The Economy Is Doomed

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First let me say that I haven’t caused any of this. So don’t blame me when the depression hits. I am just telling the truth about why the economy is doomed. I am free to do that because this web site generates absolutely no income for me or anyone else.

The biggest issue we face in the United States is that there is no way to recover from the coming depression. The free market system has largely been replaced with a system of top down socialism that is passed off as free enterprise. Contrary to popular belief things like adding more money or fiscal stimulus will not cause an economic recovery. Only free market influences can turn an economy around. Those influences are not only absent, they are being discourage. How and when did the Great Depression end?  New business investment started increasing immediately when Roosevelt died. As soon as it was clear that the country’s movement toward socialism had ended, the recovery was underway.

The depression will be very bad because its cause is many decades of central economic planning. Central economic planning guarantees the the economy’s resources become increasingly inefficiently allocated as time goes on.  The process of out with the old and in with the new is disabled. After over forty years of constant stimulus, the country’s economic resources are so inefficiently allocated that forward progress is not possible. So, the economy will collapse. There is as much certainty in this as there is in knowing that dropping a pinch of salt in your automobile’s gas tank every day will destroy the engine.

There is not one politician in the country suggesting anything but more central economic planning. The president of the United States is badgering the Federal Reserve Chairman, who is defined in economic theory as 100% objective, into doing more in the spirit of central economic planning. What is the trade war other than United States central planners warring with Chinese central planners? The ordinary citizens of both countries lose either way.

The coming depression will be life changing. The damage will worsen as time progresses. As more central economic planning is initiated troubles will get even worse. With free market influences being absent, the only path the economy can take is not a good one. Central economic planning caused the collapse of the old Soviet Union. The United States will have a similar fate.

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 YouTube Channel

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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Confessions Of A Happy Conspiracy Theorist

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Conspiracy theory is a term that is used to protect a lie.

Where do we find the most conspiracies? Very little happens in Washington D.C. that is not a conspiracy. What is a lobbyist other than one who represents others who are conspiring to have congress pass a bill that bolsters their income and well being. Every election is filled with conspiracies to allow one candidate to gain an advantage over the other or to discredit the opposition. Continue reading

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An Epstein Deal Is In Place

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Every day that goes by where citizens allow the coverup of one of the most most sinister crimes in the history of the world to to be covered up and dismissed we are putting nails in the coffin of our way of life and perhaps the country as a whole. The media is already starting to shelve the Epstein story. Why? The same organization which wants the crime covered up owns the media. What do you expect the media to do?   This is what the situation appears to be from the fantasy free vantage point. I think I I am right. Continue reading

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I Still believe Epstein Was Murdered

                                                                                                              August 16, 2019

Years ago I was sitting in an 8th grade science class. A message was sent from the office that President Kennedy had been shot. Shortly following the investigation, it was concluded that he was killed by Lee Harvey Oswald and that he acted alone. I was 14 years old at the time. Even at that young age I didn’t believe for a second Oswald acted alone. I never believed for a second that Jack Ruby acted alone in murdering Oswald. Continue reading

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Fusion of Government Crime and Religion

Download PDF Version                                                                     November 15.2018

Danger is in plain view but the mind is trained not to notice. Danger itself doesn’t exactly hide. Looking at the world through the prism of fantasy yields danger unrecognizable. Seen through the prism of fantasy, danger appears to be a friend. The notion that government is your friend or even benevolent is comforting but it is only a fantasy. Entertaining that fantasy is comforting but it may also cost you everything you own or even your life. Continue reading

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Conspiracy Theory or Doubting The Veracity of What You Are Told?

Epstein’s body is hardly even cold and those who doubt the veracity of the developing official narrative are already being called conspiracy theorists. Personally, I don’t mind being called a conspiracy theorist. Why? The majority of conspiracy theories turn out to be true. Most that are false are those like the fake moon landing theory, and can be seen to not be true from the beginning. When news comes out, and minds go into the “what is wrong with this picture mode?, the story is generally incomplete or a fabricated lie.

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Americans Have Still Not Snapped

Download PDF Version                                                August 8, 2019

These are facts:

Economic policy is theft. Yes, economic policy is theft, It has never been anything else and never will be. So, why do folks treat it as necessary? That is at least a partial mystery. I have explanations but that is for another time and place.

Why is economic policy theft? Continue reading

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Mass Shootings

Download PDF Version                                                                 September 6, 2019

Laws, especially federal laws are now being enforced or not enforced depending on political power. The elite of the world are not bound by laws at all. The only time elites are prosecuted for anything is when not prosecuting them puts other elites in a bad situation. Madoff and Epstein are good examples. Organized crime has taken over government and runs it for their own benefit. Don’t think this situation has no effect on the behavior of people at the bottom of the food chain. Continue reading

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Indicators Of An Impending Washout

I am not trading and have not been since 2013. I have been in a 99% cash position since that time. This doesn’t mean I will never trade again. It just means getting little or no return is my best option. Opportunities have abounded because the market has rocketed higher over and over again over the past 6 years. One of the interesting things about investing is that more fortunes are constantly flying in front of your nose than ones you take advantage of. The fact is that stock prices are manipulated to such a degree any indicators I use function as traps. I simply have no way of knowing how long the stock market can be elevated by means of government inspired affirmative stock market action. So, I have been on the sidelines. As for missed profits, others are welcome to them because they are accepting a degree of risk I have never seen in financial assets before. Anyone who has been long either by luck or expert calculus deserves what they have earned. Anyone now who can figure out how to keep their profits will be doubly deserving.

I still keep indicators because I will be back in eventually, provided there is still a stock market and a United States of America and I am still alive. I am going to show some indicators I keep to illustrate just how much danger there is in holding equities right now.

Notice the assenting head and shoulders pattern for Exxon Mobil (XOM). XOM is only one stock and not an index. But, patterns like that of XOM abound. The topping pattern covers a period of over 20 years.  What does it mean when 20 year long head and shoulders patterns break their necklines? It means a once per century washout and complete economic chaos for 5 to 20 years.

The chart below shows the total ETF volume as a percent of regular stock volume. During this long period of affirmative stock market action, a significant increase in relative ETF volume has reliably predicted bullish market turns. For the past year it has not been nearly as reliable. One of the things the manipulation consortium does is load up on bullish derivatives before goosing the averages. There has been no bear market since I have been keeping this index. Chances are signals will be reversed in a bear market. Look at the red ellipse. Relative ETF volume literately went off the charts on Friday. That means one of two things. Either the Deep State is planning to commit unprecedented resources to getting the bull market back on track starting on Monday. Or, they are giving up and loading up on bearish derivatives instead. My guess is that it is the ladder.

TZA is a popular 3X bearish ETF. TZA volume has suddenly rocketed to an extreme level. That is a good indication that folks who have rigged the market to the bullish side are flipping and plan on making windfalls on a significant ensuing drop. It also lends credence to the guess that super high ETF volume is occurring in advance of a washout.  Overall volume is increasing on the downside. To control the market, the Deep State must keep volume down. Folks may be selling without their permission. The nature of trading volume cultivated or otherwise has been perfect ALGOS and all who participate in rigging the market. That can change. As it is, almost all volume comes from from trades that last from less than a second to those which exit before the close. When long term holdings start hitting the market, the Deep State’s job may be too difficult. What happens when split second trading prowess ceases to be an asset. There are reasons why low volume is cultivated.

One time tested market breadth indicator is the percent of stocks trading higher than their 200 day moving averages. Unless averages are manipulated higher purposefully there is no way, stock averages are going to make new highs with only around 53% of stocks trading above their 200 day moving averages. Breadth divergences are typical at turning points in financial history. This is one of those times and the poor market breath is much worse than would occur in a free market setting.

I have made the point many time that using indicators to trade is pointless when supply and demand are not what is causing stock prices. It sure works that way over short and mid term trades. This it the first time I have seen long term indicators this negative. They usually do look negative in a market rigged to the plus side, but not this bad.

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 YouTube Channel

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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Bailouts Begin When Organized Support Fails

Download PDF Version                                                                  July 18, 2019

Do not think that the stock market has reached new highs for any other reason than organized support or affirmative action for stocks. Notice that lazy writers of most articles still expect the financial markets to correct in the same way markets have always changed direction.  That is not the case. Markets have been completely manipulated and are still being manipulated. Organized support will fail. At that time, new bailouts will begin immediately. Bailouts will begin before a bear market is even officially acknowledged. The market is barely off new highs and there is an aura of panic in the air already.  Waiting too long is risky. It is better to begin the bailouts before the public has time to gain information and raise objections.

Stealth bailouts have already begun. When Federal Reserve members and other economists say that inflation is needed, what they are really saying is that we need to bail out borrowers. Economists are routinely paid to use their credentials to justify sinister policies thought up by the parties who hire them. What will the trade war do in addition to impoverishing consumers by way of higher prices? The trade war will create much inflation and that will be to bail out holders of massive debt both public and private. If you don’t know how inflation serves as a tax and reduces debt, type a few key words into a search engine and read about it. It takes less than ten minutes.

The purpose of government is misunderstood. It is tempting to go with the lofty definitions learned in school and in popular culture. More important is how government is used. Fantasy Free Economics defines everything according to how it functions and not according to how it is explained to society.

Government is supposed to administer justice. Does it? No it does not. It serves more as a medium for controlling markets and managing the behavior of others for profit. To understand government, that is the process that needs to be focused on. I study government in keeping with what it really does and not according to what it is imagined to do.

The wealthiest people in the world basically have the United States government and most others working on their behaves. Who owns most of the world’s equities? They do. Since they have the enormous political power it takes to dictate government policy, they are doing just that. It makes sense that they would use government as a means of creating an ever rising stock market. They have and they will as long as it is possible but it won’t last forever. Chances are it won’t last much longer at all.

When the stock market fails the bailouts will begin. The same group that has had the political power to create government sponsored financial markets has enough political power to limit any losses by insisting on bailouts.

It has to be early in the collapse because the political structure of the country is starting to change. If they wait too long, they will have lost their advantage of political power and won’t be able to get their way.
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 YouTube Channel

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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