Tag Archives: Fox Business

A Year Of Economic Changes

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On Monday, Just the News posted an article about The Heritage Foundation’s Index of Economic Freedom.

The article reports:

The Heritage Foundation’s Index of Economic Freedom showed the U.S. reversing a five-year decline and having its biggest annual increase in 25 years.

The score increased by 2.6 points from last year, to 72.8. And the U.S. ranked 22nd among the more than 176 countries that had completed scores in the index, FOX Business reported. 

The increase was the largest since 2001, and is the second-largest jump the U.S. has had in the index’s 32-year history.

The index assesses 12 economic freedoms that fall into four categories: rule of law, government size, regulatory efficiency, and open markets.

“The U.S.’s score improvements in monetary freedom, government spending, fiscal health, and investment freedom have outpaced the relatively lower score in trade freedom, reflecting the net positive impact of major regulatory and tax reforms on economic growth, investment, and business confidence,” Heritage’s Anthony Kim, the editor of the Index of Economic Freedom told FOX Business.

Note that this reverses a five-year decline. Elections matter.

The article concludes:

Kim said that the “impact of restrictive tariffs on the global economy has been far more muted than feared, in light of increased investment in such critical sectors as energy and AI (among many others),” adding that the lack of tariff retaliation by countries other than China, Canada, and the European Union mitigated the potential impact of a trade war.

The countries with the highest overall scores in the index were Singapore at 84.4, Switzerland at 83.7%, Ireland at 83.3, Australia at 80.1, and Taiwan at 79.8.

The countries that scored the lowest as the most repressed in the world were North Korea at 3.1, Cuba at 25.2, Venezuela at 27.3, Sudan at 32.5, and Zimbabwe at 35.2.

Our Founding Fathers funded the government with tariffs. It wasn’t until 1913 that the Wilson administration convinced Americans that we needed both the Federal Reserve and the income tax. They  were wrong on both counts.

Another Obama/Biden Scandal

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There is an Obama scandal that has not been widely discussed. This is the scandal that is actually the most important one to every American.

On Friday, Issues & Insights reported:

Weren’t we assured that Barack Obama went “into and out of office with not a whiff of scandal”? Yes we were. Former Washington Post columnist Richard Cohen told us so, as did many others. But it wasn’t true. There are many, the most recent a claim that Obama, and then Joe Biden, pressured bank executives to deny services to conservatives. It’s a serious charge that, like the Russia hoax, makes Watergate look like a sandbox squabble.

Here’s what we’ve learned: According to Fox Business, major bank executives said “they were under pressure by the Obama and Biden administrations to deny services to individuals and businesses for political reasons.”

One executive said the “pressures were very, very real. When your regulator gives you a suggestion, it’s not a suggestion, it’s an order. The political stuff is very real, those pressures are real.”

This is known as “political debanking” and is “the involuntary termination of banking services to individuals and organizations based on their political or religious views,” says Todd J. Zywicki, a professor at the Antonin Scalia Law School at George Mason University, who further “argues that access to financial services is a prerequisite for exercising constitutional rights.”

…Operation Choke Point was a creation of the Obama Justice Department. Its mission was “to ‘choke out’ companies the administration considers a ‘high risk’ or otherwise objectionable, despite the fact that they are legal businesses,” says a House Oversight Committee report. “The goal of the initiative is to deny these merchants access to the banking and payments networks that every business needs to survive.”

The whistleblowers told Fox that “ambiguity in federal laws was exploited by regulators under the Obama and Biden administrations in order to pursue political objectives. According to one executive, banks were pressured to deny services to certain industries as part of Operation Choke Point and Operation Choke Point 2.0,” which was “carried out by the prudential regulators to target and debank the digital asset ecosystem” during the Biden years.

I personally know someone who was in Washington, D.C. on January 6th. She attended the Trump speech, but did not go to the Capitol–she has stated that she saw Antifa people changing into Trump gear and decided to go back to her hotel. She used her Bank of America debit card to buy a hamburger. Bank of America shared any transactions made in Washington on that weekend with the government. As a result of that transaction, her business PayPal account was canceled. This is not acceptable behavior.

The Impact Of The Tariffs

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On Sunday, Fox Business posted an article about the growth of manufacturing in America.

The article reports:

While some headlines fret over a weak jobs report, Marlin Steel CEO Drew Greenblatt sees something else entirely — a once-in-a-generation boom in American manufacturing that the media is missing.

“This is a re-industrialization of America. This is a fabulous, optimistic time,” Greenblatt told Fox & Friends Weekend on Sunday.

“[And] the mainstream media is missing what’s happening. It’s such an optimistic, good time for a factory worker, and these are good jobs… we need more of these jobs in our country,” he continued, tying the outcomes to President Donald Trump’s tariff structure, which he sees as reversing the long-standing trend of foreign dumping and offshoring.

Greenblatt expects overseas companies to start building inside the U.S. — a shift already underway, he argued.

“We’re having a new opportunity for factories in Germany, factory owners in Japan and England, they’re saying, ‘You know what? We’ve got to rethink this. We have high taxes where we are. We have very expensive energy where we are. And now, when we ship to our biggest client in the world, America, there’s this new 15% tariff, so this is crazy. 

“We’re not going to build in Europe anymore. We’re not going to build it in Japan anymore. We’re going to put that factory in America,’ and, when they do that, they’re going to hire local American workers,” he said. 

So why would companies that have manufacturing facilities in other countries relocate to America? Some of the things a manufacturing company looks for in a location are low taxes, cheap energy, reliable energy, and a relatively skilled workforce. A company is willing to pay a reasonable wage if the tax policies remain friendly and the energy remains cheap and reliable. As the tariffs go into effect, I believe we will see a boom in American manufacturing.

At Least They Broke Ground

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Sixteen years ago, California and the federal government began funding a plan for high-speed rail that was to run from San Francisco to Los Angeles and Anaheim via the Central Valley. The state did actually break ground for the project, but in sixteen years, not one inch of track has been laid. The project was going to take until the end of the century to complete at a cost of $130 billion. 

On Wednesday, Fox Business reported:

California’s embattled high-speed rail project suffered a major setback after Transportation Secretary Sean Duffy announced the termination of $4 billion in unspent federal funding by the Federal Railroad Administration (FRA).

Citing 16 years of failure, no completed high-speed track, and escalating costs, Duffy declared the project, dubbed the “train to nowhere,” a mismanaged and over-budget “boondoggle.”

“This is California’s fault. Governor Newsom and the complicit Democrats have enabled this waste for years. Federal dollars are not a blank check – they come with a promise to deliver results,” Duffy said in a statement.

The announcement followed months of scrutiny after a comprehensive compliance review, plus failed attempts by the California High-Speed Rail Authority (CHSRA) to address serious project deficiencies.

The article quotes President Trump:

“This boondoggle, led by the incompetent Governor of California, Gavin Newscum, has cost Taxpayers Hundreds of Billions of Dollars, and we have received NOTHING in return except Cost Overruns. The Railroad we were promised still does not exist, and never will,” Trump continued.

“This project was Severely Overpriced, Overregulated, and NEVER DELIVERED. Thanks to Transportation Secretary Sean Duffy, not a SINGLE penny in Federal Dollars will go towards this Newscum SCAM ever again. This was an ill-conceived and unnecessary project, and a total waste of Taxpayer money — But no more!”

The article concludes:

In addition to canceling $4 billion in unspent federal funds to CHSRA, Duffy directed FRA to review other obligated and unobligated grants related to the CHSRA project.

The 300-page damning report, released back in June, examined the project and found delays, missed deadlines, mismanagement, waste, skyrocketing costs, budget shortfalls and overrepresentation of projected ridership. 

Other key findings revealed that the project faced ongoing — and likely increasing — contractor cost overruns due to delays and that the CHSRA failed to finalize contracts for its high-speed trainsets on time.

The project was initially touted as a two-phase visionary system connecting Los Angeles to San Francisco, and later north to Sacramento, and south to San Diego.

The report states that despite the money already plowed into the project, there is a $7 billion funding gap to complete a subset of the first phase in the Central Valley from Merced to Bakersfield, known as the Early Operating Segment (EOS).

Since the project’s inception, it has been dramatically reduced from an 800-mile segment to a 171-mile segment. 

The federal government is not good at building infrastructure projects at a reasonable cost. I remember the “big dig” in Boston.

 

The June Jobs Report Is Out

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On June 3rd, Fox Business posted an article about the June Jobs Report. The economy is improving rapidly, but there are still some weak spots.

The article reports:

The U.S. economy added jobs in June at a faster pace than in recent months, despite economic uncertainty stemming from trade, tax and monetary policy.

The Labor Department on Thursday reported that employers added 147,000 jobs in June. That figure was above the estimate of economists polled by LSEG, who projected 110,000 jobs would be added.

The unemployment rate ticked down slightly to 4.1%, which was lower than economists’ expectations of 4.3%.

Job gains in the prior two months were both revised, with job creation in April revised up by 11,000 from a gain of 147,000 to 158,000; and May job gains were revised up by 5,000 from a gain of 139,000 to 144,000. Taken together, employment in April and May was 16,000 jobs higher than previously reported.

The workforce participation rate has remained steady.

I don’t know how to reconcile this information with a post from CNBC on Wednesday that reported:

Private sector hiring unexpectedly contracted in June, payrolls processing firm ADP said Wednesday, in a possible sign that the economy may not be as sturdy as investors believe as they bid the S&P 500 back up to record territory to end the month.

Private payrolls lost 33,000 jobs in June, the ADP report showed, the first decrease since March 2023. Economists polled by Dow Jones forecast an increase of 100,000 for the month. The May job growth figure was revised even lower to just 29,000 jobs added from 37,000.

The article at Fox Business concludes:

“The U.S. job market continues to largely stand tall and sturdy, even as headwinds mount – but it may be a tent increasingly held up by fewer poles,” said Cory Stahle, Indeed Hiring Lab economist. “The headline job gains and surprising dip in unemployment are undoubtedly good news, but for job seekers outside of healthcare and social assistance, local government, and public education, the gains will likely ring hollow.”

The market viewed the June jobs report as solidifying the outlook for the Federal Reserve to leave interest rates unchanged for its fifth consecutive meeting later this month. 

The probability of a 25-basis-point interest rate cut in July declined from 23.8% a day ago to 6.7% on Thursday following the report’s release, according to the CME FedWatch tool.

We need an interest cut now to help with the government’s interest payments and to help the real estate market. Right now the real estate market is being held hostage by the refusal to cut interest rates.

Does Anyone On The Political Left Go Grocery Shopping Or Buy Gasoline?

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On Thursday, BizPacReview posted an article about the mainstream media’s spin on America’s current economy. If it were not sad, it would be funny.

The article reports:

MSNBC host Stephanie Ruhle is telling Americans not to believe their lying eyes, that President Biden’s economy is fantastic and they are better off economically than they mistakenly believe.

The condescension and gaslighting have kicked into full gear as the presidential election nears. Despite Americans struggling to put food on the table, a roof over their heads, and clothes on their children’s backs, Ruhle is telling them they are basically dimwitted and don’t appreciate how good they have it.

“We need an economic explainer,” Ruhle told the president and CEO of the Federal Reserve Bank of Chicago, Austan Goolsbee. “People are confused, they’re exhausted, but they’re also doing quite well.”

“Ruhle, who hosts MSNBC’s ‘The Eleventh Hour,’ had been discussing a recent Federal Reserve report that ‘shows people are still struggling to cover day-to-day expenses, even as inflation has slowed.’ She noted how some major brands are responding by enticing consumers with slashed prices, ‘Target says it is cutting prices on 5,000 essential items, things like milk, butter, pet food. Wendy’s is now offering a $3 breakfast deal. And rivals like McDonald’s are offering new lower-priced value meals,’” Fox Business reported.

The article includes the following screenshot:

This is not the result of corporate greed as President Biden likes to claim–it is the result of companies trying to stay in business after their operating costs skyrocket. Anyone who eats and drives knows that we were much better off four years ago. The problem with inflation is that prices very rarely go back down to where they were.

Taking Pre-Emptive Action

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As I reported in a previous article, America is about to experience an epidemic of ‘squatters.’ There have already been cases in New York, and I am sure other states are also experiencing people with no right to a property deciding to live there rent-free. Well, at least one state is prepared to take action.

On Thursday, Legal Insurrection reported the following:

For some inexplicable reason, squatters’ rights laws are commonplace throughout these United States. In many states, a person or persons can enter and inhabit another person’s vacant property, set up house, and after—in most cases—a mere 30 days claim some form of bizarre “right” to inhabit the home in which they did not pay a day’s rent nor a single mortgage payment: a home they do not own, did not buy, and have no right to occupy.

But states, including red states, have an array of “squatters’ rights” rules and laws that will offend—nay, even assault—the senses of all normal, law-abiding Americans.

The article cites a few examples. This is only one of many:

A Georgia man claims he returned home from caring for his sick wife to find that squatters had changed the locks on his home and moved in — and now local laws are blocking him from evicting the alleged freeloaders.

“Basically, these people came in Friday, broke into my house and had a U-Haul move all their stuff in. It’s frustrating. It’s very frustrating. I can’t even sleep,” DeKalb man Paul Callins told WSB-TV.

Callins had sunk thousands of dollars into the home and renovated it with his own hands after he inherited it from his late father, but since squatters moved in, he’s found himself facing nothing but obstacles to evicting the alleged intruders.

. . . . Rather than forcibly evicting the squatters, Georgia law requires homeowners file an “Affidavit of Intruder,” which then needs to work its way through the court system before police can act, Callins explained.

Situations like Callins’ have become all too common in Georgia.

About 1,200 homes across DeKalb County are occupied by squatters, according to the National Rental Home Council trade group.

There is a solution:

Fox Business reports (archive link):

The Florida Legislature unanimously passed a bill that would allow police to immediately remove squatters — a departure from the lengthy court cases required in most states.

“It gives me a real feeling of positive hope that we still have the ability to discuss challenges in our society and work with our legislatures in a bipartisan way,” Patti Peeples, a Sunshine State property owner who was barred from her own home after squatters refused to leave, told News4Jax.

The legislation, which passed both chambers earlier this month, would allow police to remove squatters without a lease authorized by the property owner and adds criminal penalties.

And that, my friends, is how it’s done.

The Numbers That Are Not Being Shared By The Mainstream Media

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On Thursday, Fox Business posted the following headline:

Layoffs surged 136% in January to second-highest level on record

The article reports:

The pace of job cuts by U.S. employers accelerated at the start of 2024, a sign the labor market is starting to deteriorate in the face of ongoing inflation and high interest rates.

That is according to a new report published by Challenger, Gray & Christmas, which found that companies planned 82,307 job cuts in January, a substantial 136% increase from the previous month. However, that is down about 20% from the same time one year ago. It marked the second-highest layoff total for the month of January in data going back to 2009.

“Waves of layoff announcements hit U.S.-based companies in January after a quiet fourth quarter,” said Andy Challenger, senior vice president of Challenger, Gray & Christmas. The cuts were “driven by broader economic trends and a strategic shift towards increased automation and AI adoption in various sectors, though in most cases, companies point to cost-cutting as the main driver for layoffs.”

According to the Bureau of Labor Statistics, the workforce participation rate has remained steady since December at 62.5, down from 62.8 in November. Generally hiring is up in November due to Christmas shoppers.

The article concludes:

Another source of layoffs in January was retail stores, which trimmed 5,364 positions in January, a significant increase from the 110 layoffs announced in December. 

The top reason cited for job cuts last month was restructuring; companies blamed stores closing and artificial intelligence for the layoffs, as well.

The labor market has remained historically tight over the past year, defying economists’ expectations for a slowdown. Although economists say it is beginning to normalize after last year’s blistering pace, it is nowhere near breaking. 

The findings precede the release of the more closely watched January jobs report from the Labor Department on Friday morning, which is expected to show that employers hired 180,000 workers, following a gain of 216,000 in December. 

The unemployment rate is expected to inch higher to 3.8%.

As more people are laid off, there will be less demand for consumer goods. This theoretically will slow inflation, but at the cost of the American people. If the government truly wanted to slow inflation without hurting the average American, they would cut government spending, but that is not likely to happen.

Someone Obviously Did Not Think This Through

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On Sunday, Fox Business posted an article that might cause you to rethink the idea of buying an electric car–particularly a used one.

The article reports:

Avery Siwinski is a 17-year-old whose parents spent $11,000 on a used Ford Focus Electric car, which is a 2014 model and had about 60,000 miles when it was bought, according to KVUE.

The teenager had the car for six months before it began giving her issues and the dashboard was flashing symbols.

“It was fine at first,” Siwinski said. “I loved it so much. It was small and quiet and cute. And all the sudden it stopped working.”

She told the news outlet that the car stopped running after taking it to a repair shop, and the family eventually found out that the car’s battery would need to be replaced.

The problem? A battery for the electric car costs $14,000, according to the news outlet.

However there was another obstacle to getting the car repaired:

The Ford dealership had advised us that we could replace the battery,” said her grandfather, Ray Siwinski. “It would only cost $14,000.”

However, the family found out that there weren’t any batteries of that type available anymore because the Ford model is discontinued.

The article doesn’t say whether or not the car was bought from a dealership or in a private sale. Either way, it seems as if Ford should be willing to reach some sort of agreement with the young lady to at least partially reimburse her for the cost of a car they no longer have parts for. No car should be unrepairable in less than 100,000 miles.

As I have previously stated, green energy science is in its infant stages. We have not yet fully developed or understood what it will take to wean us away from fossil fuels. At the present time, weaning ourselves away from fossil fuels is probably not a good plan. We are currently at the same stage as the very early scientists who were in search of a perpetual motion machine. That machine may be out there some day, but it is not out there now.

It’s Not A Pretty Picture

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Just the News posted an article on Sunday that sums up the Biden administration in five numbers.

These are the numbers:

1. 8.6 percent

2. $5.01 per gallon

3. 234,088 illegal border crossings

4. 39% approval

5. 83% dissatisfied

Obviously, this is not a pretty picture. The 8.6 number represents the government figure on inflation. There is little question that government policies on spending and energy have fueled the rapid spike in inflation. According to Fox Business, on Jan. 20, 2021, the average price for a gallon of gas nationwide was approximately $2.39. Today it generally $5.00 or more. That impacts everyone. It has the same impact as a massive tax increase.

The number of illegal border crossing also impacts everyone because of the drug traffic and human trafficking associated with those illegal crossings.

The article notes:

The figure reached about 2.4 million illegal border crossings from April of last year to this past April, the last month for which there’s publicly available data and the month with the highest number of migrant encounters during the Biden administration at 234,088.

The 39 percent approval rating is not a surprise, but I would love to know who those 39 percent are.

The article notes:

A new poll from Quinnipiac last week found that approval of Biden’s job performance plummeted to 33%. More striking, however, the data shows just 22% of Americans ages 18-34, 24% of Hispanic voters, and 49% of black voters said they approve of Biden’s job performance. Each of those demographics is a critical voting bloc for the Democratic Party.

And finally, the article notes that 83 percent of Americans are dissatisfied with “the way things are going in the United States at this time.” Only 16% of Americans said they were satisfied.

The article concludes:

In this political environment, Democratic pollsters and strategists are growing increasingly pessimistic, seeing major Republican gains as all but inevitable.

To make matters worse for Biden and Democrats in Congress, “election outcomes are more-or-less baked in” by the end of the second quarter of an election year, according to RealClearPolitics Senior Elections Analyst Sean Trende.

Of course, things can always change, but the numbers don’t look good for Biden.

More importantly, behind those numbers are real people who are hurting. And each of them has a vote in November.

These numbers only matter if there is an honest election in November.

The Real Numbers On Electric Cars

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On Wednesday, The Western Journal posted an article about the actual cost of purchasing, driving, and maintaining an electric car.

The article notes:

As the average cost per gallon of gas has soared past $4.20, and with no end in sight, many of our leaders — including Joe Biden — are pushing EVs as a cost-effective replacement for gas-powered cars.

As Fox Business recently noted, a one-to-one comparison of the cost of charging an EV versus filling a regular auto with gas showed that EV charging appeared cheaper. But many other factors need to be included in the math to make a true analysis — factors that many EV advocates are desperate to ignore.

“According to the EPA, the national average for a kilowatt-hour of electricity is 13 cents, including at homes where most electric car owners charge their vehicles with 240-volt Level 2 chargers that typically take eight hours or more to fill them up,” Fox reported on Wednesday. “Many of these are also available in public settings like office and shopping center parking lots, where they are known as destination chargers.”

The article also points out:

But charging your EV comes with its own set of pricey problems. As noted above, costs are rising per kilowatt-hour when using public stations, and using a home charger offers the biggest savings. However, owners also have to shell out between $700 and $2,000 to install a Level 2 home charging unit, Carvana reported. This might tend to make the first year’s savings for not buying gasoline a wash.

Worse, if you want to install a Level 3 charger in your home, you’ll be hit with costs of up to $50,000 or more — including upgrading the electrical system in your house to power the thing.

The article also notes:

Also, a major source of expense for EVs is battery pack replacement. Depending on the car, battery packs can last between 5 and 20 years, but the replacement costs might make keeping the car prohibitive. Some experts say that the average battery life is eight years or 100,000 miles, and depending on the model, battery packs cost between $5,000 and $20,000 to replace — not including labor.

This high cost is also a warning to anyone buying a used EV. After all, if you buy a 10-year-old EV that still has its original battery, you might be forced to fork out another $10,000 to replace a dead battery pack shortly after putting as much as $25,000 to purchase the used vehicle. This is a cost that few average Americans can afford.

Another issue is a geopolitical concern.

Many of the rare earth minerals — such as lithium — and the manufactured batteries and parts are made in China, and the costs for these materials are also skyrocketing.

Indeed, in December it was found that the cost of lithium had surged more than 250 percent over the year. Not only are these materials rising in expense, but we are enriching China in the process.

Meanwhile, where is the electricity to power these electric vehicles coming from? If 20 percent of Americans owned electric cars, could the power grid handle the load?

Please follow the link above to read the entire article. It provides much food for thought.

Responding To Public Pressure

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On Saturday, Fox Business reported that GoFundMe had reversed its decision to redistribute the donations made to the Canadian truck drivers protesting vaccine mandates and other Covid restrictions. GoFundMe was planning to redistribute the donations made for the truckers to other organizations.

The article reports:

Facing a potential fraud investigation by the state of Florida, GoFundMe reversed a decision to redistribute money given by thousands of donors to the Canadian “Freedom Convoy” protesting COVID-19 regulations.

On Friday, the crowdfunding platform GoFundMe froze the convoy’s official campaign, claiming law enforcement convinced the company that the convoy had become violent and unlawful.

GoFundMe encouraged donors to submit a refund form, and said that any funds not properly returned to donors would be donated to a charity chosen by the Freedom Convoy.

Within hours, however, GoFundMe walked back the refund applications, instead announcing it would be refunding donors automatically.

Florida Gov. Ron DeSantis said that he would “investigate” the company, accusing them of fraud.

The article concludes:

Critics of the company’s haphazard cancellation include Tesla CEO Elon Musk, who questioned whether there is a “double-standard,” given past fundraisers for legal funds in defense of antifa members and criminal protesters.

There is a double standard. There is also the fact that organizations should not be able to take donations for one case and channel them to another cause. Good for Governor DeSantis for standing up to the attempted theft of charitable donations.

The Woke Crowd Is Targeting Monopoly

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MRCTV reported yesterday that the woke police have gone after the Monopoly game.

The article quotes a Fox Business article:

Hasbro will change all 16 of Monopoly’s “community chest” cards to remove outdated concepts. The company said the classic versions of the cards, which included prompts referencing beauty contests and holiday funds, were “long overdue for a refresh.”

New community chest cards will focus on topics that emphasize “community.” Hasbro asked the public to vote on potential replacements, with rewards for in-game actions such as rescuing a puppy or shopping local among the options. Other cards would penalize players for forgetting to recycle or blasting music too late at night.

The only good thing I can say about this is that it will make the game more relatable for younger generations who did not grow up playing the game. However, how many of the younger generation still play board games instead of video games?

 

Voting With Your Feet

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California is a beautiful state. As a teenager I remember being enthralled by the Beach Boys and the lifestyle they talked about–beautiful beaches and surfing most of the year. At that point I was not smart enough to realize what the water temperature is along most of the California coast. At any rate, for a long time California was a very desirable place to live. Now–not so much. Taxes, the high cost of living, the homeless problem, crime issues, and generally poor leadership by the state politicians have taken a toll on the desirability of making California your home.

Yesterday Fox Business reported the following:

The smart money may be sticking together and sticking it to California.

Oracle is joining Tesla and Hewlett Packard Enterprise in moving some operations to Texas, detailing the move in a filing with the Securities and Exchange Commission late Friday.

“Oracle is implementing a more flexible employee work location policy and has changed its Corporate Headquarters from Redwood City, California to Austin, Texas. We believe these moves best position Oracle for growth and provide our personnel with more flexibility about where and how they work. Depending on their role, this means that many of our employees can choose their office location as well as continue to work from home part-time or all of the time. In addition, we will continue to support major hubs for Oracle around the world, including those in the United States such as redwood City, Austin, Santa Monica, Seattle, Denver, Orlando and Burlington, among others, and we expect to add other locations over time. By implementing a more modern approach to work, we expect to further improve our employees’ quality of life and quality of output” the SEC filing noted.

While the move signals working remotely is here to stay, it also signals more corporations could be becoming disillusioned with California.

The article notes that earlier this month, Hewlett Packard Enterprise also announced it was moving its headquarters to Houston. Tesla is also moving. The high taxes and bad government in California are driving businesses out of the state. This will result in a loss of tax revenue, tax increases for people and businesses who remain in the state, and eventual bankruptcy for the state. Unfortunately, depending on who controls Congress, the rest of the country may be asked to pay for the mistakes of California.

 

Where Did The Jobs Go?

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Today Fox Business posted an article that included some comments White House trade adviser Peter Navarro made on “Sunday Morning Futures.”

The article reports:

“We lost over 70,000 factories, over 5 million manufacturing jobs, and it was because Joe Biden likes made in China,” Navarro said. “Donald Trump came along. … He said, ‘Hey, that’s not good. That’s not right. I’m going to fix that.’ And so what President Trump has been carefully doing is putting in place a wide range of policies, whether it’s lowering the corporate income tax to bring investment on-shore, steel and aluminum tariffs, or buy American.”

The U.S. lost 5 million manufacturing jobs between January 2000 and December 2014 because of “growing trade deficits in manufacturing products prior to the Great Recession and then the massive output collapse during the Great Recession,” according to a 2015 report from the Economic Policy Institute.

The article notes:

China’s state-run tabloid Global Times deemed Biden “smoother to deal with” than President Trump in August.

I don’t doubt that!

The article concludes:

“Economic security is national security. That’s one of the principles of the Trump Administration and what we learned from this China virus pandemic,” Navarro said. “If we bring those jobs back onshore as we have been doing, we will create great jobs at great wages but also protect the American people from the Chinese communist party.”

Navarro touted Trump’s stance on U.S. manufacturing, but the president has repeatedly taken criticism for manufacturing his branded products in other countries, including China.

The goal should be to make it cheaper and more practical to manufacture things in America. That goal can be achieved through lower corporate taxes, tariffs on foreign goods, and reliable and inexpensive energy. President Trump has worked in all three of these areas to bring manufacturing back to America. Because of Hunter Biden’s continuing investments in China, it is unlikely that Joe Biden would continue policies that would move jobs away from China.

Selflessness In A Crisis

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Yesterday Fox Business posted an article noting that Shake Shack Inc will return the small business loan it received from the U.S. government.

The article reports:

The company will immediately return the entire $10 million SBA loan as it was able to raise additional capital, CEO Randy Garutti and founder Danny Meyer said in a blog post on Monday. Last week, it raised about $150 million in an equity offering.

…Shake Shack said the money it received could be reallocated to the independent restaurants “who need it most, (and) haven’t gotten any assistance.”

The company runs around 189 restaurants in the United States, with about 45 employees in each outlet, and reported nearly $600 million in revenue for 2019.

It has closed about half of its 120 locations worldwide, and furloughed or laid off more than 1,000 employees after sales fell 28.5% in March, the company said in a filing on April 17.

This is an interesting decision. First of all, it frees the company from any restrictions or limitations that were put on the government handout. The government loans to businesses would only become grants if the companies retained 75 percent of their employees. By returning the money, Shake Shack is free to make decisions of what is best for both the business and the employees. I don’t know if that was part of their decision making process, but it is part of the federal loans to small businesses program. All of us need to remember that when there is federal money involved there are strings attached–those strings can be about the size of the cables that hold up suspension bridges.

The Consequences Of Success

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Yesterday The Washington Examiner posted an article that illustrates the bias of the mainstream media.

The article begins with a denial from the networks. I am not sure I believe the denial:

Representatives from both CNN’s State of the Union and CBS’s Face the Nation refuted Grisham’s claims that they turned down an appearance from a White House official. A Fox News spokesperson also pointed out that Grisham inaccurately said Fox Business was the only network to accept a White House spokesperson because they do not have a Sunday talk show.

The article states:

White House press secretary Stephanie Grisham claimed a slew of networks declined to book a White House official for Sunday programming after a good news week for President Trump.

Grisham, in a Friday night appearance on Hannity, acknowledged the White House will not get much airtime to discuss the State of the Union address, the president getting acquitted in the Senate impeachment trial, and a strong jobs report.

“I have got to tell you there is not going to be one White House official on any of the Sunday shows this weekend. Only Fox Business is taking a White House official to talk about what an amazing week this president has had, and I do find that timing very, very suspect,” she explained.

The article concludes:

While most networks aren’t featuring a White House official, many are bringing on Trump supporters. CBS’s Face The Nation will have South Carolina Sen. Lindsey Graham, as well as 2020 hopefuls Sen. Bernie Sanders of Vermont and former South Bend Mayor Pete Buttigieg. The two presidential candidates will also appear on Fox News Sunday.

Trump’s personal attorney Rudy Giuliani will appear on Fox News’s Sunday Morning Futures.

ABC’s This Week will also feature two Democratic presidential candidates; the only conservative on their guest list is former Virginia Rep. Barbara Comstock, who is also a network contributor.

It will be interesting to see the comments about Speaker Pelosi’s tearing up the speech on the Sunday shows. Her actions were childish and totally inappropriate. However, I doubt they will be reported as such.

Happening Beneath The Radar

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The Conservative Treehouse posted an article yesterday about the signing of the first phase of the trade deal with China.

The article notes:

U.S. Treasury Secretary Steven Mnuchin appears on FOX Business to discuss the U.S-China ‘phase-one’ trade agreement, the benefits, enforcement mechanisms and retention of tariffs and particular sanctions until compliance can be reviewed.

Phase-1 establishes the baselines; resets the ability of U.S. companies to enter China; establishes rules for market entry; and sets the parameters for enforcement. Any future phase is contingent upon evaluation of phase-one enforcement mechanisms.

The article includes the following video:

The important aspect of this agreement is that no future agreements will be made until the rules of this agreement are complied with. China has been a dishonest trade partner for years and has been largely responsible for the decline of manufacturing in America. Phase-1 of the trade agreement with China is the first step in reversing this trend.

The Trump Economy

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Fox Business reported today that the Dow has gained 10,000 points since Trump’s election.

The article reports:

The stock market has been unstoppable under the influence of President Trump.

The Dow Jones Industrial Average crossed 28,332.74 on Monday, meaning it has rallied 10,000 points, or more than 54 percent, since Trump’s election victory on November 8, 2016. The benchmark S&P 500 has gained more than 46 percent.

“The rally has been driven by pro-growth measures, de-escalation of trade tensions, huge liquidity injections by central banks and a FOMO approach by investors worried about missing out on a remarkable U.S. market outperformance that has set one record high after the other.” Mohamed El-Arian, chief economic adviser at Allianz, told FOX Business.

So if you are an average working American, why does this matter to you? First of all, most Americans have 401k plans. As the stock market rises, the value of those plans rises. However, there is another often overlooked aspect of a growing stock market. Many communities, counties, and states have pension plans for former employees. These are unfunded liabilities. That means that those payments are not considered when drafting budgets. Those payments are made from investment accounts. As the stock market rises, the possibility of having to decrease these payments diminishes and the possibility of the municipality involved having to raise taxes to cover these payments also decreases. People who work gain by both having the value of their retirement accounts increase and by not having to pay higher taxes to cover retirement costs.

The Economic Numbers Under President Trump

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Steve Moore posted an article at Fox Business on Thursday about the economy under President Trump.

The article includes the following:

The article explains:

In one Washington Post piece, the reporter sneers of Trump’s “rambling distortions” and complains: “Trump’s numbers appear to have originated in a pair of columns from the Heritage Foundation’s Steve Moore, who used research from a private firm called Sentier Research.”

Stop right there. Yes, it is true the data comes from Sentier Research — a private firm. But what is not ever mentioned in the article is that the data come from the Census Bureau’s “Current Population Survey,” which is the gold standard of economic data.

The article concludes:

In my analysis on these numbers, I have openly admitted these monthly data are a first rough estimate of what is happening with incomes over time — just as the jobs numbers are. They catch the trends over time.

Three years into the Trump presidency there is no calamity and there is no recession. Trump is right to recite real and legitimate data that substantiates the on-going middle-class boom in America today. It isn’t Trump, but his accusers who are engaged in “rambling distortions” and who deserve Pinnochio noses.

The questions for the 2020 elections are: “Do you want your income to continue to grow, and do you want to keep more of what you earn? How much of the money you have earned are you willing to give to people who did not earn it?”

The Beginning Of Progress In The Trade War With China

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It is no surprise that trade negotiations with China have moved slowly. President Trump is attempting to level a playing field that has been tilted for a long time. China has manipulated its currency to gain trade advantage, China has stolen intellectual property, and China has used slave labor to manufacture products at ridiculously cheap prices. We have looked the other way, ignoring human rights abuses. We have also looked the other way in terms of the censorship of speech in China. Google has helped develop a search engine that will meet the requirements of the Chinese censors. We have complied with things that are against our principles for the sake of money. The trade deal being negotiated is not going to change that, but at least it will be a beginning attempt to level the playing field.

Fox Business is reporting today that the U.S. and China agreed to a “phase one deal” in the trade war.

The article reports:

The deal, which has been agreed to in principle and will take three to five weeks to write, includes China agreeing to raise its agricultural purchases to between $40 billion and $50 billion from $8 billion to $16 billion, in addition to making reforms on intellectual property and financial services. The U.S. will not be raising tariffs from 25 percent to 30 percent on Oct. 15. A decision has not yet been made on the tariff increase scheduled for Dec. 15.

A comprehensive trade deal will have two or three phases, according to Trump. China’s trade team is calling the agreement a “pause” in the trade war, and not a deal.

China is not a free country, and the Chinese negotiators who are working out this trade deal will pay a high price if the deal is not totally acceptable to the leadership in China. The fact that a phase one deal has been reached is good news, but China does not have a great track record on keeping promises or abiding by trade agreements.

An Interesting Twist On The Game Of Baseball

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Fox Business reported yesterday that Major Leage Baseball has announced that the New York Yankees will plan the Chicago White Sox at the “Field of Dreams” stadium located in the cornfields of Dyersville, Iowa. The temporary stadium seats 8,000. This will be the first ever Major League Baseball game played there.

The article reports:

“As a sport that is proud of its history linking generations, Major League Baseball is excited to bring a regular-season game to the site of Field of Dreams,” Commissioner Rob Manfred said. “We look forward to celebrating the movie’s enduring message of how baseball brings people together at this special cornfield in Iowa.”

This won’t be the first time that Major League Baseball has built a temporary stadium for just one game. Iin 2016, a 12,500-seat stadium was erected at Fort Bragg in North Carolina to give military members and their families a once-in-a-lifetime experience.

What a great idea!

 

 

Trying To Level The Playing Field Has Its Challenges

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Fox Business posted an article today about the devaluing of the Chinese yuan. The devaluing of the Chinese currency (currency manipulation) has been used by China for decades to grow their economy at the expense of America. It has been used to lure manufacturing away from America, impact our trade balance, and generally work against the American economy. We have needed to combat this practice for decades, but no President had the courage.

The article reports:

The onshore Chinese yuan weakened to worse than seven per U.S. dollar, hitting its lowest level since 2008, as Beijing looks to cushion the blow from Trump’s tariffs. A weaker yuan makes Chinese goods cheaper for overseas buyers, which may be necessary as China just lost its spot as the US’s biggest trading partner.

Trade data released Friday by the Department of Commerce showed U.S. imports from China fell by 12% in the first six months of the year, allowing Mexico to supplant it as the U.S.’s biggest trade partner.

“China dropped the price of their currency to an almost a historic low,” Trump tweeted Opens a New Window. on Monday. “It’s called “currency manipulation.” Are you listening Federal Reserve? This is a major violation which will greatly weaken China over time!”

Last week, Trump said beginning Sept. 1 the U.S. would place a 10% tariff on the remaining $300 billion of Chinese goods. He went ahead with the announcement despite objections from his advisers.

The president warned he could “always do much more” with respect to tariffs, adding the 10 percent tax could go “well beyond 25 percent” if necessary. Earlier this year, the administration placed a 25% tariff on $250 billion worth of Chinese goods.

Weakening the yuan isn’t the only form of retaliation Beijing took on Monday. It also ordered state-owned enterprises to stop purchases of U.S. agricultural products, according to a Bloomberg report, citing people familiar with the situation.

That is a reversal from just last week, when Beijing said it had purchased several tons of U.S. soybeans Opens a New Window. as a gesture of a goodwill amid trade negotitations. Before the trade war began, China was the largest buyer of U.S. soybeans, accounting for 70% of all purchases, but their imports have fallen by 97% since the trade war began.

The article notes:

Over the weekened, The Trump administration pushed back against the idea the trade war was hitting the wallets of U.S. consumers.

“China has strategically gamed the tariffs by slashing their prices and by devaluing their currency,” White House trade advisor Peter Navarro told “Fox News Sunday.”

This trade dust-up with China may get ugly, but it is something that has to be done.

Some Comments On Today’s Events

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The following interview is from Fox Business News:

We are watching the last of an attempted coup. The Deep State, which included the upper echelon of the Department of Justice, in collusion with the Hillary Clinton campaign and aided by the mainstream media attempted (and is continuing to attempt) to unseat a duly-elected President because they don’t like him and they lost. Actually it’s more serious than that. President Trump represents a serious threat to the current status quo that has enriched Washington insiders for generations. Rather than lose the gravy train they are accustomed to, Democrats and some Republicans want him gone. They are not particularly fussy about following the Constitution in accomplishing their goal. Hopefully those who participated in this attempted coup with be dealt with appropriately.