Deflation Come Latelys

I sent my friend Sidewalk Sam in East Texas, an email showing that others are now predicting inflation just as I am. He thought the content was so on target, he suggested my posting the text of that email because it is so on target. So, here it is.

I can’t convince people of how simple this is.  The truth is not used in politics. It isn’t used in the media either.

It is one thing to entertain this intellectually. Acting on the basis that politics is all lies is harder to do. That is the difference between knowing and understanding. and experiencing.

Anything said in the media today reflects the agenda of those who control the media.

First , it is “let’s all fear deflation”. That went on for years. Now,  it is all “we must fear inflation”. That means buy now before the price goes up even more. All of that is agenda driven. None of these people can predict anything. Check their track records.

Their fear of deflation is real. Deflation works against them but helps everyone else.. Their fear of deflation is well founded. So, when a downturn, which is deflationary, is in the offing, they are even more scared of deflation. Therefore the inflation creating becomes elevated.

This has nothing to do with knowledge about economics. It comes down to figuring out what a bunch of liars are going to do next.

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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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3 days ago

Very interesting. More people need to read your column. Wish I could have visited with your family while they were here. But I am not the important one in this picture. Call me sometime when you can.