{"id":74753,"date":"2022-09-17T02:15:05","date_gmt":"2022-09-17T09:15:05","guid":{"rendered":"https:\/\/lenpenzo.com\/blog\/?p=74753"},"modified":"2023-05-12T11:04:40","modified_gmt":"2023-05-12T18:04:40","slug":"black-coffee-17-sept-2022","status":"publish","type":"post","link":"https:\/\/lenpenzo.com\/blog\/id74753-black-coffee-17-sept-2022.html","title":{"rendered":"Black Coffee: Your Lying Eyes"},"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

Well … another busy week is behind us. So with that in mind, let’s get this party started …<\/p>\n

Inflation can be pursued only so long as the public still doesn’t believe it will continue. Once the people realize that the inflation will be continued, and that the value of the monetary unit will decline more and more, then the fate of the money is sealed.<\/em><\/p><\/blockquote>\n

– Ludwig von Mises<\/strong><\/p>\n

We know they’re lying. They know they’re lying. They know we know they’re lying. And we know they know we know they’re lying — but they’re still lying.<\/em><\/p><\/blockquote>\n

— Aleksander Solzhenitsyn<\/strong><\/p>\n

You can ignore reality, but you cannot ignore the consequences of ignoring reality.<\/em><\/p><\/blockquote>\n

— Ayn Rand<\/strong><\/p>\n

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

Debit:<\/strong><\/span> Did you see this? For the second consecutive quarter, US household net worth fell. The end of the second quarter saw American households lose an astounding $6.1 trillion – that\u2019s the largest quarterly loss ever<\/a>. Yes, even bigger than the aggregate loss reported in the first quarter of 2020 during the peak of those ludicrous pandemic lockdown policies. Well … so much for that “strong” economy that the government and mainstream media continue telling us about.<\/p>\n

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(h\/t: @MacroAlf)<\/p><\/div>\n

Debit:<\/strong><\/span> In percentage terms, US household wealth fell from $150 trillion to $144 trillion, which is 4% – but keep in mind that is nominal wealth. However, thanks to inflation rising 2.3% over the same period – including a run of 27 consecutive months<\/a> – real wealth fell by $9 trillion or 6.3% – if you accept the highly suppressed CPI data. And if you don’t<\/em><\/strong>, then real wealth plummeted by 9% – if not more<\/strong><\/em> – in the second quarter. Yes; that is financially devastating to most people. That being said, the mainstream media “reported” this week that American consumers’ dwindling paycheck purchasing power is their<\/strong><\/em> fault:<\/p>\n

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Credit:<\/strong><\/span> Of course, inflation doesn’t have a monopoly on Americans’ wealth destruction – government bureaucrats who are permanently latched onto the productive private sector teat do too. For example, as the inimitable MN Gordon points out, “In San Francisco, prospective restaurateurs must pay 17 fees totaling $22,648 before they can sell their first sandwich; it’s absolute insanity. And it’s highly destructive. So why bother<\/a>? What’s the point of opening a restaurant when you can make more working for the city? Your day ends at 5 pm, you get weekends and holidays off, and the benefits are wonderful.” True. As for private sector stiffs, it ain’t all<\/strong><\/em> bad …<\/p>\n

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Credit:<\/strong><\/span> According to macroeconomist Alasdair Macleod, “We are seeing the West enter a new round of European monetary inflation to pay everyone’s energy bills. The euro, yen, and sterling are already collapsing – the dollar will be next<\/a>.” Needless to say, when that happens, it’s going to catch a lot of people by surprise. Oh, and speaking of surprises …<\/p>\n