Expect The Announcement

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I am re-posting this article written 4-28-2018. I believe we are now approaching the crisis point where this will be highly relevant. The burden of the economic calamity, which will be experienced due to 40+ consecutive years of central economic planning and stimulus will be transferred as much as possible onto the backs of ordinary citizens.

Already, inflation by way of the trade war is creating the inflation that is necessary to transfer the burden of enormous debt  off of the backs of those who created it and put it on the backs of ordinary citizens.

Next, the patriotism of all Americans will be called upon as they will be expected again to bail out the financial system.


                                      The Announcement

The President of the United States will make a speech outlining the steps which must be taken to “save the world.” Just as the stock market enters a genuine bear market and selling accelerates and can’t be controlled, the Federal Reserve of the United States will announce a stock buying program to “save the world.” There will be bi partisan agreement that this needs to be done.

A growing number are realizing that the economy of the United States is highly unstable.
Unstable is not a strong enough word. The United States economy is doomed. There is no way out of a collapse. What can be done? With respect to avoiding a collapse, absolutely nothing can be done. Who bears the burden of the collapse is a different issue.
Who will bear the burden? That will be you and others just like you. What about you who live in Europe, Asia, the Mid East and Russia? You will be impoverished as a result. Economies in each country are failing for the same reason as is the economy of the United States. In every country in the world today, government is used as a tool to rig markets and enrich those with political power. The harm to you is not malicious. It is incidental but it is harm none the less.

The process of using government to guarantee an elevated lifestyle for the privileged over time, destroys the free market system and destroys the lives and opportunities of others who have no advantage. What happens, when a cow is milked for more than it is worth? It doesn’t produce anymore milk, at least for a while. The process and result of destroying an economy with political power is similar.

The public will be expected to absorb the losses of the elite. You can count on it. Here is how it will play out. The stock market will accelerate to the downside. As the slide begins, every effort will be made to force it back up. When key stocks are hit, others will get organized support to minimize the effect on the averages. Central banks are heavy into what we can call anointed stocks. Central banks buying stocks really is top down socialism and nothing more. Central banks are likely to buy more of their mistakes in order to avoid looking foolish.

The American public will be expected to let the experts take over because only they have the knowledge and expertise to right the situation. Like the TARP bill of 2008 and the quantitative easing that followed, the government action will end up saving the world’s elite from experiencing any loses while the rank and file suffer through the greatest depression in the history of the world. Sadly, the public will largely buy in to it.

Long term, they will destroy everything they touch. Fraudulent accounting will continue generating the best possible earnings that can be announced. Short selling will continue to be encouraged and short squeezes will continue to be orchestrated. We have seen this for decades. However, for now, this is all a mature political agenda. The goose that lays golden ages has indeed been killed and their will be a horrible reckoning.

When it is clear that the stock market cannot be saved, the announcement will come. A few trial balloons will be launched first to see how the public responds. If the response is negative the dialog will continue until the public response improves.
The announcement will be that the Federal Reserve will abandon its clandestine purchasing and announce plans to buy stocks outright to “save the world.”

Chances are good that one step will be to nationalize certain central bank favorites like Facebook, Amazon, Alphabet and others which are useful for forming and managing public opinion. They are all good  candidates for government ownership. The public may or may not support this. It will be done regardless. One longstanding principle in government is that forgiveness is much easier to get than permission. In 2008 TARP was passed over the loud objections of voters. Guess what? They passed it and they were forgiven. They will go back to the well another time.

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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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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dean myers
dean myers
3 years ago

I sent this onward to many people