{"id":83037,"date":"2024-05-04T01:00:44","date_gmt":"2024-05-04T08:00:44","guid":{"rendered":"https:\/\/lenpenzo.com\/blog\/?p=83037"},"modified":"2024-05-09T07:50:33","modified_gmt":"2024-05-09T14:50:33","slug":"black-coffee-4-may-2024","status":"publish","type":"post","link":"https:\/\/lenpenzo.com\/blog\/id83037-black-coffee-4-may-2024.html","title":{"rendered":"Black Coffee: The Curse of the Overeducated"},"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 another busy weekend ahead of me, so let’s get right to this week’s commentary …<\/p>\n

Why\u00a0 … is gold the unmentionable, four-letter word of economics? The answer is threefold: A misunderstanding of the role of money; a misreading of history; and finally, visceral revulsion to the notion that a metal can do a better job of guiding monetary policy than a gaggle of finance ministers, central bankers and well-degreed economists.<\/em><\/p><\/blockquote>\n

– Malcolm Forbes<\/strong><\/p>\n

It is the mark of an educated mind to be able to entertain a thought without accepting it.<\/em><\/p><\/blockquote>\n

– Aristotle<\/strong><\/p>\n

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

Debit:<\/strong><\/span> Did you see this? According to the latest government data<\/a>, GDP for the first quarter of this year came in at just 1.6%. Keep in mind that this is while the US is stimulating the economy by borrowing $1 trillion every 100 days. Yet more proof that, for the first time in five decades, stagflation is our midst. In 1980, the Fed had to raise its benchmark rate to 20% to break out of that economic quagmire. Unfortunately, doing the same now would shunt every penny of government revenue toward servicing its enormous debt.<\/p>\n

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Debit:<\/strong><\/span> Meanwhile, inflation is continuing to be a big problem – and government intervention in the free market is only making things worse. Take California\u2019s newly-mandated $20 minimum wage for fast food employees. Not surprisingly, both chains and customers are complaining<\/a> that burritos and burgers are getting more expensive – while some chains decided it was easier to permanently close<\/a>. Imagine that. Clearly, the Golden State needs to raise the minimum wage to $30 to keep up with the inflation caused by the $20 minimum wage. Then again, why stop at $30?<\/p>\n