{"id":90303,"date":"2026-01-24T01:00:25","date_gmt":"2026-01-24T09:00:25","guid":{"rendered":"https:\/\/lenpenzo.com\/blog\/?p=90303"},"modified":"2026-01-28T15:54:28","modified_gmt":"2026-01-28T23:54:28","slug":"black-coffee-24-jan-2026","status":"publish","type":"post","link":"https:\/\/lenpenzo.com\/blog\/id90303-black-coffee-24-jan-2026.html","title":{"rendered":"Black Coffee: Master & Servant"},"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 a wonderful week. And with that, let’s get right to this week’s commentary, shall we?<\/p>\n

America’s abundance was created not by public sacrifices to ‘the common good,’ but by the productive genius of free men.<\/em><\/p><\/blockquote>\n

— Ayn Rand<\/strong><\/p>\n

Servitude, in many cases, is not forced upon by the masters, but by a temptation of the servants.<\/em><\/p><\/blockquote>\n

— Indro Montanelli<\/strong><\/p>\n

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

Debit:<\/strong><\/span> Did you see this? Walmart announced lat week that it plans to roll out electronic shelf labels<\/a> to 2300 stores by the end of this year. The company said the technology allows employees to update shelf prices using a mobile app algorithm, reducing a price change that typically takes an associate two days to a matter of minutes. If you think about it, that’s<\/strong><\/em> a mixed blessing, as we will assume that \u2013 like gasoline \u2013 prices will be programmed to rise much faster than they are allowed to fall. We assume the algorithm has already endured rigorous beta testing. Oh, and speaking of algorithms…<\/p>\n

\"\"<\/p>\n

\"\"<\/p>\n

Credit:<\/strong><\/span> Meanwhile, with housing affordability a top issue for many Americans, first-time buyers may be excited to learn that the current administration is unveiling a new plan<\/a> this week that will allow Americans to use their 401(k) accounts to be used for down payments on homes. This is especially good news for prospective homebuyers who are struggling to increase their savings to cover that downpayment \u2013 or anything else for that matter. Talk about a great idea! Heck… dare we say it’s almost as financially savvy as this? <\/strong><\/em>(We said “almost.”)<\/p>\n

\"\"<\/p>\n

\"\"<\/p>\n

Credit:<\/strong><\/span> On a related note, a new bill has been introduced in Congress that would exclude all capital gains<\/a> from federal taxes. No, really. The question is: Will it pass? Under current law, individual homeowners may exclude up to $250,000, and married couples up to $500,000 in capital gains if they have lived in the home for at least two of the past five years. Believe it or not, those caps haven’t been adjusted since 1997 \u2013 so those numbers aren’t as big as they used to be, at least in real terms. As for those who dare to ask why that is, our only response is, well… the answer should be obvious. Kind of like the answer to this<\/strong><\/em>:<\/p>\n

\"\"<\/p>\n

\"\"<\/p>\n

Debit:<\/strong><\/span> In other news, a new survey found that 1 in 4 Americans took on debt this holiday season with a median balance of $500<\/a>. Then there\u2019s this: 34% of Americans say they plan to take on a side job in 2026 in order to pay off their debt, while 48% feel stressed from their spending. We wonder why. Oh, wait \u2013 no, we don’t….<\/p>\n

\"\"<\/p>\n

\"\"<\/p>\n

Debit:<\/strong><\/span> Not coincidentally, last year the US National Debt increased by $2.2 trillion<\/a> \u2013 and it\u2019s currently growing by about $71,800 per second. Unfortunately, America\u2019s creditors are finally starting to notice, as long-term US Treasury (UST) bond rates are continuing to climb despite the Fed\u2019s recent short term interest rate cuts. Imagine that. As for how we got here, it\u2019s becoming increasingly likely that this is yet another<\/strong><\/em> \u201ccrazy conspiracy theory\u201d that \u2013 like almost all of the others before it \u2013 will eventually end up being true:<\/p>\n

\"\"<\/p>\n

\"\"<\/p>\n

Credit:<\/strong><\/span> And as sagacious precious metals analyst Franklin Sanders notes. “Like those far off jungle drums<\/a> in a 1930s Tarzan movie, those rising interest rates are signaling trouble to come for the economy \u2013 and for the US dollar (USD).\u201d Indeed they are \u2013 which is why you should consider protecting yourself with a little wealth insurance while it’s still available. The good news is it’s certainly easy to do. After all, the process really isn’t much different from buying other kinds of insurance. For example …<\/p>\n