A Nation Of Fools

PDF Version                                                                         December 18 2019

What we have in the United Sates is a multitude of fools. What is a fool other than one who bases his life on things that are not  true because the truth is too daunting? What is meaningful to a fool? Why that would be entertainment and engaging in mindless fantasy. Politics comes down to seeking political messiahs and virtue signaling. The role of citizen in a democracy, is to take authority over government and leaders. American citizens do just the opposite.

As unpleasant as they are, here are the facts.

While republicans identify themselves as conservatives, they embrace political initiatives which are even more socialist than those suggested by the unapologetic classic socialists in the Democratic party.

What is socialism other than the replacement of price with political power for the purpose of allocating resources in an economy? In other words, who gets what in a socialist economy is determined by who does or does not have political power. Benefits all go to the top regardless of stated intentions. This is true of classic socialism. This is true of the fascist style socialism Americans are now embracing while calling it capitalism.

All the president has to do is say, “Make America Great Again” and supporters rally around the man and think of themselves as good patriotic Americans. So which period in history would we be better off returning to. Is it the 1940s and WWII? To do that we would have to have a third world war. Should we return to the 60s and be hippies again? How about the Civil War? When was this great period in history that we are going to return to? The president identifies scapegoats like immigrants and the Chinese. The scapegoats become the issue.

What about the trade war? So far, in all of history, there has never been a positive outcome for any country involved in a trade war. Does anyone want to place a bet that ordinary citizens will come out ahead with this one?

So, we have a trade war which will bolster the profits of American corporations. American corporations are in fact headquartered in the United States. The corporations are owned by stockholders who are scattered all over the globe. Foreign central banks own significant amounts of stock in these “American Corporations.”  So, Americans believe it is a good idea to put themselves in a financial hardship so that our corporations can win one for the team? Americans are trained from birth to do just that. That is not a way in which an economy works wells. It only works that way if the population is trained to promote its own poverty.  The greatest accomplishment of public education is to teach children to establish arbitrary loyalties and promote their own poverty by embracing the collective agendas of others and coming together for causes deemed in the public interest.

Employment numbers look good but are they really? Even if the numbers are not tampered with and embellished has anyone taken a close look? We now have lower wages as a new normal for workers. Perhaps we do have more people working these days. Assuming we do, most of the new hires are working for less real income than when job numbers were a lot less than stellar.

What about the stock market? Starting in spring of 2003, an asset value enhancement initiative was initiated.  With every day that has passed since then, the stock market has become more and more managed. There is no official policy stating as much, so you might wonder how that could be. Do you seriously think there is absolutely nothing in Washington that is done outside of a formal congressional setting? A better question, is. Are there any significant issues entertained in a formal congressional setting? I don’t know of any. Do you know any?

Here is why the stock market is overpriced and doesn’t fall. There is an astronomical level of organized support keeping it moving in the right direction. Imagine vendors  selling apples on a sidewalk. All but one has just a bucket of apples while while one large vendor has a huge cart of apples with far more fruit than all of the others put together. Who is going to decide what apples sell for on that street?

The goal of the asset value initiative is to is to concentrate stock ownership in the hands of a few who then decide what everyone else pays for shares of stock. Is there a theory behind this process? Of course there is. The theory is that high stock prices become a new normal. Keep security prices rising and the economy will follow and so on. Has GDP responded well? GDP is officially very good but how good is it in reality? It is hard to find growing prosperity within the masses who work very hard and come home tired everyday. We do have more working and making less per hour. Government spending is counted. When GDP needs to look good, government spending can be increased in whatever amount is needed for the purpose of publishing good looking numbers.

What we have with respect to the stock market is the capture, consolidation and control of a huge portion of one of the factors of production. The Federal Reserve is managed with political power and all of government is used as a tool for personal enrichment. Stock buybacks are coordinated with Federal Reserve Policy. The public has its money parked in IRAs and puts little stock on the market as supply. Non-IRA money is concentrated in ETFs so hardly a soul is concerned with the value of one particular stock price. Where is supply going to come from?

For right now, there isn’t any to speak of but supply will emerge, although not in a way most expect. For now, any reasonable stock selloff can be offset by the elite buying outright. Foreign central banks already own a lot of American shares. They will buy more  if prices start falling, if for no better reason than to protect the value of what they already. The elite in general will do the same thing. When if ever or at all will stock prices normalize?

The bottom will fall out when the economy collapses and the damage cannot be explained away. The elite will panic in the same way everyone else normally does when their fantasy based paradigms fall apart. The elite do plan on being bailed out. Be prepare because they just might be. How? We don’t know yet. We do know that they are a lot smarter than the rest of us.

Both the economy and the stock market will collapse but the economy will be the first to fail. The economy is rotting from the bottom up and the rot is moving higher up the income ladder every day. The stellar numbers we are seeing are good for show. When the bottom of the economy falls out, the top will collapse on top of all others.

Do not expect an economic recovery. Only free market forces can fuel a recovery. Our free market system has been replaced with at least two styles of socialism.

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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Fantasy Free Economics recommends the following blogs.

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

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About Fantasy Free Economics

James Quillian is an independent scholar,free market economist, teacher of natural law, teacher and originator of the Fantasy Free approach to economics. James Quillian does not believe lies. Contact: news@quillian.net
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