{"id":35152,"date":"2016-01-02T00:15:34","date_gmt":"2016-01-02T08:15:34","guid":{"rendered":"https:\/\/lenpenzo.com\/blog\/?p=35152"},"modified":"2016-01-03T18:38:42","modified_gmt":"2016-01-04T02:38:42","slug":"black-coffee-the-happy-new-year-edition","status":"publish","type":"post","link":"https:\/\/lenpenzo.com\/blog\/id35152-black-coffee-the-happy-new-year-edition.html","title":{"rendered":"Black Coffee: The Happy New Year Edition"},"content":{"rendered":"

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

Happy New Year, everyone!<\/p>\n

Away we go …<\/p>\n

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

Debit:<\/strong><\/span> Despite being $72 billion in debt and guilty of defaulting on a portion of its bond payments last summer — with more defaults expected this month — Puerto Rico still gave $120 million in Christmas bonuses to its government employees. No, really<\/a>.<\/p>\n

Credit:<\/strong><\/span> Did you see this? David Stockman says the Fed can’t avoid a market meltdown because, “In a global economy that is plunging into an epic deflationary contraction, (they) still embrace mythical and unmeasurable benchmarks<\/a> and idealized performance targets.”<\/em> He’s right.<\/p>\n

Credit:<\/strong><\/span> And Stockman isn’t the only one calling BS on the Fed. From Charles Hugh Smith:“The supposed connection between cheap Fed credit and job creation is illusory — it’s nothing but a Dark Side mind-trick<\/a> played on the credulous and weak-minded.”<\/em> In other words: the Farce is with us.<\/p>\n

Credit:<\/strong><\/span> By the way, Fed-credit isn’t the only thing that’s cheap — silver is so inexpensive that it’s currently equivalent to a buck in 1980-dollars<\/a>. That’s the same year silver reached $49.45 — or $140 in today’s dollars. Think about that. Go ahead; I’ll wait.<\/p>\n

Credit:<\/strong><\/span> How many things on this planet are at least 90% cheaper today than they were in 1980 — let alone a precious metal, and the world’s second-most consumed commodity<\/a> behind oil? Not many, folks.<\/p>\n

Debit:<\/strong><\/span> As we begin the new year, many folks look back to see if they improved their lot in life over the past 365 days. Most of them probably haven’t; a recent analysis suggests that no more than one-third of all Americans<\/a> now qualify as middle-class. Forward!<\/p>\n

Credit:<\/strong><\/span> With that in mind, it’s a good thing the average gas price in the US fell below $2<\/a> for the first time since 2009. Wow. It’s hard to believe that seven years ago, pump prices in California were five bucks. And then some.<\/p>\n

Debit:<\/strong><\/span> Unfortunately for most folks, any windfall they’re getting at the pump is now being consumed by the cost of healthcare. In fact, the average American now spends more than 10% of their income<\/a> on those mandatory Obamacare premiums. Yes, mandatory … o’er the land of the “free.”<\/p>\n

Debit:<\/strong><\/span> And, no, you’re not going crazy. The politicians who foisted this snake oil<\/a> on the rest of us really did insist that Obamacare would reduce<\/em> the average premium for a family of four by $2500 annually. Heck, it’s not even cheaper than my cell phone bill<\/a>.<\/p>\n

Debit:<\/strong><\/span> I guess the Obamacare cheerleaders expect us to pull the extra cash needed to pay for it from our savings. The trouble is, 62% of Americans have less than $1000<\/a> squirreled away. No, I didn’t forget a zero. The good news is that doesn’t include money hiding in the couch cushions.<\/p>\n

Debit:<\/strong><\/span> The bad news is, when the couch cushion fund is exhausted, some people end up taking desperate measures: like knocking off a bank dressed as Spiderman<\/a> — or robbing a 10-year-old boy at gunpoint for … for $3<\/a>. I know. Needless to say, the politicians in D.C. have a little competition.<\/p>\n

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

Celebrating the New Year:<\/p>\n

42<\/strong><\/span><\/span> Number of floats in the 2016 Rose Bowl Parade.<\/p>\n

1,000,000<\/strong><\/span><\/span> People who filled Times Square to see the New Year’s Eve ball drop this year.<\/p>\n

11,875<\/strong><\/span><\/span> Weight, in pounds, of the New Year’s Eve ball.<\/p>\n

$799<\/strong><\/span><\/span> Per person cost for New Year’s Eve dinner at the Times Square Bubba Gump Shrimp restaurant.<\/p>\n

$400<\/strong><\/span><\/span> Per person cost for New Year’s Eve dinner at the Times Square Olive Garden.<\/p>\n

$349<\/strong><\/span><\/span> Per person cost for New Year’s Eve dinner at the Times Square Ruby Tuesday.<\/p>\n

$1799<\/strong><\/span><\/span> Cost for the New Year’s Eve “Couple’s VIP Table” at the Times Square Ruby Tuesday.<\/p>\n

Source: Marketplace.org<\/a><\/em><\/p>\n

Insider Announcement: Get Ready for an Insider Conference Call!<\/span><\/strong><\/p>\n

Over the next 45 days or so, Len Penzo dot Com Insiders will have access to my Annual State of the Household report that updates my current net worth and breaks down my total household expenses for 2015.<\/p>\n

Also, as a little experiment, I’m going to offer a 30-minute conference call near the end of month. The intent is to have an open forum where we can discuss personal finance, the world economy and macroeconomics — or anything else you’d like! To be honest, I have no idea if there is an appetite for this, but I think it will be a lot of fun and, if the call is well-received by those in attendance, I promise to make it a quarterly or bimonthly event — no matter how many people show up!<\/p>\n

Insider membership is only $1.97 per month — that’s less than a cup of Starbucks coffee — so you’ve got nothing to lose for trying it out! If you’re interested, just click on the “Insider Membership” link at the top this page for more details. You can also cut to the chase and simply click here<\/a>.<\/p>\n

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

Given a choice, which would you rather be?<\/p>\n