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

Acclaimed Yale Economist Shiller Declares U.S. Housing Market in a Bubble, Warns of Eventual Collapse

This article was published by TheNewAmerican.com on Friday, May 28, 2021:  

Robert Shiller, the Yale economist and inventor of the Case-Shiller Index, told Yahoo Finance Alive on Wednesday that the U.S. housing market has “aspects of a bubble to it.”

Shiller added:

This is not a market that collapses overnight … but you can see that we’re seeing price increases now that haven’t [been seen] since those years just before the [2008] financial crisis.

The Case-Shiller Index — now called the S&P CoreLogic Case-Shiller National Home Price Index — released on Tuesday showed that prices for the average home in the United States rose more than 13 percent since last April. Three major cities — Phoenix, San Diego, and Seattle — led the way, with annual gains of 20 percent, 19.1 percent, and 18.3 percent, respectively. Home prices in all 20 cities included in the index increased as well.

The reasons behind a housing-market bubble include:

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Jobs Report Disappoints, but Stocks Rise

This article was published by TheNewAmerican.com on Friday, May 7, 2021:  

In normal times, Wall Street would greet a jobs report such as that just issued Friday morning by the Labor Department with a sharp decline in stock prices.

But these are hardly normal times. With massive government subsidies, spending, and the extension of unemployment benefits, what’s left of the free market in labor can hardly be seen. Instead of declining, stocks rose.

The Labor Department reported that

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Economic Growth Continues, But It Won’t Last Forever

This article was first published at TheNewAmerican.com on Monday, May 3, 2021: 

The melt-up in stock prices — increasingly being driven by the stampede of new investors operating out of fear of missing out (FOMO) — is breathtaking. The most commonly used indicator, the Standard & Poor’s 500 Index, has jumped more than 80 percent since its low last March.

Stockholdings among U.S. households have increased to 41 percent of their total financial assets in April, the highest level in history going back to 1952.

The rebound from the pandemic lows is historic:

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Don’t Believe China’s Growth Numbers

This article first appeared at TheNewAmerican.com on Friday, April 16, 2021:  

On Friday, April 16, journalists for the New York Times and Forbes magazine exulted over the report from China’s Communist Party reporting agency, the National Bureau of Statistics of China (NBSC). Written in the CCP’s usual stilted style, the report read, in part:

Under the strong leadership of the Communist Party of China (CPC) Central Committee, with Comrade Xi Jinping at its core, all regions and departments conscientiously carried out the decisions and arrangements made by the CPC….

 

As a result, the economy delivered a stable performance….

 

Production demand was expanded, market vitality was enhanced, employment and prices were stable, and people’s well-being was strongly guaranteed.

 

The national economy made a good start.

In their coverage,

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Newsmax Viewership Gains Force Fox News to Reshuffle Its Programming

This article appeared online at TheNewAmerican.com on Tuesday, January 12, 2021: 

Thanks to enormous gains at Newsmax, specifically gains of viewership of Greg Kelly’s “Greg Kelly Reports” seen during the critical evening hour, Fox News has been forced to reshuffle its programming. This is the first such change for Fox since 2017.

The biggest change is that, starting Monday, September 18, Martha MacCallum’s “The Story” will move to a mid-afternoon slot. It will be replaced by what Fox News calls “a rotating group of FOX News opinion hosts … entitled [sic] ‘FOX News Primetime’.” A permanent host for the new program will be named sometime in the future, depending on how the new show’s anchors perform in light of the surging competition from Newsmax.

And that competition is fierce.

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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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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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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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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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Jobs Reports Show the US Turning into a Part Time Worker Economy

When the two-part employment report from the Bureau of Labor Statistics (BLS) was issued on Friday, the news was modestly positive: from its business “establishment” data it noted that employment increased by 162,000, a little less than expected but not far from the average of 175,000 new jobs a month that the economy has been generating for the last three months. The estimates for May and June were revised downward slightly but

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Atlanta Mayor’s Spat with Street Vendors Goes National

A conservative journalist writing in the Atlanta-Journal-Constitution on Saturday, October 26th, claimed that Atlanta’s mayor blatantly broke the law and when a court demanded he uphold the law instead, he refused. The issue went national when the spat was picked up by the Wall Street Journal on Monday, the day before Atlanta voters were to go to the polls to

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Regulators are now going after the Bitcoin

This article was first published at the McAlvany Intelligence Advisor on Wednesday, November 20th, 2013:

 

Six federal agencies were invited to a Senate committee hearing on Monday to explain why each should be granted the privilege of regulating the Bitcoin. Four showed up:

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U.S. Treasury to Offer Small Business Owners “Forgivable” Bridge Loans

This article appeared online at TheNewAmerican.com on Monday, March 23, 2020: 

In an interview with CNBC on Monday morning, Treasury Secretary Steven Mnuchin urged small business owners — the most important driver of job creation and economic growth in the U.S. economy — to keep paying their people even while their businesses are shut down: “If you’re a small business [owner], we ask that you not lay people off.”

The Federal Reserve is working closely with his agency to create a Main Street Business Lending Program that would give those owners an unsecured “bridge loan” to allow them to continue to pay their employees during the economic shutdown — a loan that would later on be forgiven once the threat of the virus has ended and their businesses have reopened.

The initial amount intended for the program is $300 billion — an enormous amount in absolute terms, but tiny in terms of the size of the U.S. economy. It could be, and likely will be, extended and expanded as officials such as Mnuchin begin to understand the damage the shutdown has already caused to the economy.

Thousands of small businesses are already on the brink of insolvency, with bankruptcy for many of them just around the corner.

The ripple effect of just one coffee shop shutting its doors is enormous.

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Job Growth in August Exceeds Forecasters’ Expectations, Raising Trump’s Reelection Chances

This article appeared online at TheNewAmerican.com on Friday, September 4, 2020:  

The recovery of the U.S. economy from the coronavirus pandemic shutdown continues to outpace forecasters’ expectations. On Friday the Labor Department reported that nonfarm payroll employment rose by 1.4 million in August, exceeding forecasters’ predictions of 1.2 million. In its separate household survey, the department reported that nearly 4 million people returned to work.

The increase in employment pushed the unemployment rate down from 10.2 percent last month to

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New Jersey Gym Owners Defy Court Order, Break Open Doors Shuttered by State

This article appeared online at TheNewAmerican.com on Sunday, August 2, 2020: 

Following their arrest and release last Monday, Ian Smith and Frank Trumbetti, the owners of Atilis Gym in Bellmawr, New Jersey, were scolded by a spokesman for New Jersey Attorney General Gurbir Grewal:

After Atilis refused to comply with multiple citations and Superior Court orders, including a contempt-of-court order issued [the previous] Friday, today [Monday] law enforcement entered the premises to ensure closure and to abate public health risks.

 

As the attorney general previously said, the state wishes it had not come to this, but the gym refused to comply even with a contempt order.

Smith told the Washington Examiner that he and Trumbetti have been singled out by the governor:

We’re being targeted. It’s very clear that he’s on a mission to destroy our business because we dared to defy him.

 

There are plenty of other businesses that are open and operating just like we are [who are] defying the shutdown. But Governor Murphy has a personal vendetta against us, and it couldn’t be more clear than it is today….

 

We’re the only business in the state to be punished in a way that we have, including locking our doors and changing our locks on us, arresting us and boarding up our doors. So it’s very clear that he is on a mission to get us.

This triggered a response from the governor, who Tweeted on Friday: “We are not past COVID 19. I am not announcing any specific action today [against the owners], but consider this as being put on-notice: we will not tolerate these devil-may-care, nonchalant attitudes any more.”

After kicking in the plywood sheets that the sheriff’s office had installed, Smith took to Instagram not only to publish a video of the event but to respond to Murphy’s tweet:

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U.S. Exports Jump 14 Percent in June, Adding to GDP & Reflecting Economic Recovery

This article appeared online at TheNewAmerican.com on Wednesday, July 29, 2020: 

The U.S. Department of Commerce reported on Wednesday that exports of goods from the United States jumped from $90 billion in May to more than $102 billion in June, an eye-popping 14-percent gain. This had the effect of reducing the trade deficit by six percent and adding that amount to the country’s measure of economic output.

The rebound was led by an astonishing 144-percent surge in shipments abroad of both motor vehicles and motor parts. Other capital goods sent to foreign consumers soared 11 percent, while consumer goods exported increased by more than 12 percent.

And this report from the Commerce Department doesn’t include travel or tourism, which is likely to show similar gains when they are reported next week.

Two weeks ago, President Trump celebrated his administration’s success in reducing regulations much more than he had promised during his campaign, rolling back nearly eight regulations for every new regulation enacted. For the first time in years, instead of adding to the federal register (the Obama administration added more than 16,000 pages), his administration removed nearly 25,000 pages of regulations.

The New American recounted on July 17 how the economy has rebounded from the COVID-inspired shutdown, at least partially, due to the improved regulation environment:

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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 © 2021 Bob Adelmann