What do people Want?

I am at a lost to understand what exactly it is that people, especially Hillary supporters want out of government. What have they been getting that they have now lost? What is it that Donald Trump is going to take from them? Government can pass laws about specific things and then use force to be sure that laws are obeyed.That is really all government can do.

Through government policy, income and wealth can be funneled from one group to another.  What I would like to know, especially from the Hollywood sorts, is how are you now harmed? Is it an endless chain of kind words you are looking for? To get something from government, you have to go after something government has the means to accomplish.

I understand why the billionaire class is upset with a Trump victory. They can possibly suffer a huge monetary loss, if they can no longer use government as a branch of their corporations? Perhaps, Hollywood reasons that a mind numbed population that only seeks pleasure and never thinks is what keeps them in business. Perhaps any strengthening of the American character would cause them and all they do to be less appealing?

Anyone who is fearful of a conservative take over of government need not worry. There are no conservatives. There is not one conservative proposal on the table. Not one thing has been proposed to reduce the size of government. Like liberal dialog, all conservative action is in the nature of virtue signaling.

 

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The Source of Anxiety Over Trump Winning

Do not attribute the anxiety of the rich, celebrities or minorities to patriotism. With Trump as president, the rich have a good chance of being taken off welfare. Corporate profit margins are elevated because of Federal Reserve policy. The stock market is high because of government initiatives that move it up and keep it high.

Celebrities know nothing of politics and economics. The more the minds of the population are in the gutter, the more popular these folks are. Celebrities are worshipees.  Their fear is that with Trump’s iconoclastic style, they will no longer be worshiped. There are huge advantages to those who are successful in getting others to worship them.

Minorities are in a tough spot. Their perception is that government under Democrats is interested in helping them. Of course the poor get nothing on balance from government. Individual members of various minorities can be marched in front of cameras as beneficiaries of various government initiatives.  Benefits are kept highly visible while costs are hidden. On balance the poor take a beating from government. Immigrants naturally favor candidates who refuse to enforce the immigration laws that are currently on the books.

There are no selfless people. Self interest is the only relevant incentive people have in dealing with government. Mainstream economists work on the basis that there is also an incentive to serve. Perhaps there is for people who are heavily influenced by the spiritual world. The secular world is all about being animals and surviving in a hostile universe. Fantasy Free Economics allows no one to wear a halo. The president is just one of the animals, trying milk the office for personal benefit. Members of congress, the senate, supreme court and federal reserve are also animals milking their offices for personal benefits.

In politics, do not believe that there are good people trying to do good things for you. It is comforting to think that this is the case but it is not true. Politics is all about personal gain. All people are the same in that regard. Government is approached out of self interest and there are no exceptions. There are confused people who believe otherwise but there are no exceptions.

The rich are terrified of Trump because they are fearful of losing the advantages government provides them Those advantages are enormous and they won’t be relinquished freely.

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Stock Market and the Inauguration

Regardless of what happens on inauguration day, there will be a huge effort to rally the stock market big time. That is the standard mode of operation with respect to potentially big days bad or good. Expect massive intervention. If prices ever decline, to a degree that can’t controlled, the entire system will collapse.  Every event has a rally. There will be an time when a rally is attempted but fails.  When that happens, the mob will cut and run. There will be hell to pay.

What do we know about big events with respect to the stock market? In this case we are not talking about a market as such. Stock prices have been managed to one degree or another by government since Ronald Reagan first intervened with the President’s Working Group on Financial Markets or  plunge protection team. Since that time stock prices have been less and less indicative of economic considerations and more of a system of planned wealth creation.  Today 10 percent of the our population owns 80 percent of all stock outstanding. This is by far the largest welfare system, in the history of the world. The one and only function our federal government serves today is providing enormous wealth and income benefits to its most powerful citizens.

The consortium that currently manages stock prices consists of the Federal Reserve Open Market Committee and privateer firms which participate in return for advance information and other trading advantages they are given. Corporations assist by buying up their own stock to degree the Federal Reserve can assure them of continued assistance.

Destroying a large economy takes decades. When the economy is indeed destroyed, the market will fall no matter what. Please understand, the destruction of the economy is not intentional. That is just what happens when a free market system is dismantled so as to give benefits to the politically powerful.

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There are no Conservatives

It has been almost 100 years now since a U.S. president has done a conservative thing.

A conservative is one who does conservative things or pushes the government to do conservative things. Notice the enormous number of professed conservatives. Do not think for a minute that there is one genuine conservative among them. Conservative-speak is for the speaker’s audience, whether it is a national audience or a small one.  What we have is virtue signaling so as to be perceived as being on the right side of issues.

Beliefs determine how individuals spend their time and energy. If words and action conflict, the action is the true belief, not the words. There are no conservative initiatives suggested by citizens and there are no conservative initiatives under consideration in government. There are no conservatives in the United States.

When I say no conservatives, I am speaking statistically. The number is so small that zero is the closest number when it is rounded off. I am a conservative. I am pushing for the repeal of destructive laws such as the Full Employment Act of 1978. This act mandates that all branches of government, except the Supreme Court,  engage in central economic planning.

Somehow people believe that by expressing a desire for small government, that government will shrink in size in response to the noise. That will never happen. The noise is only virtue signaling. I am advising you to accept the fact that the country is in decline and look out for yourself. In the coming days, it will be every man for himself.

There are no conservatives. So far, Donald Trump has not made one conservative proposal. “Make America Great Again” is only noise. In this type of economy, look out for yourself, because no one else will. To your leaders and the few with political power, you are only a resource, like a cow or a chicken on a farm. Your comfort is important only to the degree you cooperate, don’t complain and support the goals and aspirations of your betters.

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Americans the Economy and Their Government

There is a huge difference between fantasy based economics which is taught at Harvard, Yale and all of the expensive universities around the world and the simple concepts I teach with the Quillian,  Fantasy Free Economics approach. Mainstream economics has the intelligence, fancy models and credentials. With that, you get nothing with any utility to society.  They are fascinating to listen to but never get any results. They never will because their assumptions are not based in reality.

Human behavior does not follow their models because human beings only infrequently experience original thought. The brain seeks not fairness or freedom. The brain is a survival seeking organ. Mainstream economics teaches that all humans are freedom seeking animals. In real life, freedom is bargained away for comfort and perceived certainty of survival that is offered by government, leaders, or crowd leaders of all kinds.  Work is a second choice. Mainstream economics treats work as a first choice. Thinking is work so humans are always looking for smarter folks to do their thinking for them. Nature provides only one basic incentive, self interest. The incentive to serve is assumed to be present in mainstream economics but that is only fantasy.

The fantasy free life reduces stress that would otherwise be unbearable.  Through fantasy, we can all pretend that the universe is less harsh than it is and be content and comfortable until we die. Assuming that there is nothing required of us here on earth and any afterlife is available to everyone and the goal is to be happy while we are here, this approach is the best one. Taking a harsh look at reality, in that case is not necessary except, perhaps once in a hundred years. We are at that point now and that is why I write this blog.

Americans today generally profess to be in favor of free market economics but make other choices every time an option is offered. Americans profess to be freedom seekers who are independent minded. There is an endless line in front of government, begging for benefits. As freedoms continue to diminish, Americans never raise an eyebrow. This is because human beings, are not what they think  and they are prone to engaging in master/servant relationships. People are managed by one another the same way a master manages a dog. The master offers a treat and the animal responds according the the master’s wishes. Humans will profess that this is untrue and that they are special noble creatures and at the very same time exhibit the behaviors I just described.

If you want to understand what is happening on the political and economic scene, keep all of this in mind. Do not expect your fellow man to jump at the opportunity to be more free and independent over the coming days with the change in government. Expect herd behavior. Given the opportunity to return to a free market economy, Americans will seek to serve instead. This is something they can’t help. As soon as new opportunities emerge, people look for a kind master more than opportunities to be free and independent. Free markets started emerging after the Dark Ages. Still, people are hardwired to serve masters and a kind master is always their preference.

A very small minority of citizens prefer freedom and independence. That portion of the population is going to experience great stress in the coming days. When the majority volunteers for slavery, free and independent folks get enslaved right along with them.

 The Grazin’ Is Good by Curbside Jimmy

 

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Americans Deserve Obamacare

Most Americans either don’t know the difference between healthcare and health insurance or they are too mentally lazy to make the distinction. A population this ignorant is not going to get a good deal because they are so easy to exploit the temptation smart people have to take advantage of their ignorance is just too great.
Merriam Webster provides this definition for healthcare.
“efforts made to maintain or restore health especially by trained and licensed professionals”

Merriam Webester defines health insurance this way, “insurance against loss through illness of the insured; especially : insurance providing compensation for medical expenses”

A bill like the Affordable Care Act does not expand healthcare. It expands health insurance coverage. It does that by forcing consumers to buy what they might not buy otherwise.

Ask a room full of doctors why they practice medicine and you will get some of the most selfless, noble reasons the brain can some up with. But, what do we know about doctors? They are human beings and like everyone else, nature provides them with one basic incentive, self interest. Whatever reasons are given, just know that doctors will try to make as much money as they can in the shortest period of time.

In a system of free market medicine, goodwill is optimized.  Don’t count on that because as soon as another system, replaces the free market, goodwill starts to disappear rapidly. Healthcare was far from perfect before Obamacare became law. Costs are now skyrocketing and good care, for the most part is unavailable now that the law is in effect.

To the degree that government is involved in healthcare, there will always be less that costs more. Repealing Obamacare is a great move, but replacing it is worse than leaving it the way it is.  Republicans cannot replace Obamacare with anything better. Repealing Obamacare and then walking away is a better choice.

 

Just Another Day at the Whorehouse by Curbside Jimmy by curbside Jimmy

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The Cause of the Depression

The United States is actually in an economic depression. It started in 2008. Why does it not seem like a depression? Suppose a private citizen had a job that paid $100,000 per year, suddenly got fired and couldn’t find a job no matter how hard he looked.  But, he had the means to borrow $1,000,000 to live on until times got better. If he lost his job in 2008, he would be getting close to running out of spending money. Until he could no longer borrow money, no one would ever guess he was having any hardship.

That is basically what has happened in the United States. I explain that the money supply consists of all of the money that has been earned plus all of the borrowed money that can be repaid. That is an abstract concept and there is no exact number that can be used as a variable. Money created by government is not actually money but facilities theft by those with enough political power to control government.. Common sense can be used to tell whether the country is over that amount. When government adds money under the auspice of stimulating the economy as it is going into a recession, the economy is not actually stimulated. Instead, the money is used by corporations to buy back stock and pay dividends to stock holders. All humans operate according to one basic incentive, self interest. The wealthiest people on the planet can make the most money in the shortest period of time by using money added by government to finance corporate buy backs and pay themselves dividends.  When it becomes impossible to borrow more money, the economy crashes just like the living standards of private individuals who borrow but have no income.

In the past, astronomical debt was not considered to be a problem because foreign entities were anxious to buy U. S. investments, both debt and equities.  There is a problem now. Countries like China under valued its currency artificially to increase its exports to the United States. At the same time the United States, through its central bank, has intentionally enhanced the value of both stocks and bonds. In other words, the U.S., China and other nations for years have been doing everything possible to cheat each other.

As of 2017, none of the countries involved are getting what they want. Trade wars are beginning. In the spring of 2006, the United States was entering an economic recession. Since that time government intervention has been greater than at any time in our history. Despite what the empty heads tell you, recessions are absolutely necessary if a country is going to continue growing economically. Government intervention prevents what is perfectly natural from happening.

A healthy recession is necessary to reallocate a county’s resources in the most efficient way possible. For ten years now, government policy has been to keep GDP from falling at all costs. Markets for all goods and services have not been allowed to clear while financial assets have been artificially elevated.  The economic imbalances we have today are many times worse than in 2006. Had a normal recession been allowed to occur, business and employment would be terrific by now. A natural recession works itself into a recovery in six to nine months. After ten years of avoiding a recession an actual depression is a certainty.

As I say, the cause of any economic problem can be reduced down to a few words. The cause of the depression we are now in is a lack of trust in the free market. The depression is aggravated by the failure of our political system. In 2008 when the TARP bill was passed over the loud objections of voters, that was a warning sign. Since 2008 passing bills against the will of constituents has become the standard. The depression will get much worse, and there is a chance our democratic republic will be replaced with something more authoritarian.

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How Trump Got to be President

First let me say, with Fantasy Free Economics no one gets to wear a halo. The president is not held in awe. The president gets no respect. No respect is needed in research. The president is not worshiped. The president is just one of the animals. He has special attributes that I will get to,  but the president is just an animal acting on the one basic incentive nature provides all of the animals.

Lets start. Is there any reason Pee Wee Herman would never play linebacker in the NFL? Is there any reason that you could never play linebacker in the NFL? Here are some of the common characteristic of NFL linebackers.

1.) Competitive to the nth degree 2.) Much higher than average intelligence 3.) Height about 6’2″ 4.) Weight about 220 5.) Runs the 4o in less than 4.6 6.) Bench presses at least 315 lbs. 7.) Squats a minimum of 445 lbs

I don’t possess even one of the attributes needed to play linebacker in the NFL Somehow I don’t think you do either.

The NFL is highly competitive but still not nearly as competitive as competition to be the most powerful man on earth. Does it not make sense that a job like President of the United States would require some attributes that only a tiny fractions of humans have? I don’t mean attributes for doing the job, just the attributes needed to get elected.

These are the personality characteristics needed to compete and get elected president. These characteristics are not just needed. The successful presidential candidate  must have each of these characteristics in an abundance greater than practically anyone alive.

1.) Lack of empathy, 2.) Cold calculating nature, 3.) Shallow emotions, 4.)  Narcissism, 5.) Grandiose self image,  6.) Charming, 7.) High IQ, 8.) Manipulative, 9.) Secretive, 10.) Authoritarian

A successful presidential candidate must have all of these characteristics in abundance. At this level of politics, the one who loses has the same political personality. There is no way to win in politics at the presidential level without being 100% ruthless.

How and why did Trump win? Even with no political experience, he won because the level at which he possess these personality characteristics is off the charts.  That doesn’t mean he wasn’t the best choice. It is important to remember, Trump ran for himself, not you.

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Why Fake News Exists

I say from time to time the reason for almost anything can be explained in one sentence.

Why do we have fake news? This is it. “Tell me where a man gets his corn pone and I’ll tell you what his ‘pinions is.”, Mark Twain. To the extent we ever have real news, it is for the same reason.

 

 

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Why I Tell The Truth

I wish I could say that I am inspired by God to be honest. I would like to say I tell the truth for the good of mankind and want nothing but good for the world. I could pretend to be like a noble comic strip type character, Bat Man for example, noble in every regard.

The truth is that by nature I am about average in terms of honesty and integrity. That has been good enough to prevent me from ever spending a night in jail. Mostly I lean toward the truth because I am such a lousy liar.

When I was nineteen some friends and I were walking around in a discount store. I saw three fish hooks lying in a pile of dust. Without really thinking I picked them, put them in my pocket and forgot they were there. As we were leaving the store, I got arrested for shoplifting. My friends got arrested also as accomplices. At that point in life I realized I had no aptitude for a life of crime.

Back in the days when I taught algebra at a youth prison I would tell the students that story. Then I would explain that none of them were cut out to be criminals even if they enjoyed it. If they were already doing time at fifteen or sixteen years old, I explained that they should do something in life for which they had more of an aptitude.

On another note, with respect to economics, my theories would not work, if they were lies. Telling the truth is the only way I can make my theories unique. Economists normally get paid to lie on behalf of their employers in order to advance one agenda or another. Since I am such a lousy liar those kinds of jobs are not open to me. Nobody pays me to do anything so I have little to lose by telling the truth. I am not famous enough to be considered for the Nobel Prize so I just tell it the way it is.

Don’t get me wrong. I do have a conscience but it is no more pronounced than average. That being said, you can count on everything I say or do to be completely truthful.  People can read me like a book. If I told a lie on this blog, it would be obvious to everyone, so I am not going to do it. I would like to be thought of as just a nice guy but I tell the truth out of self interest.  I truly am the best economist in the world. I am also the world’s worst liar.

 

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