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

Apple to Repatriate Its Foreign Profits and Put Them to Work in America

This article appeared online at TheNewAmerican.com on Thursday, January 18, 2018:  

Apple announced Wednesday that not only would it repatriate nearly all its foreign cash holdings under the new tax reform law, but it was going to put a lot of it to work right away. This puts the lie to anti-capitalists who predicted that such a plan would only further enrich the already rich.

Instead Apple is going to spread the repatriated funds around, announcing that it would not only be creating new jobs but would be building new facilities and expanding its financial commitment to the company’s “innovation” fund. It also is expanding its efforts to reach students in high school to teach them coding language (for free) so that many of them will be able to provide Apple with the coders and software developers it will need as it expands into the future.

In the process it will also pay the largest single tax bill in history:

Keep Reading…

Record Bullish Bets on Crude Oil Raising Red Flags

OPEC countries

OPEC countries

This article appeared online at TheNewAmerican.com on Monday, January 15, 2018: 

Traders in oil futures have just set a new record: The bets they have placed that crude oil will move even higher just set a world record. As of last week, there were 432,000 net long positions reflecting that optimism. That optimism could be short-lived. As analysts from JBC Energy consulting told its clients on Monday: “From a fundamental perspective, the surge in U.S. managed money raises a clear red flag for us.”

Since the low in June, the price for the future delivery of U.S. crude oil is up almost 50 percent, from $44 a barrel to $64 on Friday. In London, Brent crude traded above $70 for the first time since December 2014.

Their optimism is based on indisputable facts.

Keep Reading…

Credit Card Debt Hits $1 Trillion; Wall Street and Michael Snyder Yawn

This article was published by The McAlvany Intelligence Advisor on Wednesday, January 10, 2018: 

Michael Snyder rivals only David Stockman in his pessimistic economic outlook, reflecting that outlook by naming his blog “The Economic Collapse.” On the first day of the New Year, Michael dug into his files for the most “crazy” numbers from 2017. He found 44, including these:

One out of every ten young adults in the United States has been homeless at some point over the past year;

 

The United States has lost more than 70,000 manufacturing facilities since China joined the WTO in 2001;

 

A total of 6,985 store locations were shut down last year, and we are expected to break the record again in 2018:

 

Only 25 percent of all Americans have more than $10,000 in savings right now; and

 

44 percent of all U.S. adults do not even have enough money “to cover an unexpected $400 expense,” according to the Federal Reserve.

What’s missing from Michael’s list? Credit card debt, student loan debt, and vehicle financing debt. Surely he was aware of these numbers, but for some reason didn’t include them in his list. For the first time in history, credit card debt last year hit $1 trillion, eclipsing the record set back in 2008 following the real estate collapse and the beginning of the Great Recession. Snyder didn’t mention the nearly $3 trillion in “non-revolving” debt (i.e., auto and student loans) either. Seeking Alpha called these numbers “scary” but Snyder ignored them.

A closer look behind the numbers reveals that these may not be such “scary” numbers after all. Perhaps that’s why Snyder ignored them, simply because, by his definition, they didn’t qualify as “crazy.” For one thing, fewer than 40 percent of all households carry any sort of credit card debt. Among millennials ages 18 to 29 only a third even have a credit card.

Next, the ratio of income to credit card debt at the end of 2017 (before the new tax cuts) was already declining with the ratio of credit card debt compared to the nation’s gross domestic economic output at about 5 percent, compared with 6.5 percent in 2008.

Also, credit card delinquencies remain way below the 9 percent historical average, at just 7.5 percent, and far below the rate of 15 percent touched following the 2008 financial crisis.

There’s another way to look at credit card debt: compare outstanding balances to incomes.ValuePenguin performed such a service, showing that households with annual incomes of between $25,000 and $100,000 have less than $7,000 in outstanding balances on their credit cards. Further, that analysis showed that the average has increased only slightly since 2013.

With almost two million more people working today than held jobs a year ago, and others enjoying wage and salary increases, that $1 trillion in credit card debt becomes far less “scary.” In a $20 trillion economy that is growing at three percent a year, $1 trillion in credit card debt may reflect that growth as banks are willing to issue more cards to more credit-worthy individuals and those individuals, having perhaps learned lessons from the Great Recession, are using them more prudently. That “trillion” dollar number may instead reflect a growing and increasingly healthy economy employing more people making more money who are using credit opportunities more wisely.

—————————

Sources:

USATodayCredit card debt hits new record, raising warning sign

SeekingAlpha.comCredit card debt on watch

Michael Snyder: 44 Numbers From 2017 That Are Almost Too Crazy To Believe

ValuePenguin.com:  Average Credit Card Debt in America: 2017 Facts & Figures

Credit Card Debt Hits $1 Trillion, Raising Alarms

This article appeared online at TheNewAmerican.com on Tuesday, January 9, 2018: 

For the first time in history credit card debt hit $1 trillion last year, reported the Federal Reserve on Monday. This eclipsed the previous record set almost 10 years ago, just before the housing and credit bubbles burst. In addition, “non-revolving” (i.e. auto and student loans) debt is approaching $3 trillion.

These numbers have put credit card debt on “watch” at Seeking Alpha, which said that that trillion dollar number is “scary.”

A closer look behind the numbers reveals that these may not be such “scary” numbers after all.

Keep Reading…

What the Latest Jobs Reports Really Mean

This article appeared online at TheNewAmerican.com on Monday, January 8, 2018:

There were three jobs reports released last week: two from the Labor Department’s Bureau of Labor Statistics (one based on its “household” survey, the other on its “establishment” survey), and one from ADP based upon its payroll data.

ADP’s numbers came in first on Thursday, showing job growth in December exceeding forecasters’ predictions at 250,000. This was followed by the Bureau of Labor Statistics (BLS) report on Friday, showing 148,000 new jobs in December. They both said that the unemployment rate held steady at a record low 4.1 percent.

Mark Zandi, the establishment economist at Moody’s, was “disappointed” in Friday’s numbers from the BLS and thinks they’re going to get worse going into the New Year. First,

Keep Reading…

Economist Mark Zandi Exposes His Statist Worldview

This article was published by The McAlvany Intelligence Advisor on Monday, January 8, 2018:

Mark Zandi should be embarrassed. Not because he is an establishment economist. Not because he is a Keynesian. And not because he’s not a smart guy. He should be embarrassed that someone allowed him to publish nonsense about the state of the economy in order to promote his worldview.

He lives in a world that is behaving much differently than he expected or than he apparently wants. He wants the Trump tax reform law to fail. He must admit that the economy is working much better than he ever expected it to. But, in the end, he says that it’s all a mirage, temporary, that the resurgence measured by nearly every metric isn’t going to last.

He is establishment to the core, and perhaps that’s why he’s willing to go to the mat for a worldview that is being overturned and increasingly discredited: that statists can control things much better than an uncontrolled “free” economy can.

He admitted in an article for CNBC that things are going just swimmingly:

Keep Reading…

Trump’s Interior Secretary Proposes Selling Offshore Drilling Leases Starting in 2019

This article appeared online at TheNewAmerican.com on Friday, January 5, 2018: 

English: Nancy Pelosi photo portrait as Speake...

One of the usual suspects

President Trump’s Interior Secretary Ryan Zinke was very careful in announcing his agency’s next step in expanding energy development to include the United States’ offshore reserves. He knew that environmentalists and far-left politicians would attack his plan and did what he could to placate them in advance. Said Zinke:

Keep Reading…

Trump Economy Making Democrats Look Increasingly Foolish

This article was published by The McAlvany Intelligence Advisor on Friday, January 5, 2018:

The kept media dutifully reported California Democrat Nancy Pelosi’s disgust over President Trump’s tax reform program, even though it made her look foolish. Said Pelosi, “If this goes through, kiss life on earth goodbye. The debate on health care is life/death. This is Armageddon.” This was followed by the media quoting Democrat Chuck Schumer: “Tax breaks don’t lead to job creation … [this bill is a] punch in the gut for the middle class.”

It may be a little early to tell, but at the moment the middle class is doing just fine. Life goes on; if Armageddon occurred, the media missed it. That “punch in the gut for the middle class” is about to be caused by heavier wallets, thanks to tax cuts showing up in their February paychecks.

For hundreds of thousands, that punch in the gut was immediate:

Keep Reading…

Dow Smashes Through 25,000; to Smash Dems in November?

This article appeared online at TheNewAmerican.com on Thursday, January 4, 2018:

The surprising thing about the Dow’s volcanic eruption through the 25,000 level on Thursday is that it was matched by all-time highs in other key stock market indexes such as the S&P 500 Index, the NASDAQ, and the Russell 2000. Even more surprising is that this isn’t happening in an American vacuum: Japan’s Nikkei Stock Average hit a new 26-year high, rising above 23,000 for the first time since January 1992. The Hang Seng (Hong Kong) Index just touched a new 10-year high, while major stock market indexes in New Zealand, the Philippines, and Thailand also set new records on Thursday.

The reasons why aren’t surprising:

Keep Reading…

Minimum Wage Increases in 2018 Putting People Out of Work

This article was published by The McAlvany Intelligence Advisor on Wednesday, January 3, 2018: 

According to Mic, the left-wing internet and media company that caters to millennials, Seattle “is quickly becoming one of the most interesting cities in the country for political observers.” The city boasts having an avowed socialist on its city council and proved his influence through its $4.8 billion budget in 2014 that is “loaded with a number of initiatives that illustrate how Seattle is making strides toward becoming a testing ground for boldly progressive policies.”

That salute to Seattle’s progressivism was published in 2014, and little has changed in the city council’s ideology. It now boasts a minimum wage of $15.45 an hour, with predictable effects: total wages paid to lower-income people has gone down, not up. A study just released by the National Bureau of Economic Research (NBER) explained:

Keep Reading…

Craziest Idea of 2017: Let Students Pay Down Their College Loans by Delaying Their Social Security Benefits

This article appeared online at TheNewAmerican.com on Monday, January 1, 2018:  

What a world! Broken promises traded for other broken promises, and offered with a straight face!

Representative Tom Garrett (R-Va.) turns 46 in March and is still paying off his student loans. In less than 20 years he’ll qualify to retire under present Social Security rules. He put two-and-two together and came up with the Student Security Act (SSA): Pay down some of his student loans by pushing back his retirement age.

Specifically, Garrett’s bill (H.R.4584, which has four co-sponsors so far) would forgive

Keep Reading…

Bah Humbug: The Left Is Unhappy with Year-end Bonuses Paid Following Tax Reform

This article appeared online at TheNewAmerican.com on Wednesday, December 27, 2017:  

Within hours of passage of the Tax Cuts and Jobs Act of 2017 (TCJA) on December 20, major American companies began announcing year-end bonuses, salary increases, and plans to expand capital investment. This was an unexpected but pleasant surprise to many, including House Speaker Paul Ryan, who tweeted: “It’s only been a few hours … and companies are already announcing new investments into the US economy & raises for their employees.”

Senator Tim Scott, Republican conservative from South Carolina, called its passage “a tremendous victory,” adding that it’s an “early Christmas present for the American people.”

Details of raises, bonuses, and capex expansion plans poured out of Comcast

Keep Reading…

The New York Times Masks the Truth in Venezuela

This article was published by The McAlvany Intelligence Advisor on Wednesday, December 20, 2017:

English: The New York Times building in New Yo...

After five months and 5,000 words, the journalists at the New York Times refused to use the word “socialism” as the cause of the horrors they uncovered in Venezuela. Instead, Venezuela’s problems are the result of years of “economic mismanagement” instead.

What they found was horrific, and more than sufficient to prove the point: socialism destroys, maims, and kills. Its worst atrocities are inflicted on the defenseless: the elderly and the very young. The intrepid journalists focused on the latter, and what they found was predictable and heartrending: babies in Venezuela are dying of malnutrition at rates seen only in refugee and concentration camps. Emergency rooms are filled to overflowing by mothers with starving infants at their breasts while others are being turned away. Doctors told the journos that children arrive at the hospitals weighing the same as when they were born. Infant mortality rates are soaring, and there’s little doctors can do about it. Said the authors: “The statistics that have come out are staggering. In the Ministry of Health’s 2015 report, the mortality rate for children under four weeks old had increased a hundredfold [while] maternal mortality had increased nearly fivefold.”

Matt Vespa suffers under no such confusion about the cause of what’s happening there:

Keep Reading…

Final Tax Reform Bill: The Goods Outweigh the Bads

This article appeared online at TheNewAmerican.com on Tuesday, December 19, 2017:

With victory over tax reform clearly in sight, President Trump on Sunday tweeted, “As a candidate, I promised we would pass a massive TAX CUT for the everyday working American families who are the backbone and the heartbeat of our country. Now, we are just days away.” From the White House came more details:

Keep Reading…

Venezuela’s Socialism Is Killing Its Children; NY Times Blames “Economic Mismanagement”

This article appeared online at TheNewAmerican.com on Tuesday, December 19, 2017:

For five months investigative journalists from the New York Times sought and uncovered the truth about Nicolas Maduro’s socialist paradise in Venezuela, and then blamed the horror they found on “economic mismanagement.” This is a lie of the first magnitude, as expressed by Alfred Lord Tennyson: “A lie which is half a truth is ever the blackest of lies.”

The half-truth referred to by Tennyson assumes that the Times got their story at least half right:

Keep Reading…

Trump’s Regulatory Rollback: Not 2 to 1, but 22 to 1!

This article appeared online at TheNewAmerican.com on Monday, December 18, 2017:

In his first 11 months in office, President Donald Trump is keeping another of his campaign promises: reducing regulations so that the economy can breathe again. Speaking in the Roosevelt Room — an irony that may have been intended — Trump summarized brilliantly exactly how the greatest economic miracle in history got bogged down:

Keep Reading…

U.S. Economy’s Stunning Performance Continues to Bewilder Forecasters

This article appeared online at TheNewAmerican.com on Thursday, December 14, 2017:

US Retail Sales 1992–2010

US Retail Sales 1992–2010. Threy’ve been on a tear ever since.

Economic forecasters continue to fall behind reality, as shown by the latest numbers from the Commerce Department. Forecasters predicted that November’s retail sales would increase just 0.3 percent over October. Instead, retail sales jumped an astonishing 0.8 percent. In an economy where two-thirds of economic activity is geared toward providing consumers with goods and services, that’s huge miss — on the order of a three-quarters of a billion dollar miss.

October’s numbers dumbfounded them as well:

Keep Reading…

November’s Federal Deficit 11 Percent Ahead of Last Year’s

This article appeared online at TheNewAmerican.com on Wednesday, December 13, 2017:

Buried in the latest report from the Department of the Treasury is this nugget: Through the first two months of the fiscal year, which began on October 1, the deficit (the difference between revenues and spending) was 11 percent higher than the same two months last year. And this despite revenues (taxes from individuals and corporations) setting records. The $433 billion the government collected in October and November was $13 billion more than it collected in the same period last year, and $11.3 billion more than it collected the year before.

In those two months,

Keep Reading…

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,

Keep Reading…

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:

Keep Reading…

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