{"id":25673,"date":"2014-06-21T05:00:48","date_gmt":"2014-06-21T12:00:48","guid":{"rendered":"https:\/\/lenpenzo.com\/blog\/?p=25673"},"modified":"2014-06-23T06:35:16","modified_gmt":"2014-06-23T13:35:16","slug":"black-coffee-the-summer-solstice-edition","status":"publish","type":"post","link":"https:\/\/lenpenzo.com\/blog\/id25673-black-coffee-the-summer-solstice-edition.html","title":{"rendered":"Black Coffee: The Summer Solstice Edition"},"content":{"rendered":"

\"\"It’s time to sit back, relax and enjoy a little joe<\/em> …<\/p>\n

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.<\/p>\n

Summer is finally here. Hooray! I hope y’all have a great one this year.<\/p>\n

Okay, off we go …<\/p>\n

Credits and Debits<\/strong><\/p>\n

Debit:<\/strong><\/span> I see the IRS is claiming that Lois Lerner’s subpoenaed emails (and those of six others<\/a> who are being investigated for targeting the Tea Party and other conservative groups) are unavailable because they’re “hopelessly lost<\/a>.” Unbelievable.<\/p>\n

Credit: <\/strong><\/span>I can only assume the IRS is now accepting that very same excuse regarding the records of the taxpayers they audit.<\/p>\n

Debit:<\/strong><\/span> Yes, this is the same IRS that asks us taxpayers to keep our records for seven years — even though they’re required to keep email for only six months<\/a> because, you know<\/a>, email isn’t an “official record.” (Hat tip: Hot Air<\/a>.)<\/p>\n

Debit:<\/strong><\/span> “It’s lost.” Never mind the technical ignorance of such a ludicrous claim<\/a>. The blatant corruption, crony capitalism, and utter lawlessness<\/a> that now seemingly permeates almost every corner of the US government is truly breathtaking. They don’t even try to hide it anymore.<\/p>\n

Debit:<\/strong><\/span> This<\/em> is what a banana republic looks like, folks. (And if that ain’t bad enough, so does this<\/a>.) Oh, I know. I know. Cue Len’s official IRS audit notice in four, three, two …<\/p>\n

Credit: <\/strong><\/span>Speaking of the IRS, US federal tax revenues continue to run at a record pace<\/a>. Through the end of May, the US Treasury has taken in a record $1.9 trillion this fiscal year.<\/p>\n

Debit:<\/strong><\/span> Now the bad news: Despite the massive cash influx, the government is still drowning in a sea of red ink; the deficit is currently $436 billion — and growing. Quickly.<\/p>\n

Credit: <\/strong><\/span>Hey … You can’t accuse Pope Francis of not being able to connect the dots. Now even he<\/em> is warning that a worldwide economic collapse<\/a> is in the cards. (Maybe I should say “house of cards.”)<\/p>\n

Debit:<\/strong><\/span> The Holy See probably read the Wall Street Journal<\/a> this week. They observed: “There are more Americans on disability insurance than are working in construction and education, combined.” <\/em>Yep;<\/em> a staggering 11 million on the dole now<\/a>.<\/p>\n

Debit:<\/strong><\/span> Meanwhile, real hourly wages in the US have seen their first year-over-year decline since October 2012. But wait: it gets worse. The income drop was so severe, Americans’ earning power is back to 2008 levels<\/a>. Forward!<\/p>\n

Debit:<\/strong><\/span> Stagnant real wages are a result of the dollar’s falling value, courtesy of the Fed’s relentless money printing. Last month US consumer prices rose at the sharpest pace<\/a> in 15 months — and beef, chicken, eggs, and fish reached all-time highs<\/a>.<\/p>\n

Debit:<\/strong><\/span> Unfortunately, when paychecks can’t keep up with inflation, living standards decline — which probably helps explain why home equity loans increased 8%<\/a> year-over-year during the first three months of 2014.<\/p>\n

Debit:<\/strong><\/span> In fact, things are so bad that 47% of people between 22 and 33 are now spending more than half<\/a> of their paycheck to retire debt. Wow.<\/p>\n

Debit:<\/strong><\/span> With news like that, it’s no wonder that nearly half of all Americans are living paycheck-to-paycheck<\/a> — and 56% have subprime credit.<\/p>\n

Credit: <\/strong><\/span>By the way, if you think the modest living-standard decline over the past five years has been bad, just wait until the US implements an overnight<\/em> currency devaluation<\/a>. That’s when most folks will finally<\/em> wake up — a day late and a dollar short.<\/p>\n

Debit:<\/strong><\/span> So why have stock and other asset prices been steadily rising<\/a> over the same time period, despite stagnant wages? Because central banks have injected<\/a> $29 trillion into the markets since then. It’s a mirage.<\/p>\n

Debit:<\/strong><\/span> This can’t go on forever. I assume that’s why, according to the Financial Times: “Federal Reserve officials have discussed imposing exit fees<\/a> on bond funds to avert a potential run by investors.”<\/em><\/p>\n

Debit:<\/strong><\/span> Did you see this? Nine in ten people who signed up for Obamacare received government subsidies<\/a> to help offset those ridiculously expensive premiums — $16 billion in 2014 alone. Yeah … like that’s sustainable.<\/p>\n

Credit: <\/strong><\/span>Finally … I see Los Angeles city workers recently posted a ‘1 Minute Parking<\/a>‘ sign on San Vicente Boulevard. Yes, really; one whole minute. (And you thought New York City had brutal parking restrictions.)<\/p>\n

By the Numbers<\/strong><\/p>\n

Amaze your family tonight with these tidbits about New York City parking tickets :<\/p>\n

9.8 million <\/strong><\/span><\/span>Number of tickets issued each year in the Big Apple.<\/p>\n

63<\/strong><\/span><\/span> Percentage of tickets paid within 90 days.<\/p>\n

37<\/strong><\/span><\/span> Percentage of tickets paid on-line.<\/p>\n

36<\/strong><\/span><\/span> Average number of days in the appeal process.<\/p>\n

15<\/strong><\/span><\/span> Percentage of tickets reversed on appeal.<\/p>\n

12<\/strong><\/span><\/span> Average number of days it takes to get a refund after an appeal.<\/p>\n

13 <\/strong><\/span><\/span>Percentage of tickets dismissed.<\/p>\n

Source: New York Parking Ticket<\/a> (2011 data)<\/em><\/p>\n

The Question of the Week<\/strong><\/p>\n

[poll id=\"12\"]<\/code><\/p>\n

Last Week’s Poll Result<\/strong><\/p>\n

Excluding your own, how many current phone numbers do you have committed to memory?<\/p>\n