What We Know for Sure

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President Barack Obama's nominee for Federal Reserve Chair Janet Yellen, currently vice chair of the Board of Governors of the Federal Reserve System, stands in the State Dining Room of the White House in Washington, Wednesday, Oct. 9, 2013, where the president announced he is nominating Yellen to be chair of the Federal Reserve, succeeding Ben Bernanke. (AP Photo/Charles Dharapak)There are overnight meetings and tomorrow there will be a renewed effort push the stock market higher.Today the effort was enormous but still fell short.

The fundamentals are not there and neither are the technicals. Today gave the impression of a massive human effort to push a stalled locomotive over the crest of a hill. As hard as they tried the locomotive still slipped back. I have been trading stock since the 1960s and can say with complete confidence, genuine markets do not behave this way. Don’t misunderstand. I am not claiming necessarily to know what happens next even in an honest market. What I will say is that there is always an ebb and flow to price activity. When stocks fall back from intra day highs, they don’t stabilize just before going negative 99% of the time.  Stocks do not stabilize into consolidation patterns with volume increasing for the entire duration of the pattern. Each day there are key stocks that sky rocket as momentum igniters. The action does not rapidly move from index to index in an attempt to find some group that will move.

What we know for sure is that all of this is not working as well as it has in the passed. When it is time to ignite momentum there is always a wonderful news announcement for a key stock or key sector. Earlier on, every other stock would would follow the lead of an anointed stock’s. That is not happening these days as it is expected to do.

Don’t expect the billionaires club to throw in the towel. Not just money but the entire power structure of the world is dependent upon ever rising stock prices.

We know for sure there will be an new approach in place if not tomorrow, very soon. The old paradigm is not working. As I have already said, when enough damage is done, the market will collapse. The wealth and power structure of the world will be turned upside down. Central economic planning hurts everyone but the last to feel the pain are the ones central economic planning is designed to help. Everyone loses but the very rich who have benefited from quantitative easing and gifts of unearned money.

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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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