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

Tag Archives: bankers

Saudi Arabia Once More Delays Plans to Sell Part of Its Oil Company

This article appeared online at TheNewAmerican.com on Tuesday, March 20, 2018: 

Coat of Arms of Saudi Arabia

Coat of Arms of Saudi Arabia

The chairman of Aramco, Saudi Arabia’s privately held oil producer, told avid listeners in Davos, Switzerland, in January that “we hope that 2018 will be the right time [to list shares of the company for sale], but ultimately we have to make sure the market is ready.”

There is increasing evidence that the market might never be ready.

When Saudi Arabia’s Crown Prince Mohammed bin Salman announced his plans in January 2016 for moving his country’s economy away from its dependence on oil (called Vision 2030), he guessed he could raise $100 billion from the sale of part of Aramco to help with the transition. He also felt that the sale of just five percent of the company would do the job nicely. In addition he thought that those shares might be offered as soon as 2017.

The year 2017 came and went, and Saudi Arabia’s oil minister Khalid Al-Falih said last week that the new deadline for the listing — in late 2018 — was now “artificial,” adding that the next target date is April 2019.

There are so many challenges facing the elites in Saudi Arabia that the deal might never take place.

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Sorry, Inflation Worries are Not Behind the Selloff in Stocks

This article was published by The McAlvany Intelligence Advisor on Wednesday, February 7, 2018:  

All manner of explanations for the recent market selloff in stocks have come out of the woodwork: the market has gotten ahead of itself; it was due for a correction anyway; it’s been 400 days since a three percent correction; and so on. The least informed is that all of a sudden there is inflation! See? The yield on the 10-year Treasury is up 80 basis points since September! That must mean there’s inflation! Couple that with the “surge” in wages just reported by the Bureau of Labor Statistics (2.9 percent year-over-year compared to 2.2 percent reported previously) and – voila! – inflation is back. Time to take profits!

Most commentators didn’t bother to check with the Fed, specifically the Cleveland Fed and the St. Louis Fed, which report the real numbers on inflation and money supply. First:

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New York Fed: Economy Will Benefit From Harvey and Irma

This article appeared online at TheNewAmerican.com on Monday, September 11, 2017:

Frédéric Bastiat

Frédéric Bastiat

In a statement reflecting a worldview taught by all major universities and espoused by central bankers around the world, the president of the Federal Reserve Bank of New York, William Dudley, said on Friday that, on net, the destruction wrought by the hurricanes will be positive for the economy: “[The initial] effects tend to be pretty transitory. [But] the long-run effect of these disasters unfortunately is it actually lifts economic activity because you have to rebuild all the things that have been damaged by the storms.”

Dudley got the first part right:

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Fracking’s Vicious Cycle Making Bondholders Nervous

This article appeared online at TheNewAmerican.com on Thursday, July 20, 2017:

King Abdullah ibn Abdul Aziz in 2002

King Abdullah ibn Abdul Aziz

Investors in high-yield bonds issued by small fracking companies are getting nervous. Last year those bonds, according to Bloomberg, gained some 38 percent as they rebounded from lows set earlier. In June they slipped two percent. In the bond business, that’s enough to make bond fund managers and individual investors nervous. It’s bad enough that the S&P 500 Energy Sector Index of energy stocks has lost 16 percent so far this year. What’s worse is the vicious cycle that frackers find themselves in.

For instance,

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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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About That New, Dreadfully Misnamed Puerto Rico Bailout law

This article was published by The McAlvany Intelligence Advisor on Friday, July 1, 2016:  

English: Map of Peuto Rico, with inset showing...

Investors saw the market values of their Puerto Rican bonds soar with news that Congress passed the “Puerto Rico Oversight, Management and Economic Stability Act” (PROMESA). They had a right to be happy: prior to the news their long bonds were trading at about 62 cents on the dollar. Afterwards they jumped to 66 cents. Still a paper loss of a third of their initial investment, but better than anticipated.

What’s anticipated is that the new oversight board, populated with politicians (but none from Puerto Rico), will solve all of the island’s problems,

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Regime Change in Brazil is Imminent

This article was published by The McAlvany Intelligence Advisor on Wednesday, March 16, 2016:

More than three million Brazilians, fed up with corruption that goes all the way to the top, went to the streets last Sunday to protest Dilma Rousseff’s regime and to demand her removal. This is likely to signal the end of Rousseff, who has steadfastly declared her innocence in the Petrobras scandal that has rocked the country for years.

Dubbed “Operation Car Wash” and driven by Judge Sergio Fernando Moro, the first break in the case came with a phone call two years ago from a local car wash and currency exchange business owner to police that he thought

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Brazil’s “Prince of Contractors” Sentenced to 19 Years for Corruption and Bribery

This article appeared online at TheNewAmerican.com on Wednesday, March 9, 2016:  

English: Vice President of Brazil Michel Temer...

English: Vice President of Brazil Michel Temer, President Dilma Rousseff, former President Luiz Inácio Lula da Silva and Marisa Letícia Lula da Silva at Rousseff’s inaugural ceremony.

On Tuesday a Brazilian judge sentenced Marcelo Odebrecht, the former CEO of the Odebrecht conglomerate who is known popularly as the “Prince of Contractors,” to 19 years in prison after being convicted of bribery, money laundering, influence peddling, and associating with criminal elements in Brazil.

Now reaching the highest levels of business and politics in Latin America’s largest sovereign state, an investigation known as “Operation Car Wash” is

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Puerto Rico Defaults Today on Part of $1B Debt Payment

This article appeared online at TheNewAmerican.com on Monday, January 4, 2015:  

Both the Puerto Rican flag and the United Stat...

Both the Puerto Rican flag and the United States flag fly over Puerto Rico

Last June Puerto Rico’s Governor, Garcia Padilla, said his government was out of money and would have to default on some of the bonds issued by various government agencies. It owed some $54 million to the Public Finance Corporation and another $140 million to the government’s Development Bank. By moving some funds around on the government’s balance sheet, Padilla was able to make most of those payments.

Since then Padilla’s financial woes have snowballed.

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Greek Vote the Death Knell for the EU?

This article was published by The McAlvany Intelligence Advisor on Wednesday, July 8, 2015:  

English: Nigel Farage at Lord's cricket ground...

Nigel Farage

Nigel Farage, named “Briton of the Year” in 2014 by the London Times, has finally found his voice. He noisily departed the Conservative Party in 1992 after the signing of the treaty that created the European Union to start his own UK Independence Party (UKIP). His criticism of the EU has been steady ever since, culminating in his eulogy on Monday: “The European Union is Dying Before our Eyes.”

According to Farage, Sunday’s referendum in Greece sealed its death warrant, even if somehow the Greek PM Alexis Tsipras is able to come to terms with the troika and have them turn on the financial spigot once again: “It [was] a crushing defeat for those Eurocrats who believe that you can simply bulldoze public opinion.” He added,

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HSBC Downsizing to Core Business: Money Laundering, Terror Funding

This article first appeared online at TheNewAmerican.com on Wednesday, June 10, 2015: 

Officially, London’s Hong Kong and Shanghai Banking Corporation (HSBC), the world’s third-largest banking firm, is cutting costs to improve profits. The intended moves are for the benefit of the shareholders, asserted Stuart Gulliver, the bank’s chief executive on Tuesday: “We recognize that the world has changed and we need to change with it. I am confident that our actions will allow us to capture expected future growth opportunities and deliver further value to our shareholders.”

Unofficially, HSBC is going to ply its underground wares and provide its vast money-laundering services where its customers are mostly likely to reside in the years ahead:

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Impacts of Lower Crude Oil Prices Continue to Spread

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

 

After oil forecaster Jeremy Warner got lucky last year when he accurately called the top in oil prices, with a fall to at least $80 a barrel, he doubled down by predicting “that the oil price will remain low for a long time, sinking to perhaps as little as $20 a barrel over the coming year before recovering a little.”

Warner got lucky once again when Goldman Sachs confirmed his prognosis, setting off an eye-popping five percent decline in oil to $45 a barrel which continued into Tuesday. Tuesday’s low was $44.20. As Goldman Sachs noted,

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Swiss Issue an Unequivocal Buy Signal for Gold

This article first appeared at The McAlvany Intelligence Advisor on Friday, December 5, 2014:

Rarely do the precious markets receive such an unequivocal, unblemished, unalloyed buy signal as the one issued by the Swiss when they voted down, 3-to-1, a referendum that would have modestly restricted the activities of its central bank.

Months earlier, polls showed that the “Save Our Swiss Gold” initiative was likely to pass, but massive publicity campaigns and moves by Citigroup to cash in on it caused a huge shift in public sentiment, with the final vote on Sunday, November 30 defeating it by a 78-22% margin.

The Swiss, being a direct democracy, are known for referendums, voting on an average of five of them every year, with most of them failing. But this one caused rejoicing among observers and Swiss National Bank (SNB) officials that likely put in a bottom in the gold market. Had it passed, the referendum would have required the SNB to

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Article in CFR Magazine: Give Away Money to Stimulate Economy

This article first appeared at TheNewAmerican.com on Thursday, August 28, 2014:

 

Los Angeles Police Department (LAPD) Bell 206 ...

Mark Blythe, a professor at Brown University, and Eric Lonergan, a hedge fund manager living in London, have conjured the ultimate solution to a stagnant economy: Central banks should give away free money.

These two authors of a lengthy and allegedly erudite article in the September/October 2014 issue of Foreign Affairs, published by the Council on Foreign Relations (CFR), appear to be living in an alternate universe, as their suggestion, if it were fully implemented, would push the world’s economy back to the Dark Ages.

The article, entitled “Print Less but Transfer More: Why Central Banks Should Give Money Directly to the People,” rests on the false assumption that

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Obama Administration Choking off Bank Lending to Gun Dealers

Cover of "The Second Amendment"

Cover of The Second Amendment

For seven years Theodore Roosevelt Liberti – known to his friends as “T.R.” – ran a retail gun shop in New Jersey and then moved it to Florida. T.R.’s bank had always been BankUnited (BU) which handled his accounts and cleared his customer’s credit card purchases. But when he decided to open an online store called Discount Ammo-N-Guns, BankUnited closed his accounts on March 12 “pursuant to the terms and conditions listed in our Depositor’s Agreement.”

When T.R. demanded a further explanation, the bank remained silent. T.R.’s wife and business partner, Elizabeth said:

I was very angry. They were very inconsiderate. We had all our credit cards going through that bank.

All of a sudden we had to run and find another bank to keep our business going. We [had to] shut down for two weeks.

[BUT] wouldn’t even tell us why.

When the bank finally responded, its explanation was unsatisfactory:

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More Fraud Found by Detroit’s Emergency Manager

This article was first published by The McAlvany Intelligence Advisor on Monday, February 10, 2014:

It was no surprise to anyone that Kevyn Orr, Detroit’s interim emergency financial manager of the city during its bankruptcy, would uncover a massive fraud dating back to 2005 that helped precipitate the city’s descent into bankruptcy. It’s also no surprise that the two banks and the insurance company involved now want to cut a better deal

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Detroit’s Bankruptcy plan Reveals Fraud in Funding Pensions

Once Kevyn Orr, Detroit’s emergency financial manager during the city’s bankruptcy, presented his “plan of adjustment” – code for compromise in which no one is going to be happy – criticism was most loudly proclaimed by two people who have no financial interest in the outcome:

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Swiss banks are now IRS agents

Bloomberg’s note on Monday that Swiss banks were having a hard time complying with the terms of an agreement between the Swiss government and the US Department of Justice hardly caused a ripple of media concern much less outrage. The time for such expressions is long past.

In accordance with the deal cut back in August 2009 the Department of Justice now has the power to force Swiss banks to

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The Bitcoin and Paris Hilton

This article first appeared in The McAlvany Intelligence Advisor on Wednesday, November 27th, 2013: 

 

In a dismissive article in The New York Times on Monday, the author quoted a Bitcoin skeptic who predicted: “In a matter of months you won’t be hearing about it. It will go the same way of Paris Hilton.” He failed to follow the old rule: keep your words sweet and tender because someday

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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.