{"id":53140,"date":"2019-02-02T03:15:26","date_gmt":"2019-02-02T11:15:26","guid":{"rendered":"https:\/\/lenpenzo.com\/blog\/?p=53140"},"modified":"2020-07-05T12:45:00","modified_gmt":"2020-07-05T19:45:00","slug":"black-coffee-2-feb-2019","status":"publish","type":"post","link":"https:\/\/lenpenzo.com\/blog\/id53140-black-coffee-2-feb-2019.html","title":{"rendered":"Black Coffee: The Fed Is Officially In Panic Mode"},"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

And away we go …<\/p>\n

When a government is dependent upon bankers for money, they and not the leaders of the government control the situation, since the hand that gives is above the hand that takes.<\/em><\/p><\/blockquote>\n

— Napoleon Bonaparte<\/strong><\/p>\n

America started to die when the Federal Reserve was founded, and it really started to die in 1971 when gold backing was taken away from the dollar.<\/em><\/p><\/blockquote>\n

— Jeff Berwick<\/strong><\/p>\n

When I did my research, I came to the startling conclusion that the Federal Reserve System doesn’t need to be audited — it needs to be abolished.<\/em><\/p><\/blockquote>\n

— G. Edward Griffin<\/strong><\/p>\n

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

Debit:<\/strong><\/span> It’s time for a reality check. As Egon VonGreyerz reminds us: “Very few realize that (our) high standard of living has nothing to do with real economic growth<\/a> or productivity. Instead, it’s based on $500 trillion of debt and printed currency, including unfunded liabilities and pensions.” Sadly, that doesn’t stop everyone else from believing the monetary charade will continue forever.<\/p>\n

Debit:<\/strong><\/span> No matter where you look, debt is everywhere. And while nations and corporations have racked up the majority of debt since 2008, consumers continue to drown in a sea of red ink too — especially when it comes to credit cards, as a new study has found that the average American household carries a monthly balance of $6929<\/a> — and pays $1140 a year in interest. Ouch.<\/p>\n

Debit:<\/strong><\/span> Then again, consumer debt has grown progressively worse over the last 40 years. For example, in 1980 the average American carried a debt load equivalent to double his or her monthly salary. Today, that number has ballooned to the jaw-dropping sum of 5 times monthly wages<\/a>. Does anybody see a problem here? No? Okay … well, then how about here:<\/p>\n