History’s Greatest Cash Cow

Download PDF Version                                                                          September 29, 2017

History’s Greatest Cash Cow

Federal Reserve policy is and has been all along been a political directive to elevate and maintain asset prices, especially stocks.

Nature provides just one basic incentive, self interest. In economics studies and models, the incentive to serve is assumed into existence. In the real world there is no such incentive. Citizens petition government out of self interest. Those in government, elected and otherwise are there out of self interest. Federal Reserve Open Market Committee members are there to fulfill their own personal goals and aspirations.

.There is no such thing as an unbiased institution in government or in the private sector. The Federal Reserve functions in ways that help members achieve their personal agendas. That comes down to pleasing the people who help them get their jobs. Those people are part of the elite group which is powerful enough to dictate government policy.

The greatest cash cow in the history of the world has been that of obtaining enough political power to control Federal Reserve policy. The current round of bubble building does not have an exact beginning date. Government tampering with the financial markets began in a small way after the crash of 1987 during the Reagan administration. The practice of using the Federal Reserve to enhance stock prices grew from that point to where we are today. After the financial crisis of 2008 the practice has gone parabolic but it all began much earlier.

The job of corporate insiders is to make as much money as possible in the least amount of time. Any expectation that corporations would assist the country by tirelessly trying to save the world is misplaced. Ostensibly, corporations  would accept virtually free money and invest in plant and equipment and the economy would rebound. That is a way to make a profit but it is not the most possible in the shortest amount of time. The windfall came by engaging in stock buybacks, borrowing to pay dividends and overstating earnings. Friends of the Fed have made billions just by aiding the Fed in its agenda. Welfare for the rich by way of the Federal Reserve in one day surely surpasses the benefits the poor have received since the beginning of the country.

All during this time, the public has been completely fleeced and has no idea why. Profit margins have stayed high. Wages have been held down. Basic living expenses have skyrocketed. The public knows nothing about The Federal Reserve system. My wife Jean read that the majority of Americans believe the Federal Reserve is a nature preserve on federal land. When a population is this ignorant, it is easily fleeced. It is especially easily fleeced when the ignorant population is convinced that it is well informed.

The asset enhancement initiative is ongoing. It is not restricted to the United States. It will not stop until the entire system fails. It is hard to say when that will happen. This is the biggest money heist in the history of the world and is amazing that ordinary people are completely unaware of how much they have lost.


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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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