Have nothing to do with the [evil] things that people do, things that belong to the darkness. Instead, bring them out to the light... [For] when all things are brought out into the light, then their true nature is clearly revealed...

-Ephesians 5:11-13

Category Archives: Economics

Congress Votes to Raid Fed’s Slush Fund to Pay for Highways

This article appeared online at TheNewAmerican.com on Monday, November 23, 2015:  

In its never-ending quest to spend money it doesn’t have, but not wanting to raise taxes, especially during the current election cycle, on Thursday, November 5 Congress passed a $325-billion, six-year transportation bill that is to be financed by selling off some of the country’s strategic petroleum reserves and raiding the Federal Reserve.

In its editorial complaint about the bill, the Washington Post said

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A Black Swan Event and $4 Oil?

This article was published by The McAlvany Intelligence Advisor on Friday, November 20, 2015:  

Eight years ago Nassim Taleb’s book The Black Swan was named by the Sunday Times as one of the twelve most influential books since World War II. Now serving as Distinguished Professor of Risk Engineering at the New York University Polytechnic School of Engineering, Taleb continues to build on his view that “black swan” events have a greater impact on culture and the economy simply because they are unexpected. As Chris Anderson explains in his review of Taleb’s book:

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Oil: How Much Lower?

This article appeared online at TheNewAmerican.com on Thursday, November 19, 2015:  

Cover of "The Black Swan: The Impact of t...

Cover via Amazon

Speaking at the Irish economics forum Kilkenomics last weekend, former successful derivatives trader, professor of Risk Engineering at New York University, and author of The Black Swan, Nassim Taleb said he thinks the price of a barrel of oil could go as low as $4 a barrel. This could be the result of a

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Recession Indicators: Pick one

This article was published by The McAlvany Intelligence Advisor on Wednesday, November 18, 2015:

As a general rule a recession is two quarters of negative growth (aka decline) in the country’s gross domestic product (GDP). GDP, in simplest terms, is a measure of industrial production, employment, real (inflation-adjusted) income, and wholesale and retail trade.

The trick is knowing when a recession is coming. Even trickier is knowing what to do about it beforehand.

The Bureau of Economic Analysis (BEA) said GDP

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More Signs the Economy Is Slowing

This article appeared online at TheNewAmerican.com on Tuesday, November 17, 2015:  

The latest Empire State Manufacturing Survey issued by the New York Federal Reserve Bank on Monday confirms an increasingly ominous economic trend: The fourth consecutive monthly decline in its index is the longest since early 2009.

Its authors didn’t even try to sugarcoat it:

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World Oil Glut Swells to 3 Billion Barrels, Driving Prices Down Further

This article appeared online at TheNewAmerican.com on Monday, November 16, 2015:  

Friday’s November report from the International Energy Agency (IEA) confounded so-called experts who have repeatedly predicted a bottom in oil prices. After West Texas Intermediate (WTI) briefly dropped below $40 a barrel in August, bulls were delighted to see prices for crude bounce up over $50 and stay there — right up until October.

The IEA report tried to corral all the complexities of the oil market into its two-page report:

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How Sweet It Isn’t: Rubio Backs Big Sugar and His Donors

This article appeared online at TheNewAmerican.com on Friday, November 13, 2015:  

So far Marco Rubio has avoided having a debate moderator ask him about his support for Big Sugar, the U.S. sugar program that costs Americans billions of dollars every year either directly in their cereal bowl or indirectly through their income taxes. But he did try to defend himself at a small gathering of Heritage Action earlier this summer, with little success. He stated:

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TransCanada Asks State Department to Hold Its Keystone Pipeline Application

This article appeared online at TheNewAmerican.com on Wednesday, November 4, 2015:  

English: A map showing aquifer thickness of th...

A map showing the proposed Keystone XL Pipeline route

In what it hopes will prove to be a shrewd political ploy, TransCanada Corporation sent a letter to Secretary of State John Kerry on Monday requesting that his agency put its application to build Phase 4 of the Keystone Pipeline project on hold. It claimed that, based under previous State Department precedent, that its legal difficulties in Nebraska should be settled first before the State Department accepts or rejects its application.

Wrote TransCanada:

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Results of Efforts to Diminish America’s Freedom Being Tracked by Think Tanks

This article was published by The McAlvany Intelligence Advisor on Wednesday, November 4, 2015:

English: Looking east across 42nd Street at Fo...

Looking east across 42nd Street at Ford Foundation headquarters on a sunny afternoon.

Norman Dodd, being interviewed by Ed Griffin in 1982, told of an interview he had with Rowan Gaither, head of the Ford Foundation in which Gaither exposed most clearly the foundation’s purposes. Dodd, at the time, was director of research for the Reese Committee, which was investigating American foundations’ undue and unknown influence.

Norman Dodd:

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Saudi Arabia is Losing Its Bet

This article was published by The McAlvany Intelligence Advisor on Friday, October 23, 2015:  

A month after OPEC decided in November, 2014 to keep pumping oil, columnist Nathan Vardi, writing in Forbes, said that “Saudi Arabia is making a massive $750 billion bet in 2015 that the oil kingdom can endure lower oil prices longer than other oil producing countries … including [the US].”

It now turns out that the bet was much larger, and it’s going against OPEC. According to Bloomberg, Saudi Arabia is being forced to delay paying its government contractors as those lower oil prices, which declined faster and more sharply and are staying down longer than expected, are pushing the country further into deficit. This is on top of the

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Lower Oil Prices Pinching OPEC

This article appeared online at TheNewAmerican.com on Thursday, October 22, 2015:  

According to the International Energy Agency (IEA), the slowing in the demand for crude oil worldwide, coupled with more-than-abundant supply, bodes ill for higher prices for oil for at least the next year, if not longer. This is bad news for OPEC countries that need much higher oil prices to stay solvent.

The IEA predicted in its report last week that

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Is Now the Time to Buy Walmart Stock?

This article was published by The McAlvany Intelligence Advisor on Friday, October 16, 2015:  

English: Exterior of a Wal-Mart Supercenter in...

Exterior of a Wal-Mart Supercenter in Madison Heights, Virginia.

Walmart (WMT) hit 90 in early January, and hasn’t come close since. On Tuesday this week it traded at 67, just before the company’s announcement that shook the markets. Following that announcement the stock traded at 60, down 10 percent on the day and 30 percent from January.

Pundits leaped on the news, claiming that

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Federal Deficit at Eight-year Low; Don’t Celebrate Yet

This article appeared online at TheNewAmerican.com on Friday, October 16, 2015:  

On Thursday the Treasury Department announced that the federal deficit for the 2015 fiscal year, which ended September 30, fell to an eight-year low — $439 billion — thanks to tax revenues that grew at a rate faster than government spending. Revenues, according to the department, grew by eight percent over last year while government spending grew by five percent.

Treasury Secretary Jacob Lew celebrated:

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Walmart’s Stock’s Selloff Hinges on Perceived Economic Gloom

This article appeared online at TheNewAmerican.com on Thursday, October 15, 2015:  

English: Inside the Walmart (still branded as ...

Inside the Walmart at West Plains, Missouri.

Within minutes of Walmart’s announcement  on Wednesday that the world’s largest retailer would see its profits drop between six and 12 percent next year, the company’s stock started a decline that only ended after it had lost 10 percent of its value, its worst single-day performance in 37 years.

Despite a previous warning from Walmart in August that its quarterly profits, year-over-year, would likely fall by 15 percent, and despite the company’s stock continuing its decline from $90 a share in January to $67 before the announcement, investors were caught off guard. Now trading below $60 a share, investors have seen the value of their Walmart holdings drop

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Oil Price Rebound Not Likely to Last, Says the IEA

This article was published by The McAlvany Intelligence Advisor on Wednesday, October 14, 2015: 

Since early August the price of crude has jumped almost 20 percent, moving some, including those in OPEC’s cartel, to conclude that its strategy is working: Flood the market to force prices so low that marginal producers, especially in the United States, will go out of business. With the resultant decrease in supply, prices will rebound, hopefully to levels where the cartel’s countries can continue to fund their welfare/warfare states.

Said the cartel last week:

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OPEC’s Strategy Appears to be Working: U.S. Layoffs Slowing Oil Production

This article appeared online at TheNewAmerican.com on Tuesday, October 13, 2015:  

On the surface, OPEC’s gamble appears to be paying off. As the oil cartel continues to pump at near maximum capacity, American energy producers are stacking rigs and laying off workers.

According to the U.S. Energy Information Administration (EIA), there were an estimated 700,000 workers involved in oil and gas development and production prior to the decline in oil prices. Since then, some 200,000 of those jobs no longer exist, rig count is down to record lows, and, if the EIA is correct, U.S. oil output next year will decline for the first time in eight years.

OPEC itself has estimated that

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House Bill to Lift Crude Oil Export Ban Faces Obama Veto

This article appeared online at TheNewAmerican.com on Monday, October 12, 2015:  

On Friday the House of Representatives succeeded in passing a bill that would lift the 40-year-old ban on exporting crude oil, but failed to get enough votes to overcome the expected Obama veto of the measure, if it gets that far. Twenty-six Democrats joined with 235 Republicans in support of lifting the ban — far short of the 290 votes needed to override the certain White House veto.

The bill now goes to the Senate for consideration. Senate Majority Leader Mitch McConnell hasn’t indicated whether he will bring the bill to the floor. If he does,

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Want a Raise? Work for the Government

This article appeared online at TheNewAmerican.com on Friday, October 9, 2015:  

It used to be that the way to get ahead was to work harder, work smarter, find your passion (à la Tony Robbins), marry the boss’s daughter, or be the boss’s daughter (or son). But, according to the latest study from the Cato Institute, the best way is to “sell your soul to the company store” (apologies, Johnny Cash): Work for the government. Preferably, the federal government.

Since the 1990s, federal government employees have enjoyed greater increases in salary growth than those in the private sector, with federal workers in 2014 earning 78 percent more, according to the latest report from Cato, entitled “Downsizing the Federal Government.”

In 2014, based on numbers provided by the U.S. Bureau of Economic Analysis (BEA), the average federal worker in 2014 made

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Does California Have a Death Wish?

This article was published by The McAlvany Intelligence Advisor on Thursday, October 8, 2015: 

Cato Institute

A year ago, when the Cato Institute published its Fiscal Policy Report Card on America’s Governors, the best governor, Pat McCrory of North Carolina, scored 78, giving him an “A” rating by Cato. The country’s worst governor, Jerry Brown of California, scored 19, earning him an “F.” His rating was seven full points behind Colorado’s Governor John Hickenlooper, who scored a 26. At the time, Cato said this about Governor Brown:

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California’s “Equal Pay” Law Will Discourage Businesses, Encourage Lawyers

This article appeared online at TheNewAmerican.com on Thursday, October 8, 2015:  

English: Photo of California Attorney General ...

When California Governor Jerry Brown signed into law the state’s new “equal pay” mandate on October 6, he said it was designed to shrink further the pay gap between men and women: “The inequities that have plagued our state and have burdened women forever are slowly being resolved with this kind of bill.… [It’s] a very important milestone.

It’s important to law-school graduates looking for a favorable place to start their litigation practices, and important to moving companies helping business owners and their employees move out of state.

The law changes the definition of “equal” to

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Many of the articles on Light from the Right first appeared on either The New American or the McAlvany Intelligence Advisor.

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