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Archive for the month “August, 2016”

Why the Stock Market Is so High with a Bad Economy

This post to my blog is based on my personal assumptions, beliefs, conclusions, and just plain common sense. I don’t have any proof for my following statements. Therefore any comments you have, either in support of this post or against it, are welcome.

The current stock market in the United States is at a very high level. But this high level of the stock market is not supported by the economy, which may be verging on a new recession, if the true facts were known. When I am speaking about the state of the economy, keep in mind that the official economic reports from the government tend to be false or misleading. I believe these reports purposely understate the unemployment rate and inflation rate, and overstate the growth of the economy.

If you want economic reports that are more reliable, you would have to go to the website maintained by John Williams at: www.shadowstats.com

The high level of the stock market is an artificial creation of The Powers That Be (TPTB). In this case, TPTB are the government and the central bank (the Federal Reserve System, also known as the Fed) of the United States. So let’s discuss this matter in more detail.

Why TPTB want a high stock market – President Obama wants to ensure the election of Hillary Clinton. So having a supposedly good stock market is one way of showing the people that the Democrats deserve to remain in power.

The Fed is getting desperate to prop up the US economy, which it sees as part of its mission. But since the Fed uses the worthless Keynesian economic theory to guide its policy, it now has very few options at its disposal. Propping up the stock market is one of its last desperate measures. They apparently believe that this will create a “feel good” atmosphere and will encourage people to start spending more.

How TPTB create a high stock market – The government has a large slush fund (the Economic Stabilization Fund) that it can use to intervene in the stock market whenever desired.

Since the Fed has a virtually unlimited supply of fiat money (unbacked paper currency) that it creates out of thin air, it can just keep pumping out this phony money to prop up the stock market. Actually, the Fed may use its cronies, large Wall Street firms, to actually purchase stocks or use other devices to maintain the stock prices.

Although the stocks of many of the smaller corporations are falling, by propping up the stocks of large corporations, TPTB can keep the stock indices at high levels. These stock indices are such things as the Dow Industrials and the S&P 500. These stock indices are what financial commentators and stock investors use to determine how the stock market is doing.

How ordinary people can avoid being hurt – Since the stock market has lost its connection to the real economy, it may suffer a serious decline at some point in the future. So anyone with a large position in the stock market may want to review their individual stocks and see if they are still a good investment.

Conclusion – I am not a stock adviser so I really can not tell you what to do in that area. Some people who have a history of making accurate economic predictions recommend investing in physical gold and silver. This could be in the form of either coins or bullion bars. They should be held in your physical possession, or under your control and ownership, in some type of safekeeping.

Some firms try to convince people to invest in what are known as “un-allocated” gold accounts. I think this type of investment should be avoided because you have no control or ownership over this, perhaps imaginary, asset.

Reasons for the Great Loss of Good Paying Jobs in the US

In this post to my blog I am going to to discuss why the US has lost so many of its good paying jobs. As usual, I have identified the perpetrators of this problem. However, I don’t claim to have any proof to back up my allegations. The following discussion is based solely on my personal assumptions, beliefs, common sense, and conclusions. You are free to dispute everything that I state in this post.

Why the good jobs are disappearing – The loss of good jobs in the US is due to the actions of globalist corporations in promoting free-trade agreements and using outsourcing of good paying jobs to increase their short-term profits. The increased profits earned by these corporations primarily benefits the top level managers and the stockholders. There also have been certain short-term benefits to the people in US from the resulting low-cost of imports. However, I believe these benefits are short-term because of the eventual disastrous consequences of these actions by globalist corporations.

In order to make sales in foreign countries these corporations have had to build factories in these countries and provide them with the secrets of their technology. Thus these foreign countries have gained enormous benefits. At one time these countries only had low skilled workers and no significant technology. But over the years they have developed their own skilled labor force, college trained experts, and improved technology. At some point, I believe these foreign countries will have the economic strength and know how to compete with and overtake the US. When that happens these foolish and greedy globalist corporations will no longer be in the catbird seat.

Contributing factors to the loss of good jobs – Besides the primary reasons for the loss of good jobs in the US, as discussed above, there are certain other secondary factors. The most important of these are reviewed below.

The impact of changes in the world economy – After the end of World War II, the US stood alone as the dominant economy and manufacturing power. Because the people and government of the US were goodhearted, they used the Marshall Plan to rebuild the economies of other countries. Thus it was inevitable that the US would gradually lose its dominant position in the world economy. However the greed and ineptitude of US corporations greatly accelerated this change.

The impact of labor unions – There was a time in the US when the workers were abused by the robber barons and other large employers. As a result of these inequities, labor unions arose to help the workers get a fair deal from the employers. After a certain amount of time these labor unions were successful in achieving this goal. Then the question was, should the unions be content with getting a fair deal for the employees, or should they use their power to try getting as much as possible from the employers. Human nature being what it is greed is a common factor in life. I believe that many of these unions wanted too much from employers. The result was that many employers wanted a more beneficial environment, such as low-wage foreign countries

The impact of governmental rules – Bureaucracies tend to have a life of their own, apart from their designated purpose. Thus the heads of bureaucracies want to increase their empire. They want to promulgate more rules and increase the number of people needed to enforce these rules. The result is that they issue rules that cost more than their perceived benefits to society. And the business people that have to abide by these rules, rules that increase expenses and often lack common sense, tend to rebel. Then they desire to conduct business in foreign countries that don’t have all of these annoying and expensive rules and regulations.

Conclusion – Because of the lack of good paying jobs in the US, you may have to provide your own employment. Here are some ways you might be able to achieve this goal.

  • You can review all of the so-called opportunities promoted on the Internet for ways to make money at home or on the Internet. Then instead of paying someone for their plan on making money, just use their ideas. Then you can research the Internet for ways to use these ideas to create your own income producing venture.

  • Amazon.com has many Kindle books for sale that describe various ways for ordinary people to make money. This bookseller allows you to review the first 10% of the book’s contents. This usually will allow you to review the table of contents for each Kindle book. Then again you can research the Internet for ways to use these ideas to create your own income producing venture.

  • If you have knowledge and skills about certain things that can satisfy the needs and wants of people, perhaps you can create reports with this information and sell them as a Kindle book on Amazon. You could also set up a free blog site to promote these books. You could provide useful information on the blog and also promote your Kindle books. This would be a very low-cost venture and require only your time and effort.

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