, isn’t it?
“Leading economists and respected climate change scientists agree”
Too funny.
Well … it’s true!
Thanks, Len. Good job! I bet that was hard for you.
If you only knew, Wilson. Thanks for the suggestion!
The national debt is $20T but if you count unfunded liabilities, you need to add a zero!
Nobody can accuse my readers of being part of the ignorant masses! Of course, you are right, Oscar.
I won’t even mention worldwide debt.
I knew it was an April Fool’s Day joke! Bahahaha…good one, Len.
Thanks, Belinda. I must say, it was hard having to peruse so many unsavory fiction-peddling websites to come up with this edition.
Did I miss a version of Black Coffee? Or is your bank robbery poll results just your April Fools joke?
It’s part of the joke, Anne. I sure hope 20% of my readers have never robbed a bank!
I got that after posting comment.
Note to self: Don’t read Black Coffee after Midnight 🙂
“The Venezuelan economy is now in the terminal stages of a death spiral. In fact, societal collapse may be just around the corner. But dont be fooled: Its pure coincidence that the nations descent into the abyss increased as soon as it began doubling down on its draconian efforts to kill capitalism once and for all.” The Russians tried Communism for a hundred years (almost a hundred, this is the 100th anniversary of the Russian Revolution and even the Russians aren’t sure what to say on the subject!) and it didn’t work. Look at the failure of the Mayflower Compact, the first European attempt to impose Communism in the U. S. A. which resulted in the settlement almost starving to death! Thank you Europe! It’s an old quote, but Capitalism results in the unequal distribution of wealth while Socialism / Communism results in the equal distribution of misery.” EXCEPT for the ruling class who get to boss the peasants around, and own all the money.
I voted for Friday because 1. It’s trash pick up day and there are often good quality free treasures on the curb, just help yourself. and 2. It’s the first day of the weekend for yard sales and that’s when the greatest selection of pre owned merchandise is available.
What are some memorable Friday treasures you’ve found?
A 1950s silver Christmas tree with three boxes of 1950s hot pink glass ornaments, six large Christmas blow molds (lighted plastic figures to decorate the yard), numerous solid wood end tables, a very expensive fancy pine queen sized bed from Sweden, a c 1870s Victorian dresser, a 1950s cut out and painted plywood set of 4 reindeer, the sled and Santa, a similar set from the 1980s with two reindeer and larger sled all in white paint, lots of 70+ year old wide pine boards from torn out pantrys, closets and removed basement shelving, c 1880s solid chestnut dining room table, garden planters, garden tools lots of 1940s/50s kitchenware, an oak wash stand c 1900, cement garden statues, countless mirrors, framed pictures, copper and brass scrap metal, a pair of absolutely perfect massive 36″ tall fiberglass planters which sold for $50. in less than 24 hours. The possibilities are endless if you’re not shy. I found a beautiful wrought iron long dining table and six chairs on the curb, and had a full load. By myself I was unable to get the table onto the van’s roof rack, so I hailed a man in the next yard who was putting out his (unromising) trash and got him to help me load the table and chairs which he did with good humor. Trash picking is fun, free, good for the environment, great for America’s balance of trade! You get out early in the morning, you enjoy fresh air, light exercise, and loads of free stuff. You get useful things which would otherwise go in the landfill. And if you can’t use it, there’s always a yard sale. After the sale I put anything unsold on my curb and do a Craigslist “free” ad and it all goes away.
Wow! Good job, Karen! That is quite a haul of some really cool stuff.
On another note … Congratulations! That was your 100th comment on my blog. I can think of only two other Len Penzo dot Com readers who reached that milestone.
Thank you for all of your contributions here — I appreciate every one of them!