{"id":27674,"date":"2014-11-08T10:09:35","date_gmt":"2014-11-08T18:09:35","guid":{"rendered":"https:\/\/lenpenzo.com\/blog\/?p=27674"},"modified":"2020-03-07T16:49:01","modified_gmt":"2020-03-08T00:49:01","slug":"black-coffee-excuse-me-while-i-adjust-my-tin-foil-hat","status":"publish","type":"post","link":"https:\/\/lenpenzo.com\/blog\/id27674-black-coffee-excuse-me-while-i-adjust-my-tin-foil-hat.html","title":{"rendered":"Black Coffee: Excuse Me While I Adjust My Tin Foil Hat"},"content":{"rendered":"

\"\"<\/a>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

You know those annoying “captcha” tests that a lot of websites use to make sure you’re not a spambot? I know. Everybody hates them — although they really are<\/em> a necessary evil, in my not so humble opinion. Anyway, sometimes captcha does manage to entertain me with the test words they come up with. For example, check out this screen shot I took of a captcha test word that I received:<\/p>\n

\"\"<\/a>

Have you ever seen a captcha test word like this?<\/p><\/div>\n

Oh, look! It’s time for the credits and debits — and not a moment too soon …<\/p>\n

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

Credit:<\/strong><\/span> The S&P 500 just completed its biggest 16-day gain<\/a> ever — that includes the periods during those huge economic expansions of the 1980s and late 1990s, which suggests we are in the middle of a booming economy, the likes of which that’s never been seen before. Hooray!<\/p>\n

Credit:<\/strong><\/span> Then again, judging by the results of last Tuesday’s elections<\/a>, voters aren’t buying it. At all. Even so, not much will change — at least not significantly.<\/p>\n

Debit:<\/strong><\/span> I suspect the election results have at least a little something to do with the fact that America will soon have more bartenders and waiters<\/a> than manufacturing workers. Oh, how far we’ve fallen …<\/p>\n

Credit:<\/strong><\/span> Meanwhile, the end of the Fed’s quantitative easing (QE) program has seen the US dollar surge to a four-year high<\/a> — and that has some analysts saying the dollar is poised to become significantly stronger in the future. Of course, strength is relative: the dollar is just the cleanest dirty shirt in the laundry basket.<\/p>\n

Debit:<\/strong><\/span> Russia certainly isn’t impressed with the “strength” of the US dollar. It’s currently considering a law to ban the circulation<\/a> of greenbacks within its borders. I guess they’re no longer big believers in the full faith and credit of the United States government.<\/p>\n

Credit:<\/strong><\/span> The Russians aren’t the only ones who are losing confidence in the US dollar — apparently, so are a growing number of Americans, if the increasing sales<\/a> of Silver Eagles are any indication; October was the US Mint’s biggest month in almost two years.<\/p>\n

Credit:<\/strong><\/span> The demand for silver bullion is even more<\/em> frantic this month. In fact, it’s so strong that the US Mint temporarily sold out<\/a> of Silver Eagles this week after selling more than three million<\/a> coins during the first three days of November alone. No, really.<\/p>\n

Debit:<\/strong><\/span> Despite record silver and gold demand, bullion prices have declined precipitously. I know. According to Paul Craig Roberts, who was an Assistant Secretary of the Treasury under Ronald Reagan, this proves that American financial markets no longer have any relationship to reality<\/a>. I agree.<\/p>\n

Credit:<\/strong><\/span> We’re not the only ones who think that way: Billionaire Paul Singer said this week that the government is cooking up stories<\/a> of “fake growth, fake money, fake jobs, fake financial stability, fake inflation numbers and fake income growth.” Harumph!<\/p>\n

Credit:<\/strong><\/span><\/strong> Even worse, Mr. Singer notes that the cooked data is being eaten up by a “careless citizenry<\/a>” that one can only assume is, presumably, preoccupied with “more important” matters — or in complete denial. Heh. Maybe us doom-and-gloomers aren’t so crazy after all.<\/p>\n

Debit:<\/strong><\/span> Besides, there is plenty of circumstantial evidence<\/a> to suggest Messrs. Roberts and Singer are correct — but such cozening behavior is expected because the world’s central banks are taking increasingly desperate measures<\/a> to keep the world’s debt-based financial system from imploding.<\/p>\n

Debit:<\/strong><\/span> Perhaps no central bank is exhibiting greater signs of desperation than the Bank of Japan, which doubled down last week on its plans to create the world’s largest bond bubble<\/a> — even though the move significantly increases the risk of destroying the nation’s currency.<\/p>\n

Debit:<\/strong><\/span> The bottom line is that our financial system is broken beyond repair<\/a>; we are witnessing a global economy in its death throes<\/a>. Yes, I realize that’s disturbing news; the unpleasant implications are why most people refuse to believe it — or mock those who are brave enough to point out that the emperor has no clothes.<\/p>\n

Credit:<\/strong><\/span><\/strong> The longer the financial shenanigans continue, the harder it is to deny this stark reality: After decades of living beyond our means, the US — and much of the world — finally face the day of reckoning. Will it be painful? Yes; extremely <\/em>— especially for Americans. But the sooner we own up to that, the sooner we can return to healthy economic behavior and a promising future of real<\/em> growth.<\/p>\n

(The Best of)<\/span> By the Numbers<\/strong><\/p>\n

All this doom and gloom talk made me hungry. Here’s a brief look at the American snack food market:
\n<\/strong><\/p>\n

$760 million <\/strong><\/span><\/span>Annual sales of natural chips, pretzels and related snacks.<\/p>\n

1.5<\/strong><\/span><\/span> Pounds of pretzels consumed per person per year in the United States.<\/p>\n

300 <\/strong><\/span><\/span>Cookies the average American consumes per year.<\/p>\n

1<\/strong><\/span><\/span> Sales rank of Nabisco’s Oreo cookie.<\/p>\n

500 billion <\/strong><\/span><\/span> Oreos sold since their invention in 1912.<\/p>\n

6<\/strong><\/span><\/span> Round trips to the moon and back that 500 billion Oreo cookies would stretch, if they were stacked together.<\/p>\n

Source: NewHope360<\/em><\/p>\n

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

[poll id=\"33\"]<\/code><\/p>\n

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

How many trick-or-treaters came to your door this year?<\/p>\n