{"id":29763,"date":"2015-02-21T12:14:41","date_gmt":"2015-02-21T20:14:41","guid":{"rendered":"https:\/\/lenpenzo.com\/blog\/?p=29763"},"modified":"2023-05-12T10:15:01","modified_gmt":"2023-05-12T17:15:01","slug":"black-coffee-bigfoot-hunters-gold-bugs-and-other-cuckoos","status":"publish","type":"post","link":"https:\/\/lenpenzo.com\/blog\/id29763-black-coffee-bigfoot-hunters-gold-bugs-and-other-cuckoos.html","title":{"rendered":"Black Coffee: Bigfoot Hunters, Gold Bugs and Other Cuckoos"},"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

Let’s get right to it this week …<\/p>\n

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

Debit:<\/strong><\/span> Shortages of basic medical supplies in the people’s socialist paradise of Venezuela are now so acute that citizens are hopping onto Twitter and sending out desperate tweets for treatment<\/a>. Sad.<\/p>\n

Debit:<\/strong><\/span> The dearth of prescription drugs and other key supplies is so dire there that 15% of Venezuelan cancer patients are dying<\/a> as a direct result of the shortages. Folks, this is what happens when socialist utopias begin running out of other people’s money.<\/p>\n

Debit:<\/strong><\/span> Frankly, it ain’t so great anywhere. Last week it was reported that the world’s central banks are now printing enough cash to buy the bonds required to cover 100% of government borrowing<\/a> needs — plus a little extra for … well, whatever else is needed to keep global markets inflated.<\/p>\n

Credit:<\/strong><\/span> As Bill Bonner notes<\/a>, when markets were honest: “Bond traders could ‘just say no’ to government bonds. If inflation increased, bond vigilantes would ride to the rescue, forcing the feds to raise interest rates. Now debt really doesn’t matter!”<\/em><\/p>\n

Debit:<\/strong><\/span> He’s right; if the central banks can get away with printing whatever is needed to cover all debts, then why bother being fiscally responsible? (Hint: They can’t — at some point, economic reality will<\/em> prevail.)<\/p>\n

Debit:<\/strong><\/span> Meanwhile, the Baltic Dry Index — which measures worldwide shipping costs of raw materials like coal, iron ore, steel and cement — has plunged 77%<\/a> since December 2013. In fact, the index hit an all-time low earlier this week. How can that be, if everything is so rosy?<\/p>\n

Credit:<\/strong><\/span> What makes the Baltic Dry Index so important is that it consists of inputs from multiple independent sources; therefore, it’s extremely difficult to manipulate. And that<\/em> makes the BDI a realistic indicator<\/a> of global economic health.<\/p>\n

Credit:<\/strong><\/span> You couldn’t tell from the stock market that the world is struggling with a Weekend at Bernie’s<\/a><\/em> economy; both the Dow and S&P hit all-time highs<\/a> this week. If you’re thinking “deja vu,” you’re not alone.<\/p>\n

Debit:<\/strong><\/span> Then again, the stock market is so hot that there’s now an IPO in the works from a startup that is hoping to raise lots of cash for a bigfoot expedition<\/a>. I know. For what it’s worth, I tried clicking my heels three times. Unfortunately, I’m still here.<\/p>\n

Credit:<\/strong><\/span> Laugh all you want at those who believe in sasquatches; but according to Peter Hug, a metals executive for Kitco, 25% of those who protect their wealth with physical gold are the ones who are truly<\/em> cuckoo<\/a>. Really?<\/p>\n

Credit:<\/strong><\/span> We’ll see, Mr. Hug; but unlike the bigfoot mystery, I think we’re going to find out sooner rather than later whether the so-called gold bugs are crazy — or simply crazy like a fox.<\/p>\n

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

Amaze your friends with these bigfoot facts:<\/p>\n

17<\/strong><\/span><\/span> Length, in inches, of the typical sasquatch footprint.<\/p>\n

1811<\/strong><\/span><\/span> Year that the first sasquatch footprints were discovered.<\/p>\n

35<\/strong><\/span><\/span> A bigfoot’s top running speed, in miles per hour.<\/p>\n

10<\/strong><\/span><\/span> The maximum height of a bigfoot, in feet.<\/p>\n

490<\/strong><\/span><\/span> Typical sasquatch weight, in pounds.<\/p>\n

80%<\/strong><\/span><\/span> Supposedly, the chance of surviving a bigfoot confrontation if you offer it food. (No, really.)<\/p>\n

1965<\/strong><\/span><\/span> Year that Russia put the sasquatch on its endangered species list. (Two years later, France and Germany did too.)<\/p>\n

Source: Mirror<\/a><\/em><\/p>\n

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

[poll id=\"49\"]<\/code><\/p>\n

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

How much credit card debt are you currently paying interest on?<\/p>\n