Stock Market and Governments

How is it that the stock market goes up forever?  The fastest and most efficient way to create an endless flow of income and wealth is to buy the government and then give a directive to to operate an asset value enhancement initiative.  Declare that the program is in the public interest, create massive amounts of money out of thin air and then have the central bank push stock prices up.

But wait. Why only buy the U.S. government? Why not buy all of the others also? It takes massive amounts of money to buy the U.S. government. The smaller countries can be bought for a song and a dance relative to what is costs to buy the United States. Tell the world’s population that it is for their own good and that experts are in charge. There it is done.

Since we know why stock prices are rising while the world’s economies are collapsing, it becomes a piece of cake to understand why markets go up instead of down during times of global stress. Central banks simply buy enough stock to offset the negative sentiment.

The moral here is not to expect a decline ever on bad news. The public in all countries are unaware of economic danger more so than at any other time in history. The losses to the public are enormous but they are stealth in nature. As long as the public doesn’t mind, central banks will continue to move asset prices higher. If they have to, they will buy up all of the worldwide supply of equities.

Will this actually happen? It will happen, provided the public does not figure out how they are being fleeced. Complete destruction of all of the world’s economies will occur. This is no problem for the deep state. The deep state is interested only in personal gain. At whose expense is not even relevant. The world economy collapses, and they will not worry. They will have made so much money it will make little difference to them. They might be sad that this game is over. They will just start another one.

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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.