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

Tax Foundation: Average American Works 109 Days to Pay All of His Taxes

This article appeared online at TheNewAmerican.com on Monday, April 16, 2018:

Tax Freedom Day, which “represents how long Americans as a whole have to work in order to pay the nation’s tax burden,” falls this year on April 19 according to the Tax Foundation.

With Americans focused on paying their income taxes by April 17, this year’s deadline, the release from the Tax Foundation last week likely gives them little comfort. The average American worker will have to work until April 19 — 109 days — to pay all of his taxes: federal, state, local and municipal. That’s just three days fewer than last year, thanks to Trump’s tax reform law. Put another way, the total tax bill of $5.2 trillion soaks up more than a quarter of the economy’s total gross annual output.

According to the foundation,

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The Economy is Booming. Why Should Anyone be Surprised?

This article was published by The McAlvany Intelligence Advisor on Friday, April 13, 2018:

For a small fee, anyone can download the Harvard Business School’s case study on Apple, Inc. In a nutshell, Apple began in April, 1976 with three employees, no customers, and no revenues. Today it has 123,000 employees, millions of customers, and revenues approaching a quarter of a trillion dollars.

This confounds Keynesians who believe, steadfastly and in the face of overwhelming evidence to the contrary, that it is consumers who drive the economy. On just about every business news show on evening television, one can hear something like “consumers, which are responsible for 70 percent of the economy,…” etc., etc. How do they explain the growth of Apple?

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Harvey, Illinois, Can’t Make Pension Contributions, Lays off Police & Firemen

This article appeared online at TheNewAmerican.com on Friday, April 13, 2018:

Tuesday’s decision by the city of Harvey, Illinois, a Chicago suburb with a population of 24,950, to lay off nearly half of its police and fire-department workers came a day after a judge ruled against the city’s emergency motion asking the judge to keep the sales and use tax revenues collected by the state flowing to the city, instead of being diverted to pay pension-plan contributions the city has failed to make for years.

Under a state law passed in 2010, Illinois, which collects various sales and use taxes from residents of and visitors to the city in order to pay for city employees and services, can instead in effect garnish those taxes and use them to

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New Weekly Unemployment Claims Remain Below 300,000, Longest Streak Since 1967

This article appeared online at TheNewAmerican.com on Thursday, April 12, 2018:

Unemployment claims fell last week to just 233,000, far below the historical average, cementing into place the longest streak below 300,000 jobless claims since 1967. A proxy for layoffs, those claims reflect not only an increasing reluctance on the part of employers to let their workers go, but an increasing need for them to bring more workers on in the face of an economic tsunami that’s just now starting to roll into the American economy.

This is just one of many indicators reflecting a growing economy, including an unemployment rate at 4.1 percent, the lowest level since 2000 (and expected to move much lower in the coming months) and employers adding to their payrolls for 90 straight months — the longest economic expansion in history.

Keynesian economists consider that consumers drive the economy, using their pay raises to drive spending on consumer goods and services. Common sense economics — aka Austrian School economics — claims that is putting the cart before the horse: It is capital investment that drives the economy, providing goods and services that consumers discover that they need and want and are willing to pay for.

The classic example is Apple’s iPhone, which

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Dow Theory Sell? Not yet.

This article appeared online at TheNewAmerican.com on Tuesday, April 10, 2018:

Investors who religiously follow Wall Street’s oldest, most successful market-timing tool, the Dow Theory, likely liquidated some, most, or perhaps all of their investments on Tuesday. They are already also likely regretting the move.

Strictly speaking, as The New American has noted in a series of three articles dating back to March 23, the theory tracks two primary indicators: the Dow Jones Industrial Average (DJIA) and the Dow Jones Transportation Index (DJT). Investors following Charles Dow’s thinking (he never used his own theory to trade stocks) went on yellow alert following the market sell-off that began in late January. The market rebounded but never hit new highs. That put in place the floor — called “support” — for those two indexes. The theory states that if a subsequent sell-off takes those two indexes below the previous lows, investors should sell and wait for a better opportunity to buy back into the market.

For the record, the Dow pierced the floor several times but the Transportation Index — the Transports — didn’t, although it came close. Although The New American is not a market-timing newsletter, the remarkable bull market since the election of President Donald Trump has simply demanded that TNA track and follow it from a historical perspective.

The floor “support” for the Transports — based on its bounce back in February — is 10,136. A sell signal was generated on Monday when that index closed below it, at 10,119.

Those who sold any part of their stock holdings on Tuesday missed the rally on Tuesday that took the Dow to 24,408, a gain of 428 points (1.6 percent).

Is this a head fake? Raymond James’ chief investment strategist, Jeffery Saut, thinks so. In a note to his clients Saut explained why:

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How Do You Spell Apocalyptic? Don’t Ask the Congressional Budget Office

This article was published by The McAlvany Intelligence Advisor on Wednesday, April 11, 2018: 

All one needs to do is view the first page of the CBO’s 166-page report on its 10-year outlook for the U.S. economy and government spending that was released on Monday to see why: it features a graph that shows better than words just where we’re headed. Two lines diverge: one, showing government revenues; the other, government outlays. The gap, instead of narrowing, widens dramatically into the future. Unfortunately, the graph cuts off in 2028, leaving one wondering: what happens next?

The CBO report reflected the new law, happily called the Tax Cuts and Jobs Act, that was passed in December. Its previous projection, made by the CBO last June, showed a deficit of $563 billion for 2018, rising to $689 billion next year. Now, with the Tax Cuts and Jobs Act behind them, the CBO now projects this year’s deficit to be $804 billion and next year’s to be just a touch below a trillion dollars, at $981 billion.

The CBO, considered by many to be less partisan than projections coming from the White House’s Office of Management and Budget (OMB), covered itself with this disclaimer:

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Media’s Relentless Attacks Against Trump May be Backfiring

This article appeared online at TheNewAmerican.com on Thursday, April 5, 2018: 

It wasn’t the Rasmussen poll on Tuesday that upset members of the mainstream media. They have long since written off Rasmussen’s polls as biased towards Republicans. So when Rasmussen reported on Tuesday that President Trump’s approval rating rose to 51 percent — the third time this year that his rating has been at 50 percent or above — they all but ignored it.

It was the CNN poll from a few days earlier that they couldn’t understand. While that poll, covering 913 individuals from March 22 through 25, still showed Trump’s approval rating at 43 percent, that was a huge jump from previous poll results. As Newt Gingrich explained, “the result was so shocking that CNN commentator Chris Cillizza, who is normally deeply anti-Trump, had to spend time analyzing [the results] in which the president performed so much better in March than he did in February”:

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China’s Trump Card: $1.1 Trillion in U.S. Treasuries

This article appeared online at TheNewAmerican.com on Friday, April 6, 2018: 

Flag of the Chinese Communist Party 贛語: 中國共產黨黨...

Flag of the Chinese Communist Party

In the nascent “trade war” between the United States and China, there is one option the Communist Chinese government isn’t considering using: its current stash of $1.1 trillion of U.S. Treasuries. Trevor Hunnicutt, writing for Reuters, said that, for the moment at least, “Chinese officials are holding back on taking aim at their largest American import: [U.S.] government debt.”

Hunnicutt posited that, if the Chinese did unleash what he called their “nuclear option,” it would devastate the American economy by forcing interest rates much higher and increasing the U.S. Treasury Department’s costs of financing its trillions in debt.

He also noted that, once liquidated, those assets would no longer serve as a threat to the United States, having already been expended. As Jeffrey Gundlach — known as Wall Street’s Bond King — said, “It is more effective as a threat. If they sell, they have no [more] threat.”

In his typically brash negotiating style, President Trump opened the bidding in March by

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Jobs Report for March Beats Forecasters, Again

Private-sector employment jumped by 241,000 jobs in March, beating February’s numbers and forecasters once again. This is the fifth straight month that the U.S. economy has added 200,000 jobs or more, and is far ahead of the paltry jobs growth recorded last September — just 80,000 new jobs that month. Forecasters were expecting just 200,000 new jobs as they anticipated that demand by employers would exceed available supply.

According to ADP/Moody’s Analytics,

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The Best Stock Investment Tip Ever Given

This article was published by The McAlvany Intelligence Advisor on Wednesday, April 4, 2018:

Sean Williams, writing for The Motley Fool newsletter, has given his readers what he calls “the closest thing you’ll ever get to a surefire stock tip”:

Since January 1, 1950, the S&P 500 has undergone 35 corrections whereby its aggregate point value has fallen by at least 10 percent….

 

Here’s the key point: all 35 of those stock market corrections have been completely erased within a matter of weeks or months (and in rare cases years), by a bull market rally.

 

I repeat, in 35 out of 35 instances since 1950, the S&P 500 has erased any stock market corrections totaling 10 percent or higher at some point in the future.

 

That’s a 100 percent success rate over nearly three dozen data points.

 

Buying any major dip in the S&P 500 is about as close to a guarantee as you’re going to get when it comes to investing in the stock market.

An investment advisor in Colorado Springs requires that his clients promise not to turn on CNBC during the day, but instead concentrate on living life. As a result, he says, he almost never gets a call during market downturns because his clients are focused on more important things.

Other investors, however, are no doubt calling their brokers following the news that the nine-quarter winning streak in stocks came to an ignominious end in March, with the Dow losing 616 points during the first quarter of the year.

It is helpful to remember at least two things:

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Bull Market in Stocks Continues

This article appeared online at TheNewAmerican.com on Tuesday, April 3, 2018:

The 616-point decline in the Dow Jones Industrial Average (DJIA) during the first calendar quarter of 2018 ended a nine-quarter streak of gains. During those nine quarters, the Dow rose an astonishing 8,400 points, almost half of the Dow’s 18,000-point gain since the start of the bull market in stocks in 2009.

Monday’s sharp decline of more than 600 points mid-day (the Dow ended down 450 points for the day) raised once again the question: is the bull market in stocks over?

It’s highly unlikely. From 1995 to 1997, the Dow rose 11 quarters in a row before selling off. After the down quarter that followed, the market roared back, gaining 11 percent the next quarter and climbing more than 45 percent by the end of 1999.

Yardeni Research reports that

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Is the 9th Circuit Court of Appeals Impervious to Change?

his article was published by The McAlvany Intelligence Advisor on Monday, April 2, 2018:

English: George Armstrong Custer.

English: George Armstrong Custer. (Photo credit: Wikipedia)

The president’s problem with the 9th Circuit – provably the most liberal court in the land with a nearly 80 percent reversal rate on rulings that are appealed to and considered by the Supreme Court – may be the same faced by George Armstrong Custer: there were just too many Indians! In Trump’s case, there may be too many liberals, both on the court and in the Senate for him to make any substantive change, no matter how desperate the need.

Custer didn’t recover, but, over time, the American Republic just might. With the death of the court’s most liberal judge, “liberal lion” Stephen Reinhardt, law professor Carl Tobias got excited:

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Remembering Vivien Kellems as April 16 Approaches

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

Vivien Kellems, American industrialist and tax...

Vivien Kellems, American industrialist and tax protester

Vivien Kellems, along with her brother Edgar, invented a specialized cable grip for electrical cables and founded Kellems Cable Grips in 1927. The company prospered.

But in 1943, during the Second World War, Congress passed the Tax Payment Act, which required the payers of wages, not the receiver of wages, to withhold estimated taxes and remit them quarterly to the Bureau of Internal Revenue (later called the IRS).

The injustice was apparent to Vivien and in 1948 she refused, declaring that “If they wanted me to be their agent, they’d have to pay me, and I want a badge.”

They didn’t, and instead simply seized the amount the agency thought she owed from her company bank account. She sued in federal court and finally got her money back.

Withholding has allowed the government to collect far more money far more efficiently with far less bleating from the sheep as explained by the U. S. Department of the Treasury:

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Is the Bull Market in Stocks Over?

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

Followers of the Dow Theory are having their faith in Wall Street’s oldest and most accurate market-timing model tested. Last week’s selloff triggered one of the last two indicators necessary for its followers to declare that the nine-year old bull market has ended.

Charles Dow never used his theory to trade stocks, but his followers have, with great success. It has outperformed the traditional “buy and hold” strategy by an astonishing 4.4 percentage points annually. Mark Hulbert, who watches the market watchers and publishes his results in his Hulbert Financial Digest, wrote that the key support levels to watch are 23,860 on the Dow Jones Industrial Average (DJIA) and 10,136 on the Dow Jones Transportation Average (DJT).

Near the close on Friday, the Dow broke through support, but

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Tariff Reality Ignites Stocks, Affirms Dow Theory Bull Market Signal

This article appeared online at TheNewAmerican.com on Tuesday, March 27, 2018:

The rebound in stocks on Wall Street on Monday and early Tuesday that followed last week’s sell-off was triggered by the reality that Trump’s tough talk on tariffs was little more than an opening bid to get China’s attention. It did, as was noted by Trump’s Treasury Secretary Steven Mnuchin: “We’re having very productive conversations with them. I’m cautiously hopeful [that we can] reach an agreement.”

It helped that over the weekend investors began to understand that Trump’s threat, even if fully applied, would have very little impact on the overall economy. Part of the initial confusion was the media’s constant repetition that Trump intended “to impose at least $60 billion in tariffs on Chinese imports” as the Washington Post expressed it. Whether deliberate or not, the Washington Post should have said that Trump intended “to impose tariffs on at least $60 billion worth of imports, particularly imports of steel and aluminum.”

That’s a vastly different, more accurate and less concerning statement.

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Remington Arms Declares Bankruptcy, Will Continue Operating Under Chapter 11

This article appeared online at TheNewAmerican.com on Monday, March 26, 2018:

Remington Arms

Remington Arms

Remington Arms filed for bankruptcy protection under Chapter 11 in Delaware  on Sunday evening. Directors of the 200-year-old company — America’s oldest gun maker — threw in the towel: “Directors have determined that it is advisable and in the best interests of the Company that the Company file … a Voluntary Petition … for Chapter 11 [bankruptcy].”

Observers blamed the president and Adam Lanza for the filing. Remington’s sales of its iconic shotguns, rifles, and pistols were increasing during the 2016 presidential election as American gun owners, fearing that anti-gun Hillary Clinton would assume the presidency in November, went on a buying spree. When Donald Trump won, those gun buyers not only breathed a sigh of relief, they ended the spree, leaving gun shops with vast inventories and gun manufacturers such as Remington with falling sales and revenues.

Others blamed Adam Lanza for using one of Remington’s products, its Bushmaster AR-15, to kill 20 youngsters in Newtown, Connecticut, in December 2012. They note that the families of those victims filed a class-action wrongful-death lawsuit against Remington two years later, which lawsuit is presently before the Connecticut Supreme Court.

Those much more familiar with Remington’s recent history are blaming the company itself

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Globalist Trump Advisor Gone, Will Americanist Take His Place?

This article appeared online at TheNewAmerican.com on Wednesday, March 7, 2018: 

DAVOS/SWITZERLAND, 27JAN10 - Gary D. Cohn, Pre...

Gary D. Cohn, FORMER Trump advisor

Following the president’s decision to impose tariffs on aluminum and steel imports, Donald Trump’s chief economic advisor, Gary Cohn, announced his resignation on Tuesday. Cohn had led a team pushing Trump not to impose those tariffs, but lost out to another team pushing to keep America first.

Wall Street took the news poorly, thinking that those tariffs could lead to a trade war. But the Wall Street Journal intimated indirectly in its coverage that something much different, and vastly more important, is at stake.

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Do Anti-gun Democrats Have a Death Wish, Offering a Gun Ban Bill in an Election year?

This article was published by The McAlvany Intelligence Advisor on Friday, March 2, 2018: 

When the liberal Huffington Post did its research, it was horrified to find not only that the worst political disasters took place during mid-term elections, but that third on the list was the cleansing of anti-gun Democrats in the 1994 midterms. Voters, outraged at their passage of the Federal Assault Weapons Ban (aka the Clinton assault weapons ban), removed eight Democrat senators and 56 House Democrats. This resulted in the first time Republicans were in control of the House since Eisenhower.

But, as philosopher George Santayana noted, “Those who cannot remember the past are condemned to repeat it.”

Guilty of not knowing or remembering their political history are some 165 House Democrats who have signed on to a bill echoing Clinton’s gun ban: Rep. David Cicilline’s Assault Weapons Ban of 2018. Cicilline’s bill prohibits the “sale, transfer, production, and importation” of semi-automatic rifles and pistols that can hold a detachable magazine, as well as semi-automatic rifles with a magazine that can hold more than 10 rounds” of ammunition. Also to be banned would be semi-automatic shotguns and magazines capable of holding more than 10 rounds of ammunition. His bill lists 205 specific firearms that would be prohibited, including the AK-47 and the AR-15.

These anti-gun pols also have forgotten why the Clinton-era gun ban failed to be resurrected in 2004: there was no credible evidence from any source that it had any impact on gun violence. As recently as April 17, 2013, the Senate voted down a measure that would have restored it, 40 to 60.

Nevertheless, ignoring history and its lessons, Cicilline announced his offering last week:

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Need more Proof that CNN Stands for Communist News Network?

This article was published by The McAlvany Intelligence Advisor on Friday, February 23, 2018:  

If it looks like a duck, quacks like a duck, and hangs around with other ducks, it’s likely to be a duck.

Replace “duck” with “Van Jones” and “other ducks” with CNN, and one scarcely needs more evidence that CNN has rightly earned its sobriquet, the Communist News Network.

There’s more than sufficient evidence that CNN didn’t “overlook” Jones’ proud declaration that he is a communist, but they hired him – and keep him around – because he is a communist. He’s still around at CNN even after his noisy resignation from the Obama administration in September 2009 because his communist ideology and actions had become public knowledge. Just last month, CNN blessed this thug with his own “The Van Jones Show” with the radical Jay-Z being his first guest. Need more proof? Check “Sources” below.

All of which is background for a better understanding of CNN’s so-called “town hall” it launched just after the Florida shooting. It was so blatantly and clearly an attempt to

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Is America’s Welfare State Stifling the Economy?

This article was published by the McAlvany Intelligence Advisor on Monday, February 5, 2018:

There were two numbers buried in Friday’s jobs report from the BLS that portend difficulty for the economy: The number unemployed remains at 6.7 million, and the labor participation rate remains stuck at 62.7 percent. In September 2015 that latter number was 62.4. In 2000 it was 67.3 percent.

How is that possible? With the unfettering of the economy through deregulation and now the recapture and reinvestment of tax dollars that were previously being directed to Washington, just about every economic indicator is green. Why aren’t these millions reentering the workforce?

There’s good news and bad news. Some of those people are leaving the workforce and retiring. Their savings, pension, profit-sharing and 401(k) plans are reflecting the performance of the stock market and consequently are allowing them to recalibrate their retirement plans: they’re retiring sooner than later.

Some of the younger cohort – age 25-54 – are going back to school to learn the skills they need for the new economy.

But others are content just to stay right where they are:

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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.