{"id":61435,"date":"2020-06-13T02:15:21","date_gmt":"2020-06-13T09:15:21","guid":{"rendered":"https:\/\/lenpenzo.com\/blog\/?p=61435"},"modified":"2020-06-17T06:50:51","modified_gmt":"2020-06-17T13:50:51","slug":"black-coffee-13-june-2020","status":"publish","type":"post","link":"https:\/\/lenpenzo.com\/blog\/id61435-black-coffee-13-june-2020.html","title":{"rendered":"Black Coffee: Honest Money & Dishonest Men"},"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

For most people on Main Street, the financial crisis rages on — just don’t tell that to the suits on Wall Street, where everything continues to be lollipops and rainbows. So let’s get right to this week’s commentary …<\/p>\n

The greatest shortcoming of the human race is our inability to understand the exponential function.<\/em><\/p><\/blockquote>\n

— Albert A. Bartlett<\/strong><\/p>\n

Because gold is honest money, it is disliked by dishonest men.<\/em><\/p><\/blockquote>\n

— Anonymous<\/strong><\/p>\n

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

Credit:<\/strong><\/span> Did you see this? The theme for the 2021 Davos conference is “The Great Reset.” No, really<\/a>. At least I can say I’ve been proudly wearing my tin foil hat for the past decade. Now almost everybody<\/strong><\/em> seems to be wearing one — including the smart money guys.<\/p>\n

Credit:<\/strong><\/span> You shouldn’t be surprised. As asset manager Keith Dicker notes, the effectiveness of Keynesian economic theory<\/a> is over now that the world’s central banks have collectively cut interest rates to zero. But because the world’s policy makers continue to embrace Keynesian economic theory, Dicker says, “we should expect to see even more deficit spending and bailouts, even lower negative rates, and even more money printing to support credit markets.” Ya think?<\/p>\n

Debit:<\/strong><\/span> People who say the Fed has everything under control need to explain how that can be when it took the Fed seven years to add $3.7 trillion to its balance sheet during and after the Great Financial Crisis of 2008 but only 10 months to add nearly another $3.7 trillion since the repo market broke last September. Does anybody else see a problem here? Anyone? Anyone?<\/p>\n