{"id":30219,"date":"2015-03-21T09:15:59","date_gmt":"2015-03-21T16:15:59","guid":{"rendered":"https:\/\/lenpenzo.com\/blog\/?p=30219"},"modified":"2020-07-05T12:29:05","modified_gmt":"2020-07-05T19:29:05","slug":"black-coffee-presenting-a-little-economic-food-for-thought","status":"publish","type":"post","link":"https:\/\/lenpenzo.com\/blog\/id30219-black-coffee-presenting-a-little-economic-food-for-thought.html","title":{"rendered":"Black Coffee: Presenting a Little Economic Food for Thought"},"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> According to the latest data from the US Census Bureau, by the end of 2012, a stunning 34.5% of all Americans<\/a> — almost 110 million people — were living in households that received federal welfare benefits.<\/p>\n

Debit:<\/strong><\/span> It doesn’t help that, as John Titus points out, today 85% of the working age population entering the workforce for the first time either can’t find a job<\/a> or stopped looking for work. Compare that to only 46% in October 2008 — and just 21% in February 2000.<\/p>\n

Debit:<\/strong><\/span> By the way, if you include non-welfare payouts such as Social Security, Medicare, unemployment and veteran’s benefits, the total number of Americans in households receiving a government check climbs to 49.5%. Who thinks that<\/em> is sustainable? Well, besides stock market investors<\/a>.<\/p>\n

Credit:<\/strong><\/span> To be fair, everyone can’t earn a living by simply being a world champion competitive eater like Matt Stonie. Last week, the 120-pound phenom from San Jose, California, downed seven Shamrock shakes from McDonald’s — five full quarts, topped with whipped cream and cherries — in 4 minutes 41 seconds. Then he had a cheeseburger for dessert. No, really.<\/a><\/p>\n

Debit:<\/strong><\/span> In case you’re wondering<\/a>, Mr. Stonie says those Shamrock shakes he consumed contained 5740 calories and 805 grams of sugar. I wonder if his doctor knows about this.<\/p>\n

Debit:<\/strong><\/span> It’s a good thing this guy doesn’t live in rural America, where Obamacare regulations have led to the closure of 48 rural hospitals<\/a> since the law passed in 2010. And another 283 rural clinics are on the ropes.<\/p>\n

Debit:<\/strong><\/span> I know. I know. “If you like your doctor, you can keep your doctor<\/a>.”<\/em><\/p>\n

Credit:<\/strong><\/span> Hey, Obamacare ain’t all bad — at least I have more money in my wallet now thanks to that $2500 drop<\/a> in my annual healthcare premiums. Oh wait …<\/p>\n

Debit:<\/strong><\/span> Meanwhile, I see the law — which Obamacare advocates told us had to pass so everyone<\/em> would have “affordable” health insurance — will reach only 65%<\/a> of the CBO’s original coverage projection for 2015. On second thought, that’s probably a good thing.<\/p>\n

Debit:<\/strong><\/span> More signs that the world financial system is breaking down: On Wednesday, there were plenty of utterly breathtaking moves<\/a> in the currency markets, led by the euro surging more than 4% against the dollar within a couple of hours.<\/p>\n

Debit:<\/strong><\/span> Yes, by Thursday morning the “strong” dollar recouped all of its losses — but the world’s two biggest currencies shouldn’t behave<\/a> like the dubious fiat issued by two-bit banana republics. Something’s amiss.<\/p>\n

Debit:<\/strong><\/span> Then again, with negative interest rates on the scene now, that should be obvious. It’s truly a Bizarro world<\/a> we’re living in when banks are punishing savers and rewarding borrowers. Unfortunately, no civil society can withstand that kind of monetary policy for long.<\/p>\n

Debit:<\/strong><\/span> Speaking of negative numbers, Zillow is now forecasting that the number of homeowners with negative equity — read: stuck with an underwater mortgage — will not be decreasing<\/a> any time soon. That’s news you don’t expect to hear in a healthy economy.<\/p>\n

Credit:<\/strong><\/span> Ah, there I go again: Giving another one of my patented “doom and gloom” sermons that always seem to take more than a few folks out of their comfort zone. Surely, things aren’t that<\/em> bad<\/a>. Maybe they’re not.<\/p>\n

Credit:<\/strong><\/span> After all, US sales of so-called “luxury” toilet paper outsold all other types for the first time in ten years; in fact, Americans — led by Mr. Stonie, no doubt — bought $1.4 billion worth<\/a> of those extra-soft, really-thick, super-absorbent rolls last year. Yep. America’s back, baby!<\/p>\n

Credit:<\/strong><\/span> There; I know I feel better now. Cue the perma-bulls explaining why stocks are still woefully undervalued<\/a> in five, four, three, two …<\/p>\n

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

You may want to think twice before inviting champion eater Matt Stonie to dinner. Here are some of his previous gastronomical feats:<\/p>\n

6<\/strong><\/span><\/span> Pounds of bacon he consumed in five minutes. (That’s a world record.)<\/p>\n

182<\/strong><\/span><\/span> Slices of bacon it takes to make six pounds.<\/p>\n

8<\/strong><\/span><\/span> Minutes it took Stonie to gobble up a 14.5 pound birthday cake.<\/p>\n

101<\/strong><\/span><\/span> Number of traditional tacos Matt recently put away during an 8-minute span.<\/p>\n

20.8<\/strong><\/span><\/span> Pounds of pumpkin pie he devoured in 8 minutes.<\/p>\n

10<\/strong><\/span><\/span> Minutes it took Stonie to dispatch 24 gyros.<\/p>\n

10.5<\/strong><\/span><\/span> Pounds of frozen yogurt he swallowed in a 6-minute period.<\/p>\n

Source: Major League Eating<\/a><\/em><\/p>\n

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

[poll id=\"53\"]<\/code><\/p>\n

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

How long have you been with your current employer?<\/p>\n