The Economy Is Doomed

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First let me say that I haven’t caused any of this. So don’t blame me when the depression hits. I am just telling the truth about why the economy is doomed. I am free to do that because this web site generates absolutely no income for me or anyone else.

The biggest issue we face in the United States is that there is no way to recover from the coming depression. The free market system has largely been replaced with a system of top down socialism that is passed off as free enterprise. Contrary to popular belief things like adding more money or fiscal stimulus will not cause an economic recovery. Only free market influences can turn an economy around. Those influences are not only absent, they are being discourage. How and when did the Great Depression end?  New business investment started increasing immediately when Roosevelt died. As soon as it was clear that the country’s movement toward socialism had ended, the recovery was underway.

The depression will be very bad because its cause is many decades of central economic planning. Central economic planning guarantees the the economy’s resources become increasingly inefficiently allocated as time goes on.  The process of out with the old and in with the new is disabled. After over forty years of constant stimulus, the country’s economic resources are so inefficiently allocated that forward progress is not possible. So, the economy will collapse. There is as much certainty in this as there is in knowing that dropping a pinch of salt in your automobile’s gas tank every day will destroy the engine.

There is not one politician in the country suggesting anything but more central economic planning. The president of the United States is badgering the Federal Reserve Chairman, who is defined in economic theory as 100% objective, into doing more in the spirit of central economic planning. What is the trade war other than United States central planners warring with Chinese central planners? The ordinary citizens of both countries lose either way.

The coming depression will be life changing. The damage will worsen as time progresses. As more central economic planning is initiated troubles will get even worse. With free market influences being absent, the only path the economy can take is not a good one. Central economic planning caused the collapse of the old Soviet Union. The United States will have a similar fate.

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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artichoke
artichoke
2 years ago

The President has to deal with the system he has. The USA, and every other country in the world with maybe 5 exceptions, now has a central bank. So the practical question should be, what policy do we want out of our central bank.

Trump wants low interest rates. Everyone else has them, we should have them too.

Depression may still come, but I doubt it. International trade is still healthy despite the tariffs. Our economy is strong if we can get rid of a few of the parasites.

rlm4765
rlm4765
2 years ago

This global economy must be doomed in order to give excuse to replace it with a digital currency:

https://www.zerohedge.com/news/2019-08-24/why-mark-carney-thinks-dollar-can-no-longer-be-worlds-reserve-currency

This will usher in the tribulation:

https://sumofthyword.com/2016/10/04/the-rapture-of-the-church-is-after-the-tribulation/