{"id":58166,"date":"2019-12-07T02:15:34","date_gmt":"2019-12-07T10:15:34","guid":{"rendered":"https:\/\/lenpenzo.com\/blog\/?p=58166"},"modified":"2019-12-10T06:05:24","modified_gmt":"2019-12-10T14:05:24","slug":"black-coffee-7-dec-2019","status":"publish","type":"post","link":"https:\/\/lenpenzo.com\/blog\/id58166-black-coffee-7-dec-2019.html","title":{"rendered":"Black Coffee: Smiling Faces and Reassuring Voices"},"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

Well … another glorious weekend is upon us. I hope everybody is enjoying these early days of the holiday season. I know I am! In the meantime, let’s get this party started, shall we?<\/p>\n

It is what it is, but it’s not what it seems.<\/em><\/p><\/blockquote>\n

— Paul Hewson<\/strong><\/p>\n

Confidence is contagious; but so is lack of confidence.<\/em><\/p><\/blockquote>\n

— Vince Lombardi<\/strong><\/p>\n

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

Debit:<\/strong><\/span> Did you see this? A recent study has found that the median age of first-time home buyers in the US<\/a> has increased to 33 — it was 32 in 2018; it’s also the oldest age since the statistic started being tracked in 1981. And as homebuyers’ ages have increased, so have their incomes; the average income of purchasers is now $93,200, as fewer affordable options squeeze lower-income potential buyers out of the market. Imagine that.<\/p>\n

Debit:<\/strong><\/span> Meanwhile, there is a growing number of low-paying jobs<\/a> relative to employment with above-average pay. In 1990, the jobs were evenly divided; but since then, 63% of all jobs that were created have been low-wage, low-hour jobs. As a result, there are now only four high-paying jobs for every five low-paying jobs. The increased disparity may seem<\/strong><\/em> insignifcant, but it’s not. And if you don’t believe me, just ask a prospective first-time homebuyer.<\/p>\n

Credit:<\/strong><\/span> Of course, empires always rot from within<\/a>, and Tom Luongo observed that America’s chronically-declining job quality is just one symptom of that. Luongo also sees the US finally buckling under the enormous amount of unpayable debt it has been allowed to amass ever since the dollar was decoupled from gold. He’s not the only one.<\/p>\n

Debit:<\/strong><\/span> Then again, there’s always hope. For example, a pair of Federal Reserve researchers released some good news in a report that says the National Debt only becomes dangerous when it outpaces GDP; in other words, if the National Debt grows at a faster rate than the nation’s income, eventually the debt becomes unsustainable. The bad news is, the National Debt is accruing faster than national income<\/a>.<\/p>\n

Debit:<\/strong><\/span> But hold on … the same Fed report<\/a> notes that one particular “solution” that countries with high levels of unsustainable debt can try to cover their obligations is to “borrow money by issuing bonds and then order the central bank to buy those same bonds by printing money.” Hmmm. Frankly, that sounds too<\/strong><\/em> good to be true. A central banker sleight of hand trick, if you will. You know … kind of like this<\/strong><\/em>:<\/p>\n