{"id":74616,"date":"2022-09-10T02:15:35","date_gmt":"2022-09-10T09:15:35","guid":{"rendered":"https:\/\/lenpenzo.com\/blog\/?p=74616"},"modified":"2023-10-28T08:14:31","modified_gmt":"2023-10-28T15:14:31","slug":"black-coffee-10-sept-2022","status":"publish","type":"post","link":"https:\/\/lenpenzo.com\/blog\/id74616-black-coffee-10-sept-2022.html","title":{"rendered":"Black Coffee: Faith and Confidence"},"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 hope everybody had an enjoyable week. Without further ado, let’s get right to this week’s commentary …<\/p>\n

Nothing is so permanent as a temporary government program.<\/em><\/p><\/blockquote>\n

– Milton Friedman <\/strong><\/p>\n

Trust not too much to appearances.<\/em><\/p><\/blockquote>\n

– Virgil<\/strong><\/p>\n

Hell is truth seen too late.<\/em><\/p><\/blockquote>\n

– Thomas Hobbes<\/strong><\/p>\n

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

Debit:<\/strong><\/span> Did you see this? It turns out that more than 1.1 million prison inmates received stimulus checks<\/a>, totaling over $1.3 billion. Even more astounding is that 163,000 of them were serving life sentences. Hey … who says crime doesn’t pay? And while that may<\/strong><\/em> annoy you, it’s especially good news for the over-30 crowd …<\/p>\n

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Debit:<\/strong><\/span> For those who insist the US is not in a recession – despite suffering two consecutive quarters of negative GDP growth – consider this: According to a recent survey, a record number of Americans are now taking second jobs<\/a>, freelancing, or other side hustles while already holding down a main job. In fact, roughly 1 in 4 Americans said they had to take the extra work “out of necessity to support basic family needs.” That doesn’t sound like a healthy economy to me, but I’m not an economist either. Or a politician.<\/p>\n

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(h\/t: Boatsurfer 600 via Reddit\/WallStreetSilver)<\/p><\/div>\n

Credit:<\/strong><\/span> Believe it or not, there is some<\/strong><\/em> good economic news, and it’s related to housing. Well … assuming you’ve been having trouble finding a new home, and you don’t need a mortgage<\/a> to afford one. Then again, if you’re looking to sell, not so much<\/a>. That’s because, thanks to rising interest rates, the supply of new homes is not only skyrocketing, but is poised to reach its highest level ever. See for yourself:<\/p>\n

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Debit:<\/strong><\/span> Unfortunately, not everything is in plentiful supply; California has been struggling all week<\/a> long to keep its electricity grid functioning. Hopefully, the bureaucrats there will figure out a way to bolster their overtaxed infrastructure before 2035 when everybody there will be forced to buy an EV. Then again, I guess there are always<\/strong><\/em> workarounds; you just have to be able think outside of the box …<\/p>\n

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Debit:<\/strong><\/span> Meanwhile, the Fed is in negotiations with the US Treasury; apparently, the Fed wants the Treasury to cover the central bank’s operating expenses. Temporarily, of course. According to legendary asset manager Jim Sinclair, that’s because the Fed has no income<\/a> now that interest rates are rising. In other words: its balance sheet problems<\/a> are finally coming home to roost. I know – the whole idea sounds<\/strong><\/em> crazy. I mean … how can an entity that routinely conjures countless quantities of fiat currency out of thin air be unable to pay its bills? Is there actually somebody out there who really<\/strong><\/em> believes that?<\/p>\n