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: Deficit

Saudi Arabia’s Cash Reserves Dwindling, Forcing It to Borrow

This article appeared online at TheNewAmerican.com on Friday, August 7, 2015:  

English: Saudi Arabia

In an astonishing admission that the Saudis have gambled with a bet that is now going sour, the Saudi Arabia Monetary Agency (the country’s central bank) reported:

It is becoming apparent that non-OPEC producers [in the United States] are not as responsive to low oil prices as had been thought, at least in the short run.

The main impact has been [for U.S. producers] to cut back on developmental drilling of new oil wells, rather than slowing the flow of oil from existing wells.

This [strategy to break U.S. producers] requires more patience.

But patience will last only as long as their foreign reserves of cash, and Saudi Arabia’s reserves (immense though they be) are dwindling rapidly. They peaked at $737 billion in August of 2014. In May of this year, they were down to

Keep Reading…

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,

Keep Reading…

Greece-EU Standoff Increases Chances of “Grexit”

This article appeared online at TheNewAmerican.com on Tuesday, July 7, 2015:  

UK Independence Party

Writing in London’s Telegraph on Monday, Nigel Farage, the leader of the anti-EU, pro-sovereignty UK Independence Party (UKIP), called Sunday’s referendum in Greece “a crushing defeat for those Eurocrats who believe that you can simply bulldoze public opinion.” Threats by those Eurocrats to shut off emergency financing unless the country agreed to its terms fell on deaf ears, especially among those under age 35: Eighty percent of them voted no on Sunday.

That cohort is the one least likely to remember the songs that were sung by those promoting the European Union decades ago:

Keep Reading…

Is Puerto Rico America’s Greece?

This article appeared online at TheNewAmerican.com on Monday, July 6, 2015: 

After running deficits every year since 1973 and paying for them by borrowing, the U.S. commonwealth of Puerto Rico has finally run out of options. On June 28, the island’s Governor Garcia Padilla admitted that its $73 billion “debt is not payable.… We will [shortly] be in a death spiral.” Padilla added: “There is no other option. I would love to have an easier option. This is not politics, this is math.”

The math is persuasive.

Keep Reading…

CBO Issues Ambiguous Report on Impacts of Repealing ObamaCare

This article first appeared online at TheNewAmerican.com on Monday, June 22, 2015: 

On Friday the Congressional Budget Office, the nonpartisan government agency that is tasked with predicting economic and budgetary impacts of various government programs, issued its analysis of what would happen if ObamaCare (the misnamed Affordable Care Act) were repealed. Its first questionable assumption was that it would be totally repealed effective January 1, 2016.

Its ambiguous, halting, and heavily discounted conclusions served as fodder for the statist media such as CNBC and NBC to warn of huge deficit increases if the socialized medical care program were repealed. NBC headlined a disaster ahead:

Keep Reading…

U.S. Financial Outlook has “Worsened Dramatically”

This article first appeared online at TheNewAmerican.com on Wednesday, June 17, 2015: 

English:

This graph is outdated but revealing

 

In its just-released report “The 2015 Long-Term Budget Outlook,” the Congressional Budget Office stated bluntly:

The long-term outlook for the federal budget has worsened dramatically over the past several years, in the wake of the 2007-2009 recession and slow recovery…. If current law remained generally unchanged in the future … growing budget deficits … would push [the national] debt above its current high level.

It’s all about government spending that’s baked into the cake:

Keep Reading…

Kansas Considers Tax Increases Just as Its Economy Revives

This article appeared online at TheNewAmerican.com on Friday, June 12, 2015:

English: Aerial view of Kansas City, Kansas, l...

Aerial view of Kansas City, Kansas, looking southwest. The Kansas River (right-center) joins the Missouri River (left). A small piece of Kansas City, Missouri is visible on the left of the Missouri River.

 

Kansas House members debated until midnight Thursday whether to raise sales and cigarette taxes in order to close the state’s budget deficit. The House had just resoundingly defeated a previous measure that would have raised those taxes even more, but the state is facing a deadline to balance its budget, required under its constitution.

There’s a roughly $400-million shortfall this year, which is estimated to increase for the next several years.

Left-wing pundits have had a field day taking Governor Sam Brownback to task for calling his massive tax cuts enacted in 2012 an “experiment,” a “shot of adrenalin,” and similar to Ronald Reagan’s experiment based on the Laffer Curve: Reducing tax rates will increase tax revenues as the economy grows.

Paul Rosenberg, senior editor of Random Lengths News, a tiny weekly newspaper operating out of Long Beach, California, is a good example. His paper describes itself as an “independent progressive newspaper” with a readership of 63,000 that “is proud of the support from the Harbor Area labor unions, who allow us exclusive distribution inside most of their union halls.”

Rosenberg managed to get a screed attacking Brownback published in the hard-left Salon magazine in which he describes the Kansas governor as

Keep Reading…

More Keynesian Insanity: Negative Interest Rates

This article first appeared at The McAlvany Intelligence Advisor on Monday, May 4, 2015:

There’s a corollary to the insanity rule. It’s called the Keynesian Corollary: When something doesn’t work, do more of it. When history is written about the coming Second Great Recession, historians will likely note July 2012 as the turning point. That was when Mario Draghi, head of the European Central Bank (ECB) said during a panel discussion that the ECB “is ready to do whatever it takes to preserve the euro. And believe me, it will be enough.”

Other historians might list that as one of the top ten “famous last words” ever issued by a human being. Since that moment bond yields across the world have dropped, and dropped, and dropped. On Thursday Jeremy Warner, the London Daily Telegraph’s assistant editor, announced that

Keep Reading…

Chicagoans had to Choose Between Venal and Feckless for Mayor

This article first appeared at The McAlvany Intelligence Advisor on Wednesday, April 8, 2015: 

In Tuesday’s mayoral runoff in Chicago, voters had only two choices: to vote for the venal Rahm Emanuel or the feckless Chuy Garcia. Four years ago Emanuel rode Barack Obama’s coattails to victory, winning in a walk with 55 percent of the vote. In February, Emanuel couldn’t squeeze out a majority, getting only 46 percent of the vote and forcing a runoff with a far-left progressive on the Cook County Board of Commissioners, Jesus “Chuy” Garcia.

With the help of an estimated 100 “friends of Rahm,” Emanuel buried Garcia, raising some $30 million for his campaign, eight times what Garcia was able to raise. On Monday Emanuel held an 18-point lead over Garcia.

Garcia was hoping for a miracle.

Keep Reading…

Latest Jobs Report Deceptive; Jobs Exported Overseas

This article first appeared online at TheNewAmerican.com on Saturday, March 7, 2015:

English: A North American Free Trade Agreement...

North American Free Trade Agreement logo

The employment report from the Labor Department on Friday was hailed as more evidence that the worst from the Great Recession is now in the rear view mirror, and receding. The unemployment rate in February dropped to 5.5 percent, lower than economists were predicting, while job growth added nearly 300,000 jobs, pushing the streak of gains of 200,000-plus new jobs per month out to a full year, the longest such streak since 1995.

The news caused stocks to lose more than one percent of their value, as Wall Street expected the robust numbers to hasten the day when the Fed would increase interest rates, potentially slowing the sluggish economy even further. Investors needn’t worry: Friday’s report was a head-fake.

If the recovery were real,

Keep Reading…

U.S. Government’s Interest Costs to Quadruple in 10 Years

This article first appeared online at TheNewAmerican.com on Thursday, February 5, 2015: 

On Tuesday, the Wall Street Journal reported that the federal government will be paying $800 billion annually just to service the interest on its massive debt by 2025, up from just over $200 billion currently. By 2021, those interest costs will equal what the government is projected to be spending on national defense, and on non-defense (so-called “discretionary” items), and will greatly exceed those two budget items just by 2025. The Journal also noted that “non-discretionary” items (so-called “mandatory” expenditures) will continue their inexorable march upward, from $2 trillion currently to more than $4 trillion by 2025.

Surprisingly, few eyebrows were raised over the announcement,

Keep Reading…

Latest CBO Report shows Deficits Approaching $1 Trillion

This article first appeared at The McAlvany Intelligence Advisor on Wednesday, February 4, 2015: 

English:

When the Congressional Budget Office issued its Budget and Economic Outlook 2015 to 2025 in January, few could be bothered to do a serious review of it as it seemed to contradict the present meme of the Goldilocks economy: job growth accelerating, interest rates low, consumer confidence improving, deficits shrinking, and so forth. Even those taking the time to look at it, scoffed at its conclusions. Said the CBO:

The federal budget deficit, which has fallen sharply during the past few years, is projected to hold steady relative to the size of the economy through 2018.

Beyond that point, however, the gap between spending and revenues is expected to grow, further increasing federal debt … which is already historically high.

The CBO explained why:

Keep Reading…

Wisconsin Governor Walker to Substantially Reduce University Spending

This article first appeared online at TheNewAmerican.com on Wednesday, February 4, 2015: 

On Tuesday, as part of his continuing quest to bring Wisconsin’s government spending under control, Governor Scott Walker announced a 13-percent cut to the University of Wisconsin’s $2.3 billion annual budget. In addition, his plan includes a two-year tuition freeze and the severance of state control over the university, passing it over to an autonomous authority. It also includes drug testing for people applying for public assistance, the merging of several state agencies, and the elimination of 400 state jobs. Walker explained: “Our plan will use common-sense reforms to create a government that is limited in scope and ultimately more effective, more efficient and more accountable.”

He also made clear in a radio interview that professors are going to have to ante up as well: 

Keep Reading…

Obama Goes on Offense, Wants to Spend Even More

This first appeared at The McAlvany Intelligence Advisor on Monday, February 2, 2015:

English: Obama speaks at American University.

Taking a page not only out of the Super Bowl on Sunday, but also out of the statistical study proving that offense is more effective in winning than defense, Obama is offering a grievously offensive and logically indefensible budget for 2016 today (Monday, 2/2/15). His proposal is morally offensive in that he proposes to take money earned by some and give it to others. It is logically flawed in that it will increase deficits each year for the next ten years, adding yet another $6 trillion to the $18 trillion already extant (up from the $10 trillion when he took office in 2008). It will limit job growth, stifle innovation, keep tax lawyers and accountants busy into eternity, and do nothing for his favorite target: the beleaguered middle class.

None of that matters. It’s all for show and to keep the Republicans on the defensive by couching his proposal in terms that only progressives could love:

Keep Reading…

New Illinois Governor Facing Torrent of Red Ink

This article first appeared online at TheNewAmerican.com on Monday, January 12, 2015:

 

Previous Illinois administrations and politicians have been kicking the can down the road for decades. Now, the state has run out of road. Bruce Rauner, Illinois’ new Republican governor, was inaugurated on Monday and is facing a daunting task: a $4 billion backlog of unpaid bills and a budget showing deficits approaching $21 billion in three years unless something is done.

During his campaign that successfully ousted what Huffington Post noted as the “nation’s least popular governor,” Pat Quinn, Rauner made the usual political promises of streamlining government and improving education and the state’s business climate, all without increasing taxes. In fact, he promised

Keep Reading…

Venezuela’s Welfare State Collapsing Along with Oil Prices

This article first appeared at The McAlvany Intelligence Advisor on Monday, December 29, 2014:

 

As oil prices have dropped, so has Venezuela’s revenue stream that supports its welfare state. Ninety-five percent of Venezuela’s export earnings come from crude oil, and the industry makes up one quarter of the country’s gross domestic product. With oil prices setting new lows last week, Venezuela’s economy, already on the ropes, is set to descend into chaos, anarchy, and looting. The decision by Saudi Arabia to continue to pump in order to maintain its market share reveals not only the inherent inability of any cartel to maintain itself over time, but also the inability of a welfare state to sustain itself without outside help.

With the world’s largest oil reserves, surpassing those even of Saudi Arabia, an uninformed observer would be unable to explain how a country as richly blessed with natural resources as Venezuela could go broke,

Keep Reading…

Collapse in Oil and Natural Gas Prices Hitting OPEC the Hardest

This article first appeared online at TheNewAmerican.com on Monday, December 29, 2014: 

On November 17, gas prices had dropped to $1.9...

As prices for crude oil and natural gas continued their precipitous fall over the last five weeks, most commentators have been focusing on the impact — real or predicted — on the oil and gas industry in the United States. Little noticed, however, was the report from the U.S. Energy Information Administration (EIA) about how those declines are likely to affect OPEC.

OPEC’s total revenues, which hit an all-time high of $900 billion in 2012, are expected to decline by half next year, to just $446 billion. And that projection is based on the assumption that oil prices will average

Keep Reading…

IRS Chief Threatens Furloughs, Possible Shutdown

is article first appeared online at TheNewAmerican.com on Monday, December 22, 2014: 

English: United States Internal Revenue Servic...

United States Internal Revenue Service Criminal Investigation Division Badge

One unheralded part of the widely criticized CRomnibus bill came to light last week when IRS Commissioner John Koskinen complained about the $346 million cut in his agency’s funding and the possible impact it would have on its services. The agency requested $12.4 billion, but the spending bill gave them just $10.9 billion, a reduction of $346 million from last year and $900 million below 2010 levels. In an e-mail to his employees on Wednesday, Koskinen warned them that “Our hiring — already limited at a ratio of one [new] hire for every five people who leave — will be frozen…. We will stop overtime except in critical situations.” He noted further that, adjusted for inflation, the IRS budget is about where it was back in 1998.

Keep Reading…

Latest Poll: Vast Majority Oppose Gas Tax Increase

This article first appeared online at TheNewAmerican.com on Wednesday, December 17, 2014:

A new poll from Benson Strategy Group confirms not only that most Americans don’t want an increase in their gasoline taxes but that they’re afraid Congress will enact one anyway. Coming on the heels of Republicans joining with Democrats to pass a pork-laden CRomnibus bill earlier this week, the poll’s results show that two out of every three Americans don’t want to pay more at the pump. 

Those polled are likely also concerned that the recent precipitous drop in the price of gas will be seized by the Congress as an opportunity to raise the tax with minimal initial pain to drivers. 

An early attempt by a safe-district liberal Democrat from Oregon, Earl Blumenauer, a year ago to raise gas taxes by 15 cents a gallon failed to gain any traction, with just one co-sponsorship coming from a House member who knew he would be retiring this year. 

Keep Reading…

Voters Finally Learn What’s in the CRomnibus Bill Passed by the Senate

This article first appeared online at TheNewAmerican.com on Tuesday, December 16, 2014:

Official portrait of United States Senator (R-KY)

Kentucky Senator Mitch McConnell, the leader of the Republican sellout

The so-called CRomnibus bill (a combination of a Continuing Resolution and an omnibus spending bill covering dozens of federal agencies) was passed by the Senate late Saturday night, 56-40, approving government spending through next September.

Passage, although delayed slightly by complaints from Senator Ted Cruz (R-Texas) that it funded President Obama’s illegal immigration executive order without debate, was guaranteed when 24 Republicans, including every GOP leader, voted for it. This allowed some Democrats the opportunity to vote against it as a sop to constituents or to build their resumes in contemplated runs for the White House in 2016. They included newly inducted Senator Cory Booker (D-N.J.), along with Senators Elizabeth Warren (D-Mass.), Amy Klobucher (D-Minn.), and Kirsten Gillibrand (D-N.Y.).

Others whom Republicans bailed out with their “yea” votes included naysayers

Keep Reading…

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

Site Search

Tweet Us