The Gift of Inflation

A president finds ways to get along. How does Donald Trump please the Deep State? For the longest time, your Federal Reserve has been trying unsuccessfully to create price inflation. Rising stock prices is a much easier task. The market manipulation trinity, buybacks, the short squeeze and buying outright, is in place. Central banks have successfully decoupled stock prices from earnings. Creating inflation has been a tough order. Creating inflation is difficult for everyone except Donald Trump.

For Donald Trump, the trade war is the ticket. Trump’s supporters love the trade war. Most of them have no idea what a recking ball a trade war is. It all sounds good. What else matters? A chain letter sounds good. A trade war will cause inflation. That is only one of the harmful outcomes of a trade war. So, with Trump, the Deep State gets continuing asset enhancement with the Federal Reserve plus now price inflation with tariffs.

I am going to access the damage even before it occurs. The poor and middle class will be hurt considerably. Corporate profits will benefit from higher margins. Borrower, especially the U.S. government will get massive relief. The eventual reckoning will be worse than if it had occurred before inflation was introduced.

Federal Reserve members are paid for the pretense of knowledge. They neither have the knowledge or the insight to improve the economy. Any honest economist will tell you, there is no way inflation, a little or a lot is good for an economy. Any truck driver will say the same. There is only one trade policy capable of benefiting the country as a whole. That is to unilaterally remove all tariffs and restrictions on legal goods and services entering and leaving the United States. That would not be a trade war. It would just be the best economic policy.

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.