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

Trump Picks Former Goldman Sachs Banker for Treasury Secretary

This article appeared online at TheNewAmerican.com on Wednesday, November 30, 2016:  

English: Logo of The Goldman Sachs Group, Inc....

One of the first criticisms over Donald Trump’s nomination of former Goldman Sachs banker Steven Mnuchin on Wednesday for Treasury secretary came from the Democratic National Committee: “So much for draining the swamp … nominating Steven Mnuchin to be Treasury Secretary is a slap in the face to voters who hoped [Trump] would shake up Washington.”

Just the name “Goldman Sachs” sends shivers down the backs of Americanists.

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Donald Trump Meets Ayn Rand

The Passion of Ayn Rand

This article was published by The McAlvany Intelligence Advisor on Wednesday, November 30, 2016:  

Ayn Rand passed away in 1982 at age 77 when Donald Trump was just 36. But the astounding success of her masterwork, Atlas Shrugged, led to an interview at the Trump Tower on Monday in the form of one of her most avid fans: John Allison.

Allison, a Phi Beta Kappa graduate of the University of North Carolina in 1971, read a copy of it as a young man and it changed his life. There’s an outside possibility that it might change the life of millions of others.

Following graduation he went to work for BB&T Corporation, a small rural bank in North Carolina. By 1989 Allison was the bank’s CEO. By 2010 he had grown the bank from $4.5 billion in assets to

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Trump Meets With Former Banker Who Wants to End the Fed

This article appeared online at TheNewAmerican.com on Tuesday, November 29, 2016: 

John Allison BB&T

John Allison

Donald Trump met with former banker John Allison on Monday in a meeting that was largely ignored by the mainstream media. It remains unclear whether Allison was being interviewed for the job of secretary of the Treasury or was just giving Trump some advice from a free market perspective.

Either way, it’s a breath of fresh air in an era where statism and excessive hubris (the idea that mere politicians and economists can guide, even stimulate a $20-trillion-dollar economy with monetary policy) has reigned for decades.

Right after graduating Phi Beta Kappa from the University of North Carolina in 1971,

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Mexico’s Huge Oil Reserves Now Open to Private Exploration

This article appeared online at TheNewAmerican.com on Monday, November 28, 2016:  

Four years ago Enrique Peña Nieto (pictured, with Donald Trump) promised while running for president of Mexico that, if he were elected, he would open the country’s energy industry to the private sector. At the time his promise was almost laughable. While he did win the election, his party controlled less than 40 percent of the Congress, below the 50 percent needed to gain any kind of traction for his promise, and far below the two-thirds majority needed to attack the root cause: a constitution that prevented any outside competition to either of its state-owned oil (Pemex) or electricity (CFE) monopolies. He also faced enormous political pressure from leftist labor unions, environmentalists, and beneficiaries of the various welfare-state programs that revenues from Pemex were funding.

But within two years he had accomplished the impossible: Articles 28 and 29 in his country’s constitution were modified, allowing private producers in to explore, extract, refine, transport, store, and distribute crude oil and natural gas. This included allowing private companies to bid to generate electricity in competition with CFE.

Pemex was formed in 1938 with the remnants of foreign oil companies that were nationalized by Mexico’s then-President Lázaro Cárdenas. And the memories of that takeover still lingered.

But when he announced the new freedom to open bidding for oil and gas leases in the Gulf of Mexico, Nieto said:

Reforms are the foundation for building a better country. They are [the] platform for beginning a new stage of development….

 

One of the key elements of the reform is to enable competition in the market. Competition should bring better prices to industry, which, in turn, can be more competitive, increasing exports, generating new employment and reducing prices in the local market.

He described the lifting of the heavy hand of the state from his country’s energy industry as “knocking down the walls”: “If we really want to achieve change in these [industries], then this has to be a structural change … we have to be the government that knocks down the walls that are in the way of achieving a more equitable and just society.”

Within weeks of Nieto’s announcement in August 2014, the U.S. Energy Information Administration (EIA) adjusted Mexico’s oil and gas projections upward by 25 percent and then, as foreign interest in developing Mexico’s vast untapped reserves began to surface, it readjusted them once again, this time by 75 percent.

It took time for the improvement in production to take place, not only because of the new rules that the government was tasked to write to incorporate the new freedoms, but because of the enormous decline in crude oil and natural gas prices set off by OPEC’s decision in November 2014 to flood the market.

But now, with the recovery in oil prices, interest in the nearly 1,000 oil and gas leases of Nieto’s country has skyrocketed. In August Exxon Mobil joined with Chevron and Hess to bid for rights to drill in Mexico’s deep waters. They will be competing with 20 other companies which have set their sights on the same leases, with the winner to be announced on December 5.

This has excited investors, with Business Insider calling it a “huge opportunity.” On Saturday James Stafford, writing for Oilprice.com, declared: “Welcome to the early stages of an oil and gas game that will be bigger … than anything in history. Mexico’s reform legislation … provides an unprecedented opportunity for oil companies looking to tap into Mexico’s huge oil potential.”

International Frontier Resources Corporation (IFRC), a Canadian oil development company, estimated those untapped Mexican reserves “could total as much as 115 billion barrels … [thanks to] the denationalization of 914 oil and gas leases.”

According to the CIA’s 2015 World Factbook, Mexico had less than 10 billion barrels of proven reserves as of December. If IFRC is correct, Mexico’s new proven reserves would jump to 125 billion barrels, placing it ahead not only of the United States (with 36 billion) but also the UAE (98 billion), Russia (103 billion), and Kuwait (104 billion).

As Stafford concluded: “Right now, there is nothing bigger than Mexico when it comes to oil and gas sales. We’re talking about North America, large oil reserves, good infrastructure and discoveries that are already in development.”

Once the heavy hand of the state is lifted from the economy, it’s positively astonishing what the free market can accomplish. Not only investors, but also lovers of freedom, are watching events unfold south of the border with great anticipation.

Trump: TPP RIP; Put “America First”

This article appeared online at TheNewAmerican.com on Wednesday, November 23, 2016:  

On Tuesday, November 8, the election of Donald Trump foretold the death-knell of the Trans-Pacific Partnership — assuming of course he meant what he said when he made opposition to the jobs- and sovereignty-destroying TPP a signature part of his campaign. On Monday, November 21, President-elect Trump posted a short video message on Facebook (available on YouTube) citing several executive actions he would take on “day one” as president. First mentioned: “I am going to issue a notification of intent to withdraw from the Trans Pacific Partnership, a potential disaster for our country.”

In the same video, Trump also said:

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Ford Will Keep Producing Lincoln MKC in Kentucky; Trump Claims Victory

This article appeared online at TheNewAmerican.com on Friday, November 18, 2016:

Early Thursday evening President-elect Donald Trump tweeted: “Just got a call from my friend Bill Ford, Chairman of Ford, who advised me that he will be keeping the Lincoln plant in Kentucky — no Mexico.” A few minutes later he tweeted an addendum: “I worked hard with Bill Ford to keep the Lincoln plant in Kentucky. I owed it to the great State of Kentucky for their confidence in me!” (Trump won Kentucky’s 8 electoral votes by beating Hillary Clinton, 62 percent to 32 percent.)

The anti-Trump media jumped all over Trump’s self-proclaimed “victory,” noting in the process that he got some of his facts wrong:

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The Four “Wild Cards” in Trump’s Handful of Advisors

This article was published by The McAlvany Intelligence Advisor on Friday, November 11, 2016:  

English: Logo of The Goldman Sachs Group, Inc....

Nervous conservatives are looking for signs that the “establishment” – i.e., Goldman Sachs, big banks, the Council on Foreign Relations, George Soros, etc. – having been unable to derail Donald Trump’s march to the presidency, is going instead to infiltrate and insinuate its operatives into the new Trump administration. Many of them remember the successful infiltration and subsequent manipulation of the Reagan administration with the naming of establishment insider James Baker as Reagan’s chief of staff.

At the moment there appear to be four “wild cards” out of the dozens Trump has already invited into his inner circle: Steven Mnuchin, Peter Navarro, John Paulson, and Carter Page.

The first and most obvious one is Steven Mnuchin, the head of Dune Capital Management and former director at Goldman Sachs, where he amassed a personal fortune estimated at more than $40 million as head of the firm’s trading desk. A graduate of Yale,

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The S&P 500 is Picking Trump to Win

This article was published by The McAlvany Intelligence Advisor on Monday, November 7, 2016:

Back in January, Tyler Durden (a pseudonym), writing at ZeroHedge, said one would be far better off watching the markets than the debates if one wanted to know who the next president would be:

This relationship occurs because the stock market reflects the economic outlook in the weeks leading up to the election. A rising stock market indicates an improving economy, which means rising confidence and increases the chances of the incumbent party’s re-election.

 

Therefore, your time might be better spent from August through October watching the stock market rather than the debates if you want to know who will be President for the next four years.

Right on cue, the stock market has declined nine days in a row (through last Friday), the first time that has happened since 1980. But more importantly

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Latest Jobs Report Masks Continuing Weakness


This article appeared online at TheNewAmerican.com on Friday, November 4, 2016:  

English: Bureau of Labor Statistics logo RGB c...

English: Bureau of Labor Statistics logo RGB colors. (Photo credit: Wikipedia)

The latest jobs report released by the Bureau of Labor Statistics (BLS) on Friday morning was trumpeted as reflective of an improving economy. The Wall Street Journal said the report “signal[ed] solid momentum in the labor market just days before American voters elect a new president,” while Jeffry Bartash, writing for MarketWatch, said it “shows the seven-year-old economic recovery still has plenty of life despite a slowdown in growth earlier in the year.”

A hard look behind the headline numbers — 161,000 new jobs created in October and the unemployment rate at 4.9 percent — reveals

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