It’s time to take a seat again, loosen up and luxuriate in a bit of joe …

Welcome to a different rousing version of Black Espresso, your off-beat weekly round-up of what’s been occurring on the planet of cash and private finance.

I hope everyone had an exquisite week. And with that, let’s get proper to this week’s commentary, lets?

There are solely 3 ways to fulfill the unpaid payments of a nation. The primary is taxation. The second is repudiation. The third is inflation.

– Herbert Hoover

The reality is an goal commonplace by which actuality is measured.

– Tony Evans

Eventually, everybody sits all the way down to a banquet of penalties.

– Robert Louis Stevenson

Credit and Debits

Debit: Did you see this? Tesla is considerably increasing prices at its Supercharger stations throughout Europe because the continent continues to take care of a sprawling vitality disaster that reveals no indicators of slowing. How large are the will increase? Effectively … it used to price not more than $5 for a full cost at a Supercharger; now, costs are close to $30, which implies the price to cost these “inexperienced” EVs is quick approaching the price to refill an inner combustion engine automotive with gasoline. One can solely think about how far more costly electrical energy can be if EVs ever develop into a majority of the vehicles on the street, moderately than just some %. Within the meantime …

(h/t: BobbyJenkins through

Debit: On a associated be aware, this week a German bakery was slapped with a $330,000 gas bill from its vitality supplier – that’s a mean of $82,500 for the four-month billing interval. Evaluate that to final yr, when the bakery’s giant furnaces and heating system bills averaged $5856 per thirty days. “Are they loopy?” stated proprietor Eckehard Vatter, who was given simply two weeks to pay the invoice. The proprietor additionally complained that he wasn’t given a purpose for the value enhance. Hmm. Perhaps he ought to ask the European bureaucrats who’re dictating German vitality coverage.

(h/t: r/wallstreetsilver u/jonandheidi)

Debit: In the meantime, on this facet of the pond, greater than half (56%) of all US households say inflation has triggered financial hardships. In reality, the variety of households reporting monetary troubles attributable to worth will increase has gone up 11% since November 2021. Then once more, that’s actually not shocking, contemplating that People must give you an extra $11,500 this yr in the event that they need to take pleasure in the identical lifestyle they’d in 2020.


Credit score: After all, the influence on American households will depend on their place on the financial ladder. For instance, half of all US revenue is earned by households making greater than $100,000 per yr. And as Morgan Stanley analyst Andrew Sheets factors out, “since most of these households personal their very own houses, and both don’t have any mortgage or have refinanced right into a 30-year fixed-rate mortgage at a particularly low charge, their largest expense isn’t rising as a result of, even because the Fed is climbing, their nominal wages are rising. So for them monetary situations are easing.” And for those who discover that to be shocking, then you definitely haven’t seen this …

Debit: Then again, financial situations look rather a lot completely different for these within the lower-income quartiles, the place households usually tend to face excessive lease inflation and be extra impacted by increased meals and vitality prices. In reality, the common American has been counting on debt to keep up their lifestyle since 2009. And since then, the quantity of debt required to keep up that high quality of life has solely grown; at this time it requires $7000 of debt a year. So residing requirements have been artificially excessive for greater than a decade. Though some “specialists” proceed to insist that inflation is definitely good for us. No, actually:

Credit score: Sadly, this inflation disaster we now discover ourselves in was preventable – the results of uncontrolled authorities spending that’s been enabled by the Fed for greater than a decade. Roughly $8 trillion has been conjured out of skinny air by the Fed because the Nice Monetary Disaster of 2008 below the guise of quantitative easing (QE). However that financial parlor trick can solely be performed for therefore lengthy as a result of, as macro analyst Tom Luongo famous this week, “you’ll be able to’t warmth your house or feed your youngsters with digital euros or {dollars}. That’s the QE lure – and it means sooner or later there will be a reckoning.” Sure; simply don’t inform that to the free-lunch crowd.

Credit score: In case you’re searching for an apt analogy, image the financial system because the Titanic, which struck an ice berg (the Nice Monetary Disaster in 2008) and has been taking up water (hyperinflating) ever since. However now the ship is itemizing badly and captain Jerome Powell is painfully conscious of its inevitable destiny. As such he is aware of his solely job is to maintain panic at bay for so long as doable. How? Macro analyst, Daniel Oliver, says the Fed will attempt to maintain the system afloat a bit longer by “decreasing both the cash provide (the flexibility to spend) and asset values (the propensity to spend).” It might purchase a bit of time – however it will likely be all in useless. Right here’s why:

(h/t: @Myrmikan)

Debit: For sure, the Fed’s desired plunge in asset values is progressing as deliberate. Oliver notes that, “Notably, the $6.1 trillion collapse in family internet value recorded within the second quarter was internet of a $1.4 trillion achieve in actual property values. And the third quarter will present one other giant detrimental print as housing costs roll over. This metric ought to proceed to drop sharply because the lagged impact of the Fed’s earlier charge hikes chunk . . . and the Fed remains to be elevating charges.” Within the meantime, the uneasy calm continues – particularly within the housing market …

Credit score: I do know what you’re pondering: The Fed’s plan ought to work as a result of as soon as they pop the market bubble, falling asset costs will tame inflation. Sure. However right here’s the rub: The debt-based financial system will implode below sustained deflation. So as soon as the bubble pops, the Fed must virtually instantly reverse course and print even extra foreign money than it already has to maintain issues from breaking. And as, macroeconomist Alasdair Macleod notes, central financial institution printing “has a far greater inflationary impact than the deflationary influence from contracting financial institution credit score alone.” In different phrases: it gained’t be lengthy till the financial system is …

Debit: By the way in which, Macleod additionally warned this week that, “Makes an attempt to rescue the American, European, and Japanese economies by changing business financial institution credit score with central financial institution credit score will most likely be the coup de grace for fiat. We will start to anticipate the trail to the destruction of buying energy for all fiat currencies, not simply these of Zimbabwe, Turkey, and Venezuela and different nations. A worldwide hyperinflation is proving unimaginable to keep away from.” Don’t inform that to the mainstream media – or these charlatan economists who imagine within the Magic Cash Tree …

Credit score: Sadly, as conflicts in Ukraine and elsewhere world wide proceed to unfold, macro analyst Steven Leeb is warning that, “It’s no accident that we’re going to have a bipolar order or – if the West continues to refuse to cooperate – something much worse. Consequently, we’re on the verge of an enormous change within the international financial system. So anyone who cares about their very own (monetary) safety will need to have (bodily) gold and silver.” I believe virtually everyone cares about defending their wealth. The difficulty is, most individuals have completely no concept that they are in danger.

(h/t: r/wallstreetsilver u/SILV3RAWAK3NING76)

Credit score: And eventually … For individuals who are nonetheless making an attempt to make sense of all of it, I’ll let Mr. Oliver clarify, “Central banks print like this not as a result of they’re insane, however as a result of the trail to hyperinflation is paved with deflationary scares; and the trail to hyperinflation can be characterised by sharply-rising volatility. The financial information suggests we’re about witness each. Gold will appear to be risky however it’s, in actual fact, the anchor of stability; its nominal worth volatility reveals the decaying spiral of fiat foreign money.” Certainly. Gold may be your bedrock of financial fact in a world filled with fraud, lies, deceit – however provided that you let it.

(h/t: @LorenBoston)

By the Numbers

Among the many 50 greatest US cities, listed below are the ten the place you will get away with making the least and nonetheless afford a mean condominium, assuming 30% of your revenue is spent on lease:

10 Omaha, NE (lease: $1339; min. revenue: $53,554)

9 San Antonio, TX ($1337; $53,461)

8 Tucson, AZ ($1332; $53,299)

7 Memphis, TN ($1316; $52,627)

6 Indianapolis, IN ($1301; $52,059)

5 Kansas Metropolis, MO ($1286; $51,437)

4 Arlington, TX ($1264; $50,573)

3 Corpus Christi, TX ($1102; $44,069)

2 El Paso, TX ($1100; $44,010)

1 Wichita, KS ($719; $28,741)


The Query of the Week

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Final Week’s Ballot Outcomes

Who dealt with the household’s private funds while you had been rising up?

  • Mom (41%)
  • Father (26%)
  • Each mother and father (22%)
  • I’m undecided (11%)

Greater than 2200 Len Penzo dot Com readers responded to final week’s query and it seems that in additional than 3 out of 5 households, it was Mother who took care of the household’s funds, both all by herself or with assist from Dad. That traces up with my home once I was rising up, the place my mother was the one who dealt with the on a regular basis funds. At present, I’m the family CEO, whereas the Honeybee handles the family CFO duties.

If you have a query you’d like me to ask the readers right here, ship it to me at — and you’ll want to put “Query of the Week” within the topic line.

Ineffective Information: Sugar Daddy

A 55 yr previous multi-millionaire was getting married to an unbelievably beautiful girl who was simply 22. So he determined to throw a grand wedding ceremony reception on the couple’s large day.

After all, a few of his pals had been fairly jealous of the millionaire’s 22 yr previous bride. So in a quiet second, certainly one of them took the millionaire apart and requested how an older man like him ever managed to land such a ravishing younger girl.

“Easy,” stated the millionaire, “I faked my age.”

His buddy was shocked. “How previous did you say you had been?” he requested.

“Effectively,” the millionaire replied, “I informed her I used to be 89!”

(h/t: Cowpoke)

Extra Ineffective Information

Listed here are the highest 5 articles considered by my 43,515 RSS feed, weekly electronic mail subscribers, and different followers over the previous 30 days (excluding Black Espresso posts):

  1. Mailbox: What Occurs to My Mortgage If Hyperinflation Kills the Greenback?
  2. 19 Merchandise That Get Deep Retail Reductions In Autumn
  3. How I Survived Two Armed Robberies (and How You Can Too)
  4. What’s the Distinction Between Frugal and Low cost?
  5. Why Insurance coverage Firms Don’t Need You to Know About Concierge Medical doctors

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Letters, I Get Letters

Each week I function probably the most attention-grabbing query or remark assuming I get one, that’s. And people who’re fortunate sufficient to have the one query within the mailbag get their letter highlighted right here whether or not it’s attention-grabbing or not! You possibly can attain out to me at:

After studying my piece explaining why whirlpool tubs are for suckers, bjbeetlebabe had the next query for me:

Oh, my gosh! When had been you in my rest room to take this image??

Final week. Hey … while you obtained to go, you bought to go!

In case you loved this, please ahead it to your family and friends. 😊

I’m Len Penzo and I accredited this message.

Photograph Credit score: public area

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