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: Spending

Moody’s Revelation: “Managed” Economies fail

This article was published by The McAlvany Intelligence Advisor on Friday, May 26, 2017:  

Perhaps without knowing it, Moody’s downgrade of China one full notch on Wednesday exposed the fallacy of managed economies: that government bureaucrats with fancy degrees from the University of Chicago, Harvard, or Yale know what they’re doing. One of those fallacies that have been promoted for years came from Yale grad Arthur Laffer as far back as the Reagan administration. On the surface it sounds eminently logical: cut taxes and the economy will grow. The fallacy is knowing just how much to cut, whose to cut, when to cut, and how long to cut.

The Laffer Curve undergirds the whole idea of “supply side economics” –

Keep Reading…

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.

Keep Reading…

Trump’s Budget: a Mixture of Magic, Hope, Pixie Dust, and Gimmicks

This article appeared online at TheNewAmerican.com on Tuesday, May 23, 2017:

Now that the long-awaited Trump budget for Fiscal Year 2018 has been released, it hasn’t failed to deliver what skeptics initially expected: Growth coupled with lower taxes will drive the economy to levels that will balance the budget — by 2027  — much of it based on magic, hope, pixie dust, and gimmicks.

First, the “magic.”

Keep Reading…

Pro-life Agenda Boosted With Charmaine Yoest in HHS

This article appeared online at TheNewAmerican.com on Wednesday, May 10, 2017:

Students for Life of America

The Daily Signal, the Heritage Foundation’s daily Web-based newsletter, took a close look Tuesday at President Trump’s recent appointment of Charmaine Yoest as top communicator at the Department of Health and Human Services (HHS). The Daily Signal‘s writer, Rachel del Guidice, liked what she found: Yoest is one more example of the paradigm shift taking place in the Trump administration regarding the value of human life from the moment of conception.

Del Guidice interviewed Kristan Hawkins, president of Students for Life of America, who told her that “we are going to see a radical transformation occur within HHS. I fully expect us [as a society] to talk about … the consequences of abortion on women.”

Tony Perkins, head of the Family Research Council, was equally encouraged:

Keep Reading…

Schumer, Pelosi Celebrate Stop-gap Government Spending Bill

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

After debating hundreds of items in the stop-gap government spending bill to fund the government through September, congressional leaders birthed a beast that rejected nearly all of President Donald Trump’s campaign promises.

On Sunday night Democrat Senate Minority Leader Chuck Schumer gushed: “This is a good agreement for the American people, and takes the threat of a government shutdown off the table.” He made sure that everyone took note that most of Trump’s priorities were rejected: “The bill ensures taxpayer dollars aren’t used to fund an ineffective wall, excludes [160] poison pill riders [offered by Republicans], and increases investments in programs that [Republicans resisted but] that the middle-class relies on, like medical research, education and infrastructure.”

California Democrat Representative Nancy Pelosi was delighted to see a provision included that would require the U.S. taxpayer to bail out Puerto Rico to the tune of $295 million, calling it Medicare relief rather than a bailout:

From the beginning, Democrats have sought to avert another destructive Republican government shutdown, and we have made significant progress improving [this] omnibus bill.

Bloomberg, in its reporting, couldn’t restrain itself: “GOP leaders … bowed to Democratic demands to eliminate hundreds of policy restrictions aimed at curbing regulations, leaving the Trump administration with few victories.”

When two big-spending, Constitution-ignoring liberal Democrats get excited about a government spending bill, one knows something is dreadfully amiss.

The White House sought $30 billion for the Pentagon. It got just $15 billion, with $2.5 billion of it on a conditional basis. The White House wanted funding for the wall. It got $1.5 billion for “border security” but with the proviso that none of it be spent on the wall.

The White House has promised to cut funding for Planned Parenthood. Planned Parenthood got an increase. The White House wanted to cut funding to sanctuary cities. That was rejected. Those cities will get their federal funds. It wanted to cut funding for the National Institutes of Health. The NIH got a $2 billion boost. The White House has promised to cut the EPA’s budget. It got millions more in funding, along with a promise that there would be no staff cuts.

The White House has stated it wanted cuts to the Energy Department. Instead, the department’s Advanced Research Projects Agency — which funds experimental energy research and has been targeted for elimination by the White House — got millions more to spend instead.

The National Endowment for the Arts and the National Endowment for the Humanities? They got increases.

In addition, more than 70 items that Bloomberg called “anti-environment policy riders” were scrapped.

Most annoying to those thinking that the new president would actually be keeping his promises was his statement that he would sign the bill if it arrives at his desk “as we discussed.” That could happen as early as Wednesday.

Perhaps the president is making a deal? Give up a little now in order to press for more later? After all, the bill, once signed, would only fund the government through September. The 2018 budget is still a work in progress.

Or is he going along to get along, not wanting to have the Democrats hang the “shutdown the government again” albatross around the Republican Party neck?

Or is he betraying his promises to his constituents in order to get “something, anything” about which he can claim victory during the early days of his administration.

He is the president, after all, and still has plenty of political capital that he could invest in keeping his promises. Why wouldn’t he consider vetoing the bill rather than folding, especially when it contains odious pro-death funding for Planned Parenthood? Wouldn’t this be a good time for him to stand tall and reject the bill, unless and until it reflects his promises and policies? Wouldn’t this be the time, as Ron Paul just said, “to shut down most of the federal government, starting with bringing the troops home and drastically cutting the military-industrial complex’s budget?”

Or has the president been assimilated by The Borg — the powers-that-be in Washington — and just decided that “resistance is futile” and that he’ll be happy that the cuts to his projects and priorities weren’t even worse?

Wall Street Facing Headwinds as Boomers Forced to Liquidate Their IRAs, 401Ks

This article appeared online at TheNewAmerican.com on Tuesday, March 28, 2017:

New York Stock Exchange on Wall Street in New ...

Under the law those reaching age 70 and a half must start taking their “required minimum distributions” (RMDs) from their various tax-deferred accounts. These include IRAs, 401Ks, profit-sharing plans, and SEPs. The trouble is that there are so many of them, and they control so many assets, that their RMDs are going to put enormous pressure on the stock market, according to Chris Hamilton, writing at his Econimica blog.

The Baby Boom population cohort is nearly 80 million people, and those born in 1946 are now 71, with millions following right behind. The top one percent own or control about one-third of that cohort’s assets, while the top 10 percent own more than two-thirds, according to the Congressional Budget Office.

The real question, according to Hamilton, is this:

Keep Reading…

Debt-ceiling Charade Begins Again

This article appeared online at TheNewAmerican.com on Friday, March 10, 2017:

Treasury Secretary Steven Mnuchin sent an early-warning signal to House Speaker Paul Ryan (R-Wis.) on Wednesday that “on Thursday, March 16, 2017, the outstanding debt of the United States will be at the statutory limit.” He added:

Keep Reading…

Trump’s 2018 Budget Won’t Touch Social Security, Medicare

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

English: The standard Laffer Curve

The standard Laffer Curve

Treasury Secretary Steven Mnuchin said on Fox News on Sunday that cuts in entitlement programs — i.e., Social Security and Medicare — won’t appear in the president’s budget: “We are not touching those now. So don’t expect to see that as part of this budget, OK? We are very focused on other aspects and that’s what’s very important to us.”

Trump’s budget for fiscal year 2018 (starting October 1, 2017) is expected to be presented to the House on Monday, March 13, just two weeks away. And there are a lot of moving parts that must be glued into place before then.

Those parts include

Keep Reading…

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:

Keep Reading…

Heritage Foundation Blames Obama Admin. for America’s Economic Decline

This article appeared online at TheNewAmerican.com on Wednesday, February 15, 2017:

The Heritage Foundation minced no words in commenting on its latest Index of Economic Freedom: America’s continuing decline is all Obama’s fault:

America’s standing in the index [now in 17th place, the lowest in history] has dwindled steadily during the Obama years. This is largely owed to increased government spending, [increased] regulations, and a failed stimulus program that enriched the well-connected while leaving average Americans behind.

For the ninth time in 10 years, America’s index has lost ground. Coming in above 80 in 2008, the United States’ current index is barely above 75, tying it with

Keep Reading…

Trump, Nieto Agree to Dial Down Rhetoric Over Border Wall

English: CARTAGENA/COLOMBIA, 7 APRIL 2010 - En...

Enrique Peña Nieto

The flurry of tweets following President Trump’s signing of the Border Security and Immigration Enforcement Improvements executive order last Wednesday resulted in the Washington Post describing “a deep rift” between the United States and Mexico, and Mexico’s former Foreign Minister Jorge Castañeda labeling the situation a “crisis” that is “going to last a long time.” On Thursday, Mexican President Enrique Peña Nieto (shown) canceled a face-to-face meeting he was to have with President Trump this Tuesday after Trump suggested it would be better to cancel the meeting if Mexico refused to pay for the border wall Trump promised to build.

The tempest died down immediately after President Trump and Mexican President Peña Nieto had a nice long chat by phone on Friday. Following that call — originally scheduled to for 10 minutes but lasting more than an hour — the White House said

Keep Reading…

Trump’s Regulatory Executive Order: One In, Two Out

This article appeared online at TheNewAmerican.com on Monday, January 30, 2017:

Official Portrait of President Ronald Reagan

White House officials described President Donald Trump’s Executive Order for “Reducing Government Regulations and Controlling Regulatory Cost” as Trump’s “one in, two out” plan: For every regulation promulgated by a federal agency, that agency must “identify” two existing regulations to be targeted for extinction.

The order also sets a cap of $0 for the cost of new regulations, with the only exceptions being military and national security regulations. The president said when signing the order,

Keep Reading…

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.

Keep Reading…

Trump Names Entrepreneur, Terrorism Expert as Army Secretary

This article appeared online at TheNewAmerican.com on Monday, December 19, 2016:  

President-elect Donald Trump nominated Vincent Viola (shown) as secretary of the Army on Monday, saying: “Whether it is his distinguished military service or highly impressive track record in the world of business, Vinnie has proved throughout his life that he knows how to be a leader and deliver major results in the face of any challenge.”

That’s a good thing because “Vinnie” is going to face plenty of them,

Keep Reading…

Will Mick Mulvaney Pull Trump’s Financial Fat Out of the Fire?

This article was published by The McAlvany Intelligence Advisor on Monday, December 19, 2016:  

English: Official portrait of US Rep. Mick Mul...

Michael “Mick” Mulvaney (shown) rode the Tea Party wave in 2010 into Congress, replacing a 14-term Democrat from South Carolina’s 5th District. He has been handily reelected ever since. He took his oath of office seriously, saying in 2010 that “If political reporters want to know what drives the Tea Partiers, it is their belief in the Constitution. That’s what has always driven me in politics and will guide me in Congress.”

He remained as true to his word as any of those riding the same wave,

Keep Reading…

Simmering Greek Financial Crisis Explodes Once Again

This article appeared online at TheNewAmerican.com on Thursday, December 15, 2016:  

Under the terms of its last bailout, Athens (above) was required not only to continue to impose harsh austerity terms (higher taxes, less government spending, better accountability, and increased tax collection enforcement onto Greek citizens) but to inform the unelected “higher” European authorities of any change in those terms by Athens.

Last week Athens unilaterally

Keep Reading…

Final and Buried Reports Reveal Fantastic Government Waste

This article appeared online at TheNewAmerican.com on Tuesday, December 6, 2016:  

English: Official portrait of US Rep. James La...

Senator James Lankford

Senator James Lankford (R-Okla.) issued his second annual Federal Fumbles study last week, totaling $247 billion in wasteful projects and nonsensical studies. When fellow Oklahoma Senator Tom Coburn retired, the job of finding and then criticizing wasteful projects fell to Lankford.

He is up to the task:

Keep Reading…

Is Donald Trump “The Godfather”?

This article was published by  The McAlvany Intelligence Advisor on Monday, November 21, 2016: 

Cover of "The Godfather, Part II (Two-Dis...

The Godfather, Part II

In a scene from The Godfather, Part II that resonates even today, Michael Corleone says: “My father taught me many things here. He taught me in this room. He taught me; ‘keep your friends close, but your enemies closer.’”

Is that what The Donald is doing in romancing the Senator Minority Leader to be, Senator Chuck Schumer? On Friday Schumer told the press that he has already received two or three phone calls from Trump: “He’s called. He’s friendly. The word is that he thinks he can work with me, but we’ll see. The jury’s [still] out.”

On Sunday Schumer said that the jury has returned with a verdict:

Keep Reading…

Multi-nationals Are Leaving Venezuela, Selling Out at Fire Sale Prices

This article appeared online at TheNewAmerican.com on Wednesday, November 16, 2016:  

Over the last year, General Motors, Ford Motor Company, auto parts maker Dana, Clorox, Kimberly-Clark, Bridgestone Tire, and Liberty Mutual have either sold out their Venezuelan interests at huge losses, have given their factories and properties away for free, or are planning to. Those who used to work for them are now working in another profession: as bachaqueros. This is slang for “giant ants,” used as a pejorative to describe street vendors offering their wares in the black market.

General Mills sold its operations at half the assessed value, while Dana was lucky

Keep Reading…

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,

Keep Reading…

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