{"id":55821,"date":"2019-07-20T02:15:57","date_gmt":"2019-07-20T09:15:57","guid":{"rendered":"https:\/\/lenpenzo.com\/blog\/?p=55821"},"modified":"2024-05-28T11:27:43","modified_gmt":"2024-05-28T18:27:43","slug":"black-coffee-20-jul-2019","status":"publish","type":"post","link":"https:\/\/lenpenzo.com\/blog\/id55821-black-coffee-20-jul-2019.html","title":{"rendered":"Black Coffee: Gold and the Modern Mind"},"content":{"rendered":"

\"\"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 hope everybody is having a nice relaxing weekend. I know I am! Okay, away we go …<\/p>\n

Everyone wants to live at the expense of the state. They forget that the state lives at the expense of everyone.<\/em><\/p><\/blockquote>\n

— Frederic Bastiat<\/strong><\/p>\n

The modern mind dislikes gold because it blurts out unpleasant truths.<\/em><\/p><\/blockquote>\n

— Joseph Schumpeter<\/strong><\/p>\n

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

Debit:<\/strong><\/span> Did you see this? Inflation-adjusted US Census data shows that incomes since 1960 have risen just 16% — while rents have climbed 72%<\/a>, and house prices have soared 121%. Yet more proof of gradual long-term economic rot behind the scenes.<\/p>\n

Debit:<\/strong><\/span> On a somewhat related note, I see the Conference Board Leading Economic Index for the US tumbled 0.3% in June; that’s the biggest month-over-month drop since January 2016. The biggest areas of economic decline<\/a> were driven by rising unemployment claims, and weaknesses in manufacturing orders and housing permits. So the odds we’re quickly approaching — if not already in — a recession are increasing daily.<\/p>\n

Credit:<\/strong><\/span> Despite all of the smoke billowing from the American economic engine, nobody seems to be too concerned, as stocks continue to hit new records on a weekly basis. As a result, the market-cap-to-GDP ratio is nearing 150%<\/a>. That’s only slightly lower than the last peak reached during the Dot Com bubble. Hmm. Does anyone else see a problem here? No? Okay … then how about here:<\/p>\n