{"id":63641,"date":"2020-11-07T02:15:20","date_gmt":"2020-11-07T10:15:20","guid":{"rendered":"https:\/\/lenpenzo.com\/blog\/?p=63641"},"modified":"2020-11-10T05:21:04","modified_gmt":"2020-11-10T13:21:04","slug":"black-coffee-7-nov-2020","status":"publish","type":"post","link":"https:\/\/lenpenzo.com\/blog\/id63641-black-coffee-7-nov-2020.html","title":{"rendered":"Black Coffee: The Enemy Within"},"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

Let’s get right to this week’s financial commentary …<\/p>\n

Corrupt money leads to a corrupt society.<\/em><\/p><\/blockquote>\n

— Anonymous<\/strong><\/p>\n

A republic, if you can keep it.<\/em><\/p><\/blockquote>\n

— Ben Franklin<\/strong><\/p>\n

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

Debit:<\/strong><\/span> Did you see this? After a decade of relentless central bank money printing, global debt-to-GDP<\/a> is projected to swell to a record 265% this year. And if you think that’s bad, one ratings agency is saying it expects insolvencies and defaults to rise to levels not seen since the 2009 crisis. But I’m sure the major central banks will have something to say about that in the form of low interest rates and more QE. With their currencies now tied to asset performance, they really don’t have a choice.<\/p>\n

Credit:<\/strong><\/span> Jim Rogers is worried about the global sea of red ink too; the legendary 78-year-old investor says the world is buried under such an unprecedented mountain of debt<\/a> that history is clear on what’s coming next: “the worst economic crisis of my lifetime.” How? Either via a massive default, or destruction of the currencies the debt is denominated in. (Psst. Since our debt-based monetary system can’t withstand the deflation that would be unleashed with the former, it’ll be the latter.)<\/p>\n

Credit:<\/strong><\/span> Hey … if Rogers is correct about what’s waiting around the corner, then what’s an average Joe supposed to do? As many might expect, Rogers recommends protecting your wealth with physical precious metals<\/a> and select commodity investments. In fact, as measured by the S&P commodities index, commodities are the cheapest they’ve ever been versus the general stock market in more than 50 years. It’s true … see for yourself:<\/p>\n

\"\"<\/p>\n

Credit:<\/strong><\/span> Meanwhile, despite the current US election uncertainty, the stock market<\/a> continues to hover near all-time highs. Imagine that.<\/p>\n

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With stocks up big on presumed Biden win; then up big on presumed Trump win; then up big again on presumed Biden win, thought itd be a good time to revisit this.<\/p>\n

Time being spent on vote counts might be better spent on the US fiscal situation 🧨💥🍿 https:\/\/t.co\/otarcQeTLW<\/a> https:\/\/t.co\/rFlRTNuBk6<\/a><\/p>\n

Luke Gromen (@LukeGromen) November 4, 2020<\/a><\/p><\/blockquote>\n