Google and other companies that manage the flow of information are killing what is left of our free market system. Continue reading
Google Kills Free Markets
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Tag Archives: herd instinct
How We Create Our Own Corruption
Why do Americans complain about corruption? Americans create their own corruption. Continue reading
This Is The Way You Do It
This is how I figure things out and anyone can do it. I do mean anyone. There are many interesting things about the present moment. The one thing that is most relevant is that all living things have an innate ability to almost flawlessly recognize danger and opportunities in the present moment. Continue reading
The Political Battlefield
There are three socialist armies currently vying for power. These are:
1.Non-Democratic Socialists Non-democratic socialism is my term. You won’t find it anywhere else. I use it because fascism is seldom used to describe an economic system even though that is what it is. Like the other two, non-democratic socialism is a system of economics by force. Continue reading
Where Stupidity Rules
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As Americans go about their daily lives as individuals, many are brilliant and completely adept at what they do. When they participate in groups or aggregations of people, all but a few are completely stupid.
Notice the discourse in the political arena. Do you hear are read anyone making well reasoned intellectual arguments as to why one way is better than another? How often are attempts made to get you to change your mind or adopt an idea without thinking? Look and read, you won’t find an exception. Politics is the art of getting folks to act according to another wishes without thinking. Continue reading
Worshiping False Idols
Natural law has preeminence over any principle derived out of human intellect. This presents a problem for mainstream economists. The best sources of natural law are largely off limits to to academics. The ideal sources of natural law are found in ancient writings. The very best sources for Americans are the Old and New Testaments. Natural law is modeled in the stories contained in both books. When modern day activities parallel the stories in these books, it is easily noticed that there are common outcomes. Persons of antiquity thought very deeply and constantly looked for meaning. Now that knowledge has largely been reduced to letters, deep thinking is not that commonplace. People and institutions are observed according to how they are defined and not how they function. Packaged ideas are the norm. People and institutions are seen in terms of how we would like them to be and not according to the way they really are.
In democracy based governments citizens do not behave as modern thinkers insist they do. In these types of systems ordinary people are charged with controlling their various governments. What actually happens when leaders and representatives are elected? Citizens relinquish control and give it to those they have elected. The assumption is made that the motives of elected officials are pure as driven snow. This is complete fantasy. The practice of worship is not restricted to giving respect to and acknowledging a deity. Humans are far more likely to worship each other than a supreme being. Leaders and representatives are worshiped as if they are in charge of providing essence to the population. In the ancient writings this is called worshiping false idols. Believing or not believing in God is a personal issue. One thing is certain. No living thing on earth is divine. The folly of worshiping false idols is constantly demonstrated throughout ancient writings.
Still mankind is prone to seek essence from higher powers. Higher powers are assumed to be possessed by all who govern whether elected or appointed. There may be no harm in denying the existence of a supreme being. There is great harm in deeming various individuals and institutions as being substitutes for a supreme being. Natural law guarantees that great harm will follow the practice of worshiping false idols. I will paraphrase the words of a very insightful person, Roy Masters. “Wherever you place your faith, there you unwittingly surrender your soul.”
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.
Woodpiler Report Of Two Minds Liberty Blitzkrieg Mises Institute Straight Line Logic Paul Craig Roberts
World Series of Stock Market Manipulation
First understand these things. Quantitative easing is a political agenda not an economic remedy. Economic forecasts coming out of the Federal Reserve have been wrong 100% of the time. Greek debt exceeds the assets of the Greek banking system. Friends of the Fed trade risk free as a reward to assisting the Federal Reserve in the execution of its political agenda.
When there is an issue overhanging the market, central banks buy with both hands for the purpose of providing confidence to investors who still believe the financial markets are largely pristine. The worst time to short stocks, therefore is on a day or days when a global financial problem is in the process of running its course. As long as Greek insolvency is in the news, do not expect the market to drop.
Prior to the resolution of something like Greek insolvency, negativity is encouraged up until a particular day. This is to draw in shorts so that their stops can be run, driving prices suddenly higher. Short positions serve as demand for stocks on a day when bad news comes out.
After a strong opening, the averages are held in a consolidation pattern giving the impression that demand will soon give way to supply. All during the consolidation short sellers take positions waiting for the inevitable decline. Instead they get their stops run again and the market moves higher with a nice white candle.
Strangely, bears still haven’t adapted. They still use traditional technical analysis which only works in a market that is largely free from manipulation. This will change but it hasn’t changed yet. Usually the only cure for stupidity is suffering. Apparently bears have not suffered enough.
When will the market crash? Quantitative easing provides profits to those with the political power to control government. That is what Fascism is and it will eventually destroy even those who are reaping its early but temporary benefits. Misery starts at the bottom rung of the ladder and then starts moving up until the ladder just collapses. That could happen any day but on any given day, chances are that it won’t.
Never short. Just take positions in bear etfs on the S&P, Nasdaq and the Russell 2000. For now do not trade on margin and only use one third of your capital for etf positions. Odds still favor the Fed’s political initiative. Having cash is a priority. The best time to buy a bear etf is on a completely sponsored day such as what occurred on Monday. The market is being manipulated and this initiative will not be discontinued. It will end when it stops working. Then the market will crash.
Sweet Suzie’s Kool Aid, a timely tune by Curbside Jimmy
Common Euphemisms
Fantasy Free Economics studies mankind as an animal. All of what mankind does takes place in a herd setting. Economics is more than the study of unlimited wants vs. limited resources. Herd behavior explains much of what individuals do in the market and in dealing with government.
Academia studies mankind also but they treat the species according to the many euphemisms people use to define themselves and all worldly activities. Continue reading
Dilemma of the High Pressure Car Salesman
Ask 1000 people if they would buy a car from a high pressure car salesman. Almost all will say no. But, the high pressure car salesmen are the highest paid on the lot. In politics and economics it works the same way. People talk one way but behave another.
There are reasons why conservative Politicians seldom win and those with reputations as conservatives flip and vote as liberals at critical junctures.
Intellect can determine what words come out of the mouth but people act according to instinct and genetics. A small percent of the population are born elitists. These kinds feel incomplete if they are not directing the lives of other people. They feel incomplete if they are not doing so. Michael Bloomberg, Mayor of New York, is a poster child for the elitist profile.
The rest of the population hard wired to relate to government as if it were a parent. There is an assumed adeptness in government that is based on no facts whatsoever. Government is treated as having answers and remedies even when there are mountains of evidence showing the opposite.
Even people, who are constantly calling for small, less intrusive government, opt for more government when faced with making a real choice.
Why does government spending grow without bounds? Citizens are helplessly unable to control instinctive impulses that cause an irrational dependence on government. If government spending was evaluated rationally, citizens would discover that most government spending provides no utility to taxpayers at all.
The Root Cause Of Economic And Political Distress
When bad things happen and it appears people are not thinking, it seems that way because people actually are not thinking.
Here is a reminder. Three to five % of the population is born genetically different. This is nature’s way of providing kings, queens and chiefs. Back in the old days if there was a vacant monarchy or something the “genetically different” would have sword fights or whatever to eliminate one another. The winner would become king, queen or chief.
The “genetically different” have characteristics the rest of us lack. They are sociopaths. They have an inborn compulsion to manage the lives of other people. They have an insatiable thirst for power. They are candidates for public office and occupy elected offices.
Today the “genetically different” use democracy as a means of gaining power. There is no outright killing but the competition is still ruthless. Sometimes elected leaders do great things but the great things are incidental. All that matters to them is gaining, holding and exercising power.
Power is gained by convincing you the citizen that government can do for you, things you can’t do for yourself. Government in a democracy grows without bounds because spending is a primary tool for acquiring power and for exercising power.
The 95 percent who are not born to take control have a genetic predisposition to serve a master. In today’s world, this translates into a pro-government bias. Government is assumed to have problem solving abilities which it in fact does not have. Belief in government and what it is believed to be capable of doing is automatic.
Freedom and prosperity of a middle class are new developments on the evolutionary timeline. Unfortunately, the human species is not genetically ready to be free. Currently we are regressing back into servitude. For the foreseeable future living standards will be falling dramatically.
Success in a democracy requires that people think independently and override their ancient eternal voices that call them back to servitude. This is simply not happening. The best I can think to do is to adopt an every man for himself. The economic and political situations are going to get very distressing. I can’t help but think we will be better off to the extent we see it coming.
Student Loan Moan
I can’t stand it. I mean when college students can’t get jobs because their degrees have no market value. Watch this video. You’ll love it.