{"id":32707,"date":"2015-08-01T03:00:04","date_gmt":"2015-08-01T10:00:04","guid":{"rendered":"https:\/\/lenpenzo.com\/blog\/?p=32707"},"modified":"2015-08-03T08:33:05","modified_gmt":"2015-08-03T15:33:05","slug":"black-coffee-all-we-need-is-a-little-more-faith-and-optimism","status":"publish","type":"post","link":"https:\/\/lenpenzo.com\/blog\/id32707-black-coffee-all-we-need-is-a-little-more-faith-and-optimism.html","title":{"rendered":"Black Coffee: All We Need Is a Little More Faith and Optimism"},"content":{"rendered":"

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

Can you believe it’s August already? Hard to believe summer is just about half over.<\/p>\n

Okay, off we go …<\/p>\n

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

Debit:<\/strong><\/span> Americans who have read the fine print in their annual Social Security statement know that the listed benefits aren’t sacrosanct. Depending on future changes in the laws governing those benefits, they could be cut by 22%<\/a> — or more.<\/p>\n

Debit:<\/strong><\/span> On the other hand, that’s probably the least of your worries if you’re counting on Social Security for retirement. According to David Stockman, his math shows that the program’s finances are in such dire straits that the entire system could be bankrupt within 12 years<\/a>. Clearly, David is an optimist.<\/p>\n

Debit:<\/strong><\/span> Meanwhile, after more than six years of holding interest rates at the zero-bound, the Fed is strongly hinting that they plan to begin raising them<\/a> next month. The question is: Can the “Weekend at Bernie’s<\/a>” economy handle it?<\/p>\n

Credit:<\/strong><\/span> Then again, if the economy is as strong as some people would have us believe, then interest rates should have risen years ago — but the reality is this has been the worst economic expansion<\/a> in more than 70 years.<\/p>\n

Debit:<\/strong><\/span> After all, if the US economy is as strong as the usual cheerleaders say it is, then how do they explain the latest Census Bureau data that shows one in three Americans between 18 and 34 still live with their parents<\/a> or other relatives? Anyone?<\/p>\n

Debit:<\/strong><\/span> And it’s not just adult children who have fallen on hard times; there are now more American kids living in poverty<\/a> today than during the Great Recession. Yes, despite the trillions of dollars our politicians have added to the National Debt since then.<\/p>\n

Debit:<\/strong><\/span> There are other signs of serious problems with the US economy, such as the collapsing rate of homeownership — it’s currently sitting at a 48-year low<\/a>. And yet, home prices continue climbing. For now.<\/p>\n

Debit:<\/strong><\/span> Needless to say, the second quarter US GDP results were announced this week and they were nothing to write home about: just 2.3%<\/a>. Even so, the mainstream media spins it as good news. The question is, why?<\/p>\n

Credit:<\/strong><\/span> Of course, not everybody’s drinking the Kool-aid. In fact, as analyst Dave Kranzler points out, the first quarter GDP was recently revised from negative 0.2% to positive 0.6% — despite plunging retail sales and manufacturing orders. Huh? Now you know why Kranzler calls the latest data “grotesquely deceptive propaganda<\/a>.”<\/p>\n

Debit:<\/strong><\/span> Speaking of deceptive propaganda, you know we’re living in a Bizarro world when the Wall Street Journal claims that owning gold is “an act of faith<\/a>.” Heh. Unbelievable. So tell me: How can holding real money that’s free of counterparty risk be considered an act of faith?<\/p>\n

Credit:<\/strong><\/span> Apparently,the author of that Journal hit piece, Jason Zweig, believes fiat currency that can be conjured out of thin air<\/a> in infinite quantity is as real and secure as the Rock of Gibraltar. Right.<\/p>\n

Credit:<\/strong><\/span> Psst, Mr. Zweig: See … unlike paper instruments such as stocks, bonds and fiat currencies, gold can never default<\/a>, or become worthless. Five thousand years of history proves it.<\/p>\n

Debit:<\/strong><\/span> You can bet there aren’t many depositors in Greece who still believe in the sanctity of cash — at least when it’s in the banking system. That’s because Greek banks are going to keep their draconian withdrawal limits<\/a> in place for many more months.<\/p>\n

Credit:<\/strong><\/span> One thing is certain: the US Mint sold more physical gold last month than they have in any month since April 2013. Who knows? Maybe Moody’s recent announcement that Puerto Rico’s default probability is approaching 100%<\/a> had a little to do with that.<\/p>\n

Debit:<\/strong><\/span> Strangely, at the same time that the US Mint was seeing record sales of physical gold, the price of the yellow metal hit a five-year low<\/a>. No, really.<\/p>\n

Credit: <\/strong><\/span> Now I know what you’re thinking, folks, but please … don’t be silly. There’s absolutely no<\/em> manipulation in the precious metal markets! Nope. None at all. It’s just that the law of supply and demand no longer applies<\/a> here — and, sadly, neither does the rule of law.<\/p>\n

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

Summertime is movie season. With that in mind, how many of the 10 biggest movies of 1995 (box office gross) have you seen?<\/p>\n

1<\/strong><\/span><\/span> Toy Story ($191.8 million)<\/p>\n

2<\/strong><\/span><\/span> Batman Forever ($184.0 million)<\/p>\n

3<\/strong><\/span><\/span> Apollo 13 ($172.1 million)<\/p>\n

4<\/strong><\/span><\/span> Pocahontas ($141.6 million)<\/p>\n

5<\/strong><\/span><\/span> Ace Ventura: When Nature Calls ($108.4 million)<\/p>\n

6<\/strong><\/span><\/span> Golden Eye ($106.4 million)<\/p>\n

7<\/strong><\/span><\/span> Jumanji ($100.5 million)<\/p>\n

8<\/strong><\/span><\/span> Casper ($100.3 million)<\/p>\n

9<\/strong><\/span><\/span> Seven ($100.1 million)<\/p>\n

10<\/strong><\/span><\/span> Die Hard: With a Vengeance ($100.0 million)<\/p>\n

Source: Box Office Mojo<\/a><\/em><\/p>\n

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

If you were looking for a new house, would you buy one with a pool?<\/p>\n