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: Free Market

OPEC Cartel Failure Drops Oil Prices, Rattles Markets

This article appeared online at TheNewAmerican.com on Monday, March 9, 2020:

Following the failure of a meeting by members of the oil cartel known as OPEC (Organization of the Petroleum Exporting Countries) in Vienna last week to extend its production cuts, Saudi Arabia’s oil company, Aramco, announced price cuts across all markets and an increase in its production.

The failure came on the heels of an announcement by the International Energy Agency (IEA) that it had reversed its previous estimate that demand for oil would increase in 2020 and predicted that worldwide oil demand would drop by 700,000 barrels a day instead. That announcement was historic, the biggest drop in demand in a decade.

It also occurred at a time when the concerns over COVID 19/coronavirus had reached panic proportions, leaving hotel rooms, airlines, and tour companies facing sharp declines in passenger bookings.

In other words,

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Obama Judge in California Rules Against Gig Economy

This article appeared online at TheNewAmerican.com on Tuesday, February 18 , 2020: 

The ruling denying injunctive relief to Uber and Postmates and their drivers from California’s onerous, and likely unconstitutional, law AB 5 by Obama-appointed judge Dolly Gee last week illustrates why such judges holding for unions and the state need to be replaced.

The bill was supported by unions and the state of California for obvious reasons. The unions hated the competition, and the state needed the tax revenues that would be generated by turning freelancers into employees.

Proponents said gig workers would benefit from minimum-wage laws imposed on employees, and they would now have sick-leave coverage and unemployment insurance, along with other benefits. And the state would gain an estimated $8 billion from payroll taxes that gig operators such as Uber and Postmates and their independent contractors weren’t currently paying.

Opponents pointed out the obvious: Most gig workers don’t want to be employees. Most like the freedom associated with the gig economy, such as setting their own hours. And customers and consumers enjoy the better service and lower costs associated with services such as Uber and Postmates when compared to taxi drivers and FedEx, UPS, and the U.S. Postal Service. They predicted that once the law became effective on January 1, many of those freelancers would be out of work.

It’s already happening.

As The New American pointed out, Vox Media (which interestingly supported AB 5) has canceled its contracts with about 200 freelance writers and replaced them with just 20 new part-time and full-time employees.

Thomas Cushman, a commercial fisherman, has seen the law force his business to stop paying his crew:

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House Set To Pass “Worst Bill,” the PRO Act

This article appeared online at TheNewAmerican.com on Thursday, February 6, 2020: 

The National Retail Federation (NRF) is calling the Protecting the Right to Organize (PRO) Act, H.R. 2474, “the worst bill in Congress”. It’s a “compilation of dozens of extreme labor policy proposals from the past several years lumped into one disastrous bill,” according to Lizzy Simmons, NRF’s Vice President.

Not only does the bill have the support of Democrat presidential candidates Bernie Sanders, Elizabeth Warren, Amy Klobuchar, Pete Buttigieg, and Joe Biden, it has 218 cosponsors in the House. This means that the bill, expected to be voted on on Thursday, will easily pass over Republican resistance.

The bill threatens all of the gains the president talked about during his State of the Union message on Tuesday, including wage growth among lower-paid workers and a thriving economy pushing unemployment down to levels not seen in 50 years.

This summary includes the most egregious of the 30 provisions of the bill:

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ADP Says 291,000 New Jobs in January; It’s More Like 336,000

This article appeared online at TheNewAmerican.com on Wednesday, February 5, 2020: 

The jobs report from ADP on Wednesday understated job growth in January. Based on its own payrolls, the growth of private employment in the United States wasn’t 291,000. It was actually 336,100 when new jobs created by franchises were included.

The new jobs appeared in every sector of the economy, from small businesses to large and from goods-producing to service-providing. Small businesses added 94,000 new jobs; medium sized companies added 128,000 while large companies (500 employees and up) added 69,000. Those running franchise operations hired 45,100 new people in January.

Construction and manufacturing added 55,000 jobs, while professional and business services hired 49,000. Education added 70,000, while the leisure and hospitality sector brought on 96,000 new people.

The president didn’t need this information Tuesday night. He already had more than enough to fill his State of the Union speech before Congress. He took credit for

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Impeachment? What Impeachment? Voters Are Tuning Out

This article appeared online at TheNewAmerican.com on Monday, January 27, 2020: 

Voters are tuning out of the Trump impeachment trial in droves. After two days of watching the Democrats bash the president, viewership of the six major networks covering it dropped by 20 percent. When the Associated Press asked voters why, they said they’re bored and tired of “the whole partisan saga.”

Most of them made up their minds months ago, said Eric Kasper, director of the Center for Constitutional Studies at the University of Wisconsin-Eau Claire: “A lot of people have made up their minds, and it looks pretty clear what the outcome of this trial is going to be.”

Only 11.8 million people watched the six networks during the first two days of the Senate trial, compared to

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Davos Confab to Replace “Shareholder Capitalism” With “Stakeholder Capitalism”

This article appeared online at TheNewAmerican.com on Thursday, January 23, 2020:

As The New American noted on Wednesday, the real agenda of the Davos confab taking place this week in Switzerland is giving more and more power and control to global elites in order to make the world more “sustainable.” We wrote: “This involves us giving them — the saviors — more power and more money.” The partners supporting the World Economic Forum (WEF) vision include Big Business, Big Banking, Big Tech, Big Foundations, Big Green, and Big Labor. As we noted, “This united front pushes for more Big Government as the solution to every “crisis” — with Global Total Government as the ultimate solution.”

The “crises du jour” Davos is laboring to solve consists of “income inequality,” “climate change,” and “political polarization.” The solution: changing how corporations operate to meet those needs and solve those problems, by force.

It’s called “stakeholder” capitalism, and it will replace the old, outmoded, and corrupt “shareholder” capitalism that has done nothing less than catapult the world’s standard of living to levels never seen in history.

The real intentions of the gathering at Davos were barely visible in 1973 when its Code of Ethics for Business Leaders concluded that

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Faceoff Between Trump and Thunberg at Davos Was a Bust

This article appeared online at TheNewAmerican.com on Wednesday, January 22, 2020: 

Cain Burdeau, writing for Courthouse News, hoped for more drama at Davos as Greta Thunberg (the “voice of climate change”) and Donald Trump, the president of the United States, were expected to confront each other over the climate-change issue. Instead, Trump “said nothing about global warming, called climate activists [without mentioning Thunberg by name] ‘prophets of doom’, and touted a future where ‘virtually unlimited energy reserves’ from fossil fuels and other polluting energy sources will keep factories humming while government cuts regulations and taxes.”

Thunberg set the table for the confrontation in a nearly unintelligible speech given just hours before Trump’s arrival, in which she stated,

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Big Trump Donors Looking to Double Their Money in 2020

This article was published by The McAlvany Intelligence Advisor on Monday, January 13, 2020: 

Most investors expect to get their money back, plus a profit. A few big Trump donors are now being given a chance to double their money by November.

There’s a movement afoot to purchase tiny One American News Network (OANN) for $250 million. It started in 2013 and already reaches 35 million homes.

By contrast, Fox News reaches 90 million households. But an increasing number of Fox viewers are being turned off by its leftward drift, and could be enticed to move to OANN if that drift continues.

There could be a double bonus in it for those Trump donors being given the chance to buy the tiny news network. It being election season, a small network like OAN needs only a few million more households to sign on to make the investment profitable. And if it picks up enough households disgusted with Fox News‘ leftward drift, it could also help reelect the president in November.

That would turn a good investment into a great one.

A dozen GOP heavyweight donors are being pitched on the idea of buying up the tiny television network to offset the steady leftward drift of Fox NewsThe Wall Street Journal first reported that

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Economy Adds Another 145,000 Jobs in December, Says Labor Department

This article appeared online at TheNewAmerican.com on Friday, January 10, 2020: 

Said the Bureau of Labor Statistics on Friday, “total nonfarm payroll employment rose by 145,000 in December, and the unemployment rate was unchanged at 3.5 percent.” It also noted that the long-term unemployment rate U6 (which includes discouraged workers no longer seeking jobs and part-time workers seeking full-time employment) dropped to the lowest level since the agency started reporting it in 1994.

This followed the report from ADP on Wednesday that the U.S. economy added 261,700 jobs in December and caps off a remarkable year for the U.S. economy.

For the year, new jobs rose by 2.1 million, following a gain of 2.7 million in 2018. Since Trump’s inauguration, the U.S. economy has added more than seven million new jobs. The robust economy has simultaneously reduced those on food stamps (SNAP) by four million while adding $5,000 a year to the average American’s household income.

Wall Street has soared as well, with the popular averages gaining between 20 and 35 percent during 2019.

The outlook for 2020 looks for a repeat,

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The U.S. Consumer Is Doing What He Does Best: Taking Advantage of America’s Free Market Private Capitalist System

This article was published by The McAlvany Intelligence Advisor on Friday, December 27, 2019: 

All the numbers aren’t in yet, but it’s clear that the American consumer is happy. He is taking advantage of the opportunities afforded him by the most marvelous engine of economic improvement the world has ever seen: the private capitalist (non) system called the Free Market.

It isn’t really a system, but a highly complex network of individuals each seeking to improve their own economic welfare the best way they know how. It’s Adam Smith’s “Invisible Hand “at work:

As every individual, therefore, endeavors as much as he can both to employ his capital in the support of domestic industry, and so to direct that industry that its produce may be of the greatest value, every individual necessarily labors to render the annual revenue of the society as great as he can.

 

He generally, indeed, neither intends to promote the public interest, nor knows how much he is promoting it … he intends only his own security; and by directing that industry in such a manner as its produce may be of the greatest value, 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….

 

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

Forecasters shouldn’t have been surprised. The numbers from November – a record number of new jobs, consumer spending up 0.4 percent from October – should have given them a clue.

Consumers launched themselves into the holiday shopping season with a vengeance – some say abandon – setting records along the way. When President Trump learned from MasterCard that the American shopper set records over the holidays, he tweeted in capital letters:

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One Trillion Dollars Repatriated So Far, Reports Commerce Department

This article appeared online at TheNewAmerican.com on Friday, December 27, 2019:

According to the U.S. Department of Commerce American companies have repatriated more than a trillion dollars of their overseas profits since Trump’s “tax holiday” was announced in 2017. As part of his Tax Cuts and Jobs Act corporate profits held overseas would enjoy a one-time levy of just 15.5 percent tax on profits held overseas instead of the punishing 35 percent rate that existed prior.

As Walter Wriston, former chairman and CEO of Citicorp, famously said, “Capital will always go where it’s welcome and stay where it’s well treated.”

But forecasters at the Wharton School at the University of Pennsylvania weren’t impressed. They predicted

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Shoppers Set Holiday Records This Year, Exceeding Expectations

This article appeared online at TheNewAmerican.com on Thursday, December 26, 2019: 

When President Trump learned from MasterCard that the American shopper set records over the holidays, he tweeted in capital letters: “2019 HOLIDAY RETAIL SALES WERE UP 3.4% FROM LAST YEAR, THE BIGGEST NUMBER IN U.S. HISTORY. CONGRATULATIONS AMERICA!”

That wasn’t the half of it.

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Strong U.S. Economy Improving Trump’s Chances for Reelection

This article appeared online at TheNewAmerican.com on Friday, December 20, 2019: 

While Washington is focused on the impeachment proceedings, consumers are either online or at the mall doing their Christmas shopping. That’s almost all one needs to know about Donald Trump’s reelection chances next November. As the anti-Trump Washington Post painfully admitted, “Voters tend to base their vote on how the economy performed in the year leading up to the election.”

For the Post in particular, and for anti-Trump Democrats in general, it gets worse. The Post reluctantly admitted that “Since World War II, no U.S. president has lost reelection when the unemployment rate was below 7.4 percent.”

Under Trump, the unemployment rate is less than half that, at 3.5 percent.

When the president looked at reelection forecasting models in late October, he was pleased that three of the most reliable models showed him winning easily next November.

The numbers on the economy have done nothing but get better since then.

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After Trump Is Reelected Next November, Then What?

This article was published by The McAlvany Intelligence Advisor on Friday, December 20, 2019:

Less than a year before he died of pancreatic cancer, Professor Randy Pausch gave his final lecture on how to live life to the full. The YouTube video of that lecture has been viewed almost 20 million times. (Link below)

In that lecture, Pausch said:

Another way to be prepared is to think negatively. Yes, I’m a great optimist. But, when trying to make a decision, I often think of the worst-case scenario. I call it “the eaten by wolves factor.”

 

If I do something, what’s the most terrible thing that could happen? Would I be eaten by wolves? One thing that makes it possible to be an optimist is if you have a contingency plan for when all hell breaks loose.

 

There are a lot of things I don’t worry about, because I have a plan in place if they do.

Such a plan requires purchasing an umbrella while the sun is shining. Prices for umbrellas are lower, and they’re more readily available.

For President Donald Trump, the sun is shining.

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Aramco IPO Is a Hollow Victory for Saudi Arabia’s Prince

This article appeared online at TheNewAmerican.com on Monday, December 19, 2019: 

At the end of trading on the first day of the public offering of shares in Aramco — Saudi Arabia’s “crown jewel” and the world’s most profitable company — the company’s CEO Amin Nasser said he was pleased:

We are happy on the results today. And you have seen the market responds to our results, the company will continue to be the leader globally when it comes to the energy sector and at the same time we are looking at sustained and growing dividends to our investors. At the same time we continue our growth strategy, increasing profitability across cycles.

On the other hand, Ellen Wald, author of Saudi, Inc. — her look behind the façade of Crown Prince Mohammed bin Salman’s ruthless oil empire — called the first day’s results a

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Saudi Aramco’s IPO Too Risky: Institutional Investors Shying Away

This article appeared online at TheNewAmerican.com on Monday, December 2, 2019: 

The “road show” designed to build investor interest and demand for shares of Saudi Aramco’s initial public offering (IPO) ends on Wednesday and the early results are disappointing, to say the very least.

Crown Prince Mohammed bin Salman (MBS) thought back in 2016 that he could sell a tiny piece of his country’s crown jewel, the Saudi Arabian Oil Company (Aramco) and raise $100 billion. He had big plans to invest those proceeds in diversifying his country’s economy away from its near total reliance upon oil revenues for its sustenance and for the maintenance of its welfare state.

Now, however, he’ll be lucky to get a quarter of that. And most of what he gets will come from pressure, threats, intimidation, and manipulation.

The New American has outlined the risks to those investors residing outside the Middle East, including:

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Saudi Arabia’s Aramco’s “Road Show” Ends on Wednesday; Shares to be Offered a Week Later

This article was published by the McAlvany Intelligence Advisor on Monday, December 2, 2019:

This writer published an article here in November (see Sources below) outlining the risks of investing in Aramco’s IPO. Lest there be any confusion on the matter, neither that article nor this one is intended to be investment advice.*

This follow-up article will let the facts and the risks speak for themselves. Putting it simply: because of those facts and risks, the Crown Prince is likely to be sorely disappointed with the final results of his IPO when it comes to market on December 11.

Crown Prince Mohammed bin Salman (MBS) thought back in 2016 that

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Black Friday Purchases to Exceed $1 Trillion This Year

This article appeared online at TheNewAmerican.com on Friday, November 29, 2019:

By 10 a.m. Eastern time on Black Friday, consumers had already spent an estimated $150 billion. At that rate they will easily set a new record, with estimates approaching four percent ahead of last year’s record. That would push Black Friday weekend purchases to more than a trillion dollars for the first time in history.

This is reflective of the continuing strength of the underlying economy, despite naysayers’ attempts to denigrate the economy’ performance. For instance, the Atlanta Fed’s GDP Now index was just raised from an anemic (and woefully incorrect) 0.4 percent growth rate for the fourth quarter to 1.7 percent.

And even that doesn’t reflect what’s really happening online and in the malls.

Let’s review the “real world” data:

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Will China’s Slowing Economy Force a Trade Deal With the U.S.?

This article appeared online at TheNewAmerican.com on Friday, November 22, 2019: 

The underlying assumption in U.S. foreign policy seems to be that by applying pressure economically, China will be forced to agree to a trade deal. Richard Koo, chief economist at Nomura Research Institute, Japan’s largest economic research firm, thinks that policy is working: “I suspect the increasingly pronounced slowdown in China’s economy, coupled with recent employment data pointing to continued strength in the US economy, are putting heavy pressure on China to settle sooner rather than later.”

Koo assumes that the numbers coming out of China are reflective of reality there. At six percent growth per year, China’s economy (using the mathematical Rule of 72) will double every 12 years. If the U.S. economy is growing at two percent annually, its economy will double every 36 years. Simple math dictates that at some reasonably short time in the future, China’s economy will equal that of the United States, with all manner of political ramifications following.

As Michael Pillsbury pointed out in his monumental Hundred-Year Marathon: China’s Secret Strategy to Replace America as the Global Superpower, the communists running China expect their economy to be

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Target, TJX, Home Depot Follow Walmart With Increased Sales and Profits in Third Quarter

This article appeared online at TheNewAmerican.com on Wednesday, November 20, 2019: 

Target, the eighth-largest retailer in the United States, reported blowout sales and profits in the third quarter, a week after Walmart, the country’s largest retailer, reported similar results. Not only is the U.S. consumer alive and well, he is enjoying the benefits of a robust and growing economy.

Target boasts nearly 1,900 stores nationwide, employing more than 360,000 people, and Wall Street has rewarded investors in the company’s stock with gains of nearly 100 percent since just before last Christmas. And 2018 was, according to Target’s CEO Brian Cornell, the “most successful holiday in more than a decade.”

The retailer is expecting this year’s holiday shopping season to exceed last year’s, with gains of between three and four percent over last year’s results.

Specifically,

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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.
Copyright © 2020 Bob Adelmann