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: Economy

Venezuela in Default; Can the U.S. Be Far Behind?

This article was published by The McAlvany Intelligence Advisor on Wednesday, November 15, 2017:

Português: Brasília - O chanceler da Venezuela...

Marxist Dictator Nicolas Maduro

Marxist Dictator Nicolas Maduro’s Venezuela owes the world an estimated $140 billion. It’s greatly diminished economy, thanks to his socialist policies, generates barely $400 billion in output. That puts its debt-to-GDP ratio at 35 percent.

The United States government, if government agencies are to be believed,

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Where Will 50,000 Former Deutsche Bank Employees Find Work?

This article was published by The McAlvany Intelligence Advisor on Friday, November 10, 2017:

The short answer is: they will find other work. They will also find that other work to be more rewarding, higher paying, more satisfying, and providing greater benefits to others than they did while working for the bank. That’s how the free market operates, when it is allowed to.

It’s not that those DB employees didn’t have fair warning. In September, DB’s CEO, John Cryan, hired in 2015 to turn the bank around, told them:

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“Trump’s” Stock Rally Best Since 1945

This article appeared online at TheNewAmerican.com on Wednesday, November 8, 2017: 

Before the market opened on the day after Donald Trump won the election a year ago, futures were predicting a precipitous drop in the Dow Jones Industrial Average of 900 points. By the close of business that day, sentiment reversed and the market closed up 250 points, to 18,500.

That was 5,000 points ago,

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The U.S. Economy is Built on Papier-mâché and Politicians’ Promises

This article was published by The McAlvany Intelligence Advisor on Wednesday, November 1, 2017:

What a perfect definition of the American economy! Papier-mâché is defined as a “composite material consisting of paper pieces of pulp, sometimes reinforced with textiles, bound with an adhesive such as glue, starch, or wallpaper paste.” Add in a dose of political promises that everyone knows cannot be kept – not even close – and we have the American economy.

From a distance it looks pretty good. More than pretty good: to the untrained eye the American economy is setting world records, to wit:

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U.S. Economy Continues to Surprise to the Upside

This article appeared online at TheNewAmerican.com on Tuesday, October 31, 2017: 

One measure of how the U.S. economy continues to exceed expectations is the Economic Surprise Index published by Citigroup. It’s a tool that is used to measure how the economy compares to those expectations and, at the moment at least, it reflects the ebullience reported elsewhere. Any reading above zero indicates that the economy’s performance is exceeding projections. On Tuesday it hit 40 — its highest level since April.

That performance has repeatedly been reported in The New American and elsewhere, with these notable results:

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U.S. Economy Powers Through Hurricanes, Beats Forecasts With Three-percent Growth in Third Quarter

This article appeared online at TheNewAmerican.com on Friday, October 27, 2017:  

Putting in its best six-month performance in three years, the U.S. economy barely skipped a beat in the third quarter, growing at a three-percent annual rate. That was just slightly behind the second quarter, which grew at 3.1 percent, but way ahead of economists who had forecast growth for the third quarter at just 2.5 percent.

The Commerce Department said

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Treasury Department: $666 Billion Deficit; Sixth-highest in History

This article appeared online at TheNewAmerican.com on Monday, October 23, 2017:  

The federal government ran a deficit of $666 billion in 2017, reported the U.S. Treasury Department on Thursday, thanks mainly to increases in budget items that supposedly can’t be cut: Social Security, Medicare, Medicaid, and interest on the national debt. In addition, military spending is due for substantial increases under the Trump administration.

Translation:

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Herb Stein, Meet Mick Mulvaney

This article was published by The McAlvany Intelligence Advisor on Monday, October 23, 2017: 

English: Official portrait of US Rep. Mick Mul...

Mick Mulvaney

University of Virginia professor Herbert Stein, the father of Ben Stein of Ferris Bueller fame, was known as a pragmatic conservative. But he is best known for his cryptic expression, “If something cannot go on forever, it will stop.”

Mick Mulvaney’s hopeful outlook hasn’t yet been tarnished by his experience in Washington. Serving as a member of the House of Representatives from South Carolina prior to accepting the position of President Trump’s Director of Office of Management and Budget, Mulvaney really thinks, based on his public statements, that things really can go on forever. All that is needed is a little tweaking: “We need to grow our economy again and get our fiscal house in order. We can do that through smart spending restraint, tax reform, and cutting red tape.”

A closer look at the size of that fiscal deficit, however, reveals Mr. Mulvaney’s naiveté: on Thursday the Treasury Department announced that the deficit for the fiscal year that ended on September 30 was

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This Thoroughbred is Just Beginning to Feel His Oats

This article was published by The McAlvany Intelligence Advisor on Friday, October 20, 2017:

English: Thoroughbred racing at Churchill Down...

Thoroughbred racing at Churchill Downs.

It’s tempting to push the analogy comparing the U.S. economy to a Thoroughbred horse too far. But it is tempting. The Thoroughbred breed began around the time of the Industrial Revolution, when an English mare was crossbred with an imported Oriental stallion with Arabian, Barb, and Turkoman breeding. All Thoroughbreds can trace their pedigrees to three stallions imported into England in the 17th century. They were exported to Australia, Europe, Japan, and South America during the 19th century, and today an estimated 100,000 Thoroughbred foals are registered worldwide every year.

A Thoroughbred is tall, slender, athletic, and built for competition, usually on racetracks. Among the most famous are Citation, Phar Lap, Old Rosebud, Whirlaway, Roamer, Seabiscuit, and Man o’ War.

And, of course, the United States economy.

Starting at around 1800, the U.S. economy grew at such a rate that

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Many Surprises in Latest Jobless Claims Report

This article appeared online at TheNewAmerican.com on Thursday, October 19, 2017:

The first surprise from the latest jobless claims statistics is that new claims for unemployment insurance benefits last week fell to the lowest level in 44 years, according to the Department of Labor (DOL): “The advance figure … was 222,000 … the lowest level for initial claims since March 31, 1973.”

The second surprise is that the number of continuing claims (those lasting more than a week) also fell to levels not seen since 1974.

The third surprise is

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U.S. Condemns Venezuela’s Election

This article appeared online at TheNewAmerican.com on Tuesday, October 17, 2017:

On Monday, U.S. State Department spokeswoman Heather Nauert stated the U.S. government’s official position on Venezuela’s Sunday elections: “We condemn the lack of free and fair elections yesterday in Venezuela. The voice of the Venezuelan people was not heard.” She added that there had been “last minute changes to polling station locations without public notice, manipulation of ballot layouts, and limited availability of voting machines in opposition neighborhoods.” In addition, independent credible outside monitors of the elections were prohibited from overseeing the election process by Marxist dictator Nicolás Maduro’s (shown) regime.

Independent polls showed that opposition candidates in the 23 state mayoral elections should have crushed the regime’s candidates, but instead

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Dow Crosses 23,000 for the First Time in History

Performance of the Dow Jones Industrial Index ...

Performance of the Dow Jones Industrial Index during Black Monday

This article appeared online at TheNewAmerican.com on Tuesday, October 17, 2017:

The Dow Jones Industrial Average (DJIA), colloquially called “The Dow,” crossed over the 23,000 benchmark level early Tuesday morning for the first time in history. The Dow, which tracks the stocks of 30 major corporations, has gained 25 percent since the election while the NASDAQ (which tracks the stock performance of a vastly larger and more diversified range of companies across the globe) is up 27 percent. The S&P 500 Index (which tracks the stock performance of 500 American companies) is up 19 percent.

The Wall Street Journal had no trouble finding money managers who were willing to comment positively on the news. Mark Freeman, chief investment officer and portfolio manager at Westwood Holdings Group (which invests $22 billion for its customers), told the Journal:

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What if Your Customer Can’t Buy Your Product, but Wants to?

This article was published by The McAlvany Intelligence Advisor on Monday, October 16, 2017:

There are two basic rules of economics. The first is: if prices go down, more will be demanded. The second is: both sides of any economic transaction must benefit or there’s no deal.

The fracking revolution in the United States has pushed the price of crude oil down to the point where it is threatening the very existence of the OPEC cartel. Consumers are saving at the pump and the energy industry in the U.S. employs more than 10 million people, making up eight percent of the country’s gross domestic product.

But there’s been an all but invisible transformation taking place in natural gas. At least two of the Big Oil companies sell more natural gas than they do crude oil.

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U.S. Natural Gas Exports to Add 500,000 Jobs, $73 Billion to Economy

This article appeared online at TheNewAmerican.com on Monday, October 16, 2017:

Liquefied natural gas (LNG) tanker, section vi...

Liquefied natural gas (LNG) tanker, section view from side.

The latest estimate from API, the energy trade group, is that increased exports of LNG (liquefied natural gas) over the next 20 years will add nearly 500,000 jobs to the American economy and $73 billion to the country’s gross domestic product (GDP). Marty Durbin, API’s chief strategy officer, stated, “This report confirms that increasing U.S. LNG exports would bring great benefits to American workers and consumers and [to] the U.S. economy. Increasing the use of U.S. natural gas throughout the world means more production here at home, cleaner air, and increased energy security for our nation and our allies.”

The revolution taking place in natural gas has been almost completely overlooked.

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EV Revolution to Drive Oil to $10 a Barrel, Says Forecaster

This article appeared online at TheNewAmerican.com on Monday, October 16, 2017:

Shell Oil Company

Chris Watling, the CEO of Longview Economics, told CNBC on Friday that Saudi Arabia should hasten the sale of part of its Aramco oil company while the price of crude is still high: “I think they need to get it away quick before oil goes to $10 [per barrel].” Added Watling: “We forget, don’t we? 120 years ago the world didn’t live on oil. Oil hasn’t always driven the global economy. The point is, alternative energy in some form is gathering speed.… Things are changing.”

Watling’s views coincide with those of Bloomberg New Energy Finance (BNEF) in their just-released 2017 Long Term Electric Vehicle Outlook, which concluded that by 2040

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China Forcing Private Businesses to Support Failing State-owned Enterprises

China Unicom

China Unicom

This article appeared online at TheNewAmerican.com on Wednesday, October 11, 2017: 

The latest report from Caixin/Markit should surprise no one watching China’s continuing economic decline. On Monday Caixin/Markit announced that its purchasing managers’ index (PMI) for China’s services sector fell in September to the lowest level since December 2015, and close to the lowest recorded since the survey began in 2005.

Its PMI for China’s manufacturing sector also fell in September, causing Zhengsheng Zhong, a director at CEBM Group, to add that these numbers “suggesting downward pressure on [China’s] economic growth may re-emerge in the fourth quarter.”

Indeed they might. As The New American and others have noted,

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Jobs Report Shows Remarkable Economic Resiliency After Hurricanes

This article appeared online at TheNewAmerican.com on Friday, October 6, 2017: 

Even the headline was positive. Despite losing 200,000 jobs temporarily due to Hurricanes Harvey and Irma, the American economy’s growth elsewhere all but made up for them. The Labor Department reported a net 33,000 jobs loss in September, the first negative number since 2010.

Other signs of economic strength were revealed by the Bureau of Labor Statistics (BLS):

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Tax-reform Plan Called “Tremendous” by Trump, “Fake Math” by Schumer

This article appeared online at TheNewAmerican.com on Thursday, September 28, 2017:

In unveiling the tax reform “framework” cobbled together by the Trump administration, the House Ways and Means Committee, and the Senate Finance Committee on Wednesday, President Trump called it “tremendous”: “This is a tremendous change, and the biggest winners will be the everyday American workers as jobs start pouring into our country, as companies start competing for American labor and as wages start going up [to] levels you haven’t seen in many years.”

On cue, House Minority Leader Nancy Pelosi (D-Calif.) expressed her concerns about deficits, perhaps for the first time in her political career:

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Trump’s Regulatory Rollbacks Already Being Felt

This article appeared online at TheNewAmerican.com on Friday, September 22, 2017:

English: G. Edward Griffin

G. Edward Griffin

The latest report from the American Action Forum (AAF), which has been tracking President Trump’s promise to deregulate American businesses, continues to be upbeat. In April it had found that the repeal or delay of regulations imposed during the Obama administration could lead to $86 billion “in net fiscal effects” for taxpayers as a result. The latest from AAF said that the trend downward in regulations and upward in freedom from them continues apace.

In July the Washington Post counted 860 regulations that the Trump administration was either pulling or suspending, and then included commentary from anti-Trump liberals that

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China is Suffering from the Same Curse as the U.S.: Too Much Debt, Too Little Growth

This article was published by The McAlvany Intelligence Advisor on Friday, September 22, 2017:  

Live video feed of Zig Ziglar speaking at the ...

Zig Ziglar speaking at the Get Motivated Seminar at the Cow Palace in Daly City, California.

When Zig Ziglar was trying to motivate salesmen, he would often tell them that “there aren’t very many problems that can’t be solved by sufficient production.” This, unfortunately, has been picked up by statist economists who have assumed that any production, at any cost, will solve any problem. Put another way, “We can grow our way out from under the massive debt we have. And we can grow the economy by stimulating it with borrowed funds.”

Zig would be appalled:

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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.