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: History

U.S. Treasury’s Massive Problem: How to Fund Increasing Deficits

This article appeared online at TheNewAmerican.com on Tuesday, October 30, 2018:  

The national debt of the United States government jumped by $1.3 trillion during the fiscal year ending September 30. The gap between the government’s spending and its income for that fiscal year was $779 billion, a jump of $113 billion over the year before. And now, the U.S. Treasury has announced how it’s going to manage all this: It’s going to issue new debt in the amount of $1.34 trillion, a 146 percent increase from 2017 and the highest amount of new debt issued since 2010.

Said the Treasury:

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Ron Paul Is Right: It’s Long Past Time to End the Fed

This article was published by The McAlvany Intelligence Advisor on Friday, October 26, 2018: 

Most people think of the Fed as an indispensable institution without which the country’s economy could not properly function. What most people don’t realize is that the Fed – created by the Morgans and the Rockefellers at a private club off the coast of Georgia – is actually working against their own personal interests.

Want proof? Try the multiple selloffs on Wall Street since the beginning of October. Some people blame them on October. After all, it’s the month when sell-offs happen. It’s in the tides. It’s in the moon’s cycles. It’s a spooky month. Etc., etc.

Others, looking slightly deeper at possible causes, blame them on trade “disputes,” China’s intransigence, the murder in Saudi Arabia, the rise in oil and gas prices, the “caravan” of dissidents headed for the U.S.’s southern border, the rash of fake bomb attacks, fill in the blank.

They came closer to the truth when they considered

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White House Issues Attack on Socialism in Response to Sanders’ “Medicare for All”

This article appeared online at TheNewAmerican.com on Friday, October 26, 2018: 

It’s highly unlikely that Harvard-trained economist Justin Wolfers has ever been to Caracas, Venezuela. It’s also unlikely that he took the time to read the 72-page report “The Opportunity Costs of Socialism” issued by President Trump’s Council of Economic Advisers (CEA) explaining the dangers in enacting Bernie Sanders’ socialist healthcare takeover called “Medicare for All.” But he has an opinion, nevertheless: he called it “dreck” in his tweet: “For several generations the CEA harnessed the best and brightest to serve their country, ensuring White House policy was informed by modern [i.e., Keynesian] economic thinking. It’s sad to see [the present Trump CEA] debase that tradition, spending their time on this dreck.”

Merriam-Webster offers various synonyms for “dreck,” including chaff, deadwood, debris, dross, dust, garbage, junk, litter, offal, refuse, riffraff, rubbish, scrap, trash, truck, and waste. In other words, Wolfer doesn’t think much of the CEA’s effort.

On the other hand,

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The Economy Isn’t the Top Issue in November. The President Is.

This article was published by The McAlvany Intelligence Advisor on Monday, October 22, 2018: 

Political operative James Carville helped engineer Bill Clinton’s victory over George H. W. Bush in the 1992 president campaign. In the campaign’s “war room,” Carville posted three dicta on the wall to remind him and his staff of the strategies to focus on:

Change v. more of the same;

Don’t forget health care; and

The economy, stupid.

Carville is now known for popularizing the third point: “It’s the economy, stupid!” and it has become standard fare in political warfare: people vote their pocketbooks.

In June, Morning Consult, a political polling firm with liberal-left tendencies, decided to test the thesis ahead of the November Midterms. It asked 1,061 registered Republicans and 1,202 registered Democrats “What would you say is the top set of issues on your mind when you cast your vote [in November]?” The top three were health care (#3), the economy (#2), and President Trump (#1).

Even though Mr. Trump isn’t running for anything, he is the issue in November, turning standard political strategy on its ear. According to American Enterprise Institute (AEI),

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Chinese Economy Slowing Down, Government Denies It

This article appeared online at TheNewAmerican.com on Friday, October 19, 2018: 

Thanks to efforts by the Chinese communist government to rein in the country’s horrendous national debt (300 percent of the country’s total annual output of goods and services), the Chinese economy was already slowing. According to “official” numbers released earlier this week (always questionable if not outright false), the economy grew by 6.5 percent in the third quarter on an annualized basis, down from 6.7 percent in the second quarter, and down from 12.2 percent just eight years ago.

The panic among top Chinese communist officials is palpable:

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The US Economy is No Eric Liddell

This article was published by The McAlvany Intelligence Advisor on Wednesday, October 17, 2018: 

There was a moment in the 1981 film Chariots of Fire when Eric Liddell was bumped onto the grassy infield during a quarter mile race. Once he recovered, he was 30 yards behind the pack of runners. Let Simon Burnton of The Guardian tell the story:

In Stoke on Trent in July 1923, in a race run over a quarter of a mile, England saw just how true this was. At the first bend he tripped over the legs of the English runner JJ Gillies, falling off the track. By the time he was back on his feet, the last of the other runners was 30 yards away and moving fast, but Liddell attacked them with such pace that he finally overtook Gillies three yards from the line to win before collapsing, spent, to the ground.

 

“The circumstances in which Liddell won the event made it a performance bordering on the miraculous,” wrote The Scotsman. “Veterans, whose memories take them back 35 years, and in some cases even longer, in the history of athletics, were unanimous in the opinion that Liddell’s win in the quarter-mile was the greatest ever track performance that they had ever seen.”

The U.S. economy, as astonishing as its performance is, is no Eric Liddell. JJ Gillies [the federal government] is just too far ahead.

On Monday, the White House officially announced

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Growing U.S. Economy Unable to Keep Up With Growing Government Spending

This article appeared online at TheNewAmerican.com on Tuesday, October 16, 2018:  

The White House just officially announced the final numbers for Fiscal Year 2018, which ended September 30. They are ugly: The gap between revenues and spending widened to $779 billion over the previous year, a jump of $113 billion (or 17 percent), despite increased revenues. This is the third consecutive year of rising deficits, with no apparent end in sight.

The White House blamed the usual suspects: the rising costs of “entitlement” benefits (i.e., Social Security, Medicare, Medicaid, and others) and increasing interest costs to service the rising national debt.

Those interest costs increased by one-quarter this year over last, from $263 billion in 2017 to $325 billion in 2018. By 2020, the Congressional Budget Office (CBO) estimates that interest costs will increase by another 50 percent, to nearly $500 billion.

There is no more talk of how the expanding economy will throw off revenues sufficient to start shrinking the national debt. Now, according to Office of Management and Budget (OMB) Director Mick Mulvaney, the best that can be hoped for is some eventual shrinking of the government’s annual deficits:

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Voters Turning Democrat Blue Wave Hopes into Disaster

This article was published by The McAlvany Intelligence Advisor on Friday, October 12, 2018: 

The Democrats not only expect to take back control of the House of Representatives in the November midterm elections, they’re already planning what to do when they do: impeach the president, continue to investigate Kavanaugh, repeal Trump’s tax reforms, and raise taxes. They think they will turn between 30 and 50 seats from red to blue.

After all, they have history and The Cook Political Report on their side. History says that the party occupying the White House will lose seats in the midterms, especially if it’s the president’s first term, and especially if his approval rating is in the 40s or lower. According toCook, 38 Republican-held seats are rated as “toss-up” or worse, with another 27 seats in the “lean Republican” category, meaning Republicans have a tentative advantage but the races are competitive. According to Dan Balz, writing in the Washington Post, “The party that holds the White House almost always loses seats in midterm elections, especially during a president’s first term, and especially when a president’s rating is below 50 percent.”

Almost always.

The Democrats’ biggest enemy is themselves. First,

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Kavanaugh Hearings Blunted Democrat “Blue Wave”

This article appeared online at TheNewAmerican.com on Wednesday, October 10, 2018:  

Disgust over how the confirmation hearings of Justice Brett Kavanaugh were handled by Democrats on the Senate Judiciary Committee is just now showing up in polls taken following those hearings. CNN’s poll released on Monday showed severe damage being done to the most critical part of the electorate the Democrats were hoping to capture in the upcoming midterm elections: independent voters. When asked, “Do you approve or disapprove of the way the Democrats in the U.S. Senate handled Kavanaugh’s confirmation hearing?” 58 percent of independent voters disapproved, compared to just 30 percent who approved — a jaw-dropping 28-percent margin.

An NPR/PBS NewsHour/Marist poll taken during the hearings showed

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Investors Remember William McChesney Martin, and Sell

This article was published by The McAlvany Intelligence Advisor on Monday, October 8, 2018:  

William McChesney Martin served as the ninth and the longest-running chairman of the Federal Reserve, from April 1951 to January 1970. He served under five presidents. But when people think of him, they remember him saying that:

Our purpose [at the Fed] is to lean against the winds of deflation or inflation, whichever way they are blowing.

 

The Federal Reserve … is in the position of the chaperone who has ordered the punch bowl removed just when the party was really warming up.

It’s not known if he was trying to be funny or merely ironic. But history records that the last 12 economic U.S. expansions were doused when the Fed raised interest rates, ending the parties.

The current Fed chair, Jerome Powell, is in full party mode. Last week he made an astonishing four public appearances, serving as the Number One (well, Number Two) cheerleader for the Trump economy. He called the economy “remarkably positive,” “extraordinary,” and its outlook “particularly bright.”

Added Powell on Tuesday:

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60th Anniversary: Celebrating The John Birch Society’s Epic Journey

The John Birch Society was just 10 years old when I joined back in 1968. The reasons then are the same reasons I remain active today. This is from my friend and publisher of The New American, Bill Jasper, published today, Friday, October 5, 2018:

Sixty years of unflinching service to God, family, country. Six decades of uncompromising dedication to truth and principle. In December 1958, when Robert Welch summoned together 11 prominent American patriots to found The John Birch Society, our nation was in deadly peril — from without and within. Communism was sweeping the world, while here at home Democrats and Republicans alike were embracing welfare-state socialism. Politicians from both parties were not only lauding and funding the recently formed United Nations organization, but were practically tripping over each other to transfer more and more powers to that global body.

World War II, in which totalitarian collectivism — in the form of communism, Nazism, and fascism — had ravaged the planet, had ended only 13 years earlier. The Korean War, fought under United Nations command and with incredible restrictions on U.S. forces, had ended only five years earlier, in 1953. But it had not really ended; our leaders had settled for a cease-fire and the abandonment of American POW/MIAs to communist North Korea. President Harry Truman had sent America’s fighting men into that cauldron of death without a declaration of war by the U.S. Congress, as demanded by our Constitution. He and his enablers in Congress and the media got around that by claiming that the Korean “conflict” was a “police action” authorized by the United Nations. There was no need, they said, for a formal declaration of war.

More than 36,000 Americans gave their lives in the UN’s Korean “police action” — and a dangerous precedent was set for sending America’s armed forces to far-flung battlefields on open-ended missions, based merely on presidential whim and the supposed demands of the “international community.” Another consequence of that conflict was

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In Baseball Lingo, Conor Lynch Thinks the U.S. Economy is in Its Final Innings

This article was published by The McAlvany Intelligence Advisor on Friday, October 5, 2018:  

Conor Lynch is a New York City liberal whose writings have appeared on Salon, AlterNetCounterpunch, and openDemocracy. But in his latest blog at TheWeek.com, he left all that baggage behind and instead focused on the harbingers for a downturn in the U.S. economy. He wrote:

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Clouds Appearing on the Economic Horizon

This article appeared online at TheNewAmerican.com on Thursday, October 4, 2018:

The bright blue sky that represents the U.S. economy got a little brighter on Wednesday with the release of ADP’s jobs report for September. Not only did the 230,000 new jobs beat forecasters’ estimates, ADP also adjusted upward August’s jobs numbers by 5,000. That means that since the first of the year, the booming U.S. economy has added nearly two million new jobs. Mark Zandi, chief economist at Moody’s Analytics, which partners with ADP in its jobs reporting, declared that “this labor market is rip-roaring hot.”

And then Zandi went and spoiled it all by adding,

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Tsunami in Indonesia is Nothing Compared to the One Headed for the U.S.

This article was published by The McAlvany Intelligence Advisor on Wednesday, October 3, 2018:  

It wasn’t until the death toll following last Friday’s Indonesian earthquake and tsunami reached 800 that the global media began to make it front page news. By Tuesday the toll exceeded 1,200, with many more still buried in dozens of collapsed buildings in the towns of Sigi and Balaroa. Some 62,000 citizens have been displaced either because their homes have become uninhabitable or were flattened.

At least they had some advance warning, but there was little they could do. Most were caught off guard, unprepared. As of this writing, many have gone four days without food.

What was unnerving is the report from the U.S. Treasury just three days later giving advance warning of the economic tsunami preparing to roll over the American economy. Precious few are taking heed. On September 20, the Senate passed another spending bill – $854 billion – calling it a “stopgap” bill to pay the government’s bills until after the midterm elections. It passed 93-7.

This brought the national debt of the United States government to

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The Coming National Debt Tsunami

This article appeared online at TheNewAmerican.com on Tuesday, October 2, 2018: 

The report from the U.S. Treasury coming on the heels of news reports about Indonesia’s earthquake and resulting tsunami is unnerving. According to the Treasury, the government’s national debt jumped in the fiscal year ending September 30 from $20.2 trillion to $21.5 trillion, or by $1.3 trillion. That’s more than a six-percent increase year over year which, if not reined in, will double the national debt to $43 trillion in less than 12 years.

Unlike the Indonesian earthquake and tsunami, however, Americans have had plenty of warning about what’s coming. And yet Senators just voted 93-7 to spend another $854 billion in a “stopgap” measure. Six of those Senators opposing the bill were Republicans (Independent Senator Bernie Sanders was the seventh).

In July, former Representative Ron Paul pointed out that the national debt now exceeds the total economic output of goods and services in the United States in a year, but even that isn’t the whole story: “Social Security and Medicare trust funds will both soon be bankrupt, putting additional strains on the federal budget [and] on American taxpayers.”

That’s because the “reserves” in those trust funds have already been spent by the federal government and have been replaced with promissory notes to be redeemed by the Treasury in the future. The future is now, and as those reserves are tapped, those promissory notes will be redeemed by the Treasury, adding to the national debt.

FirstPost.com said that “a series of natural disasters in Asia have led to massive economic damage [and] human loss”, explaining:

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Stock Market Bears Still Looking for Evidence of the Next Recession

This article was published by The McAlvany Intelligence Advisor on Friday, September 28, 2018: 

The bears are still out there, but their voices are being drowned out by the exuberance of the stock market and the economy. New records are being set almost on a daily basis. Take this from the Conference Board earlier this week, for example. For an economist, Lynn Franco, director of Economic indicators for the Board, was positively giddy:

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U.S. Economy Setting Records, Surprising Market Bears

This article appeared online at TheNewAmerican.com on Thursday, September 27, 2018:

The Conference Board’s report on consumer confidence in September, released earlier this week, caught forecasters by surprise once again. Its Consumer Confidence Index, a barometer that measures the average American consumer’s confidence based on a monthly survey covering 5,000 households, jumped to 138.5 from August’s 134.7. Economists polled by Reuters expected a drop to 132. The baseline is 100, set back in 1985.

As Lynn Franco, director of economic indicators for the Board, noted:

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New Unemployment Claims Headed for 50-year Lows

This article appeared online at TheNewAmerican.com on Friday, September 21, 2018:  

The jobless claims report from the Department of Labor (DOL) for the week ending September 15 came out on Thursday, the same day that Wall Street learned of even stronger corporate earnings. This one-two punch drove stock averages to new highs, which continued into Friday.

The report from the DOL was cryptic, and disappointing to economists who had forecast higher claims. Said the DOL: “In the week ending September 15 … seasonally adjusted initial claims was 201,000, a decrease of 3,000 from the previous week. This is the lowest level for initial claims since November 15, 1969.”

Even better was its four-week moving average, which smooths out week-to-week fluctuations: “The 4-week moving average was 205,750, a decrease of 2,250 from the previous week … [and] the lowest level for this average since December 6, 1969.”

Still better is the news that

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Trump: Economy “Booming Like Never Before”

As President Trump was counting off some of his administration’s accomplishments at a rally in Billings, Montana, on Thursday night, he paused and said the economy is “booming like never before!” The crowd roared, and so they should. Looking at the same numbers, Rick Reider, chief investment officer of BlackRock, the world’s largest investment manager with more than seven trillion dollars under its management, exclaimed:

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New NAFTA Deal with Mexico is Still a Disaster

This article was published by The McAlvany Intelligence Advisor on Wednesday, August 29, 2018:  

In a sudden rhetorical turn, President Donald Trump, who vehemently criticized the North American Free Trade Agreement (NAFTA) as being “a disaster,” now welcomes an agreement to modify that same agreement with the outgoing president of Mexico, Enrique Pena Nieto. The details are skimpy, to be fleshed out more fully on Friday. Friday is the deadline for Nieto to sign it, with the conversation then turning to Canada for its approval and ratification. After that the U.S. International Trade Commission must do an economic analysis of the final agreement before it is presented to Congress for its approval.

One sticking point illustrates the danger of the new agreement that Trump wants to rename as the United States-Mexico Trade Agreement (presumably, USMTA) in case Canada fails to get on board.

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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 © 2018 Bob Adelmann