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

Tag Archives: Council of Economic Advisors

Trump Picks Neocon to Head Council of Economic Advisors

This article appeared online at TheNewAmerican.com on Monday, April 10, 2017:

President Donald Trump announced on Friday that he would nominate Kevin Hassett as chairman of his Council of Economic Advisors. Immediately, Glenn Hubbard, a neocon serving as a visiting scholar at the “conservative” American Enterprise Institute (AEI), piped up to laud Hassett’s nomination and Trump’s wisdom in selecting him for the position: “He’s not just a standard-issue really good economist, [Hassett is] someone who knows how policy works. The tax changes being considered are really aimed at boosting investment, so I think Kevin is exactly the right person.”

He’s the right person if Trump wants someone whose resumé includes stints at the

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Trump Stumbles Again: Appoints Interventionist to head his Council of Economic Advisors

This article was published by The McAlvany Intelligence Advisor on Monday, April 10, 2017:

Cover of "DOW 36,000 : The New Strategy f...

One way to test a hypothesis is to apply it to the real world. Two renowned, highly-regarded, and elite-college trained economists did just that. In 1999 James Glassman, the founding executive director of the George W. Bush Institute (Harvard-trained with a BA in government), and Kevin Hassett, BA in Economics from Swarthmore and Ph.D. in Economics from the University of Pennsylvania, wrote Dow 36,000: The New Strategy for Profiting from the Coming Rise in the Stock Market. So sure were they about their prediction they went on the road to promote it, claiming that “stocks are now in the midst of a one-time-only rise to much higher ground – to the neighborhood of 36,000 on the Dow Jones Industrial Average.”

On December 31, 1999 the Dow stood at 11,497. A little over three years later the Dow closed (on March 6, 2003) at 7,673, a drop of 3,823 points, costing those who bought the book and took their advice one-third of their investment.

But both persisted,

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Kudlow as Cheerleader, Not Serious Economic Advisor

This article was published by The McAlvany Intelligence Advisor on Wednesday, December 21, 2016:  

If Donald Trump is looking for someone to present his economic plan to the public in non-threatening terms, someone who is amiable, popular, and ideology-free, he could do worse than picking Larry Kudlow (shown). Kudlow has been affiliated with CNBC for 15 years, most notably for hosting “The Kudlow Report,” and before that, “Kudlow and Cramer.”

According to Trump transition team advisor Stephen Moore, Kudlow will shortly be named as chairman of his Council of Economic Advisors. Kudlow fits the bill.

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Trump Likely To Pick Larry Kudlow as Chief Economic Advisor

This article appeared online at TheNewAmerican.com on Tuesday, December 20, 2016:  

Speaking to the Lansing Regional Chamber of Commerce last week, Trump transition team advisor Stephen Moore let the cat out of the bag: The president-elect would shortly be naming Larry Kudlow (shown) as his chief economic advisor. Moore enthusiastically endorsed the pending nomination: “Who better than Larry? He’s one of the great economists in this country.”

Kudlow may be many things, including enjoying a long-running affiliation with CNBC and host of The Kudlow Report, but he is not an economist.

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Rosy jobs Report Headline fails to mask Continuing Underlying Weakness

English: CALEXICO, CA, 4-4-07 --- Hundreds of ...

Photo by Michael Raphael (Photo credit: Wikipedia)

The headlines from Friday’s jobs report from the Bureau of Labor Statistics (BLS) were rosy: employment rose by 288,000 (exceeding expectations) while the unemployment rate fell by 0.4 percent to 6.3, just above the rate dating back to September 2008.

The talking heads from the administration looked only at those headlines and took credit for the gains. Jason Furman, chairman of Obama’s Council of Economic Advisors, said

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Summers is out, Yellen is in, the Fed rolls on

Just when it appeared that Larry Summers had the nomination for the next Fed chair all wrapped up, Summers called the White House on Sunday and told his good friend, President Obama, that he was withdrawing his name from consideration. He then sent a formal withdrawal letter to the president:

I have reluctantly concluded that any possible confirmation process for me would be acrimonious and would not serve the interest of the Federal Reserve, the Administration or, ultimately, the interests of the nation’s ongoing economic recovery.

The president dutifully responded with the appropriate accolades:

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Who is Jason Furman?

This was initially posted at McAlvany Intelligence Advisor:

 

With Monday’s announcement that Jason Furman will be taking over from Alan Krueger as chairman of President Obama’s Council of Economic Advisors, some have asked: who is he?

The short answer is that he is a

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Looking Behind the Latest Jobs Report Numbers

JOB Toulouse

(Photo credit: JiPs☆STiCk)

On the surface, Friday’s jobs report from the Bureau of Labor Statistics (BLS) looked pretty good, and the response from establishment economists was predictable: the economy continues to grow, Obama’s policies are working, just give them time, and so forth.

For the record, BLS reported that “total non-farm payroll employment increased by 171,000 in October, and the unemployment rate was essentially unchanged [from September] at 7.9 percent.” It disclaimed any impact that Hurricane Sandy had on these numbers as the data upon which their report was based had been collected before the storm.

Diane Swonk, an economist at Mesirow Financial told CNBC: “The consumer’s feeling a little bit better…[employers] are not hiring out like crazy, but certainly you’ve got to welcome these kinds of numbers.” And Arne Kelleberg, professor of sociology at the University of North Carolina, claimed the report proved that “the fundamentals are strong. I do see the cyclical aspects of the unemployment situation being

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Shock: Republican Establishment Speaks the Truth

WSJ: Magnitude of the Mess We’re In

Did you know that annual spending by the federal government now exceeds the 2007 level by about $1 trillion? With a slow economy, revenues are little changed. The result is an unprecedented string of federal budget deficits, $1.4 trillion in 2009, $1.3 trillion in 2010, $1.3 trillion in 2011, and another $1.2 trillion on the way this year.

WSJ.

WSJ. (Photo credit: Wikipedia)

I’m astonished! Not at these facts about which I and others have been writing for years. But at who is repeating them, and where!

Who are these guys? Each is a highly-credentialed member of the Ruling Class in America. Shultz? Treasury Secretary from 1972-74. Secretary of State from 1982-89.  Boskin? Chairman of the Council of Economic Advisors under the Elder Bush. Meltzer? Served on the Council of Economic Advisors under Kennedy and Reagan. Taylor? Served as Undersecretary of the Treasury under Younger Bush. Cogan? Law Professor at Harvard.

Where did they write? The Wall Street Journal, the “conservative” mouthpiece for the Republican establishment.

What did they say? The truth!

Did you know that, during the last fiscal year, around three-quarters of the deficit was financed by the Federal Reserve?

The Fed has effectively replaced the entire interbank money market and large segments of other markets with itself…

Did you know that the Federal Reserve is now giving money to banks, effectively circumventing the appropriations process?

The Consumer Financial Protection Bureau is also being financed by the Federal Reserve rather than by appropriations, severing the checks and balances needed for good government…

Of course, this establishment quintet gets a few things wrong. For example,

The unfunded long-run liabilities of Social Security, Medicare and Medicaid add tens of trillions of dollars to the debt…

Correction: make that hundreds of trillions – $222 trillion to be exact (HT: Laurence Kotlikoff).

But I am amazed that this gaggle of establishment Republicans got so much right, and put it on view in such a conspicuous place. Go figure.

The Fed’s Credibility Continues to Fade

Reuters – At Jackson Hole, a growing fear for Fed independence

Increasing political encroachment on the Federal Reserve, particularly from the Republican Party, could threaten the central bank’s hard-won independence and undermine confidence in the nearly 100-year old institution.

End The Fed San Francisco

End The Fed San Francisco (Photo credit: aarontait)

Reuters is the British equivalent of The New York Times – thoroughly establishment and its voice in England. When they see that the Fed’s credibility is beginning to suffer, you know that the end is near.

The article said that this was “the pervasive sentiment” at the recent Jackson Hole conference (where, as you remember, Bernanke spoke and said nothing).

Alan Blinder was there. He is the quintessential establishment economist: degrees from Princeton, the London School of Economics, and MIT. Served on Clinton’s Council of Economic Advisors and on the Board of Governors of the Fed. He dreamed up the “cash for clunkers” fiasco that was designed, according to Blinder, to stimulate the economy. We know how well that worked.

Oh yes, he’s also a member of the Council on Foreign Relations – in fact a member of the board of that gaggle of internationalists.

And he didn’t like what he saw:

I do fear for it a bit if the election comes out that way, especially if some of the more radical voices, that happen to be Republican voices nowadays, get reelected. There’s a lot of hostility.

We know who he is referring to: Ron Paul. And what he’s referring to: the bill that recently passed the House to do a full and complete audit of the Fed.

Buried in the article from Reuters was something amazing: that “radical” influence is already beginning to impact the Fed’s behavior! Part of that was reflected in Bernanke’s heavy emphasis on something he couldn’t prove: that the Fed kept things from getting worse. This is not an argument from substance but from conjecture. It was his way of defending the indefensible.

In all, the Jackson Hole conference did accomplish something: an admission by an establishment mouthpiece that the trust and credibility of the Fed continues to decline, and there’s nothing they can do about it.

Deficit to Top $1 Trillion for Fourth Straight Year

U.S. Total Deficits vs. National Debt Increase...

On Tuesday the Treasury Department announced that in May the federal government received tax revenues of $180.7 billion, the second highest for the month of May in history. Unfortunately, the government spent $305.3 billion, leaving a deficit of $124.6 billion. So far this year, deficits are at $844.5 billion and are on track to exceed $1 trillion for the fiscal year, the fourth year in a row.

Doing the math, the national debt is growing at a rate of more than $3 billion per day, or about $565 per household every month. At that rate the national debt will hit the debt ceiling of $16.4 trillion just a few days after the November election.

But the debt crisis is even larger than people think, according to a study by accounting giant Deloitte LLP. As the U.S. government sinks further into the sea of red ink, it’s going to get more expensive not only to sell its debt to fund those deficits, it’s going to cost more to refinance the debt it already has. In fiscal year 2011, interest payments on its debt cost the government $454 billion and so far, through May those payments have totaled $271 billion. Any slight increase in interest rates could result in

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White House Jobs Growth Celebration is Premature

South façade of the White House, the executive...

White House announcements celebrating the jobs report from the Bureau of Labor Statistics (BLS) were optimistic: “Private sector employers added 233,000 jobs to their payrolls in February [which] means the economy has added jobs for 24 consecutive months…” This illustrates “the progress of the last two years and the importance of doing everything we can to continue strengthening our economy and creating jobs for the months and years ahead,” wrote Megan Slack on the White House blog. Alan Krueger, chairman of the Council of Economic Advisors, was equally enthusiastic:

Today’s employment report provides further evidence that the economy is continuing to heal…. It is critical that we continue the economic policies that are helping us dig our way out of the deep hole that was caused by the recession…

MarketWatch.com joined with the White House in its analysis of the numbers: “By almost every measure the employment picture has brightened considerably…”

Unfortunately both sources were reading from the top line of the BLS report. A closer look would likely have dampened their enthusiasm. From that report, 

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Keynesian Hacks Slander Republican Candidates

Caricatures: GOP Presidential Debate Participants

CNN’s article by Charles Riley quoted several of the Republican candidates for President out of context and then asked several unknown Keynesian economists—Keynesians believe in growing and empowering the government to stimulate the economy—to comment on those quotes. The result was a one-sided dismissal of anything the candidates had to say about the economy and how they might fix it.

For instance, Riley quoted Jonathan Lanning, an assistant professor at Bryn Mawr, as saying that “there are so many economic ‘misstatements’ being made, and it isn’t confined to any one candidate.” He went on to contend that if any of the Republican candidates were in his introductory economics class, Econ 101, they certainly wouldn’t

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Krueger is Obama’s Economic Council Chairman Pick

WASHINGTON, DC - AUGUST 29:  U.S. President Ba...

Image by Getty Images via @daylife

This week President Obama will roll out his strategic jobs growth plan in a major speech, and has announced that his new chairman of his Council of Economic Advisers, Alan Krueger, is just the man to help him with it. Krueger comes from the same mold as the man he is replacing, Austan Goolsbee. Goolsbee graduated from Yale, Krueger from Cornell. Goolsbee got his PhD from MIT, Krueger got his from Harvard. Goolsbee worked for the National Bureau of Economic Research, and so did Krueger. Goolsbee is returning to the University of Chicago, while Krueger is leaving Princeton to join Obama.

But the president insists that Krueger will bring him “unvarnished economic guidance…[which is] more important than ever right now. We need folks in Washington to 

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A Harvard Professor’s Goofs, Gaffes, and Blind Spots

N. Gregory Mankiw

Image via Wikipedia

Harvard Professor Gregory Mankiw, in writing a hypothetical speech in the New York Times for the President in the year 2026, thinks politicians can kick the entitlements can down the road for another 15 years. His opening could come from any politician’s current teleprompter:

My fellow Americans, I come to you today with a heavy heart. We have a crisis on our hands. It is one of our own making. And it is one that leaves us with no good choices.

For many years, our nation’s government has lived beyond its means. We have promised ourselves both low taxes and

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Fed Confirms Recovery Stalled

People pushing a stalled car out of the street

Image by San Diego Shooter via Flickr

When the Federal Open Market Committee announced yesterday that “the pace of economic recovery is likely to be more modest in the near term than had been anticipated,” stocks in Europe lost three percent of their value, interest rates on the U.S. 10-year Treasury note dropped startlingly as investors ran to safety, and the dollar hit the lowest level against the Japanese Yen since 1995.

A Japanese bond dealer said, “Investors were unnerved by the Fed’s statement. It just confirmed that the U.S. economic recovery is slowing.”

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Latest on the Economy: Heading Up or Head Fake?

Logo of the United States Bureau of Economic A...

Image via Wikipedia

When the Bureau of Economic Analysis announced that “the output of goods and services…increased at an annual rate of 5.7 percent in the fourth quarter of 2009,” the usual suspects in the kept media could hardly restrain themselves. ABC News’ headline trumpeted, “Economy Grows…Fastest Since 2003” which was “fueled by companies boosting output to keep stockpiles up.”  Their announcement explained that “Growth exceeded expectations mainly because business spending on equipment and software jumped much more than [was] forecast.”

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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