{"id":68925,"date":"2021-10-02T02:15:00","date_gmt":"2021-10-02T09:15:00","guid":{"rendered":"https:\/\/lenpenzo.com\/blog\/?p=68925"},"modified":"2021-10-04T17:23:18","modified_gmt":"2021-10-05T00:23:18","slug":"black-coffee-2-oct-2021","status":"publish","type":"post","link":"https:\/\/lenpenzo.com\/blog\/id68925-black-coffee-2-oct-2021.html","title":{"rendered":"Black Coffee: The Power of the Purse"},"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

I’ve got a busy weekend to attend to, so let’s get right to this week’s commentary …<\/p>\n

He who controls the money supply of a nation controls the nation.<\/em><\/p><\/blockquote>\n

— James A. Garfield<\/strong><\/p>\n

No one ever seizes power with the intention of relinquishing it.<\/em><\/p><\/blockquote>\n

— George Orwell<\/strong><\/p>\n

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

Debit:<\/strong><\/span> Did you see this? In case you need more evidence that these Fed-juiced markets are a total sham, consider this: A live-streamed hamster named Mr. Goxx has been independently trading a portfolio of cryptocurrencies since June 12 and has a 24% gain<\/a> to show for it. No, really. Oh … and for those of you looking for a few hot tips, the hamster currently holds Ether, Tron and Ripple’s XRP. You’re welcome.<\/p>\n

Debit:<\/strong><\/span> Speaking of juiced markets<\/a>, have you seen a 10-year chart of the Nasdaq lately? Look at the following chart, which has the Fed’s fingerprints all over it …<\/p>\n

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Nasdaq index performance between 2000 and 2021.<\/p><\/div>\n

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To be fair, here is another chart of Nasdaq performance over the same period in logarithmic scale, which takes into account the large price move in terms of percentage change. Even so … it’s still a prodigious move made possible only by the Fed.<\/p><\/div>\n

Credit:<\/strong><\/span> Don’t think the government hasn’t noticed these outsized gains. I say this because the apparatchiks in DC — in an effort to wet their beaks and keep the spice flowing — are pushing for the taxation of unrealized stock gains<\/a>. Heh. Yes, it’s a clown world. As for unrealized losses<\/em><\/strong>, you can bet those will never be considered an eligible tax write-off.<\/p>\n

\"\"<\/a><\/p>\n

Debit:<\/strong><\/span> If you think taxing unrealized gains is crazy, check this out: On July 28, 2021, a bill was introduced<\/a> in Congress that authorizes the Fed to use distributed ledger technology for the creation, distribution and ‘recordation’ of all digital US dollar transactions — better known as a central bank digital currency (CBDC). Yes; it sounds like a cryptocurrency, but it’s most definitely not<\/strong><\/em>. Cryptocurrencies are decentralized and private, while CBDCs are centralized and anything but<\/strong><\/em> private.<\/p>\n

Credit:<\/strong><\/span> So what, exactly, is going on? Well … as economist Thorsten Polleit reminds us, “Fiat money causes inflation, economic crises, and wealth redistribution. But, above all, it’s a growth elixir for the state<\/a>, making it ever larger and more powerful at the expense of its citizens’ and entrepreneurs’ freedom.” The trouble is, fiat currency has a fatal flaw in that it has zero<\/strong><\/em> inherent value — so in the hands of politicians, it always ends up being self-destructive.<\/p>\n

\"\"<\/a><\/p>\n

Credit:<\/strong><\/span> In essence, with our monetary system in its death throes, the powers that be are desperately trying to do whatever they can to maintain their positions of privilege, which depends on continued dominance of the global monetary system. “Against this backdrop,” says Polleit, “it should be quite understandable why the political globalists see creating a single world currency as an important step toward seizing absolute power.” And if you don’t believe me<\/strong><\/em>, just listen to their own words<\/a> …<\/p>\n