The Horse The Economy Rides, The Stock Market

The Horse The Economy Rides PDF Version

The theory is that a controlled perpetual uptrend in stocks that is unshakable  will carry the economy with it. And, it has as long as folks are happy the upper one percent grows in prosperity while the rest of the country suffers  from shrinking real incomes. Yes, GDP which is quite malleable because there are so many wild cards used in its method of calculation, can be anything it needs to be in a given quarter. GDP cannot be managed statistically forever. Eventually the headwinds of reality make manipulating numbers impossible.

No, no president or anyone else has or ever will go on television and announce that government is guaranteeing ever rising stock prices for the good of the country. It is strange that citizens see government as where all of the voter’s fairy god mothers go to make life better for everyone. That is so untrue, it is comical. Realistically, Washington is a predators playground. All news is persuasion and Americans have no relevant information at all with respect to what is really going on. If your group, whatever it is, has no political power, every law that is passed and every government policy is going to hurt you, regardless of how good it sounds. A chain letter sounds good. Just buy a few chain letters and see how rich you get. Laws and government policy are of the same nature as that of a chain letters. The hope and expectations are one thing but the outcomes are not and never will be what is promised or expected.

How do I know the stock market is managed or allowed to be managed? I know this in a similar way to the way astronomers figured out that Pluto was out there but had not yet been seen. I know the stock market is managed higher because I see trading patterns that can only be created artificially. The most obvious is the constantly gaping up or down on the opening almost every single. The fact is that gaps in averages, historically have only occurred a few times a year and in some years not at all. Then it is almost certain any gap down will land in a basket and then there will be a, usually successful attempt, to ratchet prices higher for the rest of the day so as to close positive for the day. Going all the way back to Edwards and Magee, there is no other time in history where these trading patterns have ever occurred at all. Do yourself a favor and know that with respect to the stock market there are thumbs on the scale. These thumbs on the scales will not disappear.

A bear market will destroy those whose thumbs are on the scale. It takes massive political power to use the government as a tool for financial enrichment. That privilege will not be relinquished voluntarily. Don’t think the market will just drop because of natural forces. The efforts will continue until finally the Federal Reserve unapologetically  starts buying up supply so as to “save the country and the world.

There is a moral reasoning that goes into this. It goes something like this. “Hey I have a great idea. Lets create a perpetual bull market. We will get even richer ourselves but we will be doing everyone else a favor because everyone else in the economy will benefit also even if it is only a little. Our getting richer is also good for everyone else. They would not be better off at all if we didn’t. Aren’t we wonderful?  ” As silly as that sounds, that is really the kind of thinking that goes into these things. So, there really is a moral reason for doing these things. However, the moral reasoning seriously limps. It is about as good as justifying murdering someone and then feeling good about it because you only prevented that person from experiencing the suffering that goes along with living.

Don’t expect efforts to rig the stock market to disappear.

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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2 years ago

Please read Revelation chapter 6 as it is a snap shot of the 7 years of tribulation in which Jesus opens the 6 seals, 4 of which are the 4 horseman, that bring us to the end of the tribulation and the beginning of the year of wrath that commences immediately thereafter: 1st seal ~ white horse ~ manchild ~ Moses was a type! ~ possibly 2022 2nd seal ~ red horse ~ peace taken from the earth ~ possibly 2023 3rd seal ~ black horse ~ famine from both inflation and crop failure ~ possibly 2024 4th seal ~… Read more »