Fantasy free means I am not handicapped by the erroneous assumptions about human nature and institutions that mainstream economist are obliged to use. While they are exalting the human species, putting halos on certain persons and institutions, worshiping leaders and each other, I am working without the biases that make all of their conclusions useless.
If there was a such thing as a natural incentive to serve, I would take that into consideration. Only self interest governs human behavior outside of friends and family. Any and all Federal Reserve members are assumed to be acting in accordance with the imaginary incentive to serve. Their interests come first. If society accidentally benefits they are fine with that, but it has never happened and never will. The insistence will be that yes they are working for the public good.
Federal Reserve members are actually not economists at all despite having impressive credentials. They are highly competent accountants, statisticians and mathematicians. None of those disciplines have any predictive value except in the hard sciences. I am a student of natural law and almost never get anything wrong. Where human behavior is concerned, natural law works very well. Almost no one uses it, so almost no one will agree with me. It works. No numbers are available in the present moment but it is safe to assume everyone is acting according to natural incentives that are in place.
Federal Reserve members like Janet Yellen are not tops in their field. They are the best politicians in their field and that is what gets them their appointments. Their biggest responsibility is to make themselves look good. They have destroyed the economy carrying out the popular political agenda of elevating the stock market. The only tool they have left is buying stock outright. They are doing it and denying it at the same time.
Today, a Federal Reserve bank president resigned because he was caught giving heads up information a friend of the Fed. Don’t think this is an isolated event. Giving out timely information is a staple in goosing stock prices. Things like this are making it difficult for the Federal Reserve to continue with its political agenda. Also, the political agenda seems to be changing.
All of the Feds energy will now be devoted to saving face and appearing blameless when stocks and the economy collapse. Expect continued support for the stock market. For a while there will be down days but the market will drop slowly if they can’t move it higher. Don’t expect a huge crash right away. Instead watch for a crisis situation to emerge. The crisis situation will give the Fed the opportunity to blame their lack of success on exogenous factor that could never have been anticipated. Politicians will practice the art of not knowing, The current round of fleecing the public will be over. The public will have no idea what hit them and won’t have the sophistication figure out where the fault lies.
The Federal Reserve, by way of the political agenda they have been carrying out has destroyed the economy. There is no way for the country to avoid the consequences. Stimulus never has and never will improve an economy. Given human nature and natural law it is completely impossible just as it is impossible to make a suspended animation machine.
Stimulus is theft and does not have the capacity to be anything else.