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

Category Archives: Economics

Former Goldman Sachs Chief: New Yorkers Will “Feel Like Supermen” After COVID Vaccine

This article appeared online at TheNewAmerican.com on Wednesday, December 2, 2020: 

Connecting online from his posh Long Island estate earlier this week, former Goldman Sachs CEO Lloyd Blankfein offered a message of hope at a gathering of wealthy Jews. He told the audience attending the annual benefit for the UJA-Federation of New York, a Jewish philanthropy, “Next year we’ll all be back at the Hilton, vaccinated, feeling like supermen and superwomen, squeezed in, talking six inches apart and probably wishing we were back on Zoom!”

In a nearly total disconnect from reality, Blankfein thinks that once everyone is vaccinated, all will be well and folks can get on with their lives as if nothing untoward happened in 2020.

Evidence to the contrary exists everywhere.

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People Continue to Leave California in Droves

This article appeared online at TheNewAmerican.com on Monday, November 30, 2020:

When Ben Shapiro, founder of the Los Angeles-based conservative website Daily Wire, announced in September that he and his company were leaving for Nashville, he made a noisy exit. He wrote:

We’re leaving because all the benefits of California have steadily eroded — and then suddenly collapsed….

 

All the costs of California have steadily increased — and then suddenly skyrocketed….

 

Nearly every public space in Los Angeles has become a repository for open waste, needles and trash….

 

Looters were allowed free reign … during the Black Lives Matter riots….

 

To combat these trends, local and state governments have gamed the statistics, reclassifying offenses and letting prisoners go free.… In July, the city of Los Angeles slashed police funding, cutting the force to its lowest levels in over a decade….

 

California’s top marginal income tax rate is now 13.3%; legislators what to raise it to 16.8%….

 

California has the worst regulatory climate in America….

 

The state legislature is dominated by Democrats. California is not on a trajectory toward recovery; it is on a trajectory toward oblivion. Taxpayers are moving out — now including my family and my company. In 2019, before the pandemic and the widespread rioting and looting, outmigration jumped 38%, rising for the seventh straight year. That number will increase again this year.

 

I want my kids to grow up sate. I want them to grow up in a community with a future, with more freedom and safety that I grew up with.

 

California makes that impossible. So, goodbye, Golden State. Thanks for the memories.

Shapiro took nearly all of his company’s 75 employees with him. And they’re not alone. In July, Joe Rogan, host of The Joe Rogan Experience, announced he was moving to Texas, citing the need for “a little more freedom” and decrying “the traffic … the economic despair … [and] the homelessness problem that’s accelerated radically” in Los Angeles over the last decade.

A locally prominent developer, Paul Petrovich, is headed for

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Senate Temporarily Blocks Confirmation of Gold Advocate to the Federal Reserve

This article appeared online at TheNewAmerican.com on Wednesday, November 18, 2020: 

When Senate Majority Leader Mitch McConnell realized that he couldn’t get enough votes to break the filibuster of Judy Shelton’s nomination to the Federal Reserve Board on Tuesday, he changed his vote to “no.” That gives him a procedural opportunity to bring her nomination back to the floor once the three Republican senators who were missing (two due to COVID, one due to a family emergency) are back in Washington.

The confirmation hearing will likely continue the week after Thanksgiving, and will also likely result in the confirmation of Shelton to fill a vacancy on the board.

So, why the filibuster?

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Dow Close to 30,000, Fastest Rebound in 30 Years

This article appeared online at TheNewAmerican.com on Tuesday, November 17, 2020: 

When President Trump learned that Wall Street set another record on Monday, he tweeted: “Stock market getting very close to 30,000 on new vaccine news. 95% effective!”

More effective is the signal that benchmark is giving to skeptical investors who are currently holding nearly five trillion dollars in money-market funds. The 30,000 level for the Dow Jones Industrial Average is psychological, giving an “all-clear” signal for them to take positions in equities that are reflecting the remarkable rebound from the COVID shutdowns.

And that rebound has been record-shattering. The Dow has risen more than

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Two Big Banks Predict Big Gains in Stocks Into New Year

This article appeared online at TheNewAmerican.com on Wednesday, November 11, 2020: 

Two of the nation’s largest banks — Goldman Sachs and JPMorgan — are increasingly bullish on America. Goldman Sachs’ chief U.S. equity strategist, David Kostin, in a note to his clients, said on Wednesday that the S&P500 Index, currently trading at 3,575, could hit 4,300 by 2022, a little over a year from now.  If he’s correct, Wall Street investors could see their accounts jump by 20 percent by next Christmas.

His optimism stems from the news that

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Labor Department: October Job Gains Exceed Expectations Once Again

This article appeared online at TheNewAmerican.com on Friday, November 6, 2020:  

Hard on the heels of Wednesday’s report from ADP showing the economy adding more than 400,000 jobs in October came the announcement from the U.S. Labor Department: Job gains were closer to 640,000. Economists surveyed by Dow Jones were expecting just 530,000 new jobs in October.

When considering that this reflected the layoff of some 147,000 government census workers in October, the economy’s rebound last month was, in one economist’s words, “amazing.” Michael Arone, chief investment strategist at State Street Global Advisors, said:

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Passage of Prop 22 Sets Tone for National Gig Economy

This article appeared online at TheNewAmerican.com on Thursday, November 5, 2020: 

When Kim Kavin, co-founder of Fight for Freelancers, learned that California voters passed Proposition 22 overwhelmingly on Tuesday, she was delighted: “Everybody is celebrating today.… We are just thrilled about this one result.”

But her organization is located in New Jersey, on the opposite side of the country from California. And Proposition 22 is just simply another

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ADP: More Than 400,000 New Jobs Created in October

This article appeared online at TheNewAmerican.com on Wednesday, November 4, 2020:  

According to payroll processor ADP, more than 400,000 new jobs were created by the Trump economy in October. This is the sixth month of gains in a row since the shutdown, during which the economy has added back almost 10 million jobs from the 19.7 million lost in March and April.

The gains were broad-based, with new jobs being added in every sector: manufacturing (17,000), services (348,000), and franchise employment (49,600).

The job gains reflect the remarkable comeback

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Three More Indicators Suggest Trump Victory on Tuesday

This article appeared online at TheNewAmerican.com on Monday, November 2, 2020: 

The report released Monday morning by the Institute for Supply Management (ISM) once again exceeded forecasters’ expectations, and added to the momentum of the Trump reelection campaign. That campaign has touted the V-shaped rebound from the COVID shutdown for months, and today’s report confirms it.

The ISM’s index of purchasing managers (PMI) reflects their optimism in the manufacturing sector of the U.S. economy, and any number above 50 reflects expansion. Forecasters had expected a reading of 55.7. ISM reported it rising to 59.3, nearly four full points in just the last month. It’s also the highest reading since September 2018 when the economy was already in full throat.

The index not only reflects how purchasing managers are viewing the economy at the moment, it’s also a harbinger for the expansion continuing well into the new year, according to Timothy Fiore, head of the survey. “This figure indicates expansion in the overall economy for the sixth month in a row,” Fiore said, adding:

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Roaring Economic Numbers Boosting Trump’s Reelection Chances

This article appeared online at TheNewAmerican.com on Monday, October 26, 2020:  

The latest survey of consumers from the University of Michigan — its “Preliminary Results for October 2020” — just released showed “gains in economic prospects for the year ahead,” according to its authors. And that’s just the beginning of the reports issued last week and those coming this final full week before election day.

In September its Index of Consumer Sentiment was 80.4; a month later it is 81.2. Its Index of Consumer Expectations for September was 75.6; for October it’s 78.8. When the results are broken down by political party, “Trump still held an advantage over Biden,” the same advantage he held in September, according to the UMich survey.

The “flash” (preliminary) output, services, and manufacturing indices from the data firm IHS Markit on Friday each showed 20-month highs, with its author reporting:

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Red States Bouncing Back from Shutdown; Blue States Lagging Behind

This article appeared online at TheNewAmerican.com on Thursday, October 15, 2020:

Back in May, Kevin Hassett, former chairman of President Trump’s Council of Economic Advisors, noted that so-called Red states — those governed by largely Republicans — were opening sooner than Blue states — those governed largely by Democrats — and suggested it was something that should be studied.

JustTheNews (JTN) completed just such a study. By analyzing the latest (August) data available from the Bureau of Labor Statistics, Carrie Sheffield, JTN’s investigative journalist, saw clearly the difference in approach to opening up the states. She noted that

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Another Economic Report Points to Trump Reelection

This article appeared online at TheNewAmerican.com on Friday, October 9, 2020:

The latest report from the Atlanta Federal Reserve Bank’s GDPNow model was raised on Tuesday from 34.6 percent to 35.3 percent.

These are blowout numbers not seen in history and obliterate the old record set 70 years ago during the Truman administration.

This estimate will be confirmed when

Keep reading…

Unemployment Rate Drops More Than Forecast as Economy Continues Recovery

This article appeared online at TheNewAmerican.com on Friday, October 2, 2020:

The Bureau of Labor Statistics (BLS) reported early Friday morning that the economy continues its surprisingly strong recovery from the greatest shutdown in U.S. history. The report, based on two surveys — the household survey and the establishment survey — said, “Improvements in the labor market reflect the continued resumption of economic activity” following the COVID-inspired shutdown.

Specifically, total non-farm payroll employment rose by 661,000 in September, dropping the unemployment rate by half of one percent, to 7.9 percent. Forecasters were expecting a drop to 8.2 percent.

Most of the gains were in leisure and hospitality, retail businesses, healthcare, and in professional and business services. Job recovery in food services and drinking places has totaled nearly four million over the last five months.

This comes on the heels of other reports and surveys earlier this week showing

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Trump Declares National Emergency as China Monopolizes Rare Earth Elements

This article appeared online at TheNewAmerican.com on Thursday, October 1, 2020:  

The day after debating Joe Biden in his bid for another four years in the White House, President Trump declared a national emergency. It concerns the virtual monopoly the communists running China have gained over an obscure but vitally necessary group of 17 minerals called “rare earth elements,” or REEs. They are used to build a wide range of products, both consumer and military.

There is no known substitute for them, and China controls most of their production.

In his Executive Order, the president said,

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Latest Economic Surveys Show Resilience of U.S. Economy

This article appeared online at TheNewAmerican.com on Wednesday, September 30, 2020:

The Conference Board reported on Tuesday that its index of consumer confidence jumped in September by the biggest increase in 17 years. The index clocked in at 101.8 for the month, up from 86.3 in August. Economists were expecting a reading of just 89.6.

Inside that index were two indicators driving the increase: how consumers feel about the economy right now (98.5 currently, up from 85.8 in August) and how consumers feel about the next six months (104 currently, up from 86.6 in August).

On Wednesday morning, payroll processor ADP reported that

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Big Banks Are Optimistic About U.S. Economy, for Good Reason

This article appeared online at TheNewAmerican.com on Monday, September 21, 2020: 

Three of the world’s largest investment banks — Goldman Sachs, Wells Fargo and Deutsche Bank — are optimistic about stocks in the coming months, and for good reasons: a strong housing market, the improved chances for a COVID-19 vaccine in the near future, the increasing likelihood of President Trump’s reelection, a strong GDP number in the third quarter, economic momentum left over from 2019’s amazing performance, and forecasts of the robust recovery extending into 2021.

Goldman Sachs analyst David Kostin told his clients last week to expect the S&P 500 index, currently trading around 3,260, to close the year at 3,600 and at 3,800 by next summer: “Despite the sharp sell-off [in stocks] we remain optimistic about the path of the U.S. equity market in coming months … [the] economic data show a continuing recovery.”

Wells Fargo’s chief investment officer, Kirk Harman, told CNBC on Tuesday,

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New Jersey the Fourth State to Enact “Millionaires” tax

This article appeared online at TheNewAmerican.com on Friday, September 18, 2020:  

New Jersey Governor Phil Murphy says he doesn’t hold a grudge against anyone making more than a million dollars a year in his state.

It’s just that he needs their money more than they do. It’s their duty to “sacrifice”: “We do not hold any grudge at all against those who have been successful in life. But in this unprecedented time, when so many middle-class families and others have sacrificed so much, now is the time to ensure that the wealthiest among us are also called to sacrifice.”

Murphy made the announcement on Thursday, adding that he expects the two-percent increase — from 8.75% to 10.75% on incomes of a million and up — will raise $390 million this year alone. He’s using his state’s $10 billion shortfall in revenues as an excuse.

He expects the increase to fall on about 16,500 residents, assuming that they stand still for the plucking.

Most are likely to stand still for the shearing, but

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Wall Street Analyst: Stocks to Move Higher, Enhancing Trump’s Reelection Chances

This article appeared online at TheNewAmerican.com on Wednesday, September 16, 2020:

In a note to his clients on Monday, LPL’s Chief Market Strategist Ryan Detrick said his company has raised its stock market expectations even higher, advising its clients to stay fully invested and enjoy the ride.

He said, “When the S&P 500 [index] has been up five straight months, as it was in April through August, stocks have historically kept going higher.” Historically, he told his clients, the last 26 times the market traded higher for five straight months, it was higher a year later 96 percent of the time.

Furthermore,

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Goldman Sachs Expects 35-percent Growth in U.S. Economy in Third Quarter — Good for Trump

This article appeared online at TheNewAmerican.com on Monday, September 14, 2020: 

In a note to its clients on Thursday, international investment banking firm Goldman Sachs said it “upgraded” its estimate of the robust rebound of the U.S. economy for the third quarter, adding that the momentum will continue into the fourth quarter and 2021 as well:

We upgraded our near-term growth forecasts based on the much stronger-than-expected August jobs report and the solid summer data more generally….

 

Our forecast of 35 percent is now nearly 14 percentage points above [Wall Street’s] consensus….

 

Looking beyond this quarter, we remain upbeat on growth.… In our view, the combination of a still-very-high personal savings rate, and a likely vaccine, should lead to reaccelerating demand in these sectors.

Others are getting on board. Marko Kolanovic, a quantitative strategist at J.P. Morgan Chase told his clients two weeks ago: “We currently believe that momentum in favor of Trump will continue, while most investors are still positioned for a Biden win.” Accordingly he told his clients to “adjust [their portfolios] for a potential Trump re-election.”

The day after Goldman Sachs issued its upgrade Beacon Policy Advisors analyst Ben Koltun confirmed, explaining why:

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Price Increases at Retail Level Accelerating, Thanks to Massive Money Supply Increase

This article appeared online at TheNewAmerican.com on Friday, September 11, 2020:

The U.S. Bureau of Labor Statistics (BLS) reported on Friday that prices at the retail level in August increased at an annual rate of nearly five percent in August.

Retail prices dropped when the shutdown began and demand for retail items such as gas and services such as restaurants fell like stones. People nearly stopped buying, preferring to stash their “stimulus” checks from the government in savings or use them to pay off credit card debt.

In response, the government, with the help of the Federal Reserve, dumped massive amounts of newly created digital currency into the economy, hoping that the infusion would quickly revive it once the infection risk had passed.

Now that that perceived risk has abated, citizens are coming out of their homes and basements and spending, making up for lost time. They’re buying

Keep reading…

Many of the articles on Light from the Right first appeared on either The New American or the McAlvany Intelligence Advisor.
Copyright © 2020 Bob Adelmann