In 1987 the Reagan administration began managing the securities markets. Since that time, to varying degrees politicians on both sides of the isle have supported programs to enhance asset prices. Both monetary and fiscal policy have been used since that time for that very purpose. There have been no exceptions. Easy money has had only one purpose and that is to further enrich politically powerful constituents and investors.

Beginning in 2006 efforts changed from simply enhancing stock prices to completely preventing any loss of value. In 2008 asset prices declined in the face of unprecedented preventative efforts.

From 2008 through the present, all government efforts have centered around saving the stock market and elevating asset prices and goosing profit margins. Although they have no idea how or why it has happened, the poor and middle class have been devastated financially by the process.

All increases in corporate profits and GDP are rooted in spending by the super wealthy who are the only group to benefit from the rigging process.

When the stock market declines, the economy will drop into a very serious depression which will make the Great Depression of the 30s look pale. Will Trump rig the stock market?

The stock market is already being rigged. A better question is, will Trump interrupt the process? I would guess not. Trump will do everything possible to continue goosing asset process at least until the second year of his presidency. The Trump tax cut and spending plans are very much a way of passing the rigging baton to congress and taking pressure off the very tired Federal Reserve.

It may not be possible. Reality can impose itself on the world at any time, without warning and without anyone’s permission. Trump’s personal case will be better served by accommodating Wall Street. That is what he will do.

The public is still clueless as to how these things work. In this case, Trump has nothing to do lose by continuing to funnel wealth and income to the upper 1%. People know they have been burned, but are still clueless as to the source of their suffering. Suffering does activate the thinking process but it can take a long time.

The truth is a hard sell. Fantasy Free Economics gains readers one at a time. Major search engines simply do not list blogs which disagree with their political agenda. As long as folks share the link to this blog and others speaking out against the grain, the truth will at least trickle into the public consciousness.

Fantasy Free Economics recommends the following blogs.

Of Two Minds Liberty Blitzkrieg Mises Institute

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Economists normally don’t study the animal kingdom. They don’t need to, They go with the standard way of looking at mankind and that is as a special entity who borders on Divinity. Laws of nature are deemed to apply only to lower animals.

Fantasy Free Economics does not accept this limitation. I study the survival of human beings exactly the way I would study the behavior of a pack of dogs or a herd of horses. In doing things like this I put realistic definitions on the various persons, places and things which are part of the system. For example, an Ivy League economist would see the chairman of the Federal Reserve as a brilliant intellectual, full of honor whose only goal is to serve the country. I look at the Federal Reserve chairman as just one of the animals without any incentives that are not part of nature. For example, self interest is an incentive but there is no incentive to serve. It is not rational to assume a person is working at a job in order to serve. Self interest is part of nature. Service as a primary motive is a fantasy.

There may very well be a spiritual world that human beings have access to and can interact with. I believe that there is but the secular world is part of the animal kingdom. Living and working in the secular world does not mean one is evil or even bad.

Fantasy free economics is relevant the aggregate or macro economics. Suppose there was a discipline where high level degrees were offered and honors were bestowed on those who said intelligent sounding words but still the discipline never solved a problem or offered a worthwhile trade off. Would it not make sense to question the basic assumptions on which that discipline was based?
There are a number of disciplines like that. Economics is one of them. Political science is another. Aggregate economics cannot be studied without looking at political science. Almost every aspect of macro economics is influenced by what goes on in government. The corrections I am offering with respect to economics also applies to the study of political science.
There are reasons why economists are so seldom right about anything. Many of their assumptions are wrong. Their understanding of human nature is completely lacking.
Fantasy Free Economics starts at the beginning while mainstream economists skip the most basic incentives human beings experience. Economics actually begins with survival. Laws of dominance and subservience determine what people do with their time and energy.
In mainstream economics the individual is assumed to be autonomous in making decisions. Independent thinking on the part of everyone is assumed. Representative government is assumed to be intact and operating flawlessly. None of these things are true. They are so untrue that acting on the basis that they are true guarantees failure. Failure is the most common outcome.
All it takes to correct all of this is to take a fantasy free look and remember what we see.

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Fortunately, nature gives living things what they need to optimize chances of surviving. All animals have the ability to recognize dangers and opportunities in the present. This gift is not flawless, but it is amazingly accurate. Notice how a dog is alerted by sudden loud noises. In the life of a dog, a loud noise usually comes from a source that is not good for the dog. The same dog recognizes conditions where potential food is around.
Human beings have similar abilities. At first glance, a human can recognize things and circumstances for what they are in the present moment. There is a problem however. Through imagination, a human can and does create an alternative reality for himself and others. We don’t know what life is. The process of being alive and staying alive is so hash and brutal, humans compulsively see surviving as more gentle than it really is.
Nature gives us all the gift of highly accurate discernment in the present moment but only if we are fantasy free. We can accept the reality that is in place, as in the one nature gives us. When that is the practice right, wrong, good and indifferent become obvious. Commonly, functional reality is that which a person creates for himself or what is created for him by others.
The reason fantasy free economics works so well is that answers and responses to life’s issues are highly accurate without the confusing process of viewing reality through the prism of fantasy.
Once the prism of fantasy is removed knowing what to expect out of people and institutions becomes easy. Mainstream economic not only fails to recognize nature’s gift. Mainstream economics is based mainly on fantasy. Mainstream economics is based on numerous erroneous assumptions that have value in the sense that they make life seem more pleasant. They are a hindrance when there is a problem that needs to be solved.

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It is characteristic of a servile population to treat all of life’s activities as collective issues to be solved with collective action. Although the NFL and its teams receive substantial support from various governments they are still private organizations.

The issue of NFL players kneeling during the anthem is a workplace issue. Viewers could possibly be pleased or disappointed depending on how each team owner handles the issue. It is still a private issue. Make it a public issue and the controversy takes on a near eternal presence. That way it becomes everyone’s issue. The public takes on the mentality of “Hey government make those bad boys behave.” Government becomes the place people go to have everyone else’s behavior managed so that that no one is offended. It is still nothing but a private workplace issue.

The NFL and players kneeling issue does have a use. It provides a perch from which politicians and others needing the public spotlight can draw attention to themselves. There is no perch higher than the one from which the President of the United States chirps. What president would not seize the opportunity to “Make the bad boys behave” in front of a population of insecure infantile American citizens.”

The truth is a hard sell. Fantasy Free Economics gains readers one at a time. Major search engines simply do not list blogs which disagree with their political agenda. As long as folks share the link to this blog and others speaking out against the grain, the truth will at least trickle into the public consciousness.

Fantasy Free Economics recommends the following blogs.

Of Two Minds Liberty Blitzkrieg Mises Institute

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The world is not coming to an end. It is only changing. Markets always clear but government interference makes the process difficult.

Currently there is a huge supply of houses hanging over the real estate market. Without government interference the housing market would clear in a month or two. Even on local levels every effort is made to make sure foreclosures trickle onto the market. Information relevant to buyers is withheld. Every asset will sell at the right price. Houses are no exception. An economic recession will end only when markets are cleared of excesses. Real estate prices still have a long way to fall.
Over the past several decades the financial sector has gained enormous political power. As a result, government policy has promoted the growth of large banks, hedge funds, brokerage houses and anything else related to assets and money. The financial sector has became so powerful that government is now a tool to be used for enhancing the value of financial assets beyond any levels that would occur in a free market setting.

Like any sector that has had government assistance, the bloated financial sector has become is an inefficient use of resources. In a free market setting such a situation would never occur. Wall Street is so bloated that it is self destructive. The financial sector must be cleared of excesses before an economic recovery can begin.
Economic recessions occur naturally as resources are shifted out of poor performing areas into more productive uses. Economic depressions occur because government intervenes and tries to prolong the status quo. Every effort is made to keep markets from clearing. Nothing good happens until the old is allowed to disappear and the new takes over.
In a free market, the good outweighs the bad but only the bad is easily visible. Hence there is a natural tendency to see failing industries without seeing emerging growth opportunities. In the 70s and 80s, it was easy enough to see the declines in the rust belt and labor intensive industries. The emerging opportunities in the computer industry were not all that visible. There is a natural tendency to try to save what is failing but the efforts always prolong economic hardships.
To experience an economic turnaround markets must clear. Government is prolonging the process.

Are You Out Mooched?

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First I would like to say good morning to the Department of Homeland Security. I thank you and all others for reading this blog.

What are the most pressing dangers faced by the United States economy?

1.) A decline in the stock market, even a modest routine correction in stock prices will send the economy into a tailspin. Why? Artificially stimulated asset prices are the only reason the economy has recovered since the Great Recession.

2.) A rise in interest rates, significantly greater than can be managed by our Federal Reserve will cause panic in the government. Borrowers have been subsidized for 40+ years. If for any reason defaults on loans begin increasing the Federal Reserve will completely lose control over the market for money. When interest rates increase significantly, the United States government will not be able to service its debt and the entire system will collapse.

What is the solution? There is no solution but certain actions will be taken.

1.) Losses at the top will be passed down to the tax payers to the degree it is possible.

2.) Central banks will increase their purchases of stocks in an effort to keep all markets moving higher.

3.) No effort will be spared in trying to create inflation in the United States and around the world. Inflation is needed to take the pressure off of the United States government. The introduction of tariffs will cause inflation but not enough. Although it is seldom mentioned a decline in the productivity of labor is the most reliable source of inflation. War will create inflation. Don’t rule it out.

All of this will be perhaps the biggest juggling and balancing act in the history of the world. Like is true of any juggling act, eventually there will be an accident and the act will fall apart. Professional jugglers practice constantly and have engaged in many trial runs. Your government is going on stage with its balancing act without much practice and not even a trial run. The chances of an accident are enormous.

The truth is a hard sell. Fantasy Free Economics gains readers one at a time. Major search engines simply do not list blogs which disagree with their political agenda. As long as folks share the link to this blog and others speaking out against the grain, the truth will at least trickle into the public consciousness.

Fantasy Free Economics recommends the following blogs.

Of Two Minds Liberty Blitzkrieg Mises Institute

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Preserving the principles of democracy is more important than any benefit that will come to anyone by way of forcing an unpopular president out of office without an election. Yet we have little dictators all over social media who care nothing about preserving the principles of democracy. They care nothing about preserving principles of freedom for their posterity. All they want is what they want right this minute and damn the future. They have no candidate and no replacement in mind. Not one of them will ever add the words “and then” after one of their anti Trump sound bites. Suppose you take down Trump, you little dictators, who is going to replace him? Is it going to be you? Are you thinking of finding a king to replace him? Have you thought about asking Hillary Clinton to run against him again? And, I ask all of you little dictators, how many doors did you knock on on her behalf? Certainly none. You blame her loss on the electoral college. How many of you have ever lobbied government to get rid of it? What you are are a bunch of ruthless little spineless losers, willing to destroy the entire concept of self government because you didn’t get your way this very minute.

You are the same folks who constantly virtue signal by acknowledging the sacrifices soldiers have made. You make spectacles of yourselves on the 4th of July waving flags and demonstrating your patriotism. I ask you. If the sacrifices others have made to preserve our form of government are so important to you, why is it that you are willing destroy the democratic process in six months when so many before you died to make it possible?

You are little dictators who want to impose your will on the rest of us without electing a candidate. I am telling you like I said before. You are a bunch of spineless losers. We all have to decide in life how low we are willing to go. How low are you willing to go?

The truth is a hard sell. Fantasy Free Economics gains readers one at a time. Major search engines simply do not list blogs which disagree with their political agenda. As long as folks share the link to this blog and others speaking out against the grain, the truth will at least trickle into the public consciousness.

Fantasy Free Economics recommends the following blogs.

Of Two Minds Liberty Blitzkrieg Mises Institute

Views: 0

Trump is like a singer who knows ahead of time, when he walks on stage  he is going to have to dodge rotten eggs and spoiled fruit before he even starts his song. Before Trump acts he already knows ahead of time he is going to be called a racist, called out for treason, and any other name his detractors can think of.

Today Trump is being accused of treason. If he was going to give a speech somewhere and I got a hold of the transcript, I could tell you what names he was going to be called ahead of time. Anyone who reads this blog knows I am not a fan of Donald Trump. But, we are not politicians. We can be honest.

The intelligence agencies Trump is being criticized for disrespecting are far more dangerous to American citizens than Russia is. Any foreign country is a potential danger but our intelligence agencies have gotten the United States into virtually every war we have ever fought with deceptive information. From the Battle Ship Maine to the weapons of mas destruction our intelligence agencies have acted politically. Rather than protect Americans they serve politicians by congering up fraudulent information a president needs to engage in wars. Some would argue that these agencies are not actually out to get Trump. What is clear certainly is that they don’t love him.

With new emerging information that the CIA was behind the Kennedy assassination, it is probably smart for trump to view them with suspicion. If we made two columns of Americans killed because of dishonest intelligence and a column of Americans killed by Russia, Which would be the longest column? You decide.

I know for a fact the Department of Homeland Security is monitoring this blog. I am an old man living a modest life style. The only time in my life I was convicted of a crime, other than for a traffic violation, was in the 80s was when my dog got out of the fence and got picked up by animal control. That really was a crime. I had to pay a fine. I am sure it is on my record. That is it folks but I am viewed as a potential threat to the country.

<em>Fantasy Free Economics gains readers one at a time. Major search engines simply do not list blogs which disagree with their political agenda. As long as folks share the link to this blog and others speaking out against the grain, the truth will at least trickle into the public consciousness. The truth is a hard sell. Fantasy Free Economics gains readers one at a time. Major search engines simply do not list blogs which disagree with their political agenda. As long as folks share the link to this blog and others speaking out against the grain, the truth will at least trickle into the public consciousness.

Fantasy Free Economics recommends the following blogs.

Of Two Minds Liberty Blitzkrieg Mises Institute

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What is the cabbage head theory? Several decades back a researcher put a sensor on one head of cabbage in a garden. Then he whacked the cabbage head next to it with a machete. To the researchers amazement, the cabbage head next to the one that was hacked, emitted an electrical signal  just as the one head of cabbaged was cut wide open.

The cabbage head theory states that since human beings are smarter and more sensitive than cabbage heads, human being should naturally be sensitive to harm and suffering that is being inflicted on others. Human beings really do have trouble automatically grasping that what is happening to others may very well happen to them when circumstances change just a little. We have this practice of civil forfeiture where all a person owns can be taken from him without a trial, just because it appears he is committing a crime. Human beings actually have trouble entertaining the idea that practices like civil asset forfeiture will expand and that they will eventually be harmed themselves. The United States is dropping bombs all over the globe, killing innocent people so that our energy industries can prosper even more than they are now. Americans can’t fathom that a government which can kill innocent people for the profit of an industry might turn on them under new emerging circumstances.

It is fashionable today to equate pro business and free market as being the same. They are not. Free market means the government acts as a referee in the economy and no sector is favored. Pro business is the approach that justifies committing crimes for the “greater good.” Pro business turns out to be top down socialism which is actually more destructive than the type of socialism that is understood by everyone. Why is it more destructive? When pro business is introduced into a largely free market economy, there is much more good to destroy than when ordinary socialism is introduced into a country like Venezuela. The truth is a hard sell.

Fantasy Free Economics gains readers one at a time. Major search engines simply do not list blogs which disagree with their political agenda. As long as folks share the link to this blog and others speaking out against the grain, the truth will at least trickle into the public consciousness.The truth is a hard sell. Fantasy Free Economics gains readers one at a time. Major search engines simply do not list blogs which disagree with their political agenda. As long as folks share the link to this blog and others speaking out against the grain, the truth will at least trickle into the public consciousness.

Fantasy Free Economics recommends the following blogs.

Of Two Minds Liberty Blitzkrieg Mises Institute

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