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: reality

Former Heritage Economist Stephen Moore Refutes CBO’s Doom & Gloom

This article appeared online at TheNewAmerican.com on Wednesday, April 26, 2017:

Stephen Moore by David Shankbone, New York City

Stephen Moore

The Heritage Foundation’s Distinguished Visiting Fellow Stephen Moore, now a CNN economics commentator, thinks the latest report from the Congressional Budget Office (CBO) is far too pessimistic. Instead, he believes that most of the nation’s fiscal problems can be solved just by prodding the economy.

The CBO report, “The 2017 Long-Term Budget Outlook,” assumed that little would change politically over the next 10 to 30 years, despite promises from President Trump that his policies would “make America great again.” It projected that the Baby Boomers would exhaust the resources of Medicare and Social Security, and then those costs would be shifted directly to the Department of the Treasury.

If nothing changes, said the CBO, the percentage of the national debt held by the public (pension plans, mutual funds, foreign governments, and wealthy individuals) would double over the next 30 years, which would “pose substantial risks for the nation.”

The problem is exacerbated, said the CBO, not only by an aging population demanding that the government keeps its promises to them, but also

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Trump Administration Tips Its Hand, Oks Third Greek Bailout

This article appeared online at TheNewAmerican.com on Monday, April 17, 2017:

It took EURACTIV, the online source that focuses on European policymaking, to report that the Trump administration has signaled that, previous protestations to the contrary, it won’t object to a third Greek bailout. The anonymous Trump administration tipster told its reporters: “We’re looking for the Europeans to help Greece to resolve its economic problems by the Fund [the International Monetary Fund], despite the criticism of many Republicans regarding the two previous bailout programs in 2010 and 2012.”

This anonymous tip kicks to the curb protestations voiced by Trump’s Secretary of the Treasury Steven Mnuchin in February that

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Trump’s Strange Reversal on Ex-Im Bank: Names One Opposed to It to Run It?

This article appeared online at TheNewAmerican.com on Monday, April 17, 2017:

English: Congressman Justin Amash

Congressman Justin Amash

When Representative Justin Amash (R-Mich.) learned on Friday that President Trump intended to resuscitate the Export-Import Bank by naming two people to its board (it has been limping along with just three out of five board members present), he nailed it, tweeting, “ExIm corporate welfare bank is the symbol of D.C. cronyism. It steals from taxpayers to subsidize big corporations. End ExIm. Drain the Swamp.”

For a while it looked as if the Ex-Im Bank was for all intents and purposes dead. In 2015, the House failed to renew its charter for the first time since 1945. However,

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More Evidence that OPEC’s Influence is Waning

This article was published by The McAlvany Intelligence Advisor on Wednesday, March 22, 2017:

A measure of the success – and failure – of OPEC’s agreement to limit crude oil production can be seen in the chart of NYMEX crude oil price behavior (Sources below) dating from last fall. When the agreement was inked back in November, crude was at $46.50 a barrel. The price soared and traders got excited, putting in long bets that set records.

By early January, reality began setting in as compliance among the cartel’s members and non-members (who agreed to go along for the ride) began to wane. The roof fell in a couple of weeks ago when inventory builds continued to set records, and the price dropped through support at $50.

In other words, in OPEC’s attempt to birth an elephant, it succeeded in birthing a gnat.

Saudi Arabia maintained a stiff upper lip during the Houston oil conference, stating flat out that

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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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Samsung to Expand in United States, Bringing Back 500 Jobs From Mexico

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

English: Samsung Logo Suomi: Samsungin logo

The South Korean behemoth maker of consumer electronics, semi-conductors, ships, and telecommunications equipment was reported by the Wall Street Journal (quoting unnamed inside sources) to be investing $300 million in facilities in South Carolina and simultaneously bringing 500 jobs back from Mexico to work there.

It’s a tentative decision, according to Samsung in a statement it made to the Journal, with the company noting that “this is a complex process that, like all strategic business decisions, will not be made final until it is determined through proper due diligence and planning that it is the best option for Samsung.”

In ordinary times such a modest investment, made under such indeterminate conditions with such disclaimers, would hardly rate a few column inches at the back of the business section. But these are hardly ordinary times,

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Former Reagan Economic Advisor Warns: Debt Ceiling “Hard Stop” for Economy

This article appeared online at TheNewAmerican.com on Monday, February 27, 2017:

Cabinet - Class Photo, 1984: Front row: David ...

Cabinet – Class Photo, 1984: Front row: David Stockman, Director, Office of Management & Budget; Back row : Malcolm Baldrige, Secretary of Commerce; Samuel Pierce, Secretary of Housing & Urban Development

David Stockman, former President Ronald Reagan’s director of his Office of Management and Budget from 1981 to 1985, told Greg Hunter of USAWatchdog that March 15, two days after President Trump presents his budget to Congress, will be a “hard stop” for the economy:

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The Broken Promise of Minimum wage laws

This article was published by The McAlvany Intelligence Advisor on Monday, February 20, 2017:

The promise is that by requiring businesses to pay their employees $15 an hour, the net result is that everyone will live better. The low-paid people will have more money to spend, the upward “ripple” effect on other higher-paid people in the organization will also have more money to spend, the economy will grow, there will be more jobs hiring people who will then have more money to spend, and so on into the woodwork.

This was the claim by that “poverty” expert, former Senator Teddy Kennedy whose family’s wealth extended backwards for generations, who said that

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Blowing Up the Globalists’ Plans

This article was published by the McAlvany Intelligence Advisor on Monday, February 13, 2017:

Logo of United Nations Refugee Agency.Version ...

Logo of United Nations Refugee Agency.

The Royal Institute of International Affairs (RIIA) grew out of failure. Known alternatively as Chatham House, it was conceived during the Paris Peace Conference of 1919 (also called the Versailles Peace Conference). It was decided that, once the so-called “peace” terms were put in place to punish Germany and its allies after the War to end all wars, various insiders decided a one-world government was needed to keep such a catastrophe from occurring in the future. It birthed the

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Is Vancouver Tax on Foreign Investors a Lesson for Trump?

This article appeared online at TheNewAmerican.com on Thursday, February 9, 2017:

View on Vancouver on October 1, 2005

Vancouver, B.C.

The impact of the 15-percent “foreign buyer transfer tax” — a real estate tax that is only applied on foreigners, not Canadians — levied by Vancouver, a West Coast city in the Canadian province of British Columbia, was felt almost immediately: Real estate prices began falling, realtor listings took longer to sell as buyers disappeared, and, consequently, revenues anticipated from instituting the tax aren’t likely to meet expectations.

Observers said the tax was levied to protect the local real estate market from becoming “overheated” thanks to increasing demand from foreign investors. “Remember the Great Recession” became the mantra. What goes up must come down, etc. Indeed, prices have increased by nearly 50 percent over just the last three years, driving the median cost of a home in Vancouver to $1.5 million.

Members of the city council imposed the 15-percent tariff on August 1, and by the end of September investment in the high end of the market had already dropped

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Greece Needs Another Bailout; Disagreement Threatens EU Itself

This article appeared online at TheNewAmerican.com on Thursday, February 9, 2017:

IMF Headquarters, Washington, DC.

IMF Headquarters

The report on Greece’s financial condition issued by the International Monetary Fund (IMF) on Monday was dismal, but, said the central bank, its future remains bright. First, the bad news: The EU member will fall far short of the budget-surplus targets put in place in order to get the last bailout. The Greek economy must grow at 3.1 percent but it expanded by only 0.4 percent last year.

However, the IMF said Greece’s economy is expected to grow by 2.7 percent in 2017. An unnamed European Union official who spoke to Bloomberg on the condition of anonymity said that

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Number Two at ATF Offers Options to Reduce Firearms Regulations

This article appeared online at TheNewAmerican.com on Tuesday, February 7, 2017:  

English: Official logo for the ATF

Ronald Turk, the associate deputy director (chief operating officer) of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), created an internal 11-page document intended for “eyes only” at the bureau: “Options to Reduce or Modify Firearms Regulations,” dated January 20, 2017. The Washington Post obtained a copy and was astonished at its contents:

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Trump Pick for Management & Budget Talks Raising Retirement Age

This article appeared online at TheNewAmerican.com on Wednesday, January 25, 2017:

Representative Mick Mulvaney (R-S.C., shown), President Donald Trump’s pick to head up the Office of Management and Budget (OMB), touched the famous “third rail” of American politics during his confirmation hearing on Tuesday. Testifying before the Senate Budget Committee, Mulvaney was pressed hard for his views on Social Security by Senator Lindsay Graham (R-S.C.): “Do you think we need to look at adjusting the [retirement] age yet again because we live longer?”

Replied Mulvaney, “I do, yes sir.”

His response was unsettling to Senator Debbie Stabenow (D-Mich.), who declared,

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New Job Announcements Before Inauguration More Political than Economic

This article was published by The McAlvany Intelligence Advisor on Wednesday, January 18, 2017:

President-elect Donald Trump has mercilessly hammered American companies with overseas operations, and the message is coming through loud and clear: bring them back, keep them here, or pay dearly once he is in office.

Ford changed its plans, cancelling a project in Mexico and expanding a facility here. Fiat did the same as did Toyota. Sprint’s plans to add new jobs coupled with Lockheed Martin’s willingness to work with Mr. Trump even before he is president all reflect the new reality: Trump plans to keep his campaign promises and create jobs here.

What makes the recent announcements by General Motors and Walmart suspicious is that they not only are timed to appear just before the inauguration, but they also

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Fiat Chrysler Announces $1 Billion Investment in U.S., Creating 2,000 Jobs

This article appeared online at TheNewAmerican.com on Wednesday, January 11, 2017:

Italiano: Sergio Marchionne

Sergio Marchionne

Fiat Chrysler Automobiles (FCA), the American arm of Fiat-Chrysler, announced on Sunday that it was investing $1 billion in expanding its plants in Warren, Michigan, and Toledo, Ohio — a move which would result in 2,000 new jobs by 2020: “Consistent and combined with previously announced investments, FCA US is further demonstrating its commitment to strengthening its U.S. manufacturing base, and aligning U.S. capacity to extend the Jeep product lineup.”

Some have speculated that

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LOL Illinois: Corporate Group Works to Keep State From Becoming a Laughingstock

This article appeared online at TheNewAmerican.com on Wednesday, December 28, 2016:  

English: 1987 Illinois license plate

The name of the group LOL Illinois can taken two ways: Land of Lincoln, or Laughing Out Loud. As Scott Santi, chairman of Illinois Tool Works, which employs 48,000 workers around the world, noted:

There’s a crisis of confidence in terms of a plan to address some pretty significant structural problems in the state. It’s challenging for Illinois to be competitive given the uncertainty around the fiscal crisis.

“Crisis of confidence”? “Challenging”? “Uncertainty”? Illinois was headed into oblivion until Bruce Rauner, the first Republican governor in 12 years, faced reality.

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Trump Has Opportunity to Remold Federal Judiciary Far Beyond Scalia’s Replacement

This article appeared online at TheNewAmerican.com on Monday, December 26, 2016:  

English: President Barack Obama and Vice Presi...

President Barack Obama and Vice President Joe Biden with the members of the Supreme Court

In his acceptance speech at the Republican National Convention, President-elect Donald Trump said: “The replacement of our beloved Justice Scalia will be a person of similar views, principles and judicial philosophies…. This will be one of the most important issues decided by this election.”

With the election decided, reality is beginning to set in on both sides of the aisle.

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Large Pension Plans Adjusting Their Targets Downward

This article appeared online at TheNewAmerican.com on Wednesday, December 21, 2016:  

English: Jerry Brown's official picture as Att...

California Governor Jerry Brown

Heading into negotiations this past weekend between the California governor’s office, teachers’ unions, and pension plan trustees managing the California Public Employees’ Retirement System (CalPERS), Governor Jerry Brown spoke the truth: “There’s no doubt CalPERS needs to start aligning its rate of return expectations with reality.”

Coming out of the meeting, the gap between the plan’s target rate of return and reality remained immense.

The last time CalPERS faced reality and flinched was in 2012 when

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Civilization’s Thin Veneer

This article was published by The McAlvany Intelligence Advisor on Wednesday, December 14, 2016:  

The dictionary defines civilization as “an ideal state of human culture characterized by a complete absence of barbarism and non-rational behavior.” Rich Galen thinks a better definition is living in a “constant state of positive assumptions.”

Many of those assumptions are coming into question, with many more already proven to be false. One of them is that pension plans are safe, that promises made will be kept, and that the assumptions underlying those plans regarding rates of return on invested assets are reasonable and that they virtually guarantee predictable results.

Those positive assumptions vanished last summer in Athens when

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Boomers Are Retiring, Draining Pension Plans

This article appeared online at TheNewAmerican.com on Monday, December 12, 2016:

Roosevelt Signs The : President Roosevelt sign...

President Roosevelt signs Social Security Act, at approximately 3:30 pm EST on 14 August 1935.

In a moment of surprising candor, Danielle DiMartino Booth, a former advisor to the Federal Reserve, said in a Real Vision TV interview on Saturday that “the Baby Boomers are no longer an actuarial theory. They’re a reality. The checks [from their retirement plans] are being written.”

For years commentators have repeatedly asserted that “when” the Baby Boomers (that generation born between 1946 and 1964) start to retire, they will start using up funds set aside in pension plans, putting those plans into crisis. According to Booth, that day has arrived.

She pointed to the crisis in Dallas that threatens to put the city into bankruptcy, and the report from Calpers (the California Public Employees Retirement System),

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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.