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: Wall Street

Democratic Debate: a Kabuki dance with Alice in Wonderland

This article appeared online at TheNewAmerican.com on Wednesday, October 14, 2015:  

Last night’s “debate” had one winner and six losers in showcasing the Democratic Party’s potential nominees for president in 2016: Hillary Clinton, according to all liberal commentators, was the winner going away.

The losers were everyone else on stage — Jim Webb, Bernie Sanders, Martin O’Malley, and Lincoln Chafee — plus Joe Biden, and the American taxpayer.

It was all Kabuki dance:

Keep Reading…

China Has Its Own Plunge Protection Team

This article was published at The McAlvany Intelligence Advisor on Friday, July 31, 2015: 

China has its own Plunge Protection Team. Its efforts were in evidence last Wednesday as the Shanghai and the Shenzhen indexes, both of which had been flat most of the day, leaped up three percent and four percent, respectively, in the last 30 minutes of the trading session.

Jacky Zhang, an analyst at BOC International, a wholly owned subsidiary of the Bank of China, exclaimed:

Keep Reading…

Chinese Plunge Protection Team Failing to Stem Stock Market Declines

This article appeared online at TheNewAmerican.com on Thursday, July 30, 2015:  

A historical chart of the Shanghai (SSE) Compo...

A graph of the Shanghai Index showing the first bubble in 2006-2008

In the last 30 minutes of trading on Wednesday, the Shanghai Composite Index jumped more than three percent, while the smaller Shenzhen Composite (equivalent to the U.S. Nasdaq index) leaped more than four percent. That this was the result of actions taken by China’s unofficial “plunge protection team” was obvious to Jacky Zhang, an analyst at BOC International: “Clearly it is government intervention again.”

China’s plunge protection team (PPT), equivalent to the U.S. stock market’s “Working Group on Financial Markets” set up under President Reagan following Black Monday in October 1987, has moved heaven and earth to keep its stock markets from collapsing. The team, made up of China’s Securities Finance Corporation and the China Securities Regulatory Commission, along with top officials from the country’s 21 largest brokerages and the Chinese central bank, has implemented an entire panoply of measures to stem the tide, including:

Keep Reading…

Pressure Increasing to Reopen Export-Import Bank

This article appeared online at TheNewAmerican.com on Wednesday, July 15, 2015:

It’s been just two weeks since the Export-Import Bank’s charter lapsed — that “fund of corporate welfare” as criticized by presidential candidate Barack Obama in 2008 before reality set in — and two predictable things have occurred: The world continues to turn without it, and K-Street lobbyists are busy trying to resurrect it.

With massive radio advertising and extensive help from the media publishing op-eds in its favor, the chances are increasing that the zombie will come back to life.

The deceased bank, touted as offering loan guarantees to small businesses wanting to do business overseas but unable to obtain financing in the regular way, was turned into a slush fund of free money to the country’s largest corporations:

Keep Reading…

HSBC Downsizing to Core Business: Money Laundering, Terror Funding

This article first appeared online at TheNewAmerican.com on Wednesday, June 10, 2015: 

Officially, London’s Hong Kong and Shanghai Banking Corporation (HSBC), the world’s third-largest banking firm, is cutting costs to improve profits. The intended moves are for the benefit of the shareholders, asserted Stuart Gulliver, the bank’s chief executive on Tuesday: “We recognize that the world has changed and we need to change with it. I am confident that our actions will allow us to capture expected future growth opportunities and deliver further value to our shareholders.”

Unofficially, HSBC is going to ply its underground wares and provide its vast money-laundering services where its customers are mostly likely to reside in the years ahead:

Keep Reading…

U.S. Economy Goes Negative in the First Quarter

This article first appeared online at TheNewAmerican.com on Friday, May 29, 2015: 

The Commerce Department reported on Friday that the U.S. economy shrank at an annual rate of 0.7 percent, a sharp downward revision from its previous tepid estimate that it would grow by 0.2 percent.

It caught most mainstream economists off guard once again, with many predicting positive growth right up until Friday, and more remaining doggedly optimistic that growth will return. Economists polled by the Wall Street Journal just 10 days ago were holding to a 3-percent growth rate in the economy for 2015, while analysts polled by the AP just prior to the release on Friday were still predicting growth of between 2 and 2.5 percent for the year.

Paul Ashworth, chief U.S. economist at Capital Economics, is waiting for evidence that growth will return in the second quarter:

Keep Reading…

Mainstream Economists, the Herd Instinct, and GDP

This article first appeared at The McAlvany Intelligence Advisor on Wednesday, May 20, 2015:

It’s no surprise, really. Most mainstream economists look at the world through Keynesian lenses, they attend the same conferences, read the same reports, are employed by companies in the same industry, hold degrees from the same universities, and are rewarded for having a view that doesn’t stray from the norm, even if that view is wrong. It’s a perfect reflection of the herd mentality: the impulse or tendency toward “clustering,” reflecting the need for conformity. It’s how economists make weathermen look good.

If their view turns out to be wrong, they adjust, slowly. If they are challenged or threatened,

Keep Reading…

Huge Ex-Im Bank Loan Defaults Imperiling Bank’s Reauthorization

This article first appeared online at TheNewAmerican.com on Thursday, March 26, 2015: 

Seal of the Export-Import Bank of the United S...

Seal of the Export-Import Bank of the United States

On January 21, NewSat, a private satellite communications company headquartered in Australia, defaulted on a $21 million payment to its primary satellite provider, Lockheed Martin. That default is triggering an avalanche of defaults that could sink not only NewSat but also very likely the bank that guaranteed the loans financing the deal, the Export-Import Bank, whose charter is up for renewal on June 30.

The Ex-Im Bank has touted its ability and willingness to provide financing for American companies seeking to do business abroad but which couldn’t arrange financing the regular way: through private banking channels. According to the bank’s charter,

Keep Reading…

Latest Jobs Report Deceptive; Jobs Exported Overseas

This article first appeared online at TheNewAmerican.com on Saturday, March 7, 2015:

English: A North American Free Trade Agreement...

North American Free Trade Agreement logo

The employment report from the Labor Department on Friday was hailed as more evidence that the worst from the Great Recession is now in the rear view mirror, and receding. The unemployment rate in February dropped to 5.5 percent, lower than economists were predicting, while job growth added nearly 300,000 jobs, pushing the streak of gains of 200,000-plus new jobs per month out to a full year, the longest such streak since 1995.

The news caused stocks to lose more than one percent of their value, as Wall Street expected the robust numbers to hasten the day when the Fed would increase interest rates, potentially slowing the sluggish economy even further. Investors needn’t worry: Friday’s report was a head-fake.

If the recovery were real,

Keep Reading…

Canada’s Oil Sands Impervious to Crude Oil’s Price Decline

This article first appeared at The McAlvany Intelligence Advisor on Wednesday, January 14, 2015:


On Monday – the same day that UAE’s Energy Minister Suhall al-Mazrouel said that OPEC was going to stick to its decision to keep pumping regardless of price declines – the same day that Goldman Sachs issued its negative outlook for prices – when crude oil prices dropped in response by 5 percent, hitting a six-year-low of $44.20 a barrel on Tuesday, the CFO of Canadian Natural Resources announced he was going to expand both its production and its output into 2015 and beyond.

Chief Financial Officer Corey Bleber was oblivious to the carnage, saying that his company expected its overall output for 2015 to be at least seven percent ahead of last year’s, and that it would continue

Keep Reading…

Impacts of Lower Crude Oil Prices Continue to Spread

This article first appeared online at TheNewAmerican.com on Tuesday, January 13, 2015:


After oil forecaster Jeremy Warner got lucky last year when he accurately called the top in oil prices, with a fall to at least $80 a barrel, he doubled down by predicting “that the oil price will remain low for a long time, sinking to perhaps as little as $20 a barrel over the coming year before recovering a little.”

Warner got lucky once again when Goldman Sachs confirmed his prognosis, setting off an eye-popping five percent decline in oil to $45 a barrel which continued into Tuesday. Tuesday’s low was $44.20. As Goldman Sachs noted,

Keep Reading…

Crude Oil Prices: The Politics, Implications, and Backlash

This article first appeared online at TheNewAmerican.com on Tuesday, January 6, 2015:

With the price of crude dropping significantly below $50 a barrel, prognosticators have come out of the woodwork predicting drops to $40, $30, $20 a barrel, and even lower before it rebounds.

Jon Ogg, writing at 247Wall St.com, noted that the precipitous drop in crude oil prices “has serious implications for consumers and companies alike,” and not all of them are unblemished blessings. On the surface the winners are

Keep Reading…

Wall Street’s Hallelujah Chorus Greets New Highs in Stocks

This article first appeared at The McAlvany Intelligence Advisor on Friday, December 26, 2014:



Observers of new highs being put in by stocks at the Wall Street Journal could hardly restrain themselves. Eric Morath and Ben Leubsdorf, writing in the Journal on Tuesday, noted that the economy is now enjoying “a sweet spot of robust growth, sustained hiring, and falling unemployment [which is] stirring optimism that a post-recession breakout has arrived.”

Translation: Good times are here again, and likely to continue. Break out the Brie and Chablis.

Looking past the celebrations and the prognostications seemed, at first view, to confirm the market’s outlook:

Keep Reading…

Underlying Economic Indicators Confirm Dow’s Record Run

This article first appeared online at TheNewAmerican.com on Wednesday, December 24, 2014:


With the Santa Claus rally driving stocks to new all-time highs, the normally restrained Wall Street Journal found itself describing the economy “in a sweet spot of growth, sustained hiring and falling unemployment, stirring optimism that a post-recession breakout has arrived.”

Investopedia explains the cause of the usual rally in stocks toward the end of each year this way:

Keep Reading…

Voters Finally Learn What’s in the CRomnibus Bill Passed by the Senate

This article first appeared online at TheNewAmerican.com on Tuesday, December 16, 2014:

Official portrait of United States Senator (R-KY)

Kentucky Senator Mitch McConnell, the leader of the Republican sellout

The so-called CRomnibus bill (a combination of a Continuing Resolution and an omnibus spending bill covering dozens of federal agencies) was passed by the Senate late Saturday night, 56-40, approving government spending through next September.

Passage, although delayed slightly by complaints from Senator Ted Cruz (R-Texas) that it funded President Obama’s illegal immigration executive order without debate, was guaranteed when 24 Republicans, including every GOP leader, voted for it. This allowed some Democrats the opportunity to vote against it as a sop to constituents or to build their resumes in contemplated runs for the White House in 2016. They included newly inducted Senator Cory Booker (D-N.J.), along with Senators Elizabeth Warren (D-Mass.), Amy Klobucher (D-Minn.), and Kirsten Gillibrand (D-N.Y.).

Others whom Republicans bailed out with their “yea” votes included naysayers

Keep Reading…

Lower Crude Oil Prices Already Pinching Producers

This article first appeared online at TheNewAmerican.com on Tuesday, December 2, 2014:

Coat of Arms of Saudi Arabia

Coat of Arms of Saudi Arabia

As crude oil prices continued their breathtaking drop, the CEO of Canadian Natural Resources, Canada’s largest oil company, Murray Edwards (the 14th wealthiest Canadian) was asked on Friday just how much further crude oil prices could decline. His response:

On a given day you can have market fluctuations where prices fluctuate far more than the underlying economic value of the unit. Prices could spike down to $30, $40. It got down to $35 in 2008, for a very short period of time.

On Monday crude oil prices briefly stabilized and then dropped further on Tuesday, hitting new four-year lows.

This pronouncement is at odds with an oil production estimate by the seemingly eternal oil optimist and economist Mark Perry, who rejoiced on Monday that

Keep Reading…

Oil Market: Lower Gas Prices not the Only Reason to be Thankful

This article first appeared at TheNewAmerican.com on Thursday, Thanksgiving Day, November 27, 2014:

When news from Vienna arrived on Wall Street early Thanksgiving morning that OPEC wasn’t going to cut its production quotas to stabilize crude oil prices, those prices immediately fell even further, touching lows not seen in four years. West Texas Intermediate briefly touched $70 a barrel while Brent crude was close behind, at $73.

Oil hit a high of $147 a barrel in July 2008, so Thursday’s drop represents an astonishing 52-percent decline in just over six years. This coincides with an 80-percent increase in crude oil production by the United States over that same period. As economies around the world struggle to regain their footing, thanks to failing Keynesian policies, the demand for crude remains about where it was 10 years ago. With flat demand and increasing supply, it was only a matter of time before prices started to fall.

American consumers are benefitting enormously,

Keep Reading…

What’s Behind the Attack on Fracking?

The following is the text of a talk I made in September to some oil industry people in Nashville:

In the opening sequence of the movie Gasland, Josh Fox, the film’s producer, said:

One day I got a letter in the mail. It was from a natural gas company. The letter told me that my land was on top of a formation that was called the Marcellus Shale which stretched across Pennsylvania… New York… Ohio… and West Virginia… and that the Marcellus Shale was the “Saudi Arabia” of natural gas.

I could lease my land to this company and I would receive a signing bonus of $4750 an acre. Having 19.5 acres, that was nearly $100,000… Right there in my hand. Could it be that easy?

No, it couldn’t.

Keep Reading…

U.S. Tax Code Puts America 32nd Out of 34 Countries

This article was first published by TheNewAmerican.com on Monday, September 15, 2014:

English: Ronald Reagan singing the Tax Reform ...

English: Ronald Reagan signing the Tax Reform Act of 1986 (Photo credit: Wikipedia)

The release of the Tax Foundation’s latest study last week, its “2014 International Tax Competitive Index” (ITCI), gave commentators from the Wall Street Journal to the Independent Women’s Forum plenty to chew on. The foundation’s analysis, based on more than 40 variables across five major categories, concluded that the United States ranked just 32nd out of the 34 countries making up the Organization For Economic Cooperation and Development (OECD).

In their executive summary, the authors of the study noted that

Keep Reading…

July BLS Jobs Report: The Sound of One Hand Clapping?

This article was first published at TheNewAmerican.com on Monday, August 4, 2014:


To Jeffry Bartash, writing for the Wall Street Journal’s MarketWatch, Friday’s jobs report looked awfully good: 209,000 new jobs were added in July and in all the right places: mining, construction, manufacturing, transportation, and warehousing. In addition, there was almost no growth whatsoever in the “government” sector: just 11,000 new jobs were created there last month. This, according to Bartash, means that the economy is on a hot streak, having generated more than 200,000 new jobs every month for the last six months — the first time that has happened since 1997.

Added Bartash:

In the first seven months of 2014 the economy has gained an average of 230,000 jobs. That’s the best stretch of job creation since the [Great Recession] ended in mid-2009 and 19% faster than the pace of hiring in 2013.

End of story? Not quite.

Keep Reading…

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

Site Search

Tweet Us