{"id":65423,"date":"2021-03-06T02:15:19","date_gmt":"2021-03-06T10:15:19","guid":{"rendered":"https:\/\/lenpenzo.com\/blog\/?p=65423"},"modified":"2021-06-30T15:40:25","modified_gmt":"2021-06-30T22:40:25","slug":"black-coffee-6-mar-2021","status":"publish","type":"post","link":"https:\/\/lenpenzo.com\/blog\/id65423-black-coffee-6-mar-2021.html","title":{"rendered":"Black Coffee: Stuck in a Tangled Financial Web"},"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 commentary …<\/p>\n

Sneaky and underhanded, the Fed has been sucking the life blood out of the United States since 1913. Like a black widow spider, it weaves a web of corruption and deceit. Unknown to its prey, the Fed’s bite is poisonous, deep, long-lasting and brings financial upheaval and misery to Americans.<\/em><\/p><\/blockquote>\n

– Jim McCarthy<\/strong><\/p>\n

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

Credit:<\/strong><\/span> Did you see this? Paul Singer is the latest top-trader<\/a> billionaire-investor warning that “head-smacking craziness<\/a> in the stock market is playing out right now,” adding that a “flamboyant line-up” of excesses will come back to haunt investors in the form of out-of-control “rampant” inflation that will shock policy makers, respected brokerage houses<\/a> and bond investors alike. Okay, okay … but something tells me the Fed ain’t buying it.<\/p>\n

Debit:<\/strong><\/span> Of course, Singer is pinning the blame for the current financial system troubles squarely on the Fed. He also warns that, “When (inflation) breaks out in an inescapably broad way, there will be a crowd of seriously confused policymakers<\/a> making excuses and claiming that inflation doesn’t exist; it’s not their fault; it was completely unpredictable; and it’ll actually be good for people.” Frankly, I think we’re already there.<\/p>\n

Credit:<\/strong><\/span> Singer isn’t the only economic expert blaming the Fed for the mess we’re in. The legendary Jim Grant of Grant’s Interest Rate Observer<\/em> recently lamented that, “A worldwide regime of interest rate suppression and manipulation has left us with a bond market that’s been all but destroyed<\/a> with respect to the proper functioning of a bond market.” (Psst. Hey, Jim. When it comes to the bond market, the Fed is just getting started.)<\/p>\n

\n

YOU: My cost of living is way up<\/p>\n

PHD: Isn’t that great?!<\/p>\n

Y: Huh?<\/p>\n

P: What’s your credit card debt?<\/p>\n

Y: $20K<\/p>\n

P: With 5% inflation, that $20k will only seem like $19k!<\/p>\n

Y: But I still owe $20k, plus interest, & my income didn’t go up.<\/p>\n

P: You should work at the Fed. We do great.<\/p>\n

Rudy Havenstein held the table for eleven games. (@RudyHavenstein) March 4, 2021<\/a><\/p><\/blockquote>\n