{"id":49340,"date":"2018-06-23T04:15:04","date_gmt":"2018-06-23T11:15:04","guid":{"rendered":"https:\/\/lenpenzo.com\/blog\/?p=49340"},"modified":"2025-01-11T09:02:16","modified_gmt":"2025-01-11T17:02:16","slug":"black-coffee-23-june-2018","status":"publish","type":"post","link":"https:\/\/lenpenzo.com\/blog\/id49340-black-coffee-23-june-2018.html","title":{"rendered":"Black Coffee: Weighing the Evidence Against the US Dollar"},"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

Another glorious week comes to an end. Off we go …<\/p>\n

“When you see that trading is not done by consent, but by compulsion; when you see that in order to produce you need to obtain permission from men who produce nothing; when you see money flowing into those who deal not in goods, but in favors; when you see that men get richer by graft and pull than by work, and your laws don’t protect you against them but protects them against you; when you see corruption being rewarded and honesty becoming a self-sacrifice — then you know your society is doomed.”<\/em><\/p><\/blockquote>\n

— Francisco’s “Money Speech” from Ayn Rand’s “Atlas Shrugged”<\/strong><\/p>\n

“All paper money eventually returns to its intrinsic value: zero.”<\/em><\/p><\/blockquote>\n

— Voltaire<\/strong><\/p>\n

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

Credit:<\/strong><\/span> Did you see this? A recent Gallup poll found that the percentage of Americans who are actually satisfied with how things are going in the United States was just 38%! And while that may seem low, that number is actually the highest satisfaction rate in 12 years<\/a>. No, really.<\/p>\n

Credit:<\/strong><\/span> As Gallup notes, the national satisfaction index, which was first measured in 1979, is now back to its historical average of 37%<\/a>. However, this pales in comparison to the satisfaction levels reached during the economic boom periods in the mid-1980s and late 1990s. Imagine that.<\/p>\n

Debit:<\/strong><\/span> There’s a good reason why a significant majority of Americans have been in a relatively sour mood for the past two decades — and most of them don’t even know it: the “Almighty Dollar” is dying<\/a>. Yes, that seems like a crazy claim — but for those who are willing to open their eyes, the supporting evidence is everywhere.<\/p>\n

Debit:<\/strong><\/span> Let’s look at Exhibit A: whether it’s houses, stocks, government bonds, fine art, or collectible cars, almost everything is in a bubble. That’s because the Fed has been forced to create trillions of additional dollars — which have to go somewhere<\/em> — via its so-called “quantitative easing” program in order to keep the Ponzi scheme<\/a> better known as the debt-based international monetary system from collapsing.<\/p>\n

Debit:<\/strong><\/span> In fact, Centricus Asset Management Fund Manager Ralph Jainz says we’re seeing the greatest asset inflation bubble<\/a> in 20 years — and he’s warning that it could pop sooner than many people expect. Although I’m sure the Plunge Protection Team will probably have something to say about that.<\/p>\n

Debit:<\/strong><\/span> Those who aren’t convinced that a housing bubble exists should consider Exhibit B: a two-bedroom, one-bath, 900 square-foot cottage in Palo Alto that some realtor has decided is worth $2.6 million<\/a>. I know — but it comes with granite countertops and stainless steel appliances.<\/p>\n

Credit:<\/strong><\/span> By the way, if you think the housing market bubble is enormous, well … check this<\/em> bubble out:<\/p>\n