The Imaginary Incentive to Serve

How is Fantasy Free Economics different than mainstream economics and standard economics dogma?

Mainstream economists just like laymen believe in the imaginary incentive to serve. Nature only provides one universal incentive, self interest. Like the naive public, PhD Smith, PhD Jones and all of the others believe in the imaginary incentive to serve. The imaginary incentive to serve is not written into text books. It is just assumed to exist. In the minds of PhD Smith, PhD Jones, everyone in government is acting on their strong imaginary incentive to serve. If something goes wrong, it is because of a failure of the reasoning process and certainly not because the imaginary incentive to serve is missing. What motivates members of the Federal Reserve Open Market Committee? Why certainly, they are motivated by the imaginary incentive to serve. Except that they are in reality guided by self interest. Continue reading

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Tariffs & Inflation to Bury the Federal Debt

The purpose of the tariffs is to increase the rate of inflation. Why would Trump do such a thing? Inflation is a tax. Inflation rides on top of the tariffs which are also taxes. There is a unique aspects of the inflation tax. First the overall population will not be aware they are being taxed. Continue reading

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The Means Determines The End, Facebook

Most of life’s activities are based on the Marxist notion that the end justifies the means. That is not the way it works. In natural law the wrong means guarantees a negative outcome. So, the end that Marxists have taught is worth any means necessary, is not really achievable unless there is a moral means of getting there.

The world is discovering that in building its business, facebook has lied and cheated more than they have done anything else. So are facebook’s glory days over? Natural law says they are. Continue reading

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Economics by Force

In any economy, the population over all is best served with a free market system. However, any given individual in an economy is better off being personally exempt from the laws of the free market system while everyone else is subject to them. Suppose in the NBA a certain team had a few players who were exempt to the rules of the game. So these players were free to foul with impunity while everyone else got penalized. Rather than the referees telling them what to do, they told the referees what to do. That team would win every game it played in. The anointed basket players would be engaging in basketball by force. The success of the NBA depends on the game being fair so cheating is not allowed. Continue reading

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Disappearance of the Search Engine Concept

What do Google, Bing and Duckduck Go have in common? The human mind has defined these enterprises as search engines? Google was a search engine at one time and a good one. Yahoo at one time was a search engine. Today there are no search engines. Continue reading

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The Deficit Spending Racket

The massive deficit spending that Trump has initiate will transfer more wealth and income from the bottom of the food chain to the top. That is what Keynesian style stimulus is used for. The ostensible purpose is to stimulate the economy. What it does in practice is generate feeding frenzies on government money, for those who lobby for the stimulus. The beneficiaries are the businesses and individuals who are paid directly with government money. All others lose. Donald Trump’s deficit spending will further widen the wealth and income between the upper 1% and the rest of the country.  Continue reading

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Cabbage Head Theory Disproved

What is the cabbage head theory? Several decades back a researcher put a sensor on one head of cabbage in a garden. Then he whacked the cabbage head next to it with a machete. To the researchers amazement, the cabbage head next to the one that was hacked, emitted an electrical signal  just as the one head of cabbaged was cut wide open.

The cabbage head theory states that since human beings are smarter and more sensitive than cabbage heads, human being should naturally be sensitive to harm and suffering that is being inflicted on others. Human beings really do have trouble automatically grasping that what is happening to others may very well happen to them when circumstances change just a little. Continue reading

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Donald Trump Becomes a Democrat

The Democrats, especially the leadership have really backed off and are offering little or no resistants to the President’s initiatives. They are giving up on the superficial issues like the border wall and his enforcement of federal immigration statutes. It appears that there will be no meaningful opposition to Trump by the Democrats in 2020. They will have a candidate but it will be understood from the outset that the candidate has no chance.

Why the change? Donald Trump has basically become a Democrat. Continue reading

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What a Real Bear Market Looks Like

1929I will be clear. The economy in the United States is much worse now than it was in 1929 or in 1973. This will be the first economic collapse to occur following forty years of government intervention in the economy. Government has been supporting asset prices since 1987, off and on at first and finally on a daily basis.  Given the gravity of the current circumstances, the coming trouble will likely exceed what was experienced following 1929 and of course 1973.  1973To gain perspective I am posting charts of stocks 1929-1933 and 1977-1975.  Both of these bear markets occurred because given the respective resource distributions the economy could no longer grow. That is the situation today. When looking at an economy, remember that the present cannot be explained with numbers. It is all folks acting on incentives. Understand incentives and what to expect next becomes very clear.  The next bear market will likely take several years to completely hit bottom. After that there will likely be stops and starts for about ten years. This is what happens when an economy resets. The U.S. economy is way over financed. This means there is more money chasing investments than there are legitimate opportunities. On the bright side, if the country survives, this will be the stock buying opportunity of the century.
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.

Dandelion Salad Of Two Minds Liberty Blitzkrieg Mises Institute Straight Line Logic Paul Craig Roberts


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Expect The Announcement

                                      The Announcement

The President of the United States will make a speech outlining the steps which must be taken to “save the world.” Just as the stock market enters a genuine bear market and selling accelerates and can’t be controlled, The Federal Reserve of the United States will announce a stock buying program to “save the world.” There will be bi partisan agreement that this needs to be done. Continue reading

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