{"id":91075,"date":"2026-05-30T01:00:31","date_gmt":"2026-05-30T08:00:31","guid":{"rendered":"https:\/\/lenpenzo.com\/blog\/?p=91075"},"modified":"2026-05-29T11:06:47","modified_gmt":"2026-05-29T18:06:47","slug":"black-coffee-30-may-2026","status":"publish","type":"post","link":"https:\/\/lenpenzo.com\/blog\/id91075-black-coffee-30-may-2026.html","title":{"rendered":"Black Coffee: Food for Thought"},"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

Please cut that pizza into four pieces because I’m not hungry enough to eat six.<\/em><\/p><\/blockquote>\n

\u2013 Yogi Berra<\/strong><\/p>\n

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

Debit:<\/strong><\/span> Did you see this? Barbecue joints in Texas are shutting their doors across the Lone Star State as sky-high beef prices are turning brisket into a luxury item that many of their customers can no longer afford. One BBQ joint owner warned that \u201cabsolutely insane\u201d brisket prices were making barbecue prohibitively expensive for most middle-class families, adding that, \u201cWhen consumers pay $36 a pound<\/a> for barbecue brisket, and then add ribs, sausage, sides and dessert \u2026 one can easily spend $70 to $100\u201d for dinner. Uh huh. Then again, it’s not as if the McRib offers a better alternative…<\/p>\n

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Debit:<\/strong><\/span> Of course, it\u2019s not just the price of barbecue cuisine that’s exploding \u2013 bad weather, poor crop yields, tariffs and a dwindling cattle herd continue to raise grocery prices<\/a> at an above-average pace. In fact, last month they rose by the most in nearly four years. Even worse, food inflation is always difficult to reverse quickly because the size of autumn harvests is determined by planting decisions made in the spring. Then again, inflation is not just limited to food \u2013 it’s everywhere. Even worse, it’s becoming tougher to keep under control.<\/p>\n

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Gary Larson – The Far Side<\/p><\/div>\n

Debit:<\/strong><\/span> In case you haven\u2019t already noticed, the national average price of US gasoline is in the same range as it was in 2022; the year gas prices hit their record highs<\/a>. That\u2019s because crude oil futures have climbed nearly 50% since the start of the Iran war. What is truly alarming is that, despite the pain currently being experienced at the pump, oil prices are still under $100 per barrel. Let’s hope that “black gold” doesn’t return to its inflation-adjusted all-time high price of $224 per barrel that was reached during the Great Financial Crisis of 2008.<\/p>\n

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Debit:<\/strong><\/span> Speaking of high prices, the national median price of all US homes is now $503,000. Ouch. For those not counting at home, that’s 1.7% higher than it was 12 months ago. And buying a new<\/strong><\/em> home is nearly out of reach. In New Hampshire, 83% of households are completely priced out<\/a> of a new median-priced home; in total, 11 states have at least 80% of households locked out. At the other end of the spectrum, there are only three states \u2013 Mississippi, Louisiana, and West Virginia \u2013 where the median new home price required to qualify for a mortgage is currently under $100,000. So it should be no surprise that 55% of Americans say their financial situation only continues to get worse.<\/p>\n

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Credit:<\/strong><\/span> On the bright side, prospective first-time homebuyers can take heart in knowing that, while the housing market remains hot in much of the country, 17% of active listings carried a price reduction<\/a> in April \u2013 that figure is elevated compared with historical trends. The bulk of those price cuts seem to be occurring in the Mountain West and Sun Belt regions, with Phoenix and Tampa showing the most listings with price cuts in April (31% and 29%, respectively). So\u2026 is this a sign of an impending top in the housing market? Perhaps. However, as long as the Fed continues to push its long-running easy-money policy, we sincerely<\/strong><\/em> doubt it.<\/p>\n

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Debit:<\/strong><\/span> In case you haven\u2019t noticed, bond yields have been surging over the past four weeks \u2013 and all indications are that the bond vigilantes<\/a> are only going to take them higher from here. Don\u2019t think that won\u2019t stop newly-minted Fed Chair Kevin Warsh from trying to reverse the trend by lowering interest rates at the short end of the yield curve. Never mind that it\u2019s a plan that will ultimately end up as (yet another) exercise in futility …<\/p>\n

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h\/t: reddit\/bonds (mafugga77)<\/p><\/div>\n

Debit:<\/strong><\/span> Unfortunately, interest on the federal debt is already more than $1.2 trillion<\/a> and is the second-largest item in the budget. Now for the punchline: Every 1 basis point (0.01%) increase in the government\u2019s average borrowing cost \u2013 that is, rising bond yields \u2013 adds roughly $4 billion to its annual interest debt service expense. This is bad news for a federal government whose widening budget deficit is currently on pace to finish the fiscal year near $1.8 trillion. In the meantime, the rapidly-depreciating US dollar (USD) will continue to plague everyone \u2013 including the bad guys …<\/p>\n