Markets Need To Clear

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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.

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 Econonics Recommends the Following Blogs:

Woodpiler Report
Of Two Minds
Liberty Blitzkrieg
Mises Institute
Straight Line Logic
Paul Craig Roberts

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They Are Not Going To Quit

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If the stock market drops, the Deep State is out of business. So, the stock market is not going to drop. As a matter of fact priority number one in Washington is to make sure the Deep State stays in business. The Deep State only faces two dangers that I can think of. Although unlikely, the public could wake up and discover that the Deep State is a crime syndicate. The public is controllable because the Deep State owns the media. Unless given serious attention the stock market has a mind of its own. The stock market simply can’t be allowed to fall.

As this rally was starting, it was largely treated as a bear market rally. I wrote this article  Don’t Dismiss This Rally. You can expect heroic efforts at controlling the market from now until the country is destroyed. They won’t quit. They will die first.

The Deep State has cornered the stock market enough to where they can control trends by buying outright. The risk to them is minimal since they are increasing the value of their holdings. Since they know they are going to push the market up ahead of time, they can buy derivatives, and make a profit there also. Make no mistake. Failure in the stock market is not an option for the Deep State.

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.
Woodpiler Report
Of Two Minds
Liberty Blitzkrieg
Mises Institute
Straight Line Logic
Paul Craig Roberts

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The Coming Freak Show

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The campaign for the 2020 presidential election has be begun. Donald Trump has less than impressive polling numbers. Those numbers are extremely high in today’s political arena. Although he is well under 50%, there is not a politician in the western world who rates anywhere near that high. Donald Trump has his supporters focused on building the wall. He has them repeating meaningless mantras like “Make America great again.” Meaningful news is never reported. Congress never shares knowledge with constituents. If they did most lawmakers would lose their jobs. In a free society, citizens need information to accomplish the task of managing government. Since only a handful of constituents know what is really going on in the world or what genuine issues are in play, ordinary people have no effect on what government does or doesn’t do.

In the meantime, the Trump economy is transferring wealth and income from the bottom of the food chain to the top at an accelerated pace. Trump’s supporters get to hear kind words from him while they are being fleeced.

Democrats are throwing hats in the ring. The cast of Democratic candidates is going to be  part of the biggest freak show the country has ever seen. Very simply every democrat is running with agendas that that no government in the universe has a chance of accomplishing. The success of their issues depends upon their representatives being selfless and filled with the imaginary incentive to serve. Turn global warming over to government and watch feeding frenzies on government money ensue as public private partnership grow. How about ending racism or bias against LGBTs? Is government going to make folks love and appreciate one another? The whole concept of democracy comes down to being a way for people who vehemently disagree to live in the same place at the same time and still participate in government.

We live in a fascist world. Fascist means top down socialism. Fascism is a form of socialism. The campaign will come down to right wing top down socialist vs. left wing classic socialists. Statistically speaking there are no free market enthusiasts in the population at all.  When the race for president comes down to two candidates both will do all possible to avoid revealing who they really are.

With free market principles abandoned, peace disappears. Economics by force is the only other option. Principles of democracy are being abandoned also. Democracy serves as a source of peace also.  Lack of peace manifests itself in more ways than can be fathomed.

Campaign 2020 begins against a backdrop that includes a highly comfortable population, even with the lost of economic viability.  The American population is too comfortable to do a lot of critical thinking.  Notice how that changes, in cases when discomfort shows itself.  The only thing that makes the outcome of the presidential race not completely predictable is the possibility that unexpected events might make the citizens uncomfortable.  As comfort decreases, thinking increases a little. Actual suffering can spur all kinds of problem solving cerebral activity.

So, unless something out of the blue wakes up voters its going to be a total freak show from now until November 2020.

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.

Fantasy Free Economics recommends the following blogs.
Woodpiler Report
Of Two Minds
Liberty Blitzkrieg
Mises Institute
Straight Line Logic
Paul Craig Roberts

 

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The Danger

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Generally I  explain economic and political issues in just a few sentences. The dangerous situation the world is in today can be explained in one sentence. Here it is.

The rejection of free markets and democratic principles is the danger and the source of most other dangers in the world today. Continue reading

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Some Things to Remember

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Given the assumptions mainstream economics makes about human nature, economic outcomes such as are experienced today could not occur. Rid your mind of these fantasies and all that transpires in the economic and political arenas make perfect sense.
Mainstream economics assigns such attributes as industrious, independent minded, autonomous and morally upright to each human inhabiting our planet. In real life, work is a second choice. Were the motive to live off of others not so great, economies around the world would not be so over financed.
Because the U.S. is defined as a republic, academics act on the basis that it is. They also treat the economy as if it were free market based.
There is no way to come close to understanding behavior when the very basis of all observations are false from the beginning.
Because all people bargain away freedom as comfort seekers, self government is not practiced. The value of voting is rendered impotent by the more powerful right to manage public opinion. Individual voters have never shown an interest in controlling the activities of those they elect. Instead they search for messiahs who will champion good causes. Of course politicians run for office out of self interest and end up working for those who help them achieve their personal ambitions.
In a free market government cannot be used to rig markets. Today, governments around the world are used for nothing else.
How can so many people be fooled. It is actually simple. It is all about living fantasy based lives. There is one fantasy that seems to be the basis of all others. That is the fantasy of being special. Every one of the more than 7 billion people in the world feels special. Not one knows what life is or why he is alive, but feels special of course.
I estimate that about three percent of any population has sociopathic personalities. Sociopaths become world leaders and rise to the top of other large institutions as well. They are adept at nurturing ordinary people’s sense of being special. Once assured of being special folks are more than happy to give money, life and limb to any number of “noble” causes. After all, who would lie to someone who is special? Notice that when a politician visits a city, the speech always starts out by acknowledging how special all of the local people are. Tell someone what they want to here and it gets accepted as the truth.
Given the human instinct to worship leaders, this is a bad combination.
I encourage everyone as an experiment to give up the fantasy of being special just for a day. It is really hard to be a sucker and rightfully humble at the same 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 Straight Line Logic Paul Craig Roberts

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Slow Ratchet of Destruction

Slow Ratchet of Destruction

As this rally was getting started at the beginning of January, the general take was that a bear market had started and the rally was only a bear market rally. In the article linked to below I made the case that the new rally was the beginning of a new orchestrated round of manipulation and that there was more to it than just organic trading.

Don’t Dismiss This Rally

That is exactly what it turned out to be. This forecast was not based on me being a superb. stock market analyst which I am not. What is going on is visible to the naked eye. The stock market take over is the one most important ingredient needed in order to control the entire global economy as well as the lives of the people in it.

Today, I am reading article after article by naive intellectuals who are still using traditional dogma to predict a turn back down in equities. There is nothing wrong with their analysis except that at this particular time it is all irrelevant to what is driving the market.

In the mean time, here is what you can expect for the rest of the year or until our system of life is destroyed. The one thing we know for sure is that control of the stock market is not a passing thing. Neither is it one heck of an effort that as soon as it is finished, the bad actors will holler “Gigs Up.” and then leave.

Controlling the stock market is about protecting the wealthiest group in the history of the world from the competitive forces of a free market system. That is with the lower classes of the world positioned so that they have no way to escape it. This effort has been ongoing since just after the turn of the century. It was accelerated in 2006 and has become all encompassing  following the Great Recession.

So, what is the stock market going to look like until fall? You have already seen it. If you have seen one up day you have seen them all. Is the Dow weak that day? If it is then the NASDAQ will be up. That relationship will be reversed over and over again. If the market is being supported but just not enough, you will notice the Russell 2000 will be green and everything else will be red. You have seen it thousands of times and you like everyone else know that an unhampered market could not possibly make methodical patterns like ones resulting from a manipulated market. I can come right out and say these kind of things because I don’t mike people calling me names.

The fact is that the elite now have the market cornered. What does that imply? Whoever has cornered the market can control its direction by buying outright without taking any risk.

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.
Woodpiler Report Of Two Minds Liberty Blitzkrieg Mises Institute Straight Line Logic Paul Craig Roberts

 

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Assessing Damage From Federal Reserve Policy

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Over the course of its 103 year existence the Federal Reserve has been like a wrecking ball to the wellbeing of the average American. I am not the only economist to say such a thing.  I am the only economist to dispute the notion that the Federal Open Market Committee consists of honest folks who are just misguided in what they are doing. I am calling them dishonest and just getting it out in the open. That gets right to the point and explains why what they do only makes sense to Federal Reserve members and the very few Americans who benefit from their dishonesty.

Using monetary policy to stimulate an economy is like physicists claiming to make a suspended animation machine. Monetary policy is good for increasing and protecting asset values of wealthy Americans.  The problem is not that they are inept. It is that they are dishonest. The Federal Reserve has never done anything other than carry out a political agenda. Pay no mind to testimony, notes from meetings, press releases or testimony before congress. The Federal Reserves only job is elevating asset prices for Americans rich enough to dictate policy to the politicians they support. To save the country, the economy needs to reset. The Federal Reserve prevents that from happening.

Here is the damage, Surely there is more but this is what comes to mind right off the cuff.

Rich people, especially corporate insiders are now lazy. Riding stocks to new highs independently of earnings sure beats innovating and working.  I remember a quote from a certain writer who’s name I have forgotten. “The stock market is food stamps for the rich.” As part of the political asset enhancement initiative, using the wink and nod system, the Federal Reserve lets corporations know, that if they buy back their own stock, their backs are covered. This boosts stock prices. The wealthy truly do benefit financially from the Fed’s asset enhancement initiative. Any good economic numbers come from the spending of the country’s financially elite. Now the health of the economy depends on the level of the stock market. When it crashes, it will take the economy down with it.

Loose money keeps profit margins high and real wages low. The poor have grown in number. The buying power of the lower middle class on down has been severely reduced. Since loose money is so effective in elevating stock prices, corporate insiders get paid a lot more and a lot faster just by riding the price of their stock into the stratosphere. There is no incentive to invest in plant and equipment or try new ideas so job opportunities disappear.

Retired people with savings have been devastated. They are earning just a fraction on their savings compared to what they would receive in a free market setting.

Pensions by most will not be received in their entirety. Some will lose everything they have saved for retirement.

Most importantly, the economy has been destroyed. Market forces are invisible but they are always working. Government intervention always has the result of markets never clearing. There is a system of out with the old and in with the new that is prevented from working. The longer a stimulus plan is in effect, the more inefficiently resources are allocated. Eventually the economy is so inefficient that GDP actually turns negative. Any genuine control the Federal Reserve has over interest rates is lost. Governments of all sizes face huge interest costs as rates start to be determined by the diminishing probability that loans will be repaid.

Appearances are that Central banks plan to continue supporting stock prices. Theoretically they can continue this practice forever. Central banks do not have to earn money in order to invest. All they have to do is buy buy buy. Central banks could actually buy up a controlling interest of all of the world’s largest corporations. No taxes need be levied and no income needs to be earned. As GDP turns negative, that probably won’t happen. Civil order will probably break down and public sentiment is bound to turn against them.

These are just a few of the negative consequences the country faces due to Federal Reserve policy. There will be others that I haven’t even thought of yet. War is almost guaranteed. Only free markets prevent warfare. Free markets are gone so war is largely a given.

It is time an economist stepped up and spoke the truth about Federal Reserve policy. There has never been a chance that the overall economy would benefit. The Federal Open Market Committee members know this. They are liars and thieves. They are carrying out a political agenda. Federal Reserve policy has nothing to do with economics.
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.

Woodpiler Report Of Two Minds Liberty Blitzkrieg Mises Institute Straight Line Logic Paul Craig Roberts

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Income Taxes Who Should Pay The Most?

Income Taxes Who Should Pay The Most?

When corporations get legislation for profit passed are you aware that they have placed a tax on you on top of what the government collects? Can you find a bill that doesn’t serve that purpose?

What do lobbyists do? They lobby in order to increase government spending. Lobbyists are hired by the richest people in the world. You might ask, “why would the rich want the government to spend more money?” Are not the rich the ones who pay for all of it?  For sure rich people don’t do things that don’t make sense. If they did, how would they wouldn’t have gotten rich? Continue reading

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Global Warming New Amazing Insight

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The greatest threat to mankind where any global warming is concerned is that scared citizens will be successful at putting government in control of correcting the issues.

Give governments a problem to solve and what happens? Ideally, people in every government involved will work tirelessly in the problem solving mode to do what is right by citizens. That is the way the system works in the human imagination.

What happens in real life? Unlike what is popularly imagined, those in charge of solving a problem on a collective basis, seek their own goals and aspirations first. Global warming becomes a problem to be exploited. Public/private partnerships are formed. Feeding frenzies on government money begin and grow rapidly. Solving the problem becomes  a disincentive. The worse the problem gets, the more money is committed to solving the problem. The feeding frenzy continues to grow and the problem gets progressively worse.

If the goal is to save the planet or even to greatly delay its destruction, the worse approach is to charge governments with the responsibility of making sure that doesn’t happen. Government regulation only guarantees a worse problem than the one people are afraid of.

Does it not seem odd that human beings ascribe magical powers to their governments. It is as if once a problem is turned over to government, in their minds, it is deemed solved. They feel saved. This approach is not even voluntary. It is instinctive. Fortunately we all have a larger brain that can override instinctive behavior. But, for that, the more intellectual part of the brain is seldom activated.

It is safer for the planet to completely ignore any damage global warming may be causing and let nature run its course.

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.
Woodpiler Report
Of Two Minds
Liberty Blitzkrieg
Mises Institute
Straight Line Logic
Paul Craig Roberts

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Demonizing White Folks

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Wouldn’t it be nice if all of the world’s problems could be solved just by getting rid of all the white folks. Adolf Hitler decided that it would be good to exterminate Jews, Gypsies and some others. A lot of Germany supported his efforts. It didn’t turn out very well. Race doesn’t determine behavior. Personality characteristics are better for predicting behavior.

So, what is the motivation to demonize the white race? There are actually two different factions of socialists trying to extract government benefits out of the economy. Since truth is not used in politics, calling folks racists who are not, is absolutely normal and to be expected. Left wing socialists demonize right wing socialists as a means of diminishing them.  Both groups are competing for limited government resources. Diminishing white people by the liberal faction is an attempt to extract a larger share of national resources for themselves.  The reasoning is that resources are limited. Presenting the competition as unworthy is perceived as a way of gaining more resources at the expense of the competition.

Mainstream economists believe that it is human nature to be productive and look for opportunities to work. In the real world it doesn’t work that way. Operating on the basis that it does work that way is one of the reasons mainstream economist are always wrong with respect to economics in the aggregate.  Human beings behave the same way members of any predictor species operates.  What do lions and hyenas do when they go out for a hunt? First they look for prey that has already been killed. Often they run smaller animals off and eat their prey. Animals in groups first try and live off the efforts of others in the group before doing any work on their own. Human beings do the same thing.

What does it mean when a person is unfairly called a racist? It means the other side is working in keeping with the human herding instinct. Tribal positioning is another good term. Conservatives virtue signal. That is instinctive and amounts to tribal positioning also.

Conservatives only use the term “conservative” for effect. Based on how they use their time and energy, they are socialists, just as are the folks who oppose them. A true conservative work tirelessly to repeal laws and close government agencies. If there were any conservatives in the country, they would be working as hard to repeal laws and close government agencies as they are working to build a wall between the U.S. and Mexico. A truly accurate description of a modern conservative is right wing socialist.

The contest is not about doing right, avoiding wrong or administering justice. It is only a fantasy that government will ever do those things. It never has. Liberals are pushing classic socialism. Conservatives support top down socialism. There are no free market advocates.

Government is and always has been the place people go to get what they want and have others pay for it. White people like all other ethnic groups are competing for benefits. It is reasoned that if whites get more, all others get less.

If you are white and are being unfairly deemed a racist, just know it is for an economic reason.

It is more important though to realize that there aren’t enough conservatives in the country to be counted. So, if you are not a racist and are being called one, chances are still close to 100% that you are a socialist. I suppose it is better to be a socialist than it is to be a racist and the socialist label is normally highly applicable.  There just aren’t any free market advocates.
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.
Woodpiler Report
Of Two Minds
Liberty Blitzkrieg
Mises Institute
Straight Line Logic
Paul Craig Roberts

 

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