Dangers The United States Economy Cannot Withstand

What are the most pressing dangers faced by the United States economy?

1.) A decline in the stock market, even a modest routine correction in stock prices will send the economy into a tailspin. Why? Artificially stimulated asset prices are the only reason the economy has recovered since the Great Recession.

2.) A rise in interest rates, significantly greater than can be managed by our Federal Reserve will cause panic in the government. Borrowers have been subsidized for 40+ years. If for any reason defaults on loans begin increasing the Federal Reserve will completely lose control over the market for money. When interest rates increase significantly, the United States government will not be able to service its debt and the entire system will collapse.

What is the solution? There is no solution but certain actions will be taken.

1.) Losses at the top will be passed down to the tax payers to the degree it is possible.

2.) Central banks will increase their purchases of stocks in an effort to keep all markets moving higher.

3.) No effort will be spared in trying to create inflation in the United States and around the world. Inflation is needed to take the pressure off of the United States government. The introduction of tariffs will cause inflation but not enough. Although it is seldom mentioned a decline in the productivity of labor is the most reliable source of inflation. War will create inflation. Don’t rule it out.

All of this will be perhaps the biggest juggling and balancing act in the history of the world. Like is true of any juggling act, eventually there will be an accident and the act will fall apart. Professional jugglers practice constantly and have engaged in many trial runs. Your government is going on stage with its balancing act without much practice and not even a trial run. The chances of an accident are enormous.

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.

Fantasy Free Economics recommends the following blogs.

Of Two Minds Liberty Blitzkrieg Mises Institute

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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.