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: ripple effect

Credit Agencies Declare Venezuela in Default

This article appeared online at TheNewAmerican.com on Tuesday, November 14, 2017:

English: Federal dependencies of Venezuela's Flag

Federal dependencies of Venezuela’s Flag

Following a meeting between some of Venezuela’s bondholders and Venezuelan officials in Caracas on Monday, Maduro’s government declared the meeting a success: “The process of refinancing Venezuela’s foreign debt began with resounding success. The start of this refinancing of our debt ratifies our full intention to comply, as we have always done, with all our obligations.” One observer of the 25-minute long meeting, Raymond Zucaro of RVX Asset Management, said, “Nothing of substance happened.”

What did happen is that Maduro’s government, which promised it would be making a number of bond interest payments, didn’t. According to both Moody’s and S&P Global,

Keep Reading…

This Thoroughbred is Just Beginning to Feel His Oats

This article was published by The McAlvany Intelligence Advisor on Friday, October 20, 2017:

English: Thoroughbred racing at Churchill Down...

Thoroughbred racing at Churchill Downs.

It’s tempting to push the analogy comparing the U.S. economy to a Thoroughbred horse too far. But it is tempting. The Thoroughbred breed began around the time of the Industrial Revolution, when an English mare was crossbred with an imported Oriental stallion with Arabian, Barb, and Turkoman breeding. All Thoroughbreds can trace their pedigrees to three stallions imported into England in the 17th century. They were exported to Australia, Europe, Japan, and South America during the 19th century, and today an estimated 100,000 Thoroughbred foals are registered worldwide every year.

A Thoroughbred is tall, slender, athletic, and built for competition, usually on racetracks. Among the most famous are Citation, Phar Lap, Old Rosebud, Whirlaway, Roamer, Seabiscuit, and Man o’ War.

And, of course, the United States economy.

Starting at around 1800, the U.S. economy grew at such a rate that

Keep Reading…

S&P Downgrades China’s Credit Rating

This article appeared online at TheNewAmerican.com on Thursday, September 21, 2017:  

Thanks to “diminished financial stability,” S&P Global Ratings downgraded China’s credit rating for the first time since 1999, adding, “China’s prolonged period of strong credit [debt] growth has increased its economic and financial risks. Although this credit [debt] growth had contributed to strong real gross domestic product growth and higher asset prices, we believe it has also diminished financial stability.”

The downgrade by S&P is the second one this year for China — Moody’s Investors Service dropped China’s rating in May — and was preceded by a warning from the International Monetary Fund (IMF) in August that China’s growing debt binge was putting its economy into jeopardy.

The response by Chinese officials was as predictable as it was silly.

Keep Reading…

Shiller’s CAPE, Harvey, Irma, and now Jose: How Much More is Needed for a Stock Selloff?

This article was published by The McAlvany Intelligence Advisor on Friday, September 8, 2017:

English: (left) and meeting shortly after the ...

Republicans Smoot and Hawley

Wall Street prognosticators have watched Robert Shiller’s CAPE – “cyclically adjusted price-to-earnings” ratio – for years for signs that stocks are becoming overvalued. It’s now at a nosebleed level reached just before the October 1929 crash. The good news is that CAPE has been at that level ever since Shiller said that stocks were overvalued earlier this year. It is not a market timing tool, but more of an early warning indicator.

Short sellers have gotten smashed as the stock market continues to defy gravity. Bets against the SPDR S&P 500 exchange-traded fund, the largest ETF tracking that index, fell to lows in July not seen since May 2013.

But Hurricanes Harvey, Irma, and now possibly Jose may finally bring things back to earth. The jump in unemployment claims for the week ending September 2, caused by Harvey and reported by the Department of Labor (DOL) on Thursday, not surprisingly exceeded economists’ consensus. The increase of 62,000 for the week to

Keep Reading…

Jump in Jobless Claims Following Harvey Is Just the Beginning

This article appeared online at TheNewAmerican.com on Thursday, September 7, 2017:

View of the eyewall of Hurricane Katrina taken...

View of the eyewall of Hurricane Katrina taken on August 28, 2005 as the storm made landfall on the United States Gulf Coast.

The jump in unemployment claims for the week ending September 2, as reported by the Department of Labor (DOL) on Thursday, not surprisingly exceeded economists’ consensus of just 241,000. The increase of 62,000 for the week to 298,000 nearly broke a claims record that has been in place for 131 weeks: 300,000.

That record will surely be broken in the weeks to come. The unemployment claims are just beginning to come in, and they are a predictor — a proxy — for job layoffs. Some workers

Keep Reading…

Carbondale, Illinois Seizes Eclipse Opportunity to Boost Its Economy

This article appeared online at TheNewAmerican.com on Monday, August 21, 2017:

Two years ago Carbondale, Illinois’ mayor Mike Henry learned of the epic cosmic event headed his way and decided not to say, “Oh, no!” but instead said, “Oh, yes!”:

Keep Reading…

Democrats Used Discredited Dossier Against Trump

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

The ripple effect from the publishing in January by far-left BuzzFeed of the phony, discredited “Trump Dossier” written by anti-Trump British MI6 agent Christopher Steele is still being felt. As a result of a London lawsuit against Steele, the former British spy was forced to admit that his information, which was obtained from various unnamed Kremlin sources, was never verified as accurate. But that hasn’t deterred Democrats determined to harm or destroy the Trump presidency from using it as fodder for their attacks.

Steele, a confirmed socialist, wrote a series of memos about information he said he had gleaned from various “Kremlin insiders,” a “trusted compatriot,” “former top level Russian intelligence officers still active inside the Kremlin,” and two other unnamed sources he referred to as “sources A and B.” But Steele stumbled when, in memo #16, he claimed that members of the Russian spy service FSB were to meet with one of Trump’s people in a conspiracy to defame Hillary Clinton. Wrote Steele:

Keep Reading…

Illinois Sends “Dear Contractor” Letters Ordering Them to Stop All Road Construction

This article appeared online at TheNewAmerican.com on Thursday, June 15, 2017: 

English: A photograph of the Springfield Capit...

A photograph of the Springfield Capitol Building

Illinois contractors working on the state’s roads just received a “Dear Contractor” letter from the state ordering them to halt work because the state is out of money to pay them:

At this time appropriate funding is not available after June 30, 2017. Thus, work shall cease effective June 30, 2017.

Please bring all projects to a condition that will provide a clear and safely traveled way….

On July 1, 2017, all work shall cease except for maintenance.… The department will notify you when work may resume.

Right now the state has $14.5 billion in unpaid bills, an increase of nearly $4 billion just since the end of December, with no end in sight. When Republican Governor Bruce Rauner took office in January 2015, he promised he would bring order out of chaos by

Keep Reading…

Trump’s Plan to Revise SNAP Draws Howls of Protests From Liberals

This article appeared online at TheNewAmerican.com on Tuesday, May 30, 2017: 

English: Logo of the .

Modest revisions to the federal government’s present SNAP (Supplemental Nutrition Assistance Program) proposed by Trump’s budget released last week have drawn howls of protests from predictable places. The New York Times and ThinkProgress are calling the cuts “full of horror,” “backbreaking,” and sufficient to “destroy the food stamp program.”

What’s proposed is a cut of less than $20 billion a year to a program that currently costs taxpayers more than $70 billion annually. It also would involve a modest shift of financial responsibility back to the states where it properly belongs.

The cuts are predicated on the impact the imposition of “work rules” would have

Keep Reading…

Supreme Court Blows Up Big Taxi

This article was published by The McAlvany Intelligence Advisor on Friday, April 28, 2017:

Orange Colour Taxis.

Big Taxi just had a Belshazzar moment. In Chapter 5 of Daniel, Belshazzar, the son of Nebuchadnezzar, was hosting a feast and drinking from holy vessels that had been looted from Israel’s first temple. The hand of God appeared, writing on the wall. Daniel is called and reads it: “God has numbered your days.”

When the Supreme Court declined on Monday to consider an appeal from Big Taxi in Chicago, the handwriting was on the wall: your days are numbered.

Its days were numbered when

Keep Reading…

Supreme Court’s Non-decision Expands Passenger Ridesharing Freedom

This article appeared online at TheNewAmerican.com on Thursday, April 27, 2017: 

By declining to hear an appeal, the Supreme Court on Monday essentially declared that rules protecting the taxi cartel in Chicago were null and void, thus expanding passenger freedom. As an attorney with the Institute for Justice (IJ), which represented Chicago Uber driver Dan Burgess, explained: “Today’s decision makes clear what [IJ] has said for years. The Constitution does not require [city] governments to stick with outdated protectionist regulations in the face of technological innovation.”

When Uber and other ride-sharing companies entered the Chicago market several years ago, they soon became a thorn in the side of the taxi cartel that had operated under protectionist rules dating back to 1937. Those rules

Keep Reading…

Walmart vs. Amazon: Battle of the Behemoths

This article was published by The McAlvany Intelligence Advisor on Monday, April 3, 2017:

English: Walmart Home Office, the headquarters...

Walmart Home Office, the headquarters of Wal-Mart – Bentonville, Arkansas

In one corner is Amazon, the book-seller that Jeff Bezos founded in 1994 that is now the most valuable retailer in the United States as measured by market cap: $425 billion as of March 31. In the other corner is Walmart, the world’s largest retailer when measured by revenue – $485 billion in 2016.

Amazon’s path to the finals is littered with the bodies of its former competitors, some still twitching but whose death is certain: Sears, J.C. Penney, Abercrombie & Fitch, Macy’s, and Target. Walmart is determined not to be carrion in this epic battle.

Accordingly, Walmart has made some serious moves by

Keep Reading…

Americans, Europeans Agree: Trump Is Right on Immigration

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

English: Nigel Farage at Lord's cricket ground...

Nigel Farage

A poll by the Royal Institute of International Affairs (RIIA, also known as Chatham House), the British sister organization to our Council of Foreign Relations (CFR), taken a month before President Donald Trump issued his temporary suspension on refugees, showed widespread and increasing support among Europeans for his actions. Across all 10 of the European countries polled, 55 percent of those polled agreed that all further immigration from “mainly Muslim” countries should be stopped while only 20 percent disagreed. In no country did those disagreeing exceed 32 percent.

The results were “striking and sobering,”

Keep Reading…

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

Keep Reading…

Realtors in Vancouver Moving to Seattle Along with Investors

This article was published by The McAlvany Intelligence Advisor on Friday, February 10, 2017:  

Vancouver on a rainy day

Vancouver on a rainy day

The collapse of the real estate market in Vancouver, BC, is forcing realtors there to “double-license” in Seattle (where home prices are half what they are in Vancouver) in order to stay in business. Some of them are representing sellers with property in Vancouver who are simultaneously buying in Seattle. The ripple effect in Vancouver is impacting builders and construction workers as well as those in related service industries.

Back in August, the tune was much different: home prices had increased by 50 percent over the previous three years thanks to foreign investors wanting property in Vancouver. “It’s a bubble!” was the cry and so do-gooder politicians in the local government decided to erect a tariff: starting on August 1 the “foreign buyer transfer tax” of 15 percent would be imposed on any foreign buyer of real estate in the city.

Within six weeks the high end of the market was off by 20 percent, and realtors were scrambling, builders were pulling back, and workers were being laid off.

The parallel with Trump’s plans to build a wall along the country’s southern border through tariffs of 35 percent is uncanny, with the results likely to be the same as Vancouver’s. Fred Floss, the chairman of the economics department at SUNY Buffalo State, says that imposing a tariff on Mexico will have a similar slowing effect in the United States. Because the US mainly imports auto parts and small engines from Mexico, “anything that has a small engine in it will start to cost more … the scary thing is that a lot of those motors go into things Americans make. So if all of a sudden it gets to be more expensive to make goods in the United States, then we’re going to start to see layoffs because our goods aren’t going to sell.” He added: “In other words, [Americans are] going to pay the cost of the wall” both directly and indirectly.

The ripple effect in Vancouver is just beginning to be felt as the slowdown starts to impact support jobs related to the real estate industry. Homeowners who have enjoyed seeing their paper profits escalate are now facing the new reality: their homes aren’t worth what they were as recently as last summer, and those who took advantage of low rates either to buy new or obtain a home equity loan are increasingly finding themselves underwater and unable to find a buyer to bail them out.

International trade unhampered by tariffs benefits consumers and sellers alike. Every trade results in each party being better off economically. Competition drives the prices of goods and services down, allowing purchasers to enjoy a higher standard of living. Those profiting from making the products consumers want, whether they be small motors, cell phones or automobiles, will be encouraged to expand their production, hiring new workers who then are able to increase their own purchasing power. Ad infinitim.

Adam Smith was right:

Every individual necessarily labors to render the annual revenue of the society as great as he can….

 

He intends only his own gain, and he is in this, as in many other cases, led by an invisible hand to promote an end which was no part of his intention…. (emphasis added)

 

By pursuing his own interests, he frequently promotes that of the society more effectually than when he really intends to promote it.

And then Smith adds his warning for Mr. Trump:

I have never known much good done by those who affected to trade for the public good.

Meddling always has its unintended consequences. Is Mr. Trump aware of what’s going on in Vancouver?


Sources:

The Wall Street Journal: For Chinese Home Buyers, Seattle Is the New Vancouver

Seattlepi.com:  Vancouver smacks Chinese with real estate tax, but will they head south?

Background on US tariffs

WGRZ.com: How the Trump Tariff Proposal may Impact your Budget

Investopedia:  The Basics Of Tariffs And Trade Barriers

Adam Smith’s “invisible hand” quote

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

Keep Reading…

Teamsters’ Pension Plans Seek Massive Cuts to Retirees to Stay Solvent

This article appeared online at TheNewAmerican.com on Monday, January 2, 2017:

Logo of the United States Pension Benefit Guar...

The Central States Teamsters pension plan, covering more than 400,000 participants, expects to receive permission shortly from the Treasury Department to cut benefits to those participants, possibly by as much as 30 percent. At the end of 2014 the plan had $35 billion in liabilities (future promises to participants as they retire) compared to less than $18 billion on hand to pay them.

Right behind Central States was the New York State Teamsters Conference Pension and Retirement Fund, which is also in trouble. Owing nearly $3 billion to its 35,000 plan participants, it has less than $1.3 billion to meet this obligation. Its plan, in its request to the Treasury Department, spelled out just how great the cuts would be:

Keep Reading…

The Passing of Don Kates: More Evidence of the Ripple Effect of One Man’s Life

This article was published by the McAlvany Intelligence Advisor on Wednesday, November 9, 2016: 

University of Texas Law School Professor Sanfo...

University of Texas Law School Professor Sanford Levinson

The Merriam-Webster dictionary defines “ripple effect” correctly: a spreading, pervasive, and usually unintentional effect or influence on future events. Don Kates, a scholar, lawyer, and research fellow with the Independent Institute in Oakland, California, likely never intended that his scholarly fulminations against the gun controllers of his day would reach all the way to the Supreme Court.

But they did, and every American, whether they own a firearm or not, benefits from his work today.

It started with an unheralded piece of work he did in 1983,

Keep Reading…

Don Kates, the Igniter of the Second Amendment Movement, Passes

This article appeared online at TheNewAmerican.com on Tuesday, November 8, 2017:  

Compact Glock 19 in 9x19mm Parabellum.

Glock Model 19, the world’s most popular handgun

One week ago today, Don Kates, a scholar with the Independent Institute in Oakland, California, passed away at the age of 75. He leaves a remarkable legacy of influence in the long war on guns, single-handedly igniting the renaissance of today’s pro-gun movement with his scholarly work.

During the iron age of gun control — the decade prior to the passage of the Brady Bill in 1994 during the Clinton administration — Kates’ voice was the only one heard that supported an individual’s right to keep and bear arms. So carefully crafted was his work that his article

Keep Reading…

Permitless Carry Passes in Missouri; Gun Sales Soar Nationwide

This article appeared online at TheNewAmerican.com on Wednesday, October 5, 2016:

Holster

Three weeks ago Missouri became the fourth state this year to allow “permitless” concealed carry of firearms by its citizens, its legislators voting to override Democrat Governor Jay Nixon’s veto of the bill. Missouri joins West Virginia, Mississippi, and Idaho in allowing its citizens this year to enjoy rights enshrined in the Second Amendment to the Constitution, bringing the total of such states to 12.

As Tim Schmidt, president of the U.S. Concealed Carry Association — which provides training and liability insurance coverage for its members — put it:

Keep Reading…

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