Will Trump Rig the Stock Market?

In 1987 the Reagan administration began managing the securities markets. Since that time, to varying degrees politicians on both sides of the isle have supported programs to enhance asset prices. Both monetary and fiscal policy have been used since that time for that very purpose. There have been no exceptions. Easy money has had only one purpose and that is to further enrich politically powerful constituents and investors.

Beginning in 2006 efforts changed from simply enhancing stock prices to completely preventing any loss of value. In 2008 asset prices declined in the face of unprecedented preventative efforts.

From 2008 through the present, all government efforts have centered around saving the stock market and elevating asset prices and goosing profit margins. Although they have no idea how or why it has happened, the poor and middle class have been devastated financially by the process.

All increases in corporate profits and GDP are rooted in spending by the super wealthy who are the only group to benefit from the rigging process.

When the stock market declines, the economy will drop into a very serious depression which will make the Great Depression of the 30s look pale. Will Trump rig the stock market?

The stock market is already being rigged. A better question is, will Trump interrupt the process? I would guess not. Trump will do everything possible to continue goosing asset process at least until the second year of his presidency. The Trump tax cut and spending plans are very much a way of passing the rigging baton to congress and taking pressure off the very tired Federal Reserve.

It may not be possible. Reality can impose itself on the world at any time, without warning and without anyone’s permission. Trump’s personal case will be better served by accommodating Wall Street. That is what he will do.

The public is still clueless as to how these things work. In this case, Trump has nothing to do lose by continuing to funnel wealth and income to the upper 1%. People know they have been burned, but are still clueless as to the source of their suffering. Suffering does activate the thinking process but it can take a long 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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