{"id":35266,"date":"2016-01-09T01:45:25","date_gmt":"2016-01-09T09:45:25","guid":{"rendered":"https:\/\/lenpenzo.com\/blog\/?p=35266"},"modified":"2023-11-25T10:52:36","modified_gmt":"2023-11-25T18:52:36","slug":"black-coffee-its-time-to-batten-down-the-hatches","status":"publish","type":"post","link":"https:\/\/lenpenzo.com\/blog\/id35266-black-coffee-its-time-to-batten-down-the-hatches.html","title":{"rendered":"Black Coffee: It’s Time to Batten Down the Hatches"},"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 just got back from a long business trip, so I’ve got an espresso edition for your enjoyment. Let’s get right to it, shall we?<\/p>\n

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

Debit:<\/strong><\/span> Is 2016 the year the dollar finally collapses<\/a> and economic reality blindsides 99.9% of Americans? More than a few people think so. As for me, I think the odds are better than 50\/50 — although I could be off by a year … or several.<\/p>\n

Credit:<\/strong><\/span> One thing is<\/em> certain: The clock on the time bomb better known as our international monetary system is ticking — and the fuse is getting short. After all, it’s a relatively simple math problem<\/a>, folks.<\/p>\n

Credit:<\/strong><\/span> The fact such a scenario is being discussed with increasing frequency — in both the mainstream press and alternative media, pro<\/a> and con<\/a> — should put at least a few seeds of doubt in the minds of those who insist it’ll never ever<\/em> happen.<\/p>\n

Debit:<\/strong><\/span> Of course, 2016 may not be as catastrophic as the doom and gloom crowd suggest, but after this Monday saw the worst opening day of trading<\/a> to a new year since the Great Depression, the stock market did its best to suggest the ride was going to get really bumpy.<\/p>\n

Debit:<\/strong><\/span> And the market only got worse as the week progressed; by Friday’s closing bell, it was a total massacre<\/a>, with stocks finishing their worst opening week to a new year ever<\/em>. Yes, ever.<\/p>\n

Debit:<\/strong><\/span> So … How bad was it<\/a>? Well, for the week, the S&P was down 5.3%, the Dow plunged 5.6%, and the Russell 2000 lost 6.9%. Ouch. You know, at that rate the markets will be worthless in about six months. Okay, not quite — but I think you get my drift.<\/p>\n

Debit:<\/strong><\/span> Meanwhile, across the Pacific, Chinese markets were even worse off. For awhile, the major stock indices there were losing 7% per day<\/em>. One day, the benchmark CSI300 index lost 7% in just 15 minutes<\/em><\/a> of trading.<\/p>\n

Debit:<\/strong><\/span> In fact, rampant stock dumping in China was causing market circuit breakers — which were designed to stop panic selling — to trip so frequently that exasperated Chinese officials finally threw up their hands and suspended the rule<\/a> in order to keep their bourses open. Unfortunately, they also imposed stock sell-limits.<\/p>\n

Credit:<\/strong><\/span> From Jim Quinn at The Burning Platform: “The pompous professionals inhabiting the NYC financial district are still arrogantly ignoring the imminent bust<\/a> headed their way. The Fed-juiced gains over the last six years will evaporate just as they did in 2007-2009.”<\/em> I think Jim is quite the optimist — which means we have at least one thing in common.<\/p>\n

Credit:<\/strong><\/span> One guy who says central bankers are to blame for the coming financial crisis is former Federal Reserve President, Richard Fisher, who actually admitted this week that, by conjuring trillions of dollars out of thin air, the Fed “front-loaded a tremendous market rally<\/a>.” Oh, yes … he really did. And in other news: hell just froze over.<\/p>\n

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

Do you have any gasoline company credit cards?<\/p>\n