{"id":84849,"date":"2024-10-05T01:00:22","date_gmt":"2024-10-05T08:00:22","guid":{"rendered":"https:\/\/lenpenzo.com\/blog\/?p=84849"},"modified":"2024-10-08T08:18:29","modified_gmt":"2024-10-08T15:18:29","slug":"black-coffee-5-oct-2024","status":"publish","type":"post","link":"https:\/\/lenpenzo.com\/blog\/id84849-black-coffee-5-oct-2024.html","title":{"rendered":"Black Coffee: Whatever It Takes"},"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

In the absence of the gold standard, there is no way to protect savings through inflation; there is no safe store of value. Deficit spending is simply a scheme for the ‘hidden’ confiscation of wealth. Gold stands in the way of this insidious process; a protector of property rights. If one grasps this, one has no difficulty in understanding the statists\u2019 antagonism toward the gold standard.<\/em><\/p>\n

– Alan Greenspan<\/strong><\/p>\n

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

Credit:<\/strong><\/span> Did you see this? US stocks bid farewell to the month and the quarter with fresh records Both the S&P 500 and the Dow Jones Industrial Average ended September at all-time-highs. Typically the cruelest month for stocks, the S&P, Dow and Nasdaq indices all recorded monthly wins for September<\/a>. In fact, the S&P 500 notched its best year-to-date performance at September’s end since 1997. Hooray! That being said, it’s been a long long<\/strong><\/em> time since the stock market has had even a modest correction, let alone a major crash. So here’s a little reminder …<\/p>\n

\"\"<\/p>\n

\"\"<\/p>\n

Debit:<\/strong><\/span> Ironically, although the stock market is at record highs, the US manufacturing sector moved deeper into contraction territory<\/a> in September, marking the third consecutive monthly contraction. At the same time, employment tumbled back near post-COVID-lockdown lows. With all that in mind, you’d be forgiven for wondering how all of this is affecting the banking system. However, we’re pretty sure there’s absolutely nothing<\/strong><\/em> to worry about there, as the Fed will always be there to stop any potential calamity. At least, that’s what the “experts” say. Then again … maybe not:<\/p>\n

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

Debit:<\/strong><\/span> On a related note, last week we noted that consumer confidence is at its lowest point since the pandemic. Perhaps declining consumer confidence is the reason why cash-strapped Americans are using their homes<\/a> to keep up with the rising cost of living, as evidenced by the increasing use of home equity lines of credit (HELOCs). It used to be that HELOCs were primarily used to finance home renovations and household splurging. However, mortgage lenders are reporting that a majority of applicants say they’re intending to use them for debt consolidation. Well \u2026 at least for Americans who can afford<\/strong><\/em> a home …<\/p>\n

\"\"\"\"\"\"Debit:<\/strong><\/span> Meanwhile, the Fed’s favorite inflation indicator came out last week and it shows that on a year-over-year (YoY) basis, the so-called \u201ccore PCE\u201d figure rose to 2.7%<\/a> – that\u2019s the highest level since April. It also means the true<\/strong><\/em> inflation rate that everyone experiences on a daily basis is probably running somewhere in the neighborhood of 9%. In fact, things are so bad out there that even the dogs<\/strong><\/em> are starting to sing the blues …<\/p>\n