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: History

Who gave Powell the Power to Manipulate Markets?

This article was published by The McAlvany Intelligence Advisor on Friday, November 30, 2018: 

With just two words – “just below” – Fed Chair Jerome Powell gave Wall Street what it was hoping to hear on Wednesday: a step back from his “we’re a long way from neutral” comments in early October. Wall Street finished the day higher by more than two percent. Here’s what Powell said that triggered the relief rally:

Interest rates are still low by historical standards, and they remain just below [emphasis added] the broad range of estimates of the level that would be neutral for the economy – that is, neither speeding up nor slowing down growth.

That’s a very long way from his previous comments that took 2,500 points off the Dow in the weeks following their issuance.

Nearly all the conversation was about Powell’s words, which were, according to Robert Pavlik, chief investment officer at SlateStone Wealth, “exactly what the market was expecting to hear. Obviously it has to do with the market reaction to his previous comments. He had to walk [them] back.”

There was much discussion over just what he meant by “neutral.” Two weeks ago, Charles Evans, the president of the Chicago Federal Reserve Bank who also sits on the Fed’s Federal Open Market Committee, didn’t know what “neutral” meant:

Keep reading…

Two Words From the Fed, and Wall Street Jumps More Than Two Percent

This article appeared online at TheNewAmerican.com on Thursday, November 29, 2018: 

While Fed Chair Jerome Powell was addressing the Economic Club of New York on Wednesday, the stock market was open, and it was listening. What it was listening for exceeded its expectations and stocks jumped in the final hours of trading by more than two percent, its biggest one-day gain since the end of March.

What was “the street” listening for?

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Nancy Pelosi’s Real Challenge Comes January 3

This article appeared online at TheNewAmerican.com on Wednesday, November 28, 2018: 

For Nancy Pelosi, getting the endorsement of Democratic leaders on Wednesday for speaker of the House in the 116th Congress was easy. However, an increasingly noisy chorus of Democratic Party youngsters have promised to make the vote before the whole House on January 3 much closer. With 233 Democrats in the House, Pelosi will have to secure 218 of them to obtain the speaker’s gavel once again.

At first blush, her opponents are making a good point:

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Trump and Xi Square Off in Buenos Aires This Weekend

This article was published by The McAlvany Intelligence Advisor on Wednesday, November 28, 2018: 

Ever since communist China saw its opportunity in 2001 and took it, its leaders have salivated over the opportunity to become the hegemon of the world. Treated as a developing nation in the World Trade Agreement (WTO), it not only took advantage of the United States but continued to abridge the agreement’s rules. In the nearly two decades since then, China has grown, thrived, and prospered at America’s expense to the point where it is a virtual hegemon in East Asia and seeks to expand its power and influence worldwide.

President Donald Trump saw the threat years ago, and now is in a position to do something about it.

The issues being covered by the media aren’t the real issues. Trump plays along. In a telephone interview with Bob Davis of The Wall Street Journal on Monday afternoon, Trump was asked what he hoped would come out of that meeting. He answered:

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Social Security is Defaulting on Its Promises Through Inflation

This article was published by The McAlvany Intelligence advisor on Friday, November 23, 2018: 

There are three ways that Social Security can face its ultimate demise: stop issuing checks; change the deal; or default over time through inflation. Whether intentional or not, the Social Security Administration has chosen Door No. 3, and the Senior Citizens League (SCL) has been blowing the whistle on the fraud for years. In June it reported that:

Over the past 18 years, Social Security benefits have lost 34 percent of their buying power, according to the findings of this study.


Many of the goods and services purchased by typical retirees increased several times faster than annual Social Security cost of living adjustments (COLAs) from January 2000 through January 2018.

As this writer has pointed out here, for three out of every five of the more than 60 million Americans receiving Social Security, that monthly check represents half or more of their total monthly income. Because many have not planned for the future, or been able to, by the time workers start receiving their benefits, four out of 10 will be living at or near the poverty level.

There have been previous attempts to “adjust” the purchasing power of those checks including using cost-of-living-adjustments or COLAs. For 2019,

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Wall Street Worries? Blame the Fed

This article appeared online at TheNewAmerican.com on Wednesday, November 21, 2018: 

It was Jeremy Siegel, professor of finance at the Wharton School of Business and the seer who predicted that the Dow Jones Industrial Average would see 20,000 by the end of 2015, who got it right. The stock market’s recent fall, losing 1,000 points in two days earlier this week and almost 2,500 points since early October, was caused by Jerome Powell, the head of the Federal Reserve. During an interview on CNBC’s Closing Bell on Tuesday, Siegel said, “The market is saying that the pace [of the Fed’s interest rate hikes] is a little too fast.… The market is clearly worried about over-tightening [by] the Fed.”

The decline can be traced to remarks by Powell in early October that the Fed was

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Fed Official Suggests Four More Interest Rate Hikes in 2019

This article appeared online at TheNewAmerican.com on Monday, November 19, 2018:  

As far as one can tell, Charles Evans, the president of the Chicago Federal Reserve Bank who also sits on the Fed’s policymaking body the FOMC (Federal Open Market Committee), never in his life swung a hammer, put on a tool belt, or had to meet a payroll. But when it comes to interest rates and their impact on the housing market, he has an opinion: interest rates are too low and should go higher, perhaps much higher. And soon. He “penciled in” possibly four more interest rate hikes next year.

But he’s not really sure what that means.

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Social Security COLA for 2019 Is 2.8 Percent, or $40 a Month

This article appeared online at TheNewAmerican.com on Monday, November 19, 2018: 

Starting in January, the 62 million Americans receiving Social Security will get a cost of living adjustment (COLA) in their benefit checks of about $40 a month. For three out of five of them, their check represents about half of their total monthly income.

For those waiting to cash in, more than half don’t have enough saved elsewhere to support a “decent” retirement, according to the Center for Retirement Research. More than 90 percent don’t have a pension plan at work and half of those who do, don’t participate. Translation: By the time they start receiving Social Security, four out of 10 will be living at or near the poverty level.

In other words, of the three legs of their retirement stool, two legs are missing and the third is getting weaker.

Trustees of Social Security just announced the dreaded “inflection point,” where they are starting to have to dip into the trust funds’ reserves to pay out the benefits. That’s due to a number of factors:

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The Federal Ponzi Scheme Hits Its “Inflection Point”

This article was published by The McAlvany Intelligence Advisor on Monday, November 19, 2018: 

It wasn’t supposed to happen this way. After all, former Social Security commissioner Robert Ball called the scheme “social insurance” designed to help people

when earnings stop because one is too old to work or too disabled to work, or because the wage earner in the family dies, or because there is no job to be had, or when there are extraordinary expenses connected, say, with illness.

But it was a Ponzi scheme from the start, enforced by government mandate to keep people from leaving when they learned it was a scam after all. Those careful with words and their meanings knew it was a lie from the start: it was called FICA, the Federal Insurance Contributions Act, illicitly borrowing the credibility of insurance companies that didn’t go bankrupt in the Great Depression to cover up the fact it was never actuarially sound from the beginning.

The scheme is simple:

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The U.S. Treasury Just Issued a “Buy” Signal for Hard Money Investors

This article was published by The McAlvany Intelligence Advisor on Friday, November 15, 2018:

This writer opined in this space [at The McAlvany Intelligence Advisor] on Wednesday that, due to certain technical and political indicators, this would be an opportune time for hard money advocates to open or add to their holdings of precious metals. That same day, the U.S. Treasury issued its own fundamental “buy” signal. In its monthly statement of receipts and outlays of the U.S. government, it noted that although receipts jumped more than seven percent in October, year-over-year, government spending rose a breathtaking 18 percent compared to October a year ago.

Buried in the various charts and graphs was this note:

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Latest NFIB Report Confirms Robust Health of U.S. Economy

This article appeared online at TheNewAmerican.com on Wednesday, November 14, 2018:  

Just when concerns over the future of the U.S. economy have reached fever pitch thanks to the recent volatility on Wall Street, along comes the National Federation of Independent Business (NFIB) to calm those concerns. Its October report, “Small Business Economic Trends”, was summed up thus:

Overall, small businesses continue to support the 3 percent plus growth of the economy and add significant numbers of new workers to the employment pool.


The percent of owners with one or more unfilled openings is at a 45 year record high level.


Employment is growing faster than the population (210,000 per month this year to date), so the gains in jobs are being “fueled” in part by increased labor force participation.


Consumer optimism is also running at near-record levels, supported by rising wages and plentiful job openings.

After reviewing the numbers in each category (from “plans to increase employment” to “earnings trends”), the authors of the study concluded: “Bottom line, the October report sets the stage for solid growth in the economy and in employment in the fourth quarter, while inflation and interest rates remain historically tame. Small businesses are moving the economy forward.”

Indeed they are. The NFIB boasts membership of 325,000 small business owners, reflective of the estimated 28 million small-to-medium-sized businesses in the United States with fewer than 500 employees. That’s compared to about 20,000 companies with 500 employees or more.

And they swing a big hammer.

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Another Opportunity to Purchase Gold and Silver?

This article was published by The McAlvany Intelligence Advisor on Wednesday, November 14, 2018:

With gold closing at $1,202 an ounce and silver closing below $14 an ounce on Tuesday, safe haven hard money investors have the third opportunity in three years to take advantage of such prices.

In November 2015, gold bottomed at $1,081 an ounce; in December 2016 it found support at $1,169 an ounce, and on Tuesday it dropped $1.50 from Monday’s close to finish at exactly $1,202.

Three separate studies have shown the connection between monetary uncertainty and the behavior of precious metals prices. The first, completed by Jonathan Batten, Cetin Ciner and Brian Lucey, concluded that

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Wall Street Loves Gridlock: Stocks Jump Two Percent Day After Midterms

This article appeared online at TheNewAmerican.com on Thursday, November 8, 2018:

Stocks leapt upward on Wednesday as investors came to realize what the midterm elections meant: gridlock. As analysts from Bank of America Merrill Lynch noted before the election, “Gridlock (nothing done, nothing undone) might not be a bad outcome, and has historically been a good environment for stocks.”

Generally, the year following a gridlocked Congress has been good for stocks, averaging gains of 12 percent. Wednesday’s gain of two percent across all the major averages, and Thursday’s continuing rally, though modest, is a harbinger for a repeat into the next year.

Thanks to gridlock, the president’s second round of tax cuts is DOA. Infrastructure spending is fraught with danger for the Democrats. They’d like to spend the money, but they don’t want to help Trump’s reelection chances in 2020. They’d rather try to impeach him for various reasons — his firing of James Comey for political reasons or the 87 communications the Trump campaign had in 2016 with Russians (whether incriminating or not) or how he might have enriched himself or his family by doing business with foreign interests — but that won’t go anywhere as the president won’t sign anything unless those investigations are ended before they begin.

What the House Democrats are left with is “drug pricing” and “ethics reform.” Taking on Big Pharma and imposing ethics reform in the House looks to Gary North as just

Keep reading…

The Judge, the Journal, and the Warsaw Ghetto Uprising

This article was published at The McAlvany Intelligence Advisor on Friday, November 2, 2018: 

Back in January 2013, former New Jersey Superior Judge Andrew Napolitano taught a history lesson:

The right of the people to keep and bear arms is an extension of the natural right to self-defense and a hallmark of personal sovereignty. It is specifically insulated from governmental interference by the Constitution and has historically been the linchpin of resistance to tyranny….


The historical reality of the Second Amendment’s protection of the right to keep and bear arms is not that it protects the right to shoot deer. It protects the right to shoot tyrants, and it protects the right to shoot at them effectively, with the same instruments they would use upon us.


If the Jews in the Warsaw ghetto had had the firepower and ammunition that the Nazis had, some of Poland might have stayed free and more persons would have survived the Holocaust.

The chilling history of the 13,000 Polish Jews who resisted Nazi military forces from April 19, 1943 until they were wiped out by May 19 is told by Marek Edelman, one of the only survivors, in his “The Ghetto Fights.” After efforts to remove the Jews from the Ghetto to transport them to the ovens failed, the Nazis tried a different tactic:

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Wall Street Journal: “How Many Guns Do Americans Own?”

This article appeared online at TheNewAmerican.com on Thursday, November 1, 2018:

In an improbable article from an unlikely source, Wall Street Journal writer Joel Eastwood asks an impertinent question, “How Many Guns Do Americans Own?” Eastwood answers the rhetorical question himself: No one knows because of a lack of a central database. “With no central database,” he states, those interested in finding out “are left to make their own tallies.”

Not surprisingly, among those interested making guesses is the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). Eastwood reported that the agency was forced to make some estimates on how many guns were manufactured here in the United States, how many were imported from abroad, how many were exported, how many have been destroyed or otherwise lost over the years, and then they came up with a number: 405 million firearms are owned by 323 million Americans. Decried Eastwood, that’s “more guns than Americans!”

The question is impertinent for one simple reason: Why would the Journal, or anyone else for that matter, be interested, unless they had intentions to broach or abrogate the Constitution’s Second Amendment. After all, with a national database including the name and address of every American owning a firearm — all in the name of “public safety” of course — the temptation over time would be overwhelming to come and collect them, in the name of “public safety.”

That’s not how it works, according to former New Jersey Superior Court Judge Andrew Napolitano:

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Gurus at Treasury Jiggering Its Offerings

This article was published by The McAlvany Intelligence Advisor on Wednesday, October 31, 2018:

The announcement from the U.S. Treasury was terse:

Total net marketable securities issued in the fourth quarter will be a projected $425 billion.


That will bring total debt issued in 2018 to $1.34 trillion, the highest since $1.59 trillion was issued in 2010.


2018 debt issuance also jumped 146% from 2017, when just $546 billion was issued.

It took Liz McCormick at Bloomberg to explain just how Treasury was going to manage all of that: stay short and provide inflation protection. Specifically, Treasury’s latest offerings will focus on five-year maturities or less, and brush the dust off its TIPS – Treasury Inflation-Protected Securities.

But of course that hardly addresses the underlying problem: a government continuing to spend beyond its (taxpayers’) means. The numbers are ugly: The national debt of the United States Government jumped by $1.3 trillion during its fiscal year that ended on September 30. The gap between the government’s spending and its income for that fiscal year was $779 billion, a jump of $113 billion over the year before.

At some point, the question will be raised: Who will buy? That was the question raised back in 2011 when Standard & Poor’s cut the government’s credit rating and put it on its “negative” watch list. Said S&P at the time:

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U.S. Treasury’s Massive Problem: How to Fund Increasing Deficits

This article appeared online at TheNewAmerican.com on Tuesday, October 30, 2018:  

The national debt of the United States government jumped by $1.3 trillion during the fiscal year ending September 30. The gap between the government’s spending and its income for that fiscal year was $779 billion, a jump of $113 billion over the year before. And now, the U.S. Treasury has announced how it’s going to manage all this: It’s going to issue new debt in the amount of $1.34 trillion, a 146 percent increase from 2017 and the highest amount of new debt issued since 2010.

Said the Treasury:

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Ron Paul Is Right: It’s Long Past Time to End the Fed

This article was published by The McAlvany Intelligence Advisor on Friday, October 26, 2018: 

Most people think of the Fed as an indispensable institution without which the country’s economy could not properly function. What most people don’t realize is that the Fed – created by the Morgans and the Rockefellers at a private club off the coast of Georgia – is actually working against their own personal interests.

Want proof? Try the multiple selloffs on Wall Street since the beginning of October. Some people blame them on October. After all, it’s the month when sell-offs happen. It’s in the tides. It’s in the moon’s cycles. It’s a spooky month. Etc., etc.

Others, looking slightly deeper at possible causes, blame them on trade “disputes,” China’s intransigence, the murder in Saudi Arabia, the rise in oil and gas prices, the “caravan” of dissidents headed for the U.S.’s southern border, the rash of fake bomb attacks, fill in the blank.

They came closer to the truth when they considered

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White House Issues Attack on Socialism in Response to Sanders’ “Medicare for All”

This article appeared online at TheNewAmerican.com on Friday, October 26, 2018: 

It’s highly unlikely that Harvard-trained economist Justin Wolfers has ever been to Caracas, Venezuela. It’s also unlikely that he took the time to read the 72-page report “The Opportunity Costs of Socialism” issued by President Trump’s Council of Economic Advisers (CEA) explaining the dangers in enacting Bernie Sanders’ socialist healthcare takeover called “Medicare for All.” But he has an opinion, nevertheless: he called it “dreck” in his tweet: “For several generations the CEA harnessed the best and brightest to serve their country, ensuring White House policy was informed by modern [i.e., Keynesian] economic thinking. It’s sad to see [the present Trump CEA] debase that tradition, spending their time on this dreck.”

Merriam-Webster offers various synonyms for “dreck,” including chaff, deadwood, debris, dross, dust, garbage, junk, litter, offal, refuse, riffraff, rubbish, scrap, trash, truck, and waste. In other words, Wolfer doesn’t think much of the CEA’s effort.

On the other hand,

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The Economy Isn’t the Top Issue in November. The President Is.

This article was published by The McAlvany Intelligence Advisor on Monday, October 22, 2018: 

Political operative James Carville helped engineer Bill Clinton’s victory over George H. W. Bush in the 1992 president campaign. In the campaign’s “war room,” Carville posted three dicta on the wall to remind him and his staff of the strategies to focus on:

Change v. more of the same;

Don’t forget health care; and

The economy, stupid.

Carville is now known for popularizing the third point: “It’s the economy, stupid!” and it has become standard fare in political warfare: people vote their pocketbooks.

In June, Morning Consult, a political polling firm with liberal-left tendencies, decided to test the thesis ahead of the November Midterms. It asked 1,061 registered Republicans and 1,202 registered Democrats “What would you say is the top set of issues on your mind when you cast your vote [in November]?” The top three were health care (#3), the economy (#2), and President Trump (#1).

Even though Mr. Trump isn’t running for anything, he is the issue in November, turning standard political strategy on its ear. According to American Enterprise Institute (AEI),

Keep reading…

Many of the articles on Light from the Right first appeared on either The New American or the McAlvany Intelligence Advisor.
Copyright © 2018 Bob Adelmann