Kudlow, Idiot – IBM, Evil

Posted on by Matt

Last week on his CNBC TV show, Larry Kudlow shouted at his guests: “Corporate America has huge profits, why aren’t they creating jobs!?”

I can’t even believe how idiotic Kudlow is. Here is a man who believes in wide-open free trade, the crushing of unions, epic-scale outsourcing of jobs to foreign lands, the massive importation of workers, and the de-industrialization of America, and he can’t figure out why Corporate America isn’t creating jobs?

Note to Kudlow: exactly what part of IBM’s “No Americans” hiring policy don’t you understand?

Kudlow is the most vociferous advocate of our new Favela-style economy, and he is baffled by the sorry state of the US jobs market? WTF?

Look at this: during the economic disaster of 2009, Mexicans were having a grand time doing frivolous things like trying to set Guinness Book records. They set the record for the largest mariachi band in Guadalajara in September 2009. Meanwhile, people in Detroit were literally trampling each other to collect handouts from the government.

When you adopt a free-trade policy (NAFTA) with a low-wage country like Mexico, you are encouraging companies to move factories down there. And so they have. This is not rocket science.

Note to Kudlow: I know your brain, such as it is, is all befuddled now, but try to follow along anyway.

Corporate America is creating plenty of jobs – in China, in Mexico, in Argentina, in India. And even when they are forced to create jobs here, they use Kudlow’s immigration policies to avoid hiring Americans.

Look at this: because they have to keep their data centers close to home, IBM is being forced to create jobs in the USA. But if you are an unemployed American, don’t get your hopes up – so says Bob Cringely:

IBM is also building several new “global delivery centers.” One of these is in Dubuque, Iowa. Why Dubuque? It is my understanding that IBM hopes to reduce its labor costs and one way to do this is by choosing remote locations like Dubuque with few locals who could qualify to be IBM techs or engineers. Experienced IBMers being downsized in places like New York won’t move to Dubuque, so they can be replaced with cheaper (and younger) labor. Dubuque’s lack of native talent means IBM can staff the centers with mostly foreign H1-B personnel, again so they can pay them less and have no long-term benefits exposure.

Thomas Jefferson said: “Merchants have no country“, and we are seeing that concept playing out right now. If you adopt trade- and immigration policies that allow companies to eradicate their American workforces, they will do so.

Wide-open free trade is certainly the most efficient way to develop the global economy. However, it does not guarantee that the growth will be spread out evenly over the planet. In the first decade of free trade, the invisible hand has re-located the USA’s industrial base and millions of jobs to low-wage nations. Nations that aren’t even political allies of the USA.

The BRICs (Brazil, Mexico, India, China) and Mexico have never been US allies. In case you don’t know, our best allies are the UK, Canada, Australia, and Israel. IBM is moving a lot of jobs to Argentina too, but during the 1982 UK-versus-Argentina Falkland Islands war, the USA gave logistical support to the UK. (And we will probably do so again if Argentina tries capture the Falklands once more.)

Will the Chinese use the industrial capacity that we have transferred to them to build an army big enough to recapture Taiwan? Will the Mexicans use all of the auto plants that we have sent to them to build tanks to recapture the vast territory that we captured in 1848? Will NAFTA eventually make Aztlán a reality? The precedent for such events has already been established in BRIC-nation Russia’s recapture of territory from US ally, Georgia.

Free-trade has been a crushing blow to the US economy. Perhaps the invisible hand will direct some business our way soon, but as we see from the policies of our own corporations, things don’t look promising. Corporate America would create jobs in the USA again given appropriate trade- and immigration policies. I say, change the policies. Sacrificing our prosperity for the good of the global economy may sound noble, but in reality such a policy is actually treasonous.

If the cities of Guadalajara and Detroit had to field armies and meet in battle, who would win?

68 thoughts on “Kudlow, Idiot – IBM, Evil”

  1. Wow, nice treatise Matt. Social study and history lesson wrapped up into one.

    I hope this is being read by the right folks.

  3. As Japan Airlines faces bankruptcy, many of its shareholders have been shell-shocked by the prospect of being completely wiped out.

    That’s because many Japanese companies have been considered ‘Too Big To Fail’ in the past, or more aptly ‘Too Japanese To Fail.’

  4. Futures Prices
    Market Last Change %
    Crude Oil 78.18 -0.4 -0.51
    Natural Gas 5.535 -0.046 -0.82
    Corn 371.5 -9.5 -2.55
    Soybeans 974 -1 -0.10
    30yr Bond 117.34375 -0.28125 -0.24
    10yr Note 117.28125 +0.53125 +0.45
    NY Gold 1131.7 -1.7 -0.15
    NY Silver 18.55 -0.11 -0.59
    Emini S&P 1130.00 -6.75 -0.59
    Emini Nasdaq 1862.00 -12.25 -0.65
    Emini Dow 10546 -59 -0.56

  8. Friday’s Tres Cruzar on SSO has worked out well. This may not be a Humpty Dumbty on SSO’s 15min with the strong 5min displayed.

  11. CAL, order in to short @ 21.11 – was there earlier today…
    50 cents higher entry than my last one…
    if VXX hasn’t hit a low, it must be pretty close…but when i checked VIX it wasn’t down that much…

  13. COMPQ shows the nicest wave pattern this morning. Easy to see the subwaves of wave iii up (of the C leg of wave 2).

    On the DOWN (that’s the DOW-New, remember?) and the SPX, this allows us to be in a w4. IF 5=1, then that would project to gap closure. Looking to head south just short of a retest of the highs.

  15. Two trillion cigarettes are sold in China each year. Sixty-percent of adult men in the People’s Republic are smokers.

    The AP reports that China will ban smoking indoors in seven of the nation’s big provincial capitals.

    The news will be particularly hard on Philip Morris (PMI), the international arm of the company once known as Altria (NYSE:MO).

  16. Nice cup with handle forming on the SPX over the last two days on any intraday time frame. We’re in the handle right now. I’ve been right there with you George on the SSO train from last Friday.

    At work, unlikely to post or answer often. FYI

  21. early returns say dems are toast Brown double point lead,we may see big rally tomorrow.1200 by end of Jan.

  24. No volume yet on the bull flag breakout, so I’m skeptical at this point. Volume will make me a believer. I suppose we’ll find out when the Senior Traders return at 1:00 Eastern.

    JG, I’m looking for a slight new high as well JG as part of wave 4 abcde pattern (this would be d) with ‘e’ down near 1130 again.

  28. Hi all,
    Long time no see.

    Matt, I agree with your post. One small correction, though: Russia didn’t “recapture” Abkazia from Georgia. They annexed for a break-away region that claims autonomy. One can argue that Stalin gave Abkazia to Georgia back in the 20s, but that seems like a false argument. Would a Texas secession with the help of Mexican tanks count as a recapture. I don’t know…

  29. Should be interesting here with SRS/URE. URE made a 9/36/15 cross and still moving up after a small dip.

  30. Hi Marty. Welcome back.

    2thfixr, glad you’re with me on this SSO. It’s at a “decision point” right now.

  31. I have a loose stop below it, as I’m looking for another round trip to 1130 area. I have a buy order set for SDS to ride it back down to that area (like I missed on Friday and wanted to vomit over). Remember, I’m bullish to 1180 in the relative near term (a few weeks), so this is just a nice rectangle to play as far as I’m concerned with my bias to the upside. I’m watching JG’s thesis closely though.

    But, my SDS buy isn’t for a few more SPX points. Thank goodness it has been an “easy” day at the office, I can watch more closely than many other days.

    Brown in MA! 1180 in a heartbeat…. haha

  32. RSI pattern unusual for the top of the 5th to be in. Momo decreasing on each run up today, however. Together, they may indicate one last small push up to complete.

  33. Latest CNBC report has Brown up doudle digits.I will exit at S&P 1170,and hopegully reeenter about 1095 in Early March

  37. Yeah, JG. I agree that the RSI is interesting right now. Almost like the market wants to park here at 1148 and find the next catalyst up or down. As always, the last 30 to 60 minutes could be very interesting.

    Thanks for the Brown update Scotty.

    I’m not sure a win will move the market up (the market may sell the good news, after buying on the rumor today), but it would make me happy!

  42. Pattern complete. Down elevator please.

    Paula, no failure. Remember it’s a gravitational accelerator, not inducer like my Uncle has. I’m not risking that rusty switch on minuette 2s.

  43. Junglegirl,
    Will look for the accelerator…if it moves the SPX
    below 1130, will look for the 1095 target.

  47. BTW, thank you to everyone in Massachusetts who has or will go out an vote today. Voting is a privilege for which our forefathers shed their blood. I hope Congress will listen to the message being sent—regardless of the outcome of the election.

  48. Washington Post – “Three close-in communities to Boston report their results early — Cambridge, Somerville and Arlington — and, according to one Democrat, if Brown is close or leading in those areas, the race is effectively over” Doesn’t say when that is? Anybody?

  50. That SPY 5min pattern looks like a megaphone. Accordingly, it may be as frisky to the downside as it has been to the upside.

  52. New all-time low on SDS from what I can tell.

    I’ll look up bullish engulfing but it sure looks like most of the underlying have one.

  54. Sam,
    It doesnt matter.
    She lost and that’s coming from a Dem Bostonian.
    I just received another freeking call from her and i boiled up.

    Hey isnt there such a thing as a do not call list from campaigns?
    I want out because 20-30 calls the past week just about does it for me.

  55. WASHINGTON–(BUSINESS WIRE)–Voters can now take action to stop unwanted political calls by registering for free at, http://www.StopPoliticalCalls.org, launched today by the National Political Do Not Contact Registry (NPDNC). The non-partisan, non-profit organization is designed to stop politicians from calling voters at home, particularly with automated (or “robo”) calls.

    just not sure how real this is but i stumbled upon it cause am sick of the calls

  56. my bad about this last cut and paste. i looked into faqs since it seems too good to be true and it is because they need a lot of people signing up in order to stop calls.

  57. Man, did SSO plummet after hours. Dropped from 40.70’s to 40.55.

    I’m with you Phil, I’ve got a semi-tight stop on my SSO at this point, but bought a position in SDS at 1149 for the return trip if it happens. The SSO will get stopped out mid-1140’s if we fall back to 1130s and the SDS will get stopped out if we pierce 1155 (Box of Beer).

    Let’s see another rectangle everyone! Fun, fun, fun.

  60. there is a poll in that link and it might not mean much since this article might only have been read by brown supporters but 90% of 60k votes cast said brown would win

  61. K, thx for the links, quite interesting .. so tomorrow we might see SPX breakthrough the 68% retracement level or might sell off 150pts (.. we’ve literally brushed aside C news, and BoA to come .. ) ..

  63. The links to election results are fried and overloaded. Seems everyone is trying to hit the sites to learn what is going on. I guess I’ll have to turn on the cable channels and find out what is being said.

    Phil, sold 2/3 of my SSO, bought the same amount of SDS late today, and will sell all my SDS at SPX 1140 or lower with a T.S. Plan on a rebuy of the SSO in the low 1130’s. Also, have an order in to buy more TBT below 48 with a target of 53. Then, it should be time to swap out to TLT if the price is below 88. Do you have similar plans, or have you gone TLT at this point? I know you have actual bonds primarily, but wondering if you are playing the TBT/TLT game right now? Thanks.

  67. 2thfixr,

    You had a good day. I sold all of my SSO and like you, I did take home 100% on Friday, which I normally don’t do. I am hoping the bottom of the expanding-whatever will be hit tomorrow, then back up again.

  68. 87% and 52-47 the score.

    well looks like I aint just good at predicting market prices im also good at predicting elections 😛

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