In past articles, I have alluded to pillars of manipulation.

What Will Break the Stock Market? (Oct 10, 2018) They are Ignorance, media, central banks, friends of the Fed, stock buybacks.

The consortium is breaking up. My feeling has been that the friends of the Fed which would cut and run when the central banks could no longer guarantee their profits.  It appears that they have. There are indicators I follow that telegraph when a short squeeze is being orchestrated. Based on that it appears the friends of the Fed are in the process of leaving the arena.

The media is still trying but efforts are getting tepid. They have even backed off of Donald Trump to a degree.

Central banks seem to have ceased coordinating their efforts.  Central banks are loaded up on the FANGS and are going into the every man for himself mode.

Free money for stock buybacks is not available right now. Since the phenomenon of buybacks is really just the best way for corporate insiders to make the most in the shortest period of time,  do not expect them to continue while stocks are dropping regardless. Buybacks are not a lot different than flipping houses.

The public is still ignorant and that may not change. It never does. So, at some point expect the announcement. Expect the Announcement An emergency will be declared and as much as possible losses will be passed to the public. That I guarantee.
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.

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Economic models are interesting animals. An economist can develop one based on any kind of logic. The model is never tested empirically. The whole population jumps on it as if it was manna sent from heaven. If engineers built a plane that has never been on a test flight, would the airlines buy it and put passengers on it? Probably they would pass on the
opportunity. The pretense of knowledge pays more than does actual
knowledge.

Where does government economic policy come from? It is mandated in
the Full Employment Act of 1878. O.K., but how is the plan of intervention decided upon? Any economic intervention is going to be based on the needs of the world’s most politically powerful citizens. Who might that be in today’s world? Those are the folks who already have most of the worlds wealth and resources. Does it not make sense, that our plan
for economic prosperity would be the one which would enrich them the
most?

Build it and they will come? Did they come? No they have not. So, all of the worlds resources are now focused on preventing any type of bear market in stocks. A bear market will take the economy with it because their is no genuine economic growth that has been caused by anything other than high asset prices.

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The discipline of economics operates on the assumption that work is a first choice. Work can be an only choice but it is never first choice.

All oxygen breathing entities have evolved by practicing behaviors which optimize their chances of surviving and reproducing. As distasteful as it seems, odds of survival are increased for any individual who can live off the efforts of others. Continue reading →

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“Democracy is two wolves and a lamb voting on what to have for lunch. Liberty is a well-armed lamb contesting the vote!”

? Benjamin Franklin

Benjamin Franklin was terribly misguided when he made that quote. Democracy had never been thoroughly tried, so he can be forgiven for for not foreseeing that there were more serious issues with the abuse of democracy than what originate with ordinary people. Continue reading →

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Who are the Friends of the Fed? Friends of the Fed are dealers who insure the Fed that newly created money will be channeled into appropriate financial markets. More important Friends of the Fed are the high frequency trading firms who orchestrated short squeezes and manage uptrends in a positive manor. Friends of the Fed are loyal to the Fed as long as the Fed can and does guarantee risk free profits for them. Continue reading →

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Who deserves respect? Do you respect the President of the United States, members of congress and the American Flag? Respect is a great thing in personal relationships? Have you ever done time in an American prison? In prison respect matters out of proportion to everything else.

What is the role of respect in studying economics or political science? James Quillian has no respect for the American flag, the president, other world leaders or any of the sacred people or institutions folks are prone to celebrate. James has no lack of these entities either. No respect is a neutral. Respect is positive. Disrespect is negative.

The president is just one of the animals who is where he is because of a unique set of personality characteristics. The president holds the highest position in our world’s game of dominance and subservience. All that matters is what the president does and the incentives he has. There are no special people.

In personal relationships, respect is indispensable. In politics as soon as you respect someone, you are ascribing characteristics to a person that he may or may not have. With disrespect, a person is being diminished, perhaps arbitrarily. Respect is something to be discarded privately. It must never be replaced with rudeness.

What matters in economics is a person’s incentives. If you can entertain the idea that what a person ends up doing is an accurate picture of that person’s deepest beliefs, then taking a persons actions at face value is the best approach. If in doing things, a person is not acting on his beliefs then there is no way to discern the worthiness of the things he does anyway.

Use good manners. Be rude to no one. In studying social phenomena respect is a way of engaging if fantasy. Fantasy will generate wrong answers. Use respect in personal relationships.

Under all circumstances, remember that all legislation is for profit. Who profits from legislation? Who has political power? Political power determines who makes the profit on legislation. Legislating for profit is what congress does. If you have no political power, legislation puts you at a net loss. Respect tends to build the impression that politicians participate for reasons other than self interest.

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 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.political agenda.

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Beto O’rourke is the type of candidate who wins elections. It is my opinion that he will beat Ted Cruz in the Texas senate seat election this November.

Never forget that the race is between two sociopaths. How do I know these two candidates are sociopaths? Only a sociopath has the skills required to compete in such a competitive contest. Texas is cited as a conservative state. Texas is a red state. There is nothing conservative about either siting senators from Texas. Beto O’rourke is a much more appealing candidate than Ted Cruz. I think he will win. I don’t support either candidate. O’rourke is a master at both telling voters what they want to hear and making folks who disagree feel good about voting for him anyway.

What are the issues in the race? The only issues you will hear anything about are the ones being talked about today in the conservative and liberal echo chambers. Are there any other issues? The biggest issues are the trade war and the new income transferring ballooning deficit spending stimulus initiative. There is the war for profit issue. There are other issues we know nothing of. Congress hordes information and keeps it from the public constantly. Formal elections are for the comfort of the citizens. Most of what happens in government is the result of who has or doesn’t have political power in the informal system. Expect all of the political dialog to focus on superficial issues with superficial information.

O’rourke has taken ownership of the legalize cannabis issue. That will help him a great deal. Chances are good that Trump will find a way to reschedule marijuana and or make other legalization overtures before election day. O’rourke is first with the issue, and that will help him.

Do not mistake Texas voters as conservatives. The average Republican in Texas, depends far more on government than Democratic counterparts. There is not one conservative initiative in the state right now. Elections today are about which candidate is perceived as delivering the most essence from government. Republicans generally benefit hugely but indirectly from government policy. Democrats are perceived as getting direct benefits like welfare or food stamps. In no case at all is price the preferred method of deciding who gets what in terms of goods and services. Texans like all others today expect to get their essence first from government.

The Cruz/O’rourke race is not about being a conservative or a liberal. The difference is in the style of extracting benefits out of the overall population.

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.

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