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 recommends the following blogs.
Woodpiler Report Of Two Minds Liberty Blitzkrieg Mises Institute Straight Line Logic Paul Craig Roberts Straight Line Logic