Acceptable Alternatives To The Truth

Download PDF Version                                                                         July 2, 2019

In explaining economics and politics, I have a complete advantage over all others who are doing the same thing, simply because I do not believe lies. That is not an unfair advantage. Anyone else can do the same thing. In politics, although the truth is in everyone’s tool box it is never used. Any politician who tells the truth is at an immediate disadvantage. When talking about politics I start by knowing I am not hearing the truth regardless of its source. All communication in politics is focused on getting results or advancing an agenda. Others who believe they are hearing the truth, even out of their favorite leaders, are generally wrong in their assessments from the outset. That is in fact the case with mainstream economics. Study mainstream economics if you want to be highly adept at understanding a system that does not apply to or even exist in the real world.

John Kenneth Galbraith was a brilliant 20th century economist. Sure he was a liberal but he was an absolute master at observing what was going on in the world of economics that was out of the visual field of everyone else. His solutions were misguided but his observations were right on.

In his classic 1950’s book, The Affluent Society, he introduced the term conventional wisdom. Today that term is used constantly but the gravity of its meaning has become lost. Conventional wisdom works out to be an alternative to the truth the vast majority of the time. Conventional wisdom is not what is true. It is a belief system the majority are comfortable with. Policy is always based on conventional wisdom rather than what is factual or even logical. Often it is a means of adopting a lie and hoping it works out for the best, because the truth is too troubling to look at.

What is today’s conventional wisdom? Probably the biggest is the insistence by virtually everyone is that the stock market is in a bubble created by investors bidding stocks up. It is quite unsettling to entertain the idea that we don’t have a bubble but a political agenda that provides affirmative action for stock prices. Bubbles burst. Political agendas fail but they don’t bust.  What are political agendas? Political agendas are what politically powerful people convince congress that government should do.

Somehow, I doubt that I am alone among economists as seeing QE and fiscal stimulus as not only unnecessary but completely destructive. The fact is that you cannot get paid as an economist unless you advance the conventional wisdom the modern discipline is based on. For that reason, the conventional wisdom that stimulus is needed and even that the Federal Reserve is an important necessary institution are standards that are hard to deviate from.

What conventional wisdom comes down to is a reasoning of choice, that displaces the truth. The popular ideas that circulate in the echo chambers, both liberal and conservative, are bits and pieces of conventional wisdom that morph into sound bites. So, when does anything other than conventional wisdom enter the national dialog? That happens when suffering caused by policies based on yesterdays conventional wisdom begin failing.
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 independent scholar,free market economist,and teacher of natural law. Who is James Quillian? Certainly I am nobody special, Just a tireless academic and deep thinker. Besides that, I have broken the code with respect to economics and political science. Credentials? Nothing you would be impressed with. I am not a household name. It is hard to become famous writing that virtually no one in the country is genuinely not in touch with reality. But, if I did not do that, there would be no point in my broking the broken the code. If you read the blog, it is easy to see that there are just a few charts, no math and no quantitative analysis. That is not by accident. Given what I know, those items are completely useless. I do turn out to be highly adept at applying natural law. Natural law has predominance over any principles the social science comes up. By virtue of understanding natural law, I can debunk, in just a few sentences , any theory that calls for intervention by a government. My taking the time to understand the ins and outs of Keynes General Theory is about like expecting a chemistry student to completely grasp all that the alchemists of the middle ages thought they understood in efforts to turn base metals into goal. Keynesian theory clearly calls for complete objectivity. Government can only make political decisions. Keynesian techniques call for economic decisions. So, why go any further with that? Fantasy Free Economics is in a sense a lot like technical analysis. Technical analysis began with the premise that it was impossible to gain enough information studying fundamentals to gain a trading advantage. Study the behavior of investors instead. Unlike technical analysis, I don't use technical charts. What I understand are the incentives of different people and entities active in the economics arena. For example, there is no such thing as an incentive to serve with life in the aggregate. In the aggregate, only self interest applies. It is routinely assumed otherwise. That is highly unappealing. But, I am sorry. That is the way it is. I can accept that because I am genuinely in touch with reality. Step one in using Fantasy Free Economics is for me to understand just how little I really know. A highly credentialed economist may know 100 times what I do based on the standard dogma. Compare the knowledge each of us has compared to all there is to know and we both look like we know nothing at all. There is always more than we don't know than what we do know. I am humble enough to present myself on that basis. Why? That is the way it is. I am not bad at math. I have taught math. What I understand is when to use it and when to rely on something else. Math is useless in natural law so I don't use it. While others look at numbers, I am busy understanding the forces in nature that makes their numbers what they are. That gives me a clear advantage.
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2 years ago

This whole corrupt system is allowed to exist to separate the lawless from the righteous:

Renaud Bouchard
Renaud Bouchard
2 years ago

.”Study mainstream economics if you want to be highly adept at understanding a system that does not apply to or even exist in the real world.” Blue pill or red pill…Breaking the thermometer has never lowered the fever.Ignore the facts does not prevent they end up jumping at your throat.
I read your text.Particularly intelligent analysis of an obvious situation. Congratulations
Renaud Bouchard