The Pretense of Knowledge

Alan-Greenspan-007The American Public is highly vulnerable to many dangers, that result from a severe deficit of education, almost complete  ignorance, and an unrealistic high level of self esteem. I have written previously that the largest and fastest growing industries today are those which engage in human herding and opinion and behavior management.

Credential are a gold mine to anyone wanting to make a living off public ignorance and stupidity. Alan Greenspan, former Federal Reserve chairman is now speaking publicly about returning to the gold standard as the new calamity grows in seriousness.

Greenspan makes reference to period from 1870 through 1913 as being totally prosperous as the country was on gold standard. True, this was a prosperous and there was nothing wrong with being on the gold standard other than it was a government generated currency. This is the same guy who scared the public many times by pointing to the dangers of deflation. 1913 through 1970 is the only period in which the country experienced prolong deflation. Deflation occurred naturally when the productivity of labor increases. Greenspan does not understand economics. His credentials allow him to soak public endlessly with his pretense of knowledge. Greenspan does not understand economics but prospers greatly by the people who think he does. Yellen and Bernanke do not understand economics either.  There is a difference between knowing a lot of things and knowing something that has has utility to society.

In days to come this will be obvious. I am giving you advance warning. I have explained what money is. Money evolves naturally when work is performed. There is no way to avoid this relationship. Too much money only occurs when there is a perceived need to influence human behavior.

The Grazin’ Is Good, a wonderful Curbside Jimmy tune

Posted in Daily Comments | Leave a comment

Reasons to Vote For Hillary Clinton

Marion BarryIn the early 90s Marion Barry, mayor of Washington DC was sentenced to prison on drug chargers. After he was released, the citizens readily elected him to the city council and then as Mayor again. Why would the folks in Washington DC want a convicted felon as their mayor? The answer is simple. Washington DC is the illegal drug capital of the world. Crack and cocaine abound. It makes sense that one of their kind should represent them.

Why vote for Hillary? maxresdefaultShe is the best candidate for the huge portion of the the United State’s population who are morally and ethically destitute.

 

Posted in Daily Comments | Leave a comment

Democracy Under Siege Free Markets Near Extinction

tombstoneIn a world that appreciates democracy, ordinary British citizens deciding an issue for themselves would be treated as a wonderful development. The current global mindset is that it is much too dangerous for regular people to decide these things. The anti democracy mindset is far more dangerous than any negative developments coming out of leaving the European Union.

Where free trade is concerned, the European Union is a hindrance to free trade. With actual free trade, British Citizens would be much better off. Goods and services would be less expensive, employment would increase. Only billionaires who use the European Union to rig markets would be better off remaining. All notions that a government can initiate programs that improve the economic lives of citizens are nonsense.

For Britain or any other country, free trade comes down to unilaterally removing trade barriers. Free trade plus free markets are the ticket to prosperity for any aggregation of people wishing to make use of the principles.

The world owes Britain a debt of gratitude for re-introducing democracy to the global political scene.

HardTimes Coming , A Curbside Jimmy Original

Posted in Daily Comments | Tagged , , , | Leave a comment

Down Day But No Brexit Crash

062416The market did not crash although 3% down is meaningful.  Monday, every available resource will be used to turn the market back up. Chances are very slim that the market will crash early next week.  The Federal Reserve claims to not support stock prices. Don’t believe it. The stock market will be weak for at least two years. As stock prices struggle, no effort will be spared get them back up.  The Federal Reserve is not independent. It is only said to be independent.

Much will be said about free trade over the coming weeks. The European Union is not an instrument of free trade.  Free trade is simple. To engage in free trade. all a nation need do is remove all restrictions on the import and export of goods and services. A trade agreement always means restrictions on trade, not free trade, even though it is stated otherwise.

Global economic problems have two causes. The causes are distrust of free markets and distrust of democracy. Until one or both of these issues change economic hardships will accumulate.

Posted in Daily Comments | Leave a comment

Stock Market Post Brexit Vote

2d7c08db-9d87-43ce-921f-513acca86f7e-2060x1236A vote by the British to exit the European Union will not cause a crash on Friday. The Federal Reserve and other central banks are prepared for that outcome and will buy like mad men. It is never a good time to be short when an event has the potential to sink the market.

Chances are the British will stay in the European Union. If the market crashes, it will be on a stay vote, if the celebration fails starts to fade after the initial excitement.

Posted in Daily Comments | Leave a comment

Why Fascism Grows

dont-feed-the-bearsIf we feed a dog a a washtub full of hamburger meet, the dog will eventually get full and stop eating.

Once the rich learn to use government to feed themselves, their appetite is unquenchable. There is no incentive to stop feeding.

In living off the efforts of others, the rich have some distinct advantages. First, they are role models for wannabes and are thus worshiped. People do not mind being exploited by those they worship. The rich are far more intelligent than their lesser counterparts. The rich gain political power and use it to continually gain more economic power.

The poor and middle class who are literate but mostly uneducated believe they are watching free market capitalism in motion. They are not. Instead they are watching free market capitalism being destroyed. Until it is very late in the cycle, victims of fascism put up no resistance. By that time, the rich have government and all of the media on their side.

Fascism does end after the host country is destroyed. Early in the cycle, government benefits extend all they way down to the moderately wealthy. After the poor have been destroyed, the exploitation moves further up the ladder. With each passing day the total number of rich decline in number but the wealth of the remaining rich continues to grow. Eventually there is not enough income going to  lesser humans to be successfully exploited.  This is where the United States is today.

The solution is simple. Do not feed the rich. Let them feed themselves.

Posted in Daily Comments | Tagged | Leave a comment

Danger and Brexit

brexit_brexit2-800x475In case anyone is not following this, Bretxit means British citizens voting to leave the European Union. By some, the prospect of Britainleaving the European Union is deemed the disaster of the 21st century.

Brexit is not the actual danger. The danger is present regardless of what British citizens decide to do. Central Planning has destroyed Europe just as it has destroyed the United States. The economic outcome of a certain region is not determined by one vote one day or any one day event. It takes years to do the kind of damage Europe has undergone. The fallout from European central planning will cause suffering throughout the century. The damage will be present long after Europeans have forgotten how conditions got so bad.

We have to respect the British for respecting democracy. When the British citizens opposed sending troops to Syria, the British government respected the will of its citizens. In the United States, the citizens have no such control over government.

Whatever the outcome of the Brixet vote, the damage has been done and there will be suffering one way or another.

Posted in Daily Comments | Tagged | Leave a comment

Humphry Hawkins Testimony

xJanet Yellen is testifying before congress today. Ms Yellen is the epitome of a fantasy based economist. She is the kind that gets paid. She is a good enough accountant but nothing she or the other Open Market Committee members have any utility to society.

If Janet Yellen, Elmer Fudd and an astrologer each came up with a unique government economic policy, which would have the best plan? Probably Elmer Fudd would have the best idea. Yellen would have no chance because she is driven by strong political agendas. The astrologer might luck out and do no harm. Why would Elmer Fudd do so well? There is some possibility he would say to do nothing.

Posted in Daily Comments | Leave a comment

End of Democracy

democracy-allPolitics is about the present. What is good for tomorrow or what should be remembered from the past is not considered. History for most Americans begins at the date of their last suffering.  Citizens who have not suffered, have no grasp of history at all.  For all but a few, Mid East History begins on September 11, 2001. For Republicans, financial history begins the day Obama took office. For Democrats, history begins when George Bush Jr. took office.

For a very few others of history starts with artifacts and ancient writings and extends to the present. I am not surprise that very few remember the financial crisis of 2008 or place any importance on it.  In the fall of 2008, I discovered that the democratic principles on which the United States was founded were being discarded. The TARP bill was not popular. The public was against it something like 100 to 1. The bill passed over the loud objections of constituents across the country. The consent of the governed was not required. The appearance was that democracy had died. It had died and it is still dead.

Today everything possible is done to make sure the president is chosen by the elite instead of by the will of the people. The media manages public opinion as much as possible. Large campaign donors insist that they pick the candidates and that voters choose among the selection the elite offer them. The most important aspect of the 2016 election is actually not who ends up getting elected.  More important, is the degree the will of voters is usurped.

By the time the election is over, our whole style of government may be a thing of the past. Voters not only lack the power to control government, they lack the will to do so. Both parties have spent countless hours circumventing the democratic process.

When a president is elected, that person begins serving only those who helped get him elected. The population is fairly used to that outcome. The loss of democracy and any chance at self government is a far more serious issue than who becomes president for a maximum of eight years.

Posted in Daily Comments | Leave a comment

Fantasy Free Economics

Fantasy_Free_1_small

I am changing the name of my economics blog to Fantasy Free Economics. Common sense is largely misunderstood. Being fantasy free is the primary attribute necessary for using common sense. Mainstream economics is based on fantasy in more ways that it is possible to enumerate. Fantasies can create dynamic economies which appear to be flawless until they start to crumble. The biggest economic collapses occur in economies where fantasies are mainstream and give rise to flawed conventional wisdoms.  The German economy under Adolph Hitler is a prime example. The fantasy of Aryans being a master race kept Germans focused on the future until the country was destroyed in war.

Fantasies, some potentially as damaging, are the foundations of many economies and political systems. Fantasies Americans have about themselves and the United States abound. Fantasies can be nice thoughts but they always come undone and reality eventually imposes itself on the general population. This is in the process of happening right under the noses of American citizens.

Some fantasies are lethal as was Hitler’s Aryan fantasy. Americans claim to be special but are unwilling to engage in the behaviors upon which “being special” is based. The notion that government is benevolent is another one. Is the U.S. military actually promoting freedom around the globe? All evidence shows that it is not but the minds  fantasize that it is . As wonderful as all of these fantasies are, there is certainty they we will all be impoverished by believing them. Chances are these popular notions will get many of us killed and result in the loss of our political system.

I am the world’s best economist, but nowhere close to the smartest. Being the best is only temporary. That will be clear when others discover my observations. Right now mainstream is seriously handicapped by treating individuals as being autonomous and independent in decision making. Human beings rarely make individual choices and that is a big disadvantage to all who insist that they do.

A fine timely tune by Curbside Jimmy, Euphemism Mountain Euphemism Mountain

Posted in Daily Comments | Tagged | Leave a comment