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: profit

Aramco CEO Not Worried About American Frackers

This article appeared online at TheNewAmerican.com on Thursday, October 26, 2017:

English: Headquarters of Aramco Services Company

Headquarters of Aramco Services Company

Saudi Aramco CEO Armin Nasser told CNBC’s Squawk Box on Sunday that he wasn’t at all worried about American frackers, since they are concentrating on “sweet spots” — the richest fields with the highest returns — which can’t last forever: “The concentration that we are seeing today [by American frackers] is on the sweet spot of shale, and this will not last forever. You can concentrate for some time on the sweet spots and produce more oil. But ultimately you need to venture downward, and that’s where you have less quality and you require more cost to produce these barrels. Shale oil will contribute additional barrels [to world crude oil supplies], but it will all depend on the price of crude.”

Nasser no doubt was referring to data released last week that showed

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OPEC is Textbook Example of Classic Cartel

This article was published by The McAlvany Intelligence Advisor on Wednesday, October 11, 2017:

the new OPEC headquarters in Vienna Español: S...

OPEC headquarters in Vienna

Free market economists have long considered OPEC as a textbook example of the anti-free market cartel. Its mission statement confirms it:

To coordinate and unify the petroleum policies of its member countries and ensure the stabilization of oil markets, in order to secure an efficient, economic, and regular supply of petroleum to consumers, a steady income to producers, and a fair return on capital for those investing in the petroleum industry.

This is of course the “siren song” of every cartel:

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Hurricanes Hammer OPEC as Well

This article appeared online at TheNewAmerican.com on Monday, September 11, 2017: 

English: Flag of the Organization of Petroleum...

Estimates are that Hurricane Irma knocked out the power to nearly six million Floridians’ homes and businesses, while both Harvey and Irma have either destroyed or heavily damaged 300,000 homes in Texas and hundreds of thousands more in Florida. Further estimates are that these two massive storms have reduced demand for oil by nearly a million barrels a day.

This is being reflected in the price of NYMEX (New York Mercantile Exchange) crude oil dropping to $47 a barrel early Monday. Last Wednesday crude was selling at more than $49.

Part of the problem facing OPEC and its grand plan to cut production to raise oil prices was its assumption that

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Morgan Stanley: Tesla Not as Green as You Think

This article appeared online at TheNewAmerican.com on Friday, August 18, 2017:

English: Tesla Roadster Sport 2.5, the fourth-...

Tesla Roadster Sport 2.5, the fourth-generation Roadster from electric carmaker Tesla Motors Inc.

Morgan Stanley, the international banking behemoth, released the results of its study on the best “green” companies in which to invest. This is based, said the bank, on the assumptions that some, perhaps many, investors who have drunk the “green Kool-Aid” want to invest in ways to “save” the environment and fight against “climate change.” Missing from the top of their list is perhaps the most visible “green” automobile company: Tesla, Inc., formerly known as Tesla Motors.

After comparing the savings in carbon dioxide (CO2) achieved by Tesla’s high-mileage electric vehicles to all the “secondary and tertiary” factors involved in their manufacture, Morgan Stanley said,

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Warehouse Automation Causes Employment to Increase?

This article was published by The McAlvany Intelligence Advisor on Friday, August 4, 2017:

Image of Autonomous Robot From Second Grand Ch...

Image of Autonomous Robot From Second Grand Challenge Advancing to Urban Challenge.

The crux of the anti-capitalist cabal’s complaint about the robotic revolution taking place all across the country is this: since robots can do anything that a human can do, everyone’s job is on the chopping block. So how do they explain the simple bald fact that warehousing jobs – where much of the robotic revolution is taking place – have increased? A year ago there were 867,300 people employed in warehousing. Today that number is approaching 950,000. And Apple is looking to add thousands more. How is that possible?

Part of the answer of course is

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Robots Making Humans More Efficient, Opening Up New Jobs

This article appeared online at TheNewAmerican.com on Thursday, August 3, 2017:

Factory Automation with industrial robots for ...

Factory Automation with industrial robots for palletizing food products like bread and toast at a bakery in Germany,

SAM, the Semi-Automated Mason, can be seen on YouTube laying bricks alongside human masons. While SAM can, according to contractors, lay around 2,000 bricks a day compared to an average of 600 to 700 for a human mason, the video illustrates a key point missed by many: It shows human workers programmming SAM and providing it the bricks and mud and following behind cleaning up after it. In other words, SAM, produced by Construction Robotics, isn’t replacing masons, it is making them more efficient and saving their backs.

A year ago, Rick Cohen, the founder of Symbotic LLC, which develops autonomous robots for warehouses, said,

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U.S.-imposed Sanctions to Squeeze Venezuela’s Marxist Dictator

This article appeared online at TheNewAmerican.com on Wednesday, August 2, 2017:

The sanctions imposed by the State Department on Venezuela’s Marxist dictator Nicolas Maduro and his regime are being carefully staged in to maximize the pain inflicted on Maduro and his cronies, while minimizing the impact on the citizens of the country.

Last week State imposed sanctions on 13 of Maduro’s top people, accusing them of various human rights violations and, as a result, freezing any assets they might have within American jurisdiction. Following Sunday’s fraudulent election, State imposed similar sanctions on Maduro himself, freezing any assets he might personally have in the United States.

Although it’s unknown just how much, if any, of Maduro’s personal wealth would be affected by those new sanctions, what is known is that they

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Robots and Kiosks (and Amazon) are Making Jobs Reports Irrelevant

This article was published by The McAlvany Intelligence Advisor on Friday, July 7, 2017:

MarketWatch

MarketWatch

Malcolm Frank is one of those rarest of futurists: He sees what’s coming and writes clearly about what to do about it. In his What to do When Machines do Everything: How to get Ahead in a World of AI, Algorithms, Bots and Big Data, Frank discusses the massive upheavals businesses are going through as they try to keep up and stay profitable.

One issue he doesn’t discuss is how to measure the new economy’s output.

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Trump, Mexico Settle Sugar Dispute Just in Time for NAFTA Renegotiations

This article appeared online at TheNewAmerican.com on Wednesday, June 7, 2017: 

The sugar settlement between the United States and Mexico, announced on Tuesday by U.S. Commerce Secretary Wilbur Ross, sets the stage for the NAFTA “renegotiation” scheduled to begin in August. And the settlement is going to cost Americans more to satisfy their sweet tooths.

At bottom, it’s all about protecting an inefficient American industry from foreign competition. Sugar is an enormous industry, and economic and political interests want to keep protections in place in order to save it from foreign competition. On one side is Big Sugar:

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Alaska’s North Slope Oil Reserves Are “Open for Business”

This article appeared online at TheNewAmerican.com on Thursday, June 1, 2017:  

Map of northern Alaska showing location of , A...

Map of northern Alaska showing location of , ANWR-1002 area, and the National Petroleum Reserve-Alaska (NPRA).

Following a six-day trip to northern Alaska, Trump’s Interior Secretary Ryan Zinke signed an order on Wednesday in Anchorage that reverses a 2013 Obama administration executive order. That 2013 order removed half of the immense National Petroleum Reserve-Alaska (NPRA) on Alaska’s North Slope from consideration for energy development. Said Zinke:

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Moody’s Credit Downgrade of China First in Almost 30 Years

This article appeared online at TheNewAmerican.com on Thursday, May 25, 2017:

China GDP

China GDP

Moody’s Investors Service, one of the big three credit-rating services in the country, downgraded China’s creditworthiness one full notch on Wednesday. It moved the world’s second-largest economy from Aa3 (“high quality [with] very low risk”) to A1 (Upper-medium grade [with] low credit risk”). It explained why:

The downgrade reflects Moody’s expectations that China’s financial strength will erode somewhat over the coming years, with economy-wide debt continuing to grow as potential growth slows.

That “potential growth” has been slowing since at least 2010. In that year Chinese government agencies reported growth in excess of 10 percent. By 2014, it had slowed to 7.3 percent, to 6.9 percent in 2015, and is now at a reported 6.7 percent.

Moody’s is late to the game.

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OPEC to Extend Oil Production Cuts Another Nine Months

This article appeared online at TheNewAmerican.com on Wednesday, May 24, 2017: 

Now that “everyone is on board” with a nine-month extension of last November’s agreement to cut production by OPEC, tomorrow’s meeting of the cartel in Vienna is expected to rubber-stamp that extension. Saudi Arabia’s oil minister, Khalid al-Falih, upon returning from Iraq on Monday, said, “We think we have everybody on board. Everybody I’ve talked to indicated that nine months [is] a wise decision.”

Iraq was the most egregious cheater under the November agreement, first complaining that the production numbers upon which its “participation” was based were too high, and then being very slow in implementing those cuts. The slack was picked up by Saudi Arabia, which cut more than it agreed to.

The overall goal of the cuts is to

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Bakken is OPEC’s Elephant in Its Living Room

This article was published by The McAlvany Intelligence Advisor on Monday, May 15, 2017:

Setting the stage for the OPEC meeting on May 25, Saudi Arabias Oil Minister Khalid al-Falih, promised on Friday that OPEC will do whatever it takes to rebalance the global oil market. Whatever that means, and whatever comes out of that meeting, it wont be enough torebalance the oil market (rebalance: raise the price of oil sufficiently to reduce significantly the deficits the cartels members are currently running).

If the cartel repeats and extends the present agreement by six months, its likely to have the same impact: immeasurably small. The last agreement promised to cut 1.8 million barrels per day (bpd) from its overall production. It managed to cut production by less than half that, 800,000 bpd. In the grand scheme of things (world production of oil is just over 80 million bpd), this represents a one percent reduction in global production of crude. Wahoo.

What will be discussed in Vienna will no doubt include who is going to be doing the heavy lifting, and how much. Will there be exceptions to the extension as there is in the present one? Will there be failures to comply, as there were under the present one? Will there be sanctions applied to those who cheat? What about non-members? Will they somehow be persuaded to engage in the farcical extension? From here the meeting has all the makings of Shakespeares comedy “Much Ado About Nothing.”

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Senator Ted Cruz Introduces Bill to Have Drug Lord El Chapo Pay for the Wall

This article appeared online at TheNewAmerican.com on Monday, May 1, 2017: 

When Senator Ted Cruz (R-Texas) introduced his bill — the Ensuring Lawful Collection of Hidden Assets to Provide Order (EL CHAPO) Act — on Tuesday, he said the $14 billion seized from the Mexican drug lord would help build President Trump’s wall:

$14 billion dollars will go a long way toward building a wall that will keep Americans safe and hinder the illegal flow of drugs, weapons, and individuals across our southern border.

The money isn’t available just for the taking, added Cruz:

The U.S. government is currently seeking the criminal forfeiture of more than $14 billion in drug proceeds and profits from El Chapo, the former leader of the Sinaloa drug cartel who was recently extradited to the U.S. to face criminal prosecution for numerous alleged drug-related crimes, including conspiracy to commit murder and money laundering.

As part of the agreement between Mexico and U.S. authorities, El Chapo won’t face the death penalty, but his confiscated assets might be available if Cruz’s bill passes the Senate and the House, and is signed into law by the president. Confiscated assets such as these are usually directed to law enforcement efforts in the United States.

Cruz told Tucker Carlson on Fox News’s “Tucker Carlson Tonight” on Wednesday that it’s “only fitting” that drug money be used to build the wall:

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Is History About to Repeat Itself – Building the Wall to Keep Drugs Out?

This article was published by The McAlvany Intelligence Advisor on Monday, May 1, 2017:

Cover of "Last Call: The Rise and Fall of...

As Samuel Taylor Coleridge expressed it, “If men could learn from history, what lessons it might teach us! But passion and party blind our eyes, and the light which experience gives us is a lantern on the stern which shines only on the waves behind.”

Those unfamiliar with the lessons history teaches regarding attempts to legislate morality are about to get another one. One of those, surprisingly, is the Republican Senator from Texas who has just introduced a bill to let El Chapo pay for the wall. After all, said Ted Cruz, it’s “only fitting.” Cruz told Tucker Carlson on Fox News’ “Tucker Carlson Tonight” on Wednesday:

These drug cartels are the ones crossing the border with impunity, smuggling drugs, smuggling narcotics, engaged in human trafficking. They’re the ones violating our laws and it’s only fitting that their ill-gotten gains fund securing the border.

Cruz’s bill specifically targets El Chapo’s assets for use in building the wall:

All illegally obtained profits resulting from any criminal drug trafficking enterprise led by Joaquin Archivaldo Guzman Loera (commonly known as “El Chapo”), which are criminally forfeited to the United States Government as a result of the conviction of [El Chapo] … shall be reserved for security measures along the border between the United States and Mexico, including the completion of a wall along such border, for the purpose of stemming the flow of illegal narcotics into the United States and furthering the Nation’s security.

Cruz sounded very much like another member of Congress who hasn’t read, or remembered, his history: Rep. James Sensenbrenner. In March Sensenbrenner offered his bill, cleverly titled the BUILD WALL (Build Up Illegal Line Defenses With Assets Lawfully Lifted) Act, explaining:

If we do nothing, we put the people of this nation at risk, as well as allow illegal immigrants to take away jobs, opportunities, and social funding from U.S. citizens – all at the expense of the American taxpayer. The BUILD WALL Act is a creative solution to a complex problem.

When quizzed about his bill in March, Sensenbrenner reiterated the case that drug lords should rightly pay for the wall:

This is a way to fulfill the president’s desire to have Mexico pay for the wall. Having the money seized from Mexican drug cartels would mean that bad Mexicans would end up paying for the wall – the bad Mexicans [who] have been terrorizing the good Mexicans with crime and kidnappings and murders within Mexico itself.

But why is no one asking the real question: if the wall is built, will it work in keeping drugs and criminals out of the United States? Or will it, just like the Volstead Act, cause misery beyond measure, with consequences still being felt today nearly a hundred years later?

Films over the last few decades have attempted to answer that question, films such as The Untouchables (1987) or, more recently, Lawless (2012) which just touch on the horrors inflicted upon innocents as those illegal liquor merchants plied their wares, operating as simply businessmen doing their best to “meet a demand.”

As Borderland Beat, the relatively unknown but highly-regarded source of information about the border drug wars, recently noted: “With U.S. support Mexican authorities have been able to kill or capture 33 out of the 37 most dangerous cartel leaders. The recent extradition of Joaquin “El Chapo” Guzman to the United States is a testament to the value of high-level cooperation between the two countries. As a result of these notable successes, several larger cartels have fractured and have descended into in-fighting.”

But they haven’t gone away. That have reorganized, are adapting to the new reality, and continue their drug trafficking. First, they consider themselves as businessmen providing a product to meet market demand. Thwarting border protections is an industry in its own right, whether it’s developing tunnels (with electric lights, air-conditioning and motion sensors) under the border, or creating false documentation to get their mules through border checkpoints. They still have immense resources and can buy all the talent they need to counter any protective schemes the Trump administration might dream up.

When they wish to move large sums of cash across the border, the cartels have used “cloned” vehicles that resemble official cars. When that fails, they buy up and ship across the border vast numbers of gift cards, thus reducing law enforcement’s ability to track down the movement of money.

When drones become pesky, they develop countermeasures to defend against them. And they are developing “narco drones” of their own to deliver drugs across the border to the U.S.

In addition, they have the resources to bribe successfully hundreds of Department of Homeland Security employees who have taken in nearly $15 million in bribes since 2006. As Borderland Beat notes, all of this means “that a new border wall will not end or significantly reduce the capabilities and power of Mexican drug cartels. From the days of tequila smuggling into the United States during Prohibition, illicit trafficking across the southwest border has remained a constant.”

As Kyle Smith wrote in his review of “Prohibition,” a PBS special a few years ago:

Banning the sale or manufacture of alcohol made ours “a nation of scofflaws,” as Burns and Novick entitle the second episode of their miniseries. After an initial dip in alcohol consumption, booze sales spiked, with one cop estimating there were 32,000 speakeasies in New York City.

 

No one who backed the 18th Amendment thought much about the additional police needed to enforce it, the ease with which those police would be bought off, the job losses it would cause, or the innocent bystanders who would be shot when the government decided to crack down.

 

Prohibition lessened respect for the rule of law and created a big business in bootlegging, which in turn led to murder and mayhem on the streets. Organized crime barely existed before the Al Capones of the world found their calling in Prohibition, and in order to lessen turf wars the gangland bosses began to carve out spheres of influence on a nationwide scale.

 

“Prohibition was the finishing school, the college and the graduate school for the criminal syndicates of America,” says Dan Okrent, author of “Last Call: The Rise and Fall of Prohibition,” in the film.

If the wall is built (regardless of who pays for it), people like Cruz and Sensenbrenner (and others who should know better) are very likely to learn this lesson from history: one cannot legislate morality, and attempts to do so are likely to have painfully negative and long-lasting consequences. Unfortunately, Coleridge’s lantern, for many, shines only on the waves behind.


Sources:

History quotes

The New York Post: What we learned from Prohibition

Fox News: Sen. Ted Cruz: ‘It’s only fitting’ cartel money be used for border wall

Washington Examiner: Jim Sensenbrenner: Make Mexican cartels pay for the wall

Borderland Beat: THE BORDER WALL: MAKING MEXICAN DRUG CARTELS GREAT AGAIN

Background on Borderland Beat

Conservative Tribune: Congressman: Pay for Border Wall by Seizing Money From Mexican Drug Cartels

CNNOfficial: Mexican cartels use money, sex to bribe U.S. border agents

Breitbart: Ted Cruz Calls for $14 Billion Seized from ‘El Chapo’ to Fund Border Wall

Text of Cruz’s bill, S.939

The Untouchables (1987)

Lawless (2012)

Do Trump’s Flip Flops Reflect Lack of Constitutional Understanding?

This article appeared online at TheNewAmerican.com on Friday, April 14, 2017:

Pebble massage sandals from Dalian, China.

Flip flops

The mainstream media have rejoiced because they perceive that President Donald Trump has abandoned policies and changed long-held positions that they have considered anathema. Politico said the president has “demonstrated an incredible willingness to bend his past positions, or abandon them entirely. Sometimes he offers an explanation; sometimes not.” CNN called them “stunning U-turns on key issues” reflecting “extraordinary political shape-shifting.”

The “key issues” are Syria, Janet Yellen of the Federal Reserve, NAFTA, NATO, his hiring freeze, China’s currency manipulation, and the Export-Import Bank.

Syria tops the list currently as the president,

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Restaurants Add “Labor Surcharge” to Tabs to Cover Minimum-wage Increases

This article appeared online at TheNewAmerican.com on Monday, March 13, 2017:

English: This is actually Tom's Restaurant, NY...

Instead of increasing their menu prices in response to increased minimum-wage levels, restaurant owners are burying their increased labor costs at the bottom of each tab. The increase, between three and four percent, only comes after the customer has completed his meal. The increase also increases the tip customers leave behind as most customers leave a gratuity based on the check’s total. This is going to raise the average customer’s check, which has already increased by nearly 11 percent since 2012, close to five or six percent.

Some restaurant and fast-food owners aren’t burying the increase but are instead calling attention to it so that customers know that they’re the ones actually bearing the brunt of the forced increase in the minimum wage. Sami Ladeki, the owner of six Sammy’s Woodfired Pizza & Grill restaurants in San Diego and eight others across California, used to call it a “California mandate” but removed it after getting a call from the city attorney. Ladeki, who says he makes a profit of around one percent charging $12 to $14 a pizza, told the Wall Street Journal:

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February Jobs Numbers Explode, Blowing Past Economists’ Expectations

This article appeared online at TheNewAmerican.com on Wednesday, March 8, 2017: 

.jobs -- Cut To The Chase

The ADP/Moody’s jobs report released on Wednesday showed job growth 50-percent ahead of Wall Street’s expectations: 298,000 jobs were created in February versus expectations of less than 200,000 by economists polled by the Wall Street Journal. The job growth was all across the spectrum, with construction and manufacturing sectors adding 106,000 new jobs.

The report, sponsored by ADP, a human resources management company with more than 400,000 business clients, and aided by Moody’s Analytics, was based on performance reported during the month to both entities. Mark Zandi, Moody’s chief economist, commented on the remarkable February numbers:

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AT&T Agrees to “Re-source” Jobs Back to United States

This article appeared online at TheNewAmerican.com on Monday, March 6, 2017:

The union representing AT&T workers in five southern states announced on Thursday that it had reached a tentative agreement with AT&T Southwest that includes a promise to hire 3,000 American workers to do jobs previously done overseas.

It’s a four-year deal that includes wage increases, paid parental leave, and sweetened healthcare benefits for some 20,000 AT&T workers. It’ll become effective after the union membership approves it.

There was some apparent reluctance on the part of the company to include the resourcing, as its statement didn’t mention it:

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Study: $15 Minimum Wage Would Force McDonald’s to Increase Prices 38 Percent

This article appeared online at TheNewAmerican.com on Monday, February 20, 2017:

English: The official logo.

James Sherk, a Hillsdale graduate and now the Bradley Fellow at the Heritage Foundation, found that if a $15 minimum wage is enforced across the country, fast food prices will jump far more than initially thought. A 10-piece Chicken McNuggets, currently priced at $4.49, would jump to $6.20. A Starbucks Grande Mocha Frappuccino would increase from $4.56 to $6.29, while a 6-inch turkey sub at Subway would cost $5.87, up from $4.25. A Whopper Meal from Burger King would jump to $8.96 from $6.49.

A CrunchWrap Supreme, Crunchy Taco and large drink from Taco Bell would cost $8.27, up from $5.99; a Wendy’s Son of Baconator Combo, currently $6.69 would cost $9.23; a Chick-fil-A Chicken Sandwich Combo, priced at  $5.95, would cost $8.21; and a Pizza Hut Medium Hand-Tossed Cheese Pizza, on today’ menu at $11.95, would jump to $16.55.

That’s a 38-percent increase, far higher than many old-school economists have concluded, and it puts the lie to union claims that raising the minimum wage to $15 an hour would result in a transfer of wealth from rich business owners to low-paid workers. Sherk’s analysis concludes that there would be a transfer, but it wouldn’t be from the business owners: It would be from their customers.

First, those owners with a McDonald’s franchise aren’t rich and they’re not likely to become rich. Ed Rensi, who worked for McDonald’s for 30 years, ending up as the company’s CEO in 1991 and retiring in 2007, told Forbes:

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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.