{"id":35059,"date":"2015-12-19T00:05:31","date_gmt":"2015-12-19T08:05:31","guid":{"rendered":"https:\/\/lenpenzo.com\/blog\/?p=35059"},"modified":"2023-01-01T10:54:12","modified_gmt":"2023-01-01T18:54:12","slug":"black-coffee-excuse-me-while-i-blow-some-hot-air","status":"publish","type":"post","link":"https:\/\/lenpenzo.com\/blog\/id35059-black-coffee-excuse-me-while-i-blow-some-hot-air.html","title":{"rendered":"Black Coffee: Excuse Me While I Blow Some Hot Air"},"content":{"rendered":"

\"black<\/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

I’ve got a lot of Christmas shopping to do this weekend, so here’s an espresso edition of Black Coffee for your holiday enjoyment.<\/p>\n

Off we go …<\/p>\n

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

Debit:<\/strong><\/span> This week the Fed raised short term interest rates<\/a> a measly 25 basis points, getting them off the zero-bound for the first time in seven years. In fact, it was the first time the Fed raised rates since 2006.<\/p>\n

Debit:<\/strong><\/span> Of course, the Fed seems to be raising rates at the worst possible time as the struggling economy seems to be on the verge of keeling over. Unfortunately, it’s too little, too late<\/a> because the Fed should have raised rates many many<\/em> years ago<\/a>.<\/p>\n

Debit:<\/strong><\/span> Since the Janet Yellen announced the rate hike, the stock market, which has been a big beneficiary of the Fed’s zero-interest policy, has not taken it well: the S&P suffered its worst two-day decline<\/a> since September and the Dow dropped 350 points on Friday alone. What a surprise. Not.<\/p>\n

Debit:<\/strong><\/span> One hundred years ago, Argentina was the seventh-wealthiest nation in the world, but in 1946 Juan Peron turned it toward socialism — and for the most part, it’s been downhill ever since<\/a>.<\/p>\n

Debit:<\/strong><\/span> How far has Argentina fallen? Well, after the Argentine peso was devalued by 30% on Wednesday<\/a> — in essence making everything 30% more expensive overnight — the country is now number 60<\/a> (give or take). I bet they’re crying in Argentina now.<\/p>\n

Debit:<\/strong><\/span> If you think Argentina has fallen a long way, just wait until the US dollar faces its day of reckoning<\/a>. I can assure you that Americans will be significantly worse off financially than they are today. Scoff all you want — but it’s coming, folks. It’s coming.<\/p>\n

Credit:<\/strong><\/span> The good new is there are<\/em> ways to protect yourself from currency devaluation<\/a>; for example, Argentinians whose savings are in precious metals didn’t lose any of their purchasing power this week. And you can take that to the bank. On second thought — don’t. You’ll never see it again.<\/p>\n

Credit:<\/strong><\/span> Believe it or not, even the alleged founder of Bitcoin — which is touted as a safer alternative to fiat cash — sold $85 million<\/a> worth of his digital-currency alternative in exchange for — wait for it … gold bullion. Hmmm. Maybe Bitcoin isn’t so safe after all.<\/p>\n

Debit:<\/strong><\/span> Finally … Speaking of dubious products, I see that cans of bottled Canadian air<\/a> are flying off the shelves in China. Uh huh — air. Don’t laugh; anybody remember pet rocks<\/a>? And for you wiseacres out there, no, I’m not referring to gold<\/a>.<\/p>\n

Credit:<\/strong><\/span> You know, the canned air that the Chinese are buying supposedly comes from the Canadian Rockies. I wonder if the company selling the stuff will soon be offering ‘diet’ air from Toronto. (No, I’m not sure what that means exactly, but I think there’s a joke in there<\/a> somewhere.)<\/p>\n

Credit:<\/strong><\/span> Then again, the Chinese aren’t the only ones who are crazy — Americans have been avid buyers of air for decades. The only difference is, instead of cans, our air comes in bags that also contain a handful of potato chips<\/a>.<\/p>\n

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

[poll id=\"92\"]<\/code><\/p>\n

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

What is your budget for Christmas presents this year?<\/p>\n