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: Free Market

ObamaCare Replacement Plan Introduced in Congress

This article appeared online at TheNewAmerican.com on Thursday, February 16, 2017: 

Official portrait of United States Senator (R-KY).

Senator Rand Paul

Senator Rand Paul (R-Ky.) and Representative Mark Sanford (R-S.C.) introduced their ObamaCare Replacement Act (ORA) on Wednesday. It would simultaneously repeal nearly all of ObamaCare’s most onerous demands and mandates while opening up the health-insurance market to individuals to purchase, or not to purchase, coverage. The bill, S.222, might more appropriately be named the “Health Insurance Freedom to Purchase Act,” putting the decision to buy, or not to buy, coverage back in the hands of individual citizens and taking it out of the hands of the federal government.

Senator Paul said,

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Bill to Repeal Obamacare Represents Major Paradigm Shift

This article was published by The McAlvany Intelligence Advisor on Friday, February 17, 2017:

English: A Portrait of Thomas Jefferson as Sec...

Thomas Jefferson

Thomas Jefferson said many things on which classical liberals and libertarians agree. The one most apropos to Obamacare is this: “The natural progress of things is for liberty to yield and government to gain ground.”

Anything that requires government force (or threat of) to gain compliance is, on its face, immoral. But Obamacare did something else: it was a deliberate forced attempt to shift personal responsibility for one’s health care from a citizen to his government. Jefferson had this to say about that:

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OPEC’s Influence Wanes as Members Cheat on Production Cuts

This article appeared online at TheNewAmerican.com on Monday, February 13, 2017:

OPEC’s report on how its members are complying with the production-cut agreement hammered out last fall came out on Monday. As expected, it reported cheating among its members.

Per the November 30 agreement, members allegedly agreed to cut production to 32.5 million bpd (barrels per day) of crude. Iraq, Venezuela, Angola, and Algeria cut their production modestly but less than they agreed, while Nigeria, Libya, and Iran produced more. Because Nigeria and Libya are exempt from the production cuts, Saudi Arabia, Kuwait, and UAE (United Arab Emirates) were forced to over-comply. The total produced by the cartel in January came in just below the target of 32.5 million bpd at 32.1 bpd.

Accompanying the report was a statement that crude oil price “gains were capped by increased drilling activity in the US.”

Those crude oil prices are likely to continue to drop despite OPEC’s best efforts to force them higher. The headwinds the cartel faces are monumental:

First, U.S. rig counts jumped to 591 last week, the highest since October 23, 2015 and an increase of 114 since the OPEC agreement.

 

Second, the Department of Energy announced it will be reducing the U.S. strategic oil reserve later this month through the sale of 10 million barrels.

 

Third, crude oil inventories jumped by nearly 14 million barrels last week, bringing the stockpile of private oil inventories close to an 80-year record level at 508 million barrels.

 

In addition, U.S. oil and gas companies are raising new money through Wall Street equity offerings at rates not seen since at least the year 2000. In January alone, 13 different offerings raised $6.64 billion. And they are using that new money not only to develop existing oil fields, but to acquire additional reserves through mergers and acquisitions (M&A). Last year, M&A activity totaled $24 billion. For 2017, oil and gas companies have already invested half that much and it’s only February.

All of this illustrates the decreasing influence of OPEC in directing the price of crude oil on the world market. Aside from the cheaters, OPEC is also faced with other forces over which it has no control, mostly in the oil industry of the United States.

Blowing Up the Globalists’ Plans

This article was published by the McAlvany Intelligence Advisor on Monday, February 13, 2017:

Logo of United Nations Refugee Agency.Version ...

Logo of United Nations Refugee Agency.

The Royal Institute of International Affairs (RIIA) grew out of failure. Known alternatively as Chatham House, it was conceived during the Paris Peace Conference of 1919 (also called the Versailles Peace Conference). It was decided that, once the so-called “peace” terms were put in place to punish Germany and its allies after the War to end all wars, various insiders decided a one-world government was needed to keep such a catastrophe from occurring in the future. It birthed the

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Realtors in Vancouver Moving to Seattle Along with Investors

This article was published by The McAlvany Intelligence Advisor on Friday, February 10, 2017:  

Vancouver on a rainy day

Vancouver on a rainy day

The collapse of the real estate market in Vancouver, BC, is forcing realtors there to “double-license” in Seattle (where home prices are half what they are in Vancouver) in order to stay in business. Some of them are representing sellers with property in Vancouver who are simultaneously buying in Seattle. The ripple effect in Vancouver is impacting builders and construction workers as well as those in related service industries.

Back in August, the tune was much different: home prices had increased by 50 percent over the previous three years thanks to foreign investors wanting property in Vancouver. “It’s a bubble!” was the cry and so do-gooder politicians in the local government decided to erect a tariff: starting on August 1 the “foreign buyer transfer tax” of 15 percent would be imposed on any foreign buyer of real estate in the city.

Within six weeks the high end of the market was off by 20 percent, and realtors were scrambling, builders were pulling back, and workers were being laid off.

The parallel with Trump’s plans to build a wall along the country’s southern border through tariffs of 35 percent is uncanny, with the results likely to be the same as Vancouver’s. Fred Floss, the chairman of the economics department at SUNY Buffalo State, says that imposing a tariff on Mexico will have a similar slowing effect in the United States. Because the US mainly imports auto parts and small engines from Mexico, “anything that has a small engine in it will start to cost more … the scary thing is that a lot of those motors go into things Americans make. So if all of a sudden it gets to be more expensive to make goods in the United States, then we’re going to start to see layoffs because our goods aren’t going to sell.” He added: “In other words, [Americans are] going to pay the cost of the wall” both directly and indirectly.

The ripple effect in Vancouver is just beginning to be felt as the slowdown starts to impact support jobs related to the real estate industry. Homeowners who have enjoyed seeing their paper profits escalate are now facing the new reality: their homes aren’t worth what they were as recently as last summer, and those who took advantage of low rates either to buy new or obtain a home equity loan are increasingly finding themselves underwater and unable to find a buyer to bail them out.

International trade unhampered by tariffs benefits consumers and sellers alike. Every trade results in each party being better off economically. Competition drives the prices of goods and services down, allowing purchasers to enjoy a higher standard of living. Those profiting from making the products consumers want, whether they be small motors, cell phones or automobiles, will be encouraged to expand their production, hiring new workers who then are able to increase their own purchasing power. Ad infinitim.

Adam Smith was right:

Every individual necessarily labors to render the annual revenue of the society as great as he can….

 

He intends only his own gain, and he is in this, as in many other cases, led by an invisible hand to promote an end which was no part of his intention…. (emphasis added)

 

By pursuing his own interests, he frequently promotes that of the society more effectually than when he really intends to promote it.

And then Smith adds his warning for Mr. Trump:

I have never known much good done by those who affected to trade for the public good.

Meddling always has its unintended consequences. Is Mr. Trump aware of what’s going on in Vancouver?


Sources:

The Wall Street Journal: For Chinese Home Buyers, Seattle Is the New Vancouver

Seattlepi.com:  Vancouver smacks Chinese with real estate tax, but will they head south?

Background on US tariffs

WGRZ.com: How the Trump Tariff Proposal may Impact your Budget

Investopedia:  The Basics Of Tariffs And Trade Barriers

Adam Smith’s “invisible hand” quote

First, Big Taxi. Next, Big Box Stores. Now, Big Car Dealers.

This article was published by The McAlvany Intelligence Advisor on Wednesday, January 25, 2017:

English: Tesla Motors opened its showroom in M...

A Tesla “Gallery” storefront

An unfettered free market has but one goal in mind: to serve a customer – the guy with the money in his pocket – better. It’s driven by the profit-motive: better service means more customers bringing more money to the improviser who has figured out how to do it profitably. Adam Smith said it much more elegantly:

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Ford to Sell and Finance Its Autos Online

This article appeared online at TheNewAmerican.com on Tuesday, January 24, 2017:  

Ford said on Monday that it would join forces with software developer AutoFi, Inc. to allow customers the freedom to purchase a Ford or a Lincoln automobile and obtain financing for it online without forcing them to endure the usual three- to five-hour long sales pitch in one of its showrooms.

The software will allow shoppers to compare models, prices as delivered, available options, and choices of financing among different lenders. Once the sale and financing are completed, the customer stops by the dealership to pick up his car. Nice and easy.

AutoFi’s CEO Kevin Singerman said he really wasn’t trying to disrupt the sales process:

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Apple Supplier Foxconn Negotiating $7 Billion Plant in Pennsylvania

This article appeared online at TheNewAmerican.com on Monday, January 23, 2017:

Speaking at a meeting at company headquarters in Taiwan on Sunday, Foxconn CEO Terry Gou (shown, on left) expanded on his company’s plans to build a $7 billion flat-panel display facility in Pennsylvania. He said the factory could employ between 30,000 and 50,000 people, depending on what kind of deal he could strike with state officials.

Those plans were inadvertently disclosed following a meeting in December between Donald Trump and Softbank CEO Masayoshi Son. A photo revealed a clipboard Son was carrying that clearly said:

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OPEC Claims That U.S. Shale Producers Won’t Threaten Its Efforts to Raise Crude Oil Prices

This article appeared online at TheNewAmerican.com on Wednesday, January 18, 2017:

English: Montage for the Davos article on Wiki...

Montage of Davos photographs

Speaking at the elites’ conference in Davos earlier this week, Saudi Arabia’s oil minister, Khalid al-Falih, erred when he said that U.S. oil shale producers weren’t a threat to OPEC’s plans to raise crude oil prices by cutting its production. He said that U.S. oil producers “will find they need higher prices” because existing fields (Permian, Bakken, etc.) are being exhausted, and because the costs of lifting new production are going up, thanks to U.S. “inflation on [in] the cost of doing business.”

The minister then engaged in straight-line thinking in a variable world and predicted that

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Success of Las Vegas SHOT Show a Harbinger for Gun Industry Growth?

This article appeared online at TheNewAmerican.com on Wednesday, January 18, 2017:

English: Vector image of the Las Vegas sign. P...

Chris Krueger, an equity analyst who covers the gun industry, is in Las Vegas this week for the National Shooting Sports Federation’s 39th annual Shooting, Hunting and Outdoor Trade [SHOT] Show. He’s bringing with him the perception that the boom enjoyed by the firearms industry over the last two years is over. He told reporters for The Trace, the Bloomberg-funded anti-gun magazine, “It’s a very uncertain environment right now” and that he’ll be looking for evidence of that uncertainty in Las Vegas this week.

At first blush, he might be expected to find some. After all,

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Trump Meets With Ma: One Million U.S. Jobs Over Five Years?

This article appeared online at TheNewAmerican.com on Monday, January 9, 2017:

Jack Ma, Founder of Alibaba Group

Jack Ma, Founder of Alibaba Group

Monday morning’s meeting between President-elect Donald Trump and Alibaba Executive Chairman Jack Ma, said to be China’s second-richest man, is the latest likely to generate more U.S. jobs. Following on the heels of a meeting in December with Masayoshi Son, the founder of venture capital firm Softbank, Trump continues his quest to bring new jobs to the United States. That meeting with Son ended with the announcement that Softbank would be creating 50,000 new jobs in the United States by 2018.

The details of Monday’s meeting are unclear, but the potential is enormous.

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Another Setback for Big Taxi: Uber, Lyft OK’d to Serve Atlanta Airport

This article appeared online at TheNewAmerican.com on Monday, January 2, 2017:  

Following months of negotiations with Uber, Lyft and other ride-sharing (e-hailing) companies, the city of Atlanta, which owns and operates the Hartsfield-Jackson Atlanta International Airport (shown), is allowing them to serve passengers effective on Sunday, January 1, 2017.

They have been serving them for months despite restrictions, but those rules were rarely enforced. Now it’s legal.

But not without costs. First,

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Trump Says Sprint, OneWeb to Create 8,000 New Jobs in U.S.

This article appeared online at TheNewAmerican.com on Friday, December 30, 2016:  

Donald Trump & Melania enter the Oscar De LA R...

President-elect Donald Trump announced on Wednesday that 5,000 new jobs are being planned by Sprint in the United States, and another 3,000 jobs are being created here by a satellite venture company in Florida called OneWeb. Said Trump:

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High-level North Korean Defector Exposes Life Among Elites

This article appeared online at TheNewAmerican.com on Tuesday, December 19, 2016:  

Coat of Arms of North Korea

Coat of Arms of North Korea

When Thae Yong-ho, North Korea’s deputy ambassador to the United Kingdom, defected to South Korea in August, he and his family were immediately taken into protective custody. They were grilled by South Korea’s intelligence service not only to glean all the information they could from them about North Korean dictator Kim Jong-un, the ruling class, and the political situation there, but also to determine that he wasn’t a spy. After all, he’d fooled both Kim and the Brits into thinking he was the real deal — a dyed-in-the-wool hard-core communist — ever since 2004.

On Monday, South Korea sources announced that the months-long interrogation was complete and that, effective on this coming Friday, Thae will be free to go,

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EIA’s Energy Forecast for 2017 Laced With “Uncertainty”

This article appeared online at TheNewAmerican.com on Wednesday, December 14, 2016:  

English: Logo of the U.S. Energy Information A...

The U.S. Energy Information Administration (EIA) was hesitant to forecast where oil and gasoline prices might be in 2017. It said in its Short Term Energy Outlook published last week: “The values of futures and options contracts indicate significant uncertainty in the price outlook.”

Indeed they do. With a 95-percent confidence level, the EIA says the price of oil next year could vary anywhere between

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U.S. Steel Latest to Bring Jobs Back to the United States

This article appeared online at TheNewAmerican.com on Thursday, December 8, 2016:  

U.S. Steel

In an interview with CNBC on Wednesday, U.S. Steel’s CEO Mario Longhi said he’d like to bring back up to 10,000 jobs to the United States:

We’re already structured to do some things, but when you see in the near future improvements to the tax laws, improvements to regulation, those two things by themselves may be a significant driver to what we’re going to do….

 

I’d be more than happy to bring back the employees we’ve been forced to lay off during [the Great Recession].

His company used to employ 37,000 people but that dropped to just 21,000 as of last December, thanks not only to the Great Recession and its almost immeasurably small recovery but also due to excessive regulations:

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OPEC Agreement to Limit Production Boosts Crude Price 11 Percent

This article appeared online at TheNewAmerican.com on Thursday, December 1, 2016:

Coat of Arms of Saudi Arabia

Coat of Arms of Saudi Arabia

The global price of crude oil jumped more than 11 percent since OPEC announced on Wednesday its first agreement to limit production by the cartel since 2008. There are many moving parts to the agreement — perhaps too many.

First, the cartel’s de facto leader, Saudi Arabia, has promised to

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Trump Picks Elaine Chao for Transportation Secretary

This article appeared online at TheNewAmerican.com on Wednesday, November 30, 2016:  

Labor Secretary Elaine Chao.

President-elect Donald Trump picked Elaine Chao shown) for secretary of the U.S. Department of Transportation on Tuesday, raising concerns about her connections with the Republican establishment as well as China. Some of those concerns are balanced by her affiliations with pro-freedom and pro-free market organizations.

If confirmed, she will face a host of issues,

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Donald Trump Meets Ayn Rand

The Passion of Ayn Rand

This article was published by The McAlvany Intelligence Advisor on Wednesday, November 30, 2016:  

Ayn Rand passed away in 1982 at age 77 when Donald Trump was just 36. But the astounding success of her masterwork, Atlas Shrugged, led to an interview at the Trump Tower on Monday in the form of one of her most avid fans: John Allison.

Allison, a Phi Beta Kappa graduate of the University of North Carolina in 1971, read a copy of it as a young man and it changed his life. There’s an outside possibility that it might change the life of millions of others.

Following graduation he went to work for BB&T Corporation, a small rural bank in North Carolina. By 1989 Allison was the bank’s CEO. By 2010 he had grown the bank from $4.5 billion in assets to

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Trump Meets With Former Banker Who Wants to End the Fed

This article appeared online at TheNewAmerican.com on Tuesday, November 29, 2016: 

John Allison BB&T

John Allison

Donald Trump met with former banker John Allison on Monday in a meeting that was largely ignored by the mainstream media. It remains unclear whether Allison was being interviewed for the job of secretary of the Treasury or was just giving Trump some advice from a free market perspective.

Either way, it’s a breath of fresh air in an era where statism and excessive hubris (the idea that mere politicians and economists can guide, even stimulate a $20-trillion-dollar economy with monetary policy) has reigned for decades.

Right after graduating Phi Beta Kappa from the University of North Carolina in 1971,

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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.