Why The Stock Market Always Goes Up

With enough wealth and political power it is possible for a group of very wealthy individuals to take over all governments and dictate government policy. Once this is accomplished, it is easy enough to dictate policy to central banks which are arms of governments. It then becomes policy to maintain and elevate stock prices in order to please powerful and wealthy constituents.

Again, any economic or political issue can be explained in a few sentences and in common language. The Fancy models and complex statistics evolve because the solution is unpleasant.

This kind of system does not depend on formal groups and public decisions. Individuals and entities with common goals and interests find one another naturally. There need be no formal conspiracy. Government tampering with the stock market started during the Reagan administration. The practice has increased steadily from then until know. Using government to manage stock prices has been so profitable that the private market for trading stocks has largely disappeared. As long as the public does not object or until both our economy and form of government are destroyed the asset enhancements will continue.

There are countless reasons why this kind of activity will destroy the economy. I will mention just one. The free market system is built on an uninterrupted system of out with the old and in with the new. Rigging the stock market destroys that natural process and the old disappears without anything new taking its place. I will also mention that unearned money corrupts the rich just like it does anyone else. The rich are naturally innovative and industrious. Laziness becomes the rule and productivity falls.

These days, the stock market never goes down because all kinds of algorithms have been developed to move it higher and keep it from dropping. The same moneyed interests which control government and central banks, also control the news media. The rich now have a way to profit endlessly by just having the government goose the stock market, effortlessly making unfathomable sums of money.

Don’t misunderstand, the rich are not purposefully trying to impoverish everyone else. They are just going after their hoggins. The poor and middle class just happen to be standing in the way.
The markets will go up until the system fails. That could be today, tomorrow or a number of years.

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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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