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: Interest Rates

China Reacts to U.S. Arms Sale to Taiwan

Chiang Pin-kung, vice-chairman of the Kuominta...

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Last month’s decision by the United States to sell $6.4 billion worth of arms and military supplies to Taiwan “will not affect steadily improving ties between Taipei and Beijing,” according to Chiang Pin-kung, Taiwan’s top China negotiator. The deal “should not have any impact on ongoing China talks and the future development of bilateral ties,” he added.

China’s reaction, however, was much less sanguine. Beijing immediately suspended military exchanges with Washington and threatened sanctions against the military contractors supplying the war matériel to Taiwan.  And on Monday a group of Chinese military officers, in state-controlled media interviews, urged China to increase its defense spending and deploy additional troops to offset the new agreement between the United States and Taiwan.

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Bernanke’s Kudos, Criticisms Miss the Point

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A preliminary vote today for Ben Bernanke’s reappointment to a second four-year term as chairman of the Federal Reserve is expected to clear the way for a final favorable vote by the Senate.

Bernanke’s first term record was subjected to criticism and praise during confirmation hearings in December, and  he was selected as Time magazine’s Person of the YearTime magazine’s Michael Grunwald was kind to a fault, calling Bernanke “our mild-mannered economic overlord” (a reference, no doubt to Superman’s mild-mannered Clark Kent), and “the most powerful nerd on the planet.”  In that lengthy tribute, Grunwald summarized the Fed’s role:

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U.S. Debt Level Unsustainable, Report Says

Graffiti: Debt

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“The debt level of the United States is unsustainable, something has to give,” said the co-author of a new joint report released last week by the National Research Council and the National Academy of Public Administration. The committee that prepared the 268-page study, entitled Choosing the Nation’s Fiscal Future, included three former heads of the Congressional Budget Office.

A WorldNetDaily article by Jerome Corsi, entitled “Forecast: Debt to Dwarf GDP,” provided key quotes from the study as well as from Rudolph Penner, one of the former CBO heads. “The fundamental problem is that we have these three very large programs—Medicare, Medicaid and Social Security— that…are growing faster than tax revenues and faster than the economy,” Penner told WorldNetDaily. This is creating an “unsustainable federal budget deficit [that continues to grow] ever onward and upward.”

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Weak Dollar Obama’s Fault?

Various Federal Reserve Notes, c.1995. Only th...

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According to Newsweek, the dollar isn’t weakening, and even if it is, it isn’t Obama’s fault. On Tuesday, Daniel Gross iterated all the reasons that, according to conservatives, the American dollar should weaken. Conservatives, he said, blame the actions of the Federal Reserve with the lowering of interest rates to zero, printing money, and expanding the monetary base. They also blame the Obama administration for running up huge deficits in its efforts to restart the faltering economy.

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The Fed: Forever Blowing Bubbles

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An article in the New York Times asked that since the Federal Reserve “failed to recognize the last bubble…why should Congress, or anyone else, have faith that future Fed officials will recognize the next [one]?”

The roots of the present Great Recession stretch back to the bursting of the last bubble—the tech bubble—in the late 1990s. As the stock market declined sharply, the Fed under then-chairman Alan Greenspan lowered interest rates in an attempt to keep the economy from collapsing. The Times succinctly noted in its overview of the credit crisis that “lower interest rates make mortgage payments cheaper, and demand for homes began to rise, sending prices up. In addition, millions of homeowners took advantage of the rate drop to refinance their existing mortgages. As the industry ramped up, the quality of the mortgages went down.”

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Stock Rally Owing to Plunge Protection Team Conspiracy?

Polar Bear Plunge 2008

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The 60 percent gain in stocks since March was largely caused by secret government purchases of stock-index futures, the CEO of TrimTabs claims.

The Plunge Protection Team (PPT), otherwise known as the Working Group on Financial Markets, has been the target of conspiracy theorists ever since an article in the Washington Post in 1997 first shed light on the operation. The Working Group was created by Executive Order following Black Monday’s market crash on October 19, 1987, when the stock market declined more than 20 percent in a single session. Its purpose was to give recommendations for legislative and private sector solutions for “enhancing the integrity, efficiency, orderliness, and competitiveness of financial markets and maintaining investor confidence.”

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Bernanke: Lax Oversight Recession’s Cause

FRANKFURT, GERMANY - NOVEMBER 14:  Ben Bernank...

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Regulatory failures and not low interest rates were responsible for the housing bubble, implosion and current recession, Federal Reserve Chairman Ben Bernanke asserted on Sunday.

“Stronger regulation and supervision aimed at problems with underwriting practices and lender’s risk management would have been…more effective [in] constraining the housing bubble [rather] than a general increase in interest rates,” Bernanke told the American Economic Association.  Bernanke, while awaiting Senate confirmation for another term as Fed Chairman, defended recent and continuing charges that the Fed contributed significantly to the current financial crisis by keeping interest rates too low for too long.

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The Fed’s New Tool to Fight Inflation

WASHINGTON - APRIL 17:  Federal Reserve Chairm...

Last Monday, the Federal Reserve unveiled its new “term deposit facility” as another tool to fight inflation.

It was reassuring to note that the Fed has finally defined inflation’s causes properly: as a continuing rise in the general price level usually attributed to an increase in the volume of money and credit relative to available goods and services.

With the enormous increase in money and credit that the Fed has engineered over the past year, concerns are being raised about the coming rise in the general price level.  These concerns are being reflected in the recent declines in the bond market as investors appear to be demanding higher interest rates to offset some of that anticipated rise.

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Economic Reality vs. Cheerleaders

Timothy Franz Geithner, President of the Feder...

When MSNBC headlined the report that existing home sales surged by 7.4 percent in November (according to the National Association of Realtors), it suggested that such an improvement boosted “recovery hopes.” Others jumped on the recovery bandwagon, including Treasury Secretary Timothy Geithner, and former Vice Chairman of the Federal Reserve Board Alan Blinder.

According to Geithner, it’s now reasonable to expect “positive job growth” by spring and correct to assert that people should have confidence in an improving economy.  “I think most people would say the economy actually is strengthening now,” he added.

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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.