Author Archives: John Thomas

White House Economic Advisor Kudlow Bullish on Economy

Larry Kudlow, President Trump’s chief economic adviser, expects Americans will see more benefits from the new tax law as the year progresses. Kudlow was adamant about his belief that the economy will grow at a solid 3% this year, and took exception to the figures put out by the Congressional Budget Office (CBO). While appearing on Fox News, Kudlow said the ...

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Chinese Currency Manipulation, Here is What It Means

Currency manipulation is nothing new. It has been taking place since the advent of money as a medium of exchange between different nations. Let’s look at the basic Economics 101 course on what currency manipulation generally means and how it influences foreign exchange rates. Concept One: Foreign exchange takes place when two countries trade together. Country A buys and sells ...

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Who Will Control the Market for Rare Earth Minerals?

Whenever you have a shortage of raw materials in the world, it historically has led to war. A few generations ago, Japan attacked Pearl Harbor within months of a U.S. oil embargo. In 2010, China embargoed exports of rare earth elements to the United States. For those of us who don’t remember much of the physical sciences from school, rare ...

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Protectionism in the American Auto Industry

President Donald J. Trump didn’t wait long to act on his campaign rhetoric moments after being sworn in as the country’s 45th president of the U.S., by reiterating his intent to withdraw from the Trans-Pacific Partnership and that he will renegotiate the North American Free Trade Agreement. In an attempt to keep auto manufacturing jobs in the U.S., President Trump ...

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How the Chinese Obtain our Tech Secrets

An interesting dichotomy has surfaced of late in regard to how our world-dominant technology sector has been infiltrated by, among others, China. Both willingly and unwillingly on our part. Let us begin by examining how this intellectual property transfer/theft is ostensibly given to the Chinese by American corporations looking to tap a new market of 1.4 billion consumers. What is ...

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Manufacturing Jobs Hit 3 Year High

“The job market is rip-roaring,” says Mark Zandi, Moody’s Analytics’ chief economist. The economic report released by ADP and Moody’s Analytics on April 4, 2018, beat analyst expectations for manufacturing job growth for the month of March.  Private sector payrolls were anticipated to increase by 205,000, but rose a whopping 241,000, the largest single month increase in 3 years. In ...

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The Ali-Frasier Battle of Tariff Heavyweights: China versus the U.S.

The U.S. landed the first punch in what is now a heavyweight title bout with China over trade tariffs. President Trump unleashed $50 billion of tariffs on Chinese goods to begin round one, and finished with accusations of the Chinese theft of intellectual property from U.S. companies. The Chinese government counterpunched by striking the U.S. with tariffs on about $3 ...

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While Tech Stocks Drop, Bonds may be Real Problem

We’ve seen this movie before. Blockbuster Amazon, starring Jeff Bezos and his then yet to be profitable company, perhaps rescued from insolvency by the credit market. This epic saga co-stars convertible bonds, which won an academy award for financial solvency. Despite Amazon alone losing $53 billion in market value of late, FAANG’s largest loser, it is the bond market that ...

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Volatility Returns to Markets after Long Hiatus

The shoe that is volatility has dropped on a different foot in 2018. Investors had rarely seen a market like that of 2017, where returns were so abundant, and volatility was at its lowest levels in over half a century. An obscure financial tool that was reserved primarily for professional traders, has become a household name at the likes of ...

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