{"id":85407,"date":"2024-11-30T01:00:58","date_gmt":"2024-11-30T09:00:58","guid":{"rendered":"https:\/\/lenpenzo.com\/blog\/?p=85407"},"modified":"2024-12-04T07:56:24","modified_gmt":"2024-12-04T15:56:24","slug":"black-coffee-30-nov-2024","status":"publish","type":"post","link":"https:\/\/lenpenzo.com\/blog\/id85407-black-coffee-30-nov-2024.html","title":{"rendered":"Black Coffee: A Recipe for Disaster"},"content":{"rendered":"

\"hurricane-flags\"<\/a>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

Another busy week is crossed off the list. So without further ado, let’s get right to the commentary …<\/p>\n

Keynes did not teach us how to perform the miracle of turning a stone into bread; instead, he taught the not-at-all miraculous procedure of eating the seed corn.<\/em><\/p><\/blockquote>\n

– Ludwig von Mises<\/strong><\/p>\n

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

Debit:<\/strong><\/span> Did you see this? While the average salary Americans say they need to be successful is high compared with what the average person is currently earning, the exact amount varies depending on your age. For millennials, it is $181,000; for Gen X, the figure is $212,000; and for Boomers it\u2019s $100,000. Then there\u2019s Gen Z – those adults between 18 and 27 – who say the annual salary they<\/strong><\/em> need to be successful is just a hair under $588,000. No, really<\/a>. Okay … to be fair, that may be true five years from now, but today?<\/strong><\/em> Hardly. On the other hand, maybe Gen Z knows something we don’t …<\/p>\n

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Credit:<\/strong><\/span> One thing is certain: The health of the US consumer and the retail sector will come into better focus after the Black Friday<\/a> sales data is released. Although initial reports are that \u2026 buyers continue to grapple with higher prices. Oh, and speaking of great shopping deals …<\/p>\n

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

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Debit:<\/strong><\/span> On a somewhat related note \u2026 Stop us if you\u2019ve heard this before: A new survey has found that nearly six of 10 Americans admit that they’re behind on their retirement savings<\/a>. This strongly suggests another 1 in 10 Americans are in denial.<\/p>\n

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Debit:<\/strong><\/span> Perhaps many Americans are having trouble saving for retirement because housing costs are, well … through the roof. On paper, owning a home is almost always more expensive than renting – about 14% more, on average, after factoring in expenses like insurance, taxes, and upkeep. But the homeownership premium<\/a> is now pushing 35% over renting – that\u2019s approaching an all-time high. Yikes! And we thought the cost of Thanksgiving dinner<\/strong><\/em> was high this year \u2026<\/p>\n

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(h\/t: @johnslade66)<\/p><\/div>\n

Credit:<\/strong><\/span> In other news, the US weaponized the US dollar (USD) in 2022 after Russia invaded Ukraine. In the process, the Indi<\/em> blog correctly observes that, “America has broken the stick and eaten the carrot<\/a>. So why would anyone<\/strong><\/em> buy into (the USD)? The currency looks shoddy. It\u2019s actually unclear what’s motivating anyone to follow them besides sheer inertia.\u201d Not surprisingly, since then, roughly 3 in every 4 nations have joined China\u2019s Belt and Road Initiative to ensure they have an alternative to the USD should the US ever turn on them. Consider it a monetary Get Out of Jail Free card for the prudent. As for the imprudent, well<\/strong><\/em> \u2026<\/p>\n