Category Archives: free markets

Fixing Economic Problems

Posted on by
Reply

Fixing Economic Problems.   PDF Version  

It is human nature to want to fix things.. There may be something in an economy that is deemed needing to be fixed. Is something going on in an economy that is apparently unfair? So, a fix is implemented. Sounds simple.

This is the way it works in reality. A proposed fix is applied. Some benefits can be seen. Are there any costs? Yes, but each cost is spread out so that one human cannot feel the impact. Add up all of the small costs and they easily add up to more than any visible benefits.

What happens when we interfere with market forces? Everything in an economy adjusts and changes in response. Understand this. Market forces never disappear, even though they are routinely dreamed not to be present. Command economies have market forces, same as free markets. Continue reading →

Visits: 21

Treacherous Dangerous Times

Posted on by
Reply

 

Treacherous Dangerous Times PDF Version

This is a question I answered on a public forum where I am apparently still welcome and for now uncensored .This is a question I answered on a public forum where I am apparently still welcome and for now uncensored. American citizens along with the rest of the world’s population are in serious danger. Danger from outright violence is present of course. Economic danger is present, growing and certain to increase. In the face of this there is a genuine lack of awareness of the gravity
of the situation. There is a black out of any relevant non superficial news. There is little concern and little meaningful information available that might make folks concerned. Continue reading →

Visits: 32

The Stock Market Is All There Is

Posted on by
Reply
As far as I know, I am the only economist in theworld who is predicting the collapse of the United States of America. I don’t mean that we are just going to experience a depression. I am talking about our political system collapsing as well. Expect an event of the same nature as what took place in the old Soviet Union when that system collapsed.

Why am I so sure? While other economists focus on numbers alone, I look at the forces in nature that cause those numbers to be what they are. All one need to know is that the ingredients that cause prosperity and peaceful living have been removed from our system. Our free market system has been dismantled. In politics, belligerence has replaced democratic principles. as the driving force. Without these two items, the country has no prayer of recovering from a depression or restoring itself politically. From this point on we are living in an every man for himself situation. The country is going to collapse. Watch and remember who told you so.

The same people who have no doubt that the 2020 presidential race was tampered with and rigged are completely unwilling to entertain the idea that the stock market is completely rigged. The stock market is not just rigged, it is micromanaged higher. What the GameStop retail traders on steroids are doing on a daily basis has been going on with high frequency firms for decades. So, what is driving GDP? It is high asset prices and government spending. The collapse will come when the stock market finally breaks. The driving force behind economic growth since 2009 has been nothing other than the purposeful elevation of stock prices. So, what is driving stocks higher right now? In many cases, we might as well be trading bags of sand from the beach. There is no actual thing causing stock prices to rise other than the staunch determination to keep them moving higher.

There are two scenarios that are reasonable. Prices can continue to mush down in a tepid downtrend until a serious decline accelerates the process. Or, It can all happen on one day from hell that comes out of nowhere. I am inclined to go with the second potential case.

With limit down rules in place, it could take days or weeks for retail customers to liquidate. The stock market really is all there is to the economy. Once it breaks, everything in the world will change suddenly.

Visits: 10

Stock Market Whats Up Now And What To Expect Next 2021

Posted on by
Reply

Here are some facts.

It is common knowledge that the Federal Reserve
helps elevate stock prices. What is not
acknowledged is that the overall market is managed
and manicured higher split second by split second.
How do I know? It is simple. I am paying attention
and I am willing to look at the evidence. Do that and
the massive manipulation boils down to being self
Evident.

The wealthiest 100 or so inhabitants of our universe
have more power collective than all of the countries
in the world combined. Is there any reason why
they wouldn’t rig the financial markets? Do they have an incentive to do such a thing? If you don’t think they do, then you need to do some more thinking. Continue reading →

Visits: 12

The Central Planning Depression

Posted on by
Reply

 

The kind of Depression the United States is entering is permanent. There will be no free market recovery because the free market system has been replaced with central economic planning. Recessions in a free market system are short and temporary. There is no free market so there will be no recovery. So, once a recession begins an all out depression will occur ensue. More central economic planning will be initiated on the hope that central economic planning will generate an economic rebound. In a centrally planned economy a natural recovery will not occur.

The cause of the depression is the practice of using political power to determine economic outcomes.  All kinds of theories based on fancy statistics and presumed numerical relationships will be tried and retried. What Fantasy Free Economics does is provide the genuine reasons for economic phenomena in terms of what causes the occurrence of the statistics on which sophisticated economics rely. In mainstream economics, one number causes another. One number alone does not cause another. The cause is always explainable in terms of human behavior in just a sentence.

Americans believe government solutions not the free market system is what causes economic growth. This misguided approach is the cause of the severe depression the global economy is entering into. Widespread prosperity or even well being is not possible when the system that completely causes prosperity is eliminated. That is what has happened. The state of being in a depression will be impossible for the economy to recover from given that the only path to recovery is being rejected.

I am not saying an economic recovery is completely impossible. Even economists who call themselves free market economists are offering no free market solutions or good advice. To return to free market influences it is necessary to repeal laws, close and rein in government agencies. The practice of using legislation to rig and control markets would have to be eliminated. These things are not being done, suggested or even considered. When citizens of a country are rejecting the only available path to higher living standards, there is no where for a country to go down.

The western world understands the self correcting nature of the business cycle theory. It is out with the old and in with the new. A recession is a natural resetting when resources have become inefficiently allocated. When recessions are avoided through central economic planning, the reason and causes for the recession continue to worsen. In time, even though an economy grows to new highs in terms of GDP, the income distribution between different income classes widens and continue to widen.  This is because political power rather than price, determines who gets what in the economy. It is natural then that the wealthy become more wealthy during central economic planning because they are the ones with most of the political power.

What the United States is experiencing now is similar the situation in place within the Old Soviet Union when it finally collapsed. That is the natural outcome of a system of central economic planning. Without free market influences that type of outcome is normal. Based on our economic policies and the mentality of those who have taken charge, failure is the only possible outcome.

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.

 

Visits: 6

Why Does Government Grow?

Posted on by
Reply

Government grows every time a bill is passed. Bills get passed as a way of rewarding Americans with political power. Only a few have enough political power to get what they want out of government. Bills are passed as a way to extract wealth and income out of the general population.

People without political power are important to the political process only in their imaginations. Conservative echo chambers serve the elite because all of the time and energy of conservatives is absorbed with philosophical discourse. Being of extreme importance in their own minds they are lulled into believing they are making a huge contribution by teaching others how to think.

In a democracy based system it is the citizens responsibility to govern themselves. Governing involves work and since work is a second choice for the human species, messiahs are sought instead of delegates.

Politicians are assumed to run for office because they are good people who want to serve. In terms of goodness, politicians are neutral at best. Politicians run for office as a way of making personal use of rank and file citizens, as they bargain for power, influence and money.

Visits: 2