{"id":76998,"date":"2023-02-04T01:15:54","date_gmt":"2023-02-04T09:15:54","guid":{"rendered":"https:\/\/lenpenzo.com\/blog\/?p=76998"},"modified":"2023-02-07T09:28:09","modified_gmt":"2023-02-07T17:28:09","slug":"black-coffee-4-feb-2023","status":"publish","type":"post","link":"https:\/\/lenpenzo.com\/blog\/id76998-black-coffee-4-feb-2023.html","title":{"rendered":"Black Coffee: Par for the Course"},"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\u2019ve got another busy weekend ahead of me, so let\u2019s get right to this week\u2019s commentary \u2026<\/p>\n

You don\u2019t know what pressure is until you play for five bucks with only two bucks in your pocket.<\/em><\/p><\/blockquote>\n

– Lee Trevino<\/strong><\/p>\n

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

Debit:<\/strong><\/span> Did you see this? The cost of the federal food stamps program – known as the Supplemental Nutrition Assistance Program (SNAP) – hit an all-time high of $120 billion last year<\/a>. In 2019, which was the last year before the pandemic, food stamp costs were just half<\/strong><\/em> of that, which translated to an average monthly cost of $130 per welfare recipient. Last year, that increased by 78%<\/a> to $231. The participation rate also soared between 2019 and 2022 – from 35.7 million to 41.2 million. Incredibly, that means 1 in every 8 Americans now get government food assistance.<\/p>\n

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Credit:<\/strong><\/span> Then again, as Zero Hedge<\/em> points out, “All of this is a little odd<\/a> since the number of people on food stamps is at a record high while the post-COVID-lockdown employment picture has improved dramatically.” One astute commenter pointed out the dichotomy between the US Department of Agriculture – which proudly touts the “success” of its food assistance program – and the Interior Department, which warns Americans that feeding bears makes them dangerously dependent on handouts. But I guess that’s par for the course, isn’t it? In any case, I think it’s clear the Interior Department gets the nod on this one …<\/p>\n

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Debit:<\/strong><\/span> On a somewhat related note, VISA reported this week that Americans’ consumer payment trend shifted significantly from debit cards to credit cards<\/a> during the last three months of 2022, suggesting consumers struggled to make ends meet. For those counting at home, the total purchases in USD charged to debit cards fell 1%; at the same time, credit card volume increased 5%. As for those of you who believe the government’s story that inflation is now “officially” under 7%<\/a>, I’ve got a great deal on some beachfront property in Barstow that you may be interested in buying.<\/p>\n

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Debit:<\/strong><\/span> Meanwhile, a new study has found that 68% of people<\/a> are worried they wouldn’t be able to cover their living expenses for just one month if they lost their primary source of income. And when push comes to shove, the majority (57%) of US adults are currently unable to afford a $1000 emergency expense. Hmm. However, this makes absolutely zero sense. After all, the government narrative that is dutifully being parroted by the mainstream financial media is that everything is better because inflation is falling. Oh, wait …<\/p>\n

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Debit:<\/strong><\/span> Not coincidentally, separate report that came out last month found that 72%, of middle-income families with incomes between $30,000 and $100,000 say their earnings are falling behind<\/a> the cost of living – that’s up from 68% a year ago. A similar share, 74%, said they are unable to save for their future – that’s<\/em><\/strong> up from 66% a year ago. Makes sense. Especially now that bars and eating establishments are now offering daily “specials” like this:<\/p>\n

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(h\/t: GoldSilver.com)<\/p><\/div>\n

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Credit:<\/strong><\/span> So what does all of this mean? Well … if you believe financial journalist Michael Snyder, he says it’s a sign that “The entire system is cracking<\/a> and crumbling all around us, and there is much more pain ahead.” If only this<\/strong><\/em> guy had got the message in time:<\/p>\n