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

Stocks to Fall Further, Say Market Bears

This article was published by The McAlvany Intelligence Advisor on Wednesday, August 26, 2015:  

Marc Faber, the bearish financial commentator from Thailand whom financial talking heads in the media love to hate, really doesn’t care what people think. He’s old enough to know his own mind (he’s 69), and he’s been right often enough that his opinions carry plenty of weight. He’s also a curmudgeon. In his June 2008 newsletter, following the arrival of $600 “stimulus” checks in everyone’s mailbox, Faber wrote this, belittling the idea that much if any of that free money would help stimulate the US’s moribund economy:

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Latest Report: Technology Is “A Great Job Creating Machine,” Not a Job Destroyer

This article appeared online at TheNewAmerican.com on Wednesday, August 19, 2015:  

Deloitte logo.

After reviewing 140 years of data in England and Wales, the consulting firm Deloitte just reported that technology has actually created more jobs than it has destroyed. Because new technology has reduced greatly the costs of common staples such as food, household goods, and transportation, consumers have been increasing their spending elsewhere. Deloitte calls new technology a “great job-creating machine,” adding:

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Three Establishment Mouthpieces Want to Eliminate the Oil Export Ban

This article was published by The McAlvany Intelligence Advisor on Monday, August 17, 2015:  

DAVOS/SWITZERLAND, 29JAN11 - Daniel Yergin, Ch...

Daniel Yergin

Just when one thinks the “establishment” has it in for the United States, along comes not one, not two, but three official utterances from three of its mouthpieces that make complete sense.

First, in May, 2013, Zeke Hausfather, writing in Yale Climate Connections, published by Yale’s School of Forestry and Environmental Studies, explored in detail why, despite increasing production of oil thanks to the fracking revolution, those nasty horrible CO2 emissions have actually gone down! In the five years between 2008 and 2013, they dropped an astonishing 12 percent, and for at least one very good reason:

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Seattle Progressives Prove Certain Economic Laws Cannot Be Repealed

This article was published at The McAlvany Intelligence Advisor on Friday, August 14, 2015:  

Peter, Paul & Mary

By changing the meaning of the word “flowers” to “businesses,” the lyrics from Peter, Paul & Mary’s anti-war song applies perfectly to the new Seattle under its new minimum wage mandates: Where have all the businesses gone?

Where have all the flowers gone, long time passing?”
Where have all the flowers gone, long time ago?
Where have all the flowers gone?
Young girls have picked them everyone.
Oh, when will they ever learn?
Oh, when will they ever learn?

And when will Mayor Ed Murray and his gaggle of progressives who unanimously passed the anti-business, anti-employment minimum wage law last summer ever learn: you cannot fool Mother Nature, and you cannot repeal economic laws.

In Murray’s case the economic law still to be learned is:

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Trump Calls Drop in Chinese Currency “Devastating”

This article appeared online at TheNewAmerican.com on Wednesday, August 12, 2015:  

In an interview at CNN, Republican presidential candidate and billionaire businessman Donald Trump was aghast at the decision by China’s central bank to allow the country’s currency to more closely reflect its real value by letting it drop by more than two percent:

They’re destroying us! They keep devaluing their currency until they get it right. They doing a big cut in the yuan, and that’s going to be devastating for us.

This was echoed by Thomas Gibson, head of the American Iron and Steel Institute: “Our government must address the massive damage that China’s undervalued currency is causing to our nation’s manufacturing sector, especially the steel industry.”

Trump failed to make clear exactly who “us” is. By allowing the yuan to be valued daily as the market deems it, rather than having it arbitrarily pegged loosely to the value of the dollar, every consumer at Walmart is going shortly to see a sign in their window:

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“Gig” Economy Ending Lifetime Careers, Opening Opportunities

This article appeared online at TheNewAmerican.com on Wednesday, August 5, 2015:  

Lending Club headquarters in Redwood City, Cal...

Lending Club headquarters in Redwood City, California.

According to the Financial Times — referring to the “gig” or contractor/freelance economy — the “new world of work is both more exciting and less secure.” And an increasing number of former employees are celebrating that new world by participating in it, leaving collectivists and statists gasping and wondering who will pay for the benefits they have promised if everyone starts working for himself?

The number of independent contractors is growing. And not just in the United States, either. London’s Financial Times reported earlier this week that

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“Sharing,” or “Gig,” Economy Catching Flak From Democrats

This article appeared online at TheNewAmerican.com on Thursday, July 16, 2015:  

The “sharing” or “collaborative” economy — often derided by statist politicians as the “gig” economy — continues to explode with new applications, aided by the Internet, coming on stream almost daily.

A few are well known: Uber, Lyft (chairman in photo), and Airbnb. But others, such as Zaarly, TaskRabbit, and DogVacay, are expanding rapidly as well, thanks to the unique combination of individuals seeking flexibility, income, and opportunity without the confines of the corporate world, and thanks to the Internet. And it’s starting to drive those who would control everyone everywhere crazy.

Charles Cooke, at National Review Online, spelled out the reasons for the growth of the sharing economy using Uber as an example:

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Clinton and Warner Join the Luddites Opposing the “Gig” Economy

This article was published by The McAlvany Intelligence Advisor on Friday, July 17, 2015:  

English: Mark Warner, member of the United Sta...

Mark Warner

Luddites used violence in their failing efforts to stall progress. Democrats are much more circumspect in their intentions. Writing in the Washington Post, ultra-liberal Democrat Mark Warner voiced his “concerns” about those seeking to make a living outside of corporate America in the “sharing” or “collaborative” economy:

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Support to Lift Crude Oil Export Ban About to Overwhelm Obama

This article appeared online at TheNewAmerican.com on Friday, July 10, 2015:  

Apparently deciding that approaching President Obama directly on the matter of oil exports would be a waste of time the Laborers’ International Union and the International Union of Operating Engineers (both Obama supporters) wrote a letter to Congress instead, urging them to lift the ban on exporting crude oil.

Said the letter:

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Fracking is Driving the Reshoring of American jobs

This article was published at The McAlvany Intelligence Advisor on Friday, July 10, 2015:  

Dow Chemical corporate headquarters in Midland...

Dow Chemical corporate headquarters in Midland, Michigan

When Doug May, a regional president for Dow Chemical, announced that his company was going to be investing $6 billion to expand by 40 percent its manufacturing facilities in the US, he was acknowledging simultaneously the massive, if largely unknown, impact that fracking had on that decision. Until that announcement Dow had for years been focusing its attention outside the US where wages were lower and profits were higher. No longer. Said May:

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Fracking Is Boosting Reshoring of American Jobs

This article appeared online at TheNewAmerican.com on Thursday, July 9, 2015:  

English:

In its latest report on American competitiveness, the Boston Consulting Group (BCG) estimates that the average cost to make goods in the United States is now only five-percent higher than in China, and between 10 and 20 percent lower when compared to the major European economies such as Germany and France. In less than three years, BCG projects China’s advantage to disappear altogether.

While part of the reason is rising wages in China and in the Eurozone and American companies improving their productivity faster than their competitors abroad, the primary reason, says BCG, is fracking — the technology that has driven energy costs to a fraction of what they were just a few years ago.

Back in August 2013, Harold Sirkin, a senior partner at BCG, predicted the U-turn that would result in “reshoring” of millions of jobs, starting in 2015:

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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.

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Will Sunday’s Greek vote Signal the end of Monnet’s Dream?

This article was published at The McAlvany Intelligence Advisor on Friday, July 3, 2015:  

Greece’s Prime Minister Alexis Tsipras said that Sunday’s vote is only about accepting or rejecting the troika’s terms to restart the flow of bailout funds that has been keeping the Greek economy from tanking. He said that a “no” vote “does not mean rupture with Europe but a return to Europe with values.”

Most assuredly Sunday’s vote is likely to, in hindsight, turn out to be much more than that. Historians might write that Sunday, July 5, 2015, ended Monnet’s dream.

Monnet was the architect, the primary driving force, behind the failing experiment in Europe called the European Union. He was head of the first genuine European executive body,

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OECD Issues Pessimistic Forecast for France

This article appeared online at TheNewAmerican.com on Wednesday, June 24, 2015: 

The OECD — the Organization for Economic Cooperation and Development — put the best face possible on France’s declining economy in its just-released forecast. The report was full of optimism about the future but admitted that the present reality is discouraging. Note the use of words “projected” and “should” in its opening paragraph:

Economic growth is projected to gain momentum in 2015 and 2016. Lower energy prices, improving financial conditions, slowing fiscal consolidation, strengthening external demand and a pro-competitive reform agenda should underpin an increase in consumption and export volumes.

But the reality is far different, said the OECD: 

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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:

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“The most Bullish thing the Stock Market can do is go up.”

This article was published by The McAlvany Intelligence Advisor on Wednesday, June 10, 2015: 

Charles Dow -an American journalist who co-fou...

Charles Dow -an American journalist who co-founded Dow Jones & Company with Edward Jones and Charles Bergstresser.

 

Right up until early April, that is. The Value Line Geometric Index, the unweighted index of approximately 1,700 stocks that fund manager Dana Lyons likes to watch, topped out at 522 and has declined by almost 10 percent since then.

By Monday, June 8 the Dow’s decline had wiped out all of its gains and is now flat for the year. The Dow Transportation Index fell 2 percent that day, its worst day since January 6, wiping out its 11 percent year-to-date gain. The Dow Utilities Index has suffered an even greater decline, erasing all of its 16 percent gain.

The Dow is one of the primary leading indicators used by financial advisors like Bruce Bittles, the chief investment strategist at RW Baird. Bittles manages $100 billion of other peoples’ money, and he’d better be right. Now, he’s getting nervous:

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Stock Market Wipes Out All Gains for the Year

This article first appeared online at TheNewAmerican.com on Tuesday, June 9, 2015:

On Monday, June 8, the Dow Jones Industrial Average (DJIA) declined by enough to wipe out all gains investors thought they had made in stocks since January 1. It was confirmed by action in the Dow Jones Transportation Index (DJTA), which is even older than the Dow and reflects the price performance of the stocks of 20 transportation companies such as Avis, Delta Airlines, and FedEx. On Monday that index fell by two percent, its worst day since January 6, bringing that index to a loss of nearly 11 percent from its high earlier in the year.

The decline in the Dow was further confirmed by

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EPA: No “Widespread, Systemic” Fracking Impact on Drinking Water

This article first appeared online at TheNewAmerican.com on Friday, June 5, 2015: 

Following the EPA’s release of the initial draft of its “Hydraulic Fracturing Drinking Water Assessment” on Thursday, expressions of joy exuded from fracking industry officials and pro-fracking politicians while anger erupted from environmentalists.

Responding to pressure from Congress to “study the relationship between hydraulic fracking and drinking water,” the EPA spent years and millions of taxpayer dollars to conclude, tentatively at least, that fracking doesn’t pollute or poison drinking water in areas close to fracking wells.

It was also tasked to uncover any “potential for hydraulic fracturing to change the quality or quantity of drinking water resources … [and to identify] factors affecting the frequency or severity of any potential changes.”

After exploring all possible mechanisms by which fracking might possibly negatively impact local drinking water supplies, the EPA reported:

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King v Burwell: Favorable Ruling May Help Economy, Hurt Democrats

This article appeared online at TheNewAmerican.com on Monday, June 1, 2015: 

If the Supreme Court rules in the case of King v. Burwell that words mean something, and that the words “exchanges established by the state” mean that only citizens in those states enjoy subsidies to help pay for their insurance under ObamaCare while those elsewhere do not, the impact of such a ruling would likely prove to be enormous.

The ruling due out shortly will either accept the concept that the words in the ObamaCare law mean what they say, or

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U.S. Economy Goes Negative in the First Quarter

This article first appeared online at TheNewAmerican.com on Friday, May 29, 2015: 

The Commerce Department reported on Friday that the U.S. economy shrank at an annual rate of 0.7 percent, a sharp downward revision from its previous tepid estimate that it would grow by 0.2 percent.

It caught most mainstream economists off guard once again, with many predicting positive growth right up until Friday, and more remaining doggedly optimistic that growth will return. Economists polled by the Wall Street Journal just 10 days ago were holding to a 3-percent growth rate in the economy for 2015, while analysts polled by the AP just prior to the release on Friday were still predicting growth of between 2 and 2.5 percent for the year.

Paul Ashworth, chief U.S. economist at Capital Economics, is waiting for evidence that growth will return in the second quarter:

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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.

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