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

The Tax Foundation’s Big Surprise: Trump’s Tax Plan is Better Than Hillary’s!

This article was published by The McAlvany Intelligence Advisor on Friday, October 21, 2016:  

English: The standard Laffer Curve

The standard Laffer Curve

The Tax Foundation, founded nearly 80 years ago, considers itself non-partisan, guided by what it calls “the principles of sound tax policy, simplicity, transparency, neutrality, stability, no retroactivity, broad [tax] bases and low [tax] rates.” It has steadfastly opposed tax increases of any kind: income, corporate, or excise. Especially annoying are tax “preferences” (i.e., subsidies) for the housing industry and tax credits for certain constituencies (which the Foundation calls “picking winners and losers”).

So it’s no surprise that in its study of Trump’s and Clinton’s so-called “tax plans” the Foundation concluded that Trump’s was vastly superior to Hillary’s:

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Tax Foundation Rates Tax Plans of Trump and Clinton: Trump’s Plan Wins

This article appeared online at TheNewAmerican.com on Thursday, October 20, 2016:

Tax Foundation

Tax Foundation (Photo credit: Wikipedia)

Analysis by the Tax Foundation of all that is currently known about the tax plans proposed by presidential candidates Donald Trump and Hillary Clinton concludes that, if enacted, Clinton’s plan would expand government at the expense of a shrinking economy. On the other hand, Trump’s plan would grow the economy, shrink government’s revenues, raise wages, and expand employment.

But it’s not tax “reform,” claims the study’s author, Kyle Pomerleau,

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Investors Remember Black Monday 1987: Dow Loses 22 Percent

This article appeared online at TheNewAmerican.com on Wednesday, October 19, 2016:  

Wednesday is the 29th anniversary of the largest percentage sell-off of stocks in the history of Wall Street, including the sell-off that triggered the Great Depression on October 28, 1929. On that day in 1929, the Dow dropped 13 percent. In 1987, it dropped 22 percent.

Concerns abound about whether a repeat is likely to take place this month.

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China’s Third-quarter GDP Numbers Draw Skepticism

This article appeared online at TheNewAmerican.com on Wednesday, October 19, 2016: 

National emblem of the People's Republic of China

Last Sunday the Wall Street Journal said it expected China’s third-quarter GDP numbers, to be released on Wednesday, “to show the [Chinese] economy grew by at least 6.7%, on pace with the first and second quarters.” Lo and behold, when those numbers were released by Chinese officials on Wednesday, they were exactly 6.7 percent, which were exactly the same as in the first and second quarters. That is the first time since 1992 that any country’s economy grew at exactly the same rate for three consecutive quarters.

This didn’t matter to much of the national media, which reported the numbers as legitimate and then added commentary and color to bolster their reports. For example,

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Candidates Silent as Government Spending Jumps, Deficit Increases

This article appeared online at TheNewAmerican.com on Monday, October 17, 2016:  

On Friday, the Treasury Department published the final revenue and spending numbers for the federal government for Fiscal Year 2016, which ended on September 30. According to Treasury’s report, spending increased significantly (by nearly five percent) over the previous year, to more than $3.8 trillion, while revenues remained essentially flat from the year before, at $3.25 trillion. That left a shortfall of approximately $600 billion, forcing the government to borrow 15 cents of every dollar it spent last year. And the two presidential candidates have remained disturbingly silent about the issue.

Said Robert Bixby, the executive director of the Concord Coalition, a non-partisan group that favors reducing the deficit,

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Would Trump’s Corporate Tax Cut Help the Economy?

This article appeared online at TheNewAmerican.com on Wednesday, September 28, 2016:  

 Removing the noise and the histrionics from Monday night’s presidential debate, there is a clear division between the two major-party candidates on the state of the economy and what to do about it.

The Democrat candidate said that the economy is on the mend, that jobs are being created, that real incomes have just recently increased, and that the outlook for the economy is sanguine.

The Republican candidate held the opposite view: after seven years the economy is still struggling, the recovery is the weakest in recent memory, and the outlook is bleak.

The Wall Street Journal noted that Trump’s case is the stronger,

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Autonomous Vehicles to Put Four Million People Out of Work?

This article appeared online at TheNewAmerican.com on Friday, September 16, 2016:  

Whenever economic change takes place, there are those who ask: Where will those displaced find other work? In counting the costs involved as autonomous vehicles (i.e., driverless cars, self-driving cars, robotic cars, etc.) continue to revolutionize how people move, Wolf Richter of Wolf Street concluded that more than four million people will lose their jobs:

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The Global Recession Claims its First Victim: Hanjin Shipping

This article was published by The McAlvany Intelligence Advisor on Friday, September 9, 2016:  

English: Hanjin container ship

One of Hanjin’s container ships looking for a place to unload.

When the question about a tree falling in the forest is asked, it’s usually posed as a philosophical one: “If a tree falls in a forest and no one is around to hear it, does it make a sound?” The question is never asked: “What if someone is around who doesn’t want to hear it?”

That appears to explain the kept media’s deafness over the state of the global economy. Even when the Wall Street Journal reported on the bankruptcy of Hanjin Shipping, the world’s seventh largest container shipping company, not one word was spent on asking why. Instead

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Hanjin Bankruptcy: a Harbinger for the Global Economy?

This article appeared online at TheNewAmerican.com on Thursday, September 8, 2016:  

English: A Delmas operated Container ship NICO...

South Korea’s Hanjin Shipping was the world’s seventh-largest container shipping company, moving (until last week) 100 million tons of cargo on its 200 cargo ships from manufacturers to retailers across the globe. Last week, following years of losses as the global economy has slowed, Hanjin declared bankruptcy. That move stranded 90 of those ships as off-loading companies refused to unload them over concerns that they wouldn’t be paid.

Even an offer of $90 million from what’s left of Hanjin (including $36 million from the personal assets of its chairman) fell far short of the necessary $543 million estimated to unload all of its ships that are now circling ports around the world.

Concerns are mounting that

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On Cue, the US Mainstream Media Claims Brazil’s New President as “Free Market”

This article was published by The McAlvany Intelligence Advisor on Friday, September 2nd, 2016: 

Português do Brasil: Michel Temer durante a co...

Michel Temer

The mainstream media lavished unwarranted praise on Brazil’s new president, socialist Michel Temer, on Wednesday following his ascension to the post after Dilma Rousseff was ousted from it. The Wall Street Journal called it a “new start” for Brazil, while USA Today mischaracterized the crook as “a center-right” politician and “a pro-business, free-market advocate.” The New York Times gushed that Rousseff’s impeachment and Temer’s inauguration “puts a definitive end to 13 years of governing by the leftist [read: communist] Workers’ Party.”

This was followed up by promises from the new socialist-in-chief himself:

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Michel Temer, Brazil’s New President, Faces Massive Challenges

This article appeared online at TheNewAmerican.com on Thursday, September 1, 2016:  

English: The newly elected president of the Ch...

Brazil’s new president, Michel Temer

Just after being sworn in as Brazil’s new president, and just before jetting off to the G-20 meeting in China to hobnob with the global elites, Michel Temer took time on Wednesday to make a promise to Brazilians: “From today on, the expectations are much higher for the [new] government. I hope that in these two years and four months [when his term ends in 2018], we do what we have declared: put Brazil back on track.”

That’s an expression more of hope than reality: Little is likely to change except the name of Brazil’s president. Temer faces challenges that would stagger Godzilla:

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Apple’s Issue With EU Order to Pay $14.5B Tax to Ireland Is About Sovereignty

This article appeared online at TheNewAmerican.com on Wednesday, August 31, 2016:  

Tim Cook, Apple COO, in january 2009, after Ma...

Tim Cook, Apple CEO

Apple’s CEO Tim Cook sharply criticized the European Commission’s Thursday ruling that his company must pay $14.5 billion in taxes to Ireland for what it said were illegal tax breaks. Cook explained that as the world’s largest company his is also the world’s largest taxpayer. He reminded his customers that Steve Jobs rescued the town of Cork, Ireland, from a failing economy when he opened an Apple factory there in 1980:

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Brazil’s President Takes Stand in Her Impeachment Trial

This article appeared online at TheNewAmerican.com on Monday, August 29, 2016:

Português: A presidenta Dilma Rousseff recebe ...

Brazil’s upper house will hear testimonies on Monday from eight of President Dilma Rousseff character witnesses in her last-ditch stand to stave off what appears to be inevitable: a senate vote impeaching her and removing her from office.

After the character witnesses speak, Rousseff will then follow with a 30-minute speech, touting her past successes, her experience, and her ties to the once-popular President Lula da Silva, who preceded her in office. She will also repeat her claims that

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The Coming Puerto Rican Bailout

This article appeared online at TheNewAmerican.com on Monday, August 29, 2016:  

On or before September 1, President Obama will complete the eight appointments to the oversight board created when he signed PROMESA (Puerto Rico Oversight, Management and Economic Stability Act) into law on June 30. Those already on the board include Republican Senators Orrin Hatch and Marco Rubio, Democrat Senator Bill Nelson and Congresswoman Nydia Velázquez.

In theory the board will have the power to override the island’s government, delay litigation, fire government workers, and “suggest” other ways the island can begin to recover from its present economic implosion. It has been described as a “de facto” Chapter 9 bankruptcy. In practice it is likely that,

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Vulture Funds Expecting to Profit Handsomely from Puerto Rico’s Problems

This article was published by The McAlvany Intelligence Advisor on Monday, August 29, 2016:  

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

Map of Peuto Rico, with inset showing it’s position in relation to American continents.

George W. Plunkitt was not the world’s first dishonest politician, but he might have been one of the first ones to be honest about his dishonesty. Plunkitt was a Tammany Hall pol who served in the New York State Assembly and then in the New York State Senate around the turn of the 20th century. He called what he did – and what made him wealthy – “honest graft.” He defined “dishonest graft” as efforts to work solely for his own interests. “Honest graft,” on the other hand, was graft that worked for the interests of his own party.

He made his money by

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Venezuelan Exodus Accelerates

This article appeared online at TheNewAmerican.com on Wednesday, August 24, 2016:  

Prison 015

Since early July an estimated 300,000 Venezuelans have crossed the border into Colombia seeking to purchase basic necessities. Some decided to stay.

Eduardo (not his real name) used to make $18 a month as a systems engineer in Venezuela, but that wasn’t enough to feed his family. With inflation reducing the purchasing power of the Bolivar Fuerte by half nearly every month, he fled to Bogota to stay with a friend. Eduardo told the Financial Times: “At least I can find food here. Back in Venezuela we all lacked anything to eat. I’d rather stay here doing whatever [I can], rather than heading back while [Venezuela’s Marxist President Nicolas] Maduro and his cronies are there.”

An accountant who crossed the border into Colombia told the Times that he is going to stay even if “I have to stand at a corner all day selling arepas [a cheap food made from corn meal].”

Families of those who are staying in Colombia are hoping they will receive funds from the border-crossers in order to stay alive. Otherwise, they are likely to starve.

Most of those who can afford to leave the country have already left. The problems in Venezuela started with the takeover of the government by Marxist Hugo Chavez in 1999: First to feel the crunch were many of the 20,000 oil men that Chavez fired from their positions at the state-owned oil company. (Chavez replaced them with incompetent political cronies.) Then businessmen left the country to escape the currency controls imposed by Chavez. They were followed by students who saw the handwriting on the wall. In the last 17 years, an estimated 1.8 million Venezuelans have left the Chavez/Maduro socialist paradise.

Tebie Gonzalez and Ramiro Ramirez cashed out their emergency savings account in order to buy life’s essentials in Colombia in July. They returned home only to face the existential question: What happens when those staples — food and medicines — run out? What will they do?

Daya Silva, a native of Caracas, used a vacation in Buenos Aires to find a job. She found work and returned to Venezuela briefly, carrying a suitcase full of much-needed items for her friends and family: drugs to treat high blood pressure, essential kitchen supplies, and paper goods. But what happens to her friends and family when these run out?

The vast majority of Venezuelans are today facing the same question. Although the number of Venezuelans requesting refugee status has jumped from 127 in 2000 to 10,300 last year, according to the UN, that is a tiny fraction of the 30 million people remaining in the country. With unemployment at 17 percent (government figures are no longer available), with between 76 and 80 percent of the population living in poverty (again, no government numbers are available so these are estimates from independent sources), and with inflation destroying what’s left of the purchasing power of the local currency (inflation is expected to exceed 2,000 percent next year) the average Venezuelan has almost run out of options.

Relocating to nearby Colombia is an option, but Guyana, which borders Venezuela on the east, is having its own set of problems and is deporting Venezuelans back home as fast as they arrive. Brazil, on the south border, is no mecca either, with its own economy being wrecked by socialist policies.

In short, the average Venezuelan lives in a prison forged by the socialism imposed by Chavez and Maduro. The country more and more resembles a concentration camp where the guards are deliberately starving the inmates.

A Lesson in Free Market Economics – from Venezuela?

This article was published by The McAlvany Intelligence Advisor on Monday, August 15, 2016:  

Over the weekend, some 54,000 Venezuelan citizens living near the country’s border with Colombia poured over the Simon Bolivar Bridge so they could buy toilet paper, cosmetics, vitamins, and tires. Many brought empty suitcases, others brought packets of the nearly worthless Venezuelan bolivar currency, still others brought gold earrings, necklaces, and other personal valuables to exchange in local pawn shops for Colombian currency so they could spend it.

They were there to buy. And the merchants were ready to sell. As they exited the bridge on foot (cars won’t be allowed for at least another month) they were greeted with friendly Colombians

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Brazil’s Senate Votes to Begin Impeachment Trial of President Rousseff

This article appeared online at TheNewAmerican.com on Thursday, August 11, 2016:  

Português do Brasil: O presidente Lula partici...

Rousseff and Lula before they were exposed as crooks

In the early hours of Wednesday morning, Brazil’s upper house, following 16 hours of speeches and rancorous debate, voted 59-21 to begin the impeachment trial of the country’s president, Dilma Rousseff (shown). The senate has 48 hours to prepare the impeachment papers, Rousseff has another 48 hours to prepare her defense, and then the actual date for the trial will be set, likely the week after the Rio 2016 Olympics have ended.

For all intents and purposes, however, the trial is already over.

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Production Freeze Main Topic at OPEC Late September Meeting

This article appeared online at TheNewAmerican.com on Monday, August 8, 2016: 

OPEC’s current president, Qatar’s energy minister Mohammed bin Saleh Al Sada (shown at center, above), announced Monday that the oil cartel will hold “informal” side meetings at the International Energy Forum in Algeria in late September. Not surprisingly, the topic will once again be “cooperation” among the disparate and increasingly desperate members to restrict production in efforts to force oil prices higher.

Al Sada, who holds a Ph.D. from England’s University of Manchester’s Institute of Science and Technology, asserted,

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Why Voting for Donald Trump Is a Morally Good Choice

By Wayne Gruden

Some of my Christian friends tell me they can’t in good conscience vote for Donald Trump because, when faced with a choice between “the lesser of two evils,” the morally right thing is to choose neither one. They recommend voting for a third-party or write-in candidate.

As a professor who has taught Christian ethics for 39 years, I think their analysis is incorrect.

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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.