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

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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“Hero Pay” Mandates Are Putting “Heroes” Out of Work

This article was published on Monday, April 19, 2021 at TheNewAmerican.com:  

Thanks to “hero pay” or “hazardous duty pay” mandates passed by politicians suffering from hubris, ignorance, and socialist ideology, grocery giant Kroger closed two of its stores in Long Beach, California, on Saturday. In its announcement, the chain said:

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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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White House: No Inflation Threat, Yet

This article was first published by TheNewAmerican.com on Wednesday, April 14, 2021:  

To address increasing concerns that the $5 trillion-plus in new money being poured into the economy by the government will raise prices, the White House called together a group of Keynesian [read: interventionist] economists to sort things out. Their conclusion? Nothing to worry about here; move along.

Specifically, they created various models based upon different assumptions in an attempt to discover any “hint” of inflation. “It never appeared,” said the New York Times. Added the establishment mouthpiece:

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Biden’s “American Jobs Plan” Unlikely to Pass the Senate

This article was first published by TheNewAmerican.com on Friday, April 9, 2021:  

Joe Biden’s “American Jobs Plan” — a costly boondoggle that is more grift than substance — is going nowhere, for several reasons. First, the latest study of his so-called infrastructure bill by the National Association of Manufacturers (NAM) shows that instead of increasing employment, if passed the bill would not only reduce employment but slow the economy and reduce wages as well.

It would do everything possible to slow the economy:

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Economy Ignores Biden, Surges Into the New Year

This article was first published by TheNewAmerican.com on Good Friday, April 2, 2021: 

The jobs report for March from the Bureau of Labor Statistics (BLS) on Good Friday surprised even the most optimistic of forecasters: The surging U.S. economy added 916,000 new jobs in March versus the 635,000 that were expected.

That pushed the unemployment rate down to six percent, closing in on the record lows seen during the Trump administration.

So far U.S. employers have added back nearly 14 million jobs of the 22 million that were lost due to the COVID shutdown. If the economy continues its torrid pace,

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These Are “Dangerous Times” for Wall Street, Says Veteran Investor

This article was published by  TheNewAmerican.com on Friday, February 12, 2021:  

David Rosenberg, 36-year Wall Street veteran and founder of Rosenberg Analysis, said “From my lens we … have a market … that appears egregiously overpriced, overbought and overextended.” When he spoke those words the cyclically adjusted price-to-earnings ratio (CAPE) was at 32.44.

That was in November.

Today the CAPE is closing in on 36. The metric is used by Rosenberg and other Wall Street seers to determine whether the market is overvalued or not. As Investopedia reminded its readers:

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Could a Coming Stock-market Crash Burst Biden’s Bubble?

This article was published at TheNewAmerican.com on Sunday, January 31, 2021:

Jeremy Grantham, chief investment strategist at Grantham, Mayo, & van Otterloo (GMO), has seen it coming for months: the implosion of one of the greatest stock-market bubbles in history.

On January 5 he wrote, “The long, long bull market [in stocks] since 2009 has finally matured into a full-fledged epic bubble. Featuring extreme overvaluation, explosive price increases, frenzied issuance [of new shares of stock by existing companies], and hysterically speculative investor behavior, I believe this event will be recorded as one of the great bubbles of financial history.”

The rebound from the COVID-driven economic shutdown has exceeded all reasonable bounds, wrote Grantham:

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Will Democrats Turn America Into Venezuela?

This article first appeared at TheNewAmerican.com on Friday, January 29, 2021:

The New York Times wrote in November that Marxist dictator Nicolas Maduro “has left the shrinking Venezuelan economy comparable to that of the Democratic Republic of the Congo.… The country now has the highest poverty rate in Latin America, overtaking Haiti this year.”

It took just 10 years to accomplish the feat: “Just a decade ago [Venezuela] rivaled the United States for regional influence.” Now, thousands of citizens who used to work for PDVSA, the state-owned oil company, “have been reduced to dismantling [the company’s] oil facilities for scrap metal and selling their distinctive overalls, emblazoned with the company logo, to make ends meet.”

Ten years for socialist policies implemented by Maduro to reduce South America’s most prosperous country to Third World status. Can Democrats accomplish the same feat here in the United States, in less time?

With few barriers remaining, Democrats are relishing the opportunity to try. And they have a nearly perfect roadmap to follow:

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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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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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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