{"id":46388,"date":"2017-12-16T04:15:32","date_gmt":"2017-12-16T12:15:32","guid":{"rendered":"https:\/\/lenpenzo.com\/blog\/?p=46388"},"modified":"2023-05-12T10:29:46","modified_gmt":"2023-05-12T17:29:46","slug":"black-coffee-16-december-2017","status":"publish","type":"post","link":"https:\/\/lenpenzo.com\/blog\/id46388-black-coffee-16-december-2017.html","title":{"rendered":"Black Coffee: Why Every Day Is Christmas In and Around Washington, DC"},"content":{"rendered":"

\"\"<\/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

Here’s a friendly tip: If you’re going to be out of town on any of the twelve days of Christmas this year, try not to miss Day Five.<\/p>\n

Okay … and with that, we’re off and running!<\/p>\n

“Inflation is the crabgrass in your savings.”<\/em><\/p><\/blockquote>\n

— Robert Orben<\/strong><\/p>\n

“All paper money eventually returns to its intrinsic value: nothing.”<\/em><\/p><\/blockquote>\n

— Voltaire<\/strong><\/p>\n

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

Credit:<\/strong><\/span> China plans to roll out a yuan-denominated crude oil futures<\/a> contract that can be converted to gold on a domestic exchange by the end of the year. This week they held market-wide training simulations to prepare for the big event. Amazingly, the news, which has dire consequences for the US dollar — and most Americans’ standard of living — was barely an afterthought for the US mainstream media.<\/p>\n

Debit:<\/strong><\/span> Meanwhile, I see the wealthiest 1% of American households own 40% of the nation’s wealth<\/a> — that’s more than at any time in the past 50 years. If you don’t think that’s a problem, then you need to think again.<\/p>\n

Debit:<\/strong><\/span> On a related note, according to the Census Bureau, the five richest US counties by median household income are all suburbs of Washington<\/a>, DC. Surprised? You shouldn’t be. Now you know where the bulk of your federal income taxes end up. Hardly seems fair.<\/p>\n

Debit:<\/strong><\/span> Speaking of income — or a lack thereof — for the first time since November 2009, real average hourly earnings have tumbled<\/a> for four consecutive months. That begs the question: Why are Americans’ wages falling if the nation is supposedly at full employment?<\/p>\n

Debit:<\/strong><\/span> Despite the establishment’s continuing claim that the US labor market is rosy, by every reasonable standard, it isn’t even close. The truth is, after adjusting for the number of new jobs created in 2017 to account for the geometric progression of population gains, employment growth today is less than two-thirds<\/a> of what it was in the 1990s. It’s also less than half the growth of the 1980s. But you already knew that.<\/p>\n

Debit:<\/strong><\/span> I suspect you don’t need to see the latest Fed data that shows financial asset values are as high as ever<\/a> — and rapidly outpacing growth in nominal income — because you’re aware of that too. Uh huh. I thought so.<\/p>\n

Credit:<\/strong><\/span> By the way, according to the latest Fed figures, household net worth was 670% of income<\/a> as of this July — which means it’s poised to go higher because asset values have only continued their upward trajectory. In case you’re wondering, the current net-worth-to-income ratio surpasses the previous high of 654% that occurred during the last housing bubble in 2006.<\/p>\n

Debit:<\/strong><\/span> In other news … Just when you thought bitcoin mania couldn’t get any nuttier, there’s this: According to the New Zealand Herald, a 30-year-old IT professional recently sold his house and used the $60,000 in equity<\/a> to purchase high-powered computer equipment required for bitcoin mining. I know. To each his own, I guess. I’m sure my Australian friends can find a sheep joke somewhere in there.<\/p>\n

Credit:<\/strong><\/span> Then again, I guess cryptocurrency craziness shouldn’t be a surprise anymore now that bitcoin is officially the largest financial bubble in history<\/a>. That’s right; the Bitcoin Bubble is now bigger than the previous “Mother of All Bubbles” — that is, the infamous Tulip Mania of 1636-1637. But, hey … maybe an ethereal bitcoin really is<\/strong><\/em> worth more than 1000 ounces of physical silver. Or not. Yeah … not.<\/p>\n

\"\"<\/a><\/p>\n

 <\/p>\n

Credit:<\/strong><\/span> Of course, it’s not just bitcoin. Long-time hedge fund manager Doug Noland says, “The granddaddy of all bubbles has reached the heart of money and credit,” and warns of “tremendous losses” hitting all<\/em> assets classes once “central banks lose control of the monster they created.” Yep. That’s when they’ll have to start printing more cash or try to hold yields down. Regardless, Noland says: “There will be no way out<\/a>.”<\/p>\n

Credit:<\/strong><\/span> Actually, there will<\/em> be a way out — but it will require the reintroduction of precious metals to the monetary system. However, as Alasdair Macleoud notes: “A return to sound money will only occur when the purchasing power of (fiat) currency is sliding in the midst of a global crisis.” At that point, he says, a panicked public<\/a> will demand gold-backed currency. Sadly, by then it will be too late. Well … for most people.<\/p>\n

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

FedEx, UPS and the US Postal Service (USPS) expect to deliver record numbers of packages this holiday season:<\/p>\n

15,000,000,000<\/strong><\/span><\/span> Pieces of mail the postal service will deliver between Thanksgiving and New Year’s Day.<\/p>\n

400,000,000<\/strong><\/span><\/span> The number of packages FedEx will deliver over the holidays.<\/p>\n

750,000,000<\/strong><\/span><\/span> The number of packages UPS will deliver during the holiday season.<\/p>\n

850,000,000<\/strong><\/span><\/span> The number of packages the postal service will deliver over the holidays.<\/p>\n

10<\/strong><\/span><\/span> Percentage increase in the number of packages the postal service is is delivering in 2017, compared to last year.<\/p>\n

6,000,000<\/strong><\/span><\/span> The number of packages the postal service will deliver on Sundays this December.<\/p>\n

Source: USA Today<\/a><\/em><\/p>\n

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

[poll id=\"193\"]<\/code><\/p>\n

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

How many employers have you had during your lifetime?<\/p>\n

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