{"id":60324,"date":"2020-04-04T02:15:20","date_gmt":"2020-04-04T09:15:20","guid":{"rendered":"https:\/\/lenpenzo.com\/blog\/?p=60324"},"modified":"2021-08-01T17:46:59","modified_gmt":"2021-08-02T00:46:59","slug":"black-coffee-4-apr-2020","status":"publish","type":"post","link":"https:\/\/lenpenzo.com\/blog\/id60324-black-coffee-4-apr-2020.html","title":{"rendered":"Black Coffee: Financial Monkey Business"},"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

Welcome to Week 4 of the new era we now find ourselves in — one which will soon be known as the Greatest Depression. However, unlike the Great Depression of the 20th century, I believe this economic depression will come with significant price inflation, thanks to a rapidly-depreciating fiat dollar.<\/p>\n

That being said, it’s not<\/strong><\/em> the end of the world; life will go on, although it’s going to be a lot tougher in many ways. For everyone<\/strong><\/em>.<\/p>\n

The more their plans fail, the more the planners plan.<\/em><\/p><\/blockquote>\n

— Ronald Reagan<\/strong><\/p>\n

Everybody’s got something to hide except for me and my monkey.<\/em><\/p><\/blockquote>\n

— John Lennon<\/strong><\/p>\n

The future ain’t what it used to be.<\/em><\/p><\/blockquote>\n

— Yogi Berra<\/strong><\/p>\n

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

Debit:<\/strong><\/span> Did you see this? The recent stimulus bill repeals the sunshine law<\/a> for the Fed’s meetings until the President says the coronavirus threat is over or the end of this year. That new law makes any future FOIA lawsuits that are intended to reveal what’s really happening behind the scenes with our national currency — and the private central bank that controls it — nearly impossible. Let’s hope they’ll still tell us if we ask nicely.<\/p>\n

Debit:<\/strong><\/span> Then again, they probably won’t<\/strong><\/em> tell us. Why? Because, as Bloomberg’s Jim Bianco writes: “Unlike the 2008 financial crisis, the US Treasury, not the Fed, is now buying all securities and backstopping loans, the Fed is providing the financing — and investment management<\/a> firm BlackRock Inc. will purchase and administer these securities<\/a> on behalf of the Treasury.” Nope. No incentive for any kind of corruption there.<\/p>\n

Debit:<\/strong><\/span> According to Bianco, “In essence, the federal government is nationalizing large swaths of the financial markets, and essentially merging the Fed and Treasury<\/a> into one organization.” And although the Fed and US Treasury were de facto merged when Nixon closed the gold window in 1971, the big difference this time around is that the Fed is essentially giving the Treasury direct<\/strong><\/em> access to its printing press. Yeah … this will end well.<\/p>\n

Credit:<\/strong><\/span> Franklin Sanders can certainly see what’s going on. He notes that, “The Fed has practically nationalized the credit markets. They’ll bail out every mismanaged bank, corporation, and snow cone stand, and<\/strong><\/em> send checks to everybody they call poor. This is the American way; socialism without the nameplate<\/a>. It’s an irredeemable train wreck.” I couldn’t have said it any better myself. (Er … which is why I quoted Mr. Sanders).<\/p>\n

Credit:<\/strong><\/span> Meanwhile, Kentucky Congressman Thomas Massie sarcastically noted this week — before being pilloried by almost everyone<\/a> in DC — that all this new stimulus begs the question: “If $6 trillion of debt doesn’t matter, then why not $350 trillion more so we can give a $1 million check to everyone in the country?” Apparently, Massie isn’t aware of what they do to fiscal conservative pols who insist on sticking to their principles:<\/p>\n