{"id":86198,"date":"2025-02-08T01:00:54","date_gmt":"2025-02-08T09:00:54","guid":{"rendered":"https:\/\/lenpenzo.com\/blog\/?p=86198"},"modified":"2025-02-11T08:21:30","modified_gmt":"2025-02-11T16:21:30","slug":"black-coffee-8-feb-2025","status":"publish","type":"post","link":"https:\/\/lenpenzo.com\/blog\/id86198-black-coffee-8-feb-2025.html","title":{"rendered":"Black Coffee: The Love & Money Edition"},"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 hope everybody had an enjoyable week. Without further ado, let’s get right to this week’s commentary …<\/p>\n

Money is not the most important thing in the world. Love is. Fortunately, I love money.<\/em><\/p><\/blockquote>\n

– Jackie Mason<\/strong><\/p>\n

Try paying the bills with love.<\/em><\/p><\/blockquote>\n

– T. Harv Eker<\/strong><\/p>\n

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

Debit:<\/strong><\/span> Did you see this? It turns out that 43% of all lovebirds who are going to take on Valentine\u2019s Day debt don\u2019t plan to tell<\/a> their significant others. We bet that’s most likely because 67% of Americans who are in a relationship say they would be upset to learn their partner went into debt for their gift. Oh … and if you’re partner doesn’t<\/strong><\/em> get you a Valentine’s gift this year, perhaps it’s because 61% of those polled say that inflation is making it harder for them to afford Valentine\u2019s gifts this year. We have to admit, they have a point …<\/p>\n

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Debit:<\/strong><\/span> Speaking of inflation, the latest reading of the Fed’s preferred inflation gauge – known as the “core” Personal Consumption Expenditures (PCE) index – showed that inflation remained above the central bank’s 2% target<\/a>. The PCE, which strips out food and energy costs and is closely watched by the central bank, “officially\u201d rose 0.2% – that was double the rate from the prior month. And on a year-over-year basis, core prices rose 2.8%. Then again, that seems low to us. Er … regardless of who you may think is to blame …<\/p>\n

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Debit:<\/strong><\/span> Despite a substantial drop in the rate of inflation from its 2022 highs, the Wall Street Journal<\/em> correctly points out that a steady annual inflation of nearly 3%<\/a> – assuming one believes the government\u2019s CPI data – is still not acceptable. Why? Because the USD\u2019s purchasing power is cut in half every 23 years with annual inflation at 3%. From that perspective, it\u2019s much easier to see how that seemingly-modest degree of currency debauchery makes saving for the long-term an extremely<\/strong><\/em> iffy proposition. That being said, if actual inflation is running closer to 8%<\/strong><\/em>, then purchasing power is being halved every 9 years. How’s that<\/strong><\/em> for a reality check?<\/p>\n