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

Closing the Gold Window: Remembering the Nixon Lie 40 Years Ago

President Richard M. Nixon speaks on the telep...

Image via Wikipedia

Against the backdrop of price inflation reaching six percent, the unemployment rate touching five percent, the increasingly large holdings by foreign governments of dollars (that at the time were convertible into gold upon demand) and his desperate need to get reelected, in August, 1971 President Nixon conferred with his economic advisers about how to solve the inflation problem without taking any blame for it.

Keep reading…

Good News: North Dakota’s Economy Doing Just Fine, Thank You

Artist's rendition of a shale oil extraction p...

Image via Wikipedia

Finally, some good news about the economy, from an unlikely place: North Dakota. CNNMoney reported that while the United States’ economy grew at less than 3 percent last year, North Dakota’s grew by more than 7 percent. And with national unemployment over 9 percent, in North Dakota it is just over 3 percent (and hasn’t touched 5 percent there in more than 20 years).

The prime driver is the discovery of

Keep reading…

Warren Buffet Wants his Friends’ Taxes Raised

Image via Wikipedia

Warren Buffett, better known as the Oracle of Omaha, earned $40 million last year and paid $7 million of it in taxes. But in his editorial in the New York Times on Sunday, he claimed that he doesn’t think he’s paying enough, and neither are his friends. So he’s asking the SuperCommittee to stop “coddling” him and his friends, and raise their taxes as part of the deficit reduction scheme they are hatching.

He began by suggesting that

Keep reading…

The Fed: QE3 is All but Certain

DSC_1334

Image by The UpTake via Flickr

The latest report from the Board of Governors of the Federal Reserve System confirms what every sentient being already knows: The economy is in the dumper, with little improvement expected. The report used words like “considerably slower,” “deterioration,” “flattened out,” “weak,” and “depressed” to describe current conditions, and it even noted that excuses such as bad weather and the earthquake in Japan “appear[ed] to account for only some of the current weakness in economic activity.” (Emphasis added.)

In other words, the Board had a BFO (blinding flash of the obvious) and

Keep reading…

Physician Sentenced to 20 Years for Medicare Fraud

The Department of Justice building in Washingt...

Image via Wikipedia

The case brought by the Department of Justice against Dr. Rene de los Rios of Miami, Florida, succeeded not only in sending the physician to jail for 20 years for systematically defrauding Medicare, but also in exposing the dark underside of the entire Medicare system itself. The sentence meted out by U.S. District Judge Joan Lenard was the second most severe sentence handed out to any doctor in South Florida, known as the “epicenter” of Medicare fraud. The dubious honor of the most severe sentence is held by

Keep reading…

Why is Gold Over $1700 an Ounce?

A London Good Delivery bar, the standard for t...

Image via Wikipedia

With gold bouncing up from $1,668 an ounce on Friday, August 5 to $1,778 on Tuesday, August 9, it was the biggest three-day rally since the start of the great recession in 2008. At the same time, the equities markets were falling precipitously, losing over 600 points on the Dow on Monday alone. What is the connection?

The easy answer is fear, loss of confidence, and

Keep reading…

Nine of 12 Super Committee Members Named: Tea Party Marginalized

May_30_Health_Care_Rally_NP (207)

Image by seiuhealthcare775nw via Flickr

Senate Majority Leader Harry Reid was the first to announce his three nominees to the “Super Committee” created by the recent debt ceiling increase, and all three fit the mold of big-spending liberals: Senators John Kerry (D-Mass.), Max Baucus (D-Mont.), and Patty Murray (D-Wash, right.), the latter of whom will also serve as co-chairman of the committee. Reid observed of his picks:

Keep reading…

Standard and Poor’s Extends, Defends and Explains Its Downgrade

Standard and Poor - not the most popular build...

Image by Haydn Blackey via Flickr

In a series of expected additional press releases, the Standard & Poor’s credit rating agency is expanding its downgrade of debt securities tied to the now-lower-rated sovereign debt of the United States, including Israeli bondsFannie Mae and Freddie Mac, and “pre-funded” municipal bonds. Other credits tied closely to U.S. sovereign debt are also expected to be downgraded shortly, with only a few exceptions.

Most municipal bond issues are not pre-funded with U.S. Treasury securities, and so they aren’t likely to

Keep reading…

S&P Downgrade: Does It Portend a Death Spiral?

The western front of the United States Capitol...

Image via Wikipedia

Standard and Poor’s was blunt in its assessment of America’s deteriorating financial condition when it announced Friday night that it was cutting its credit rating on United States’ Treasury securities from AAA to the second-tier AA+, with a negative outlook. S&P said:

Progress [in] containing the growth of public spending, especially on entitlements, or on reaching an agreement on raising revenues, is less likely than we previously assumed

Keep reading…

Corzine to Replace Geithner as Treasury Secretary?

HOBOKEN, NJ - NOVEMBER 02:  New Jersey Gov. Jo...

Image by Getty Images via @daylife

Despite protestations from Jon Corzine, former New Jersey governor, that he has no interest in taking Treasury Secretary Timothy Geithner’s place if Geithner decides to step down, Corzine did manage to have a clause put into his company’s bond offering prospectus that if he did accept the position, bond holders would be paid an extra one percent interest, just in case.

Keep reading…

U.S. Credit Rating Still at Risk

Crisis

Image by da.mas via Flickr

Moody’s announcement on Tuesday that it would retain its AAA rating of U.S. government sovereign debt as a result of the debt-limit agreement came with a warning: the government must rein in spending or risk a downgrade anyway. The deal “virtually eliminated the risk of [a] default,” but the agency warned that “Should the new mechanism put in place by the Budget Control Act prove ineffective, this could affect the rating negatively.” Moody’s added that it wanted to see the United States lower its debt-to-GDP ratio, now approaching 100 percent, to around

Keep reading…

Debt-Limit Deal’s Trojan Horse: The “Special” Committee of 12

Image via Wikipedia

The debt ceiling is to rise initially by $900 billion under the Revised Budget Control Act of 2011. And then, the debt limit is to rise again by either $1.2 trillion or $1.5 trillion depending upon how successful the 12-member Joint Committee of Congress is in finding sufficient cuts in government spending to avoid a “trigger” that would do the cutting automatically. The committee will be made up of

Keep reading…

Debt Ceiling Crisis: Putting Things Into Perspective

WASHINGTON - JUNE 22:  U.S. Sen. Rand Paul (R-...

Image by Getty Images via @daylife

The compromise bill that emerged Sunday night from behind closed doors is being loudly trumpeted in an attempt to persuade recalcitrant conservatives in both houses to vote for something—anything—in time to avoid the August 2 deadline.

A careful analysis of the ultimate compromise bill yields some important conclusions. First of all, there is nothing in the law or statutes that

Keep reading…

County in Alabama is Bankrupt, Just Like the U.S.

Bribe

Image via Wikipedia

At the very last minute, county commissioners in Jefferson County, home to the metropolis of Birmingham, Alabama, decided to postpone a final decision on whether or not to declare bankruptcy over their excessive indebtedness. The bonded indebtedness incurred to build a state-of-the-art sewage treatment plant exceeds $3 billion, far beyond what the county can afford to service. And raising sewer fees for a fourth time in ten years

Keep reading…

Lacking Support, Boehner Delays Debt-Limit Vote

John Boehner - Caricature

Image by DonkeyHotey via Flickr

House Speaker John Boehner’s last-minute “pep talk” to his Republican caucus early Thursday morning failed to turn the tide of Tea Partier “nays” to “yeas,” and the vote on his debt-limit bill has been postponed. Calling on them to “get…in line” because “I can’t do this job unless you’re behind me,” Boehner failed in getting the 216 votes he needed. He claimed, “The Republican proposal includes real spending cuts and reforms that will restrain future spending—and the spending cuts are larger than the debt limit increase.”

He went on to say his bill represents “the best opportunity we have to hold the president’s feet to the fire. [Obama] wants a $2.4 trillion blank check that lets him continue his spending binge through the next election. This is the time to

Keep reading…

“Extremist” Presidential Candidate Ron Paul

Ron Paul at the 2007 National Right to Life Co...

Image via Wikipedia

Claiming that presidential candidate Ron Paul leads the “economic suicide wing” of the Republican Party, Brent Budowsky, writing for The Hill, says that Paul is the “worst possible role model” for Republicans because he suggested that a default by the government “would be OK.” Budowsky calls Paul a “Banana Republican,” claiming that Paul is taking an extremist position, adding that keeping the debt ceiling in place and putting the government on a diet would “literally crash American and global markets…that would do grave damage to our nation.”

Keep reading…

Debt Ceiling Talks: from Disagreement to Impasse to Crisis

Partisan Fail

Image by colarusso via Flickr depicting a political take on the Twitter "FAIL Whale" screen.

House Speaker John Boehner walked away Friday from debt ceiling negotiations with President Obama, saying that the White House had “moved the goalposts” in their weeks-long effort to come to terms acceptable to both Republicans in the House and Democrats in the Senate.

In his letter to members of the House, Boehner said, “During these discussions…it became evident that the White House is simply not serious about ending the spending binge that is destroying jobs and endangering our children’s future…. In the end, we couldn’t connect. Not because of different personalities, but because of different visions for our country.”

He went on to say:

Keep reading…

Obama’s Letter to Americans: Stand Behind Efforts to Raise Debt Limit

Barack Obama - Caricature

Image by DonkeyHotey via Flickr

President Obama’s open letter to the American people published yesterday in USA Today challenges them “to do something big and meaningful” and stand behind his efforts to raise the debt ceiling.

This debate [over the debt ceiling] offers the chance to put our economy on stronger footing, and [to] secure a better future for our children. I want to seize that opportunity, and [to] ask Americans of both parties and no party to join me in that effort.

Obama’s letter is carefully crafted to persuade the average reader that the country’s present perilous financial condition was not caused by the Ruling Class at all but by all citizens working out their daily lives.

Keep reading…

Minnesota Shutdown Ends with Compromise Pleasing No One

Minnesota State Representative Mindy Greiling

Image via Wikipedia

Now that the Minnesota state government shutdown has ended, details of the compromise between Governor Mark Dayton and the Republicans are now public—and no one is happy.

At issue was the $5-billion shortfall between revenues and spending. Liberal Governor Mark Dayton had his own plan for bringing in more revenue: “I believe the wealthiest Minnesotans can afford to pay more taxes,” he commented. Conservative Republicans in the state House and Senate, including House Speaker Kurt Zellers and Senate Majority Leader Amy Koch, dug in their heels on any tax increase whatsoever. In the end, both sides lost. As noted when the Minnesota state government shut down, the real bottom-line question had

Keep reading…

President Obama Pledges Spending Cuts to Eisenhower Era

Dwight D. Eisenhower

Cover of Dwight D. Eisenhower

At last Friday’s press conference, President Obama reviewed the status of talks with Republicans over the debt ceiling and reiterated his determination to “get our fiscal house in order.” He added:

We have a unique opportunity to do something big. We have a chance to stabilize America’s finances for a decade, for 15 years, or 20 years, if we’re willing to seize the moment.

Now, what that would require would be some shared sacrifice and a balanced approach that says we’re going to make significant cuts in domestic spending. And I have already said I am willing to take down domestic spending to the lowest percentage of our overall economy since Dwight Eisenhower. (emphasis added)

Keep reading…

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