fundamentalism

Fundamentalism and distortion of the theoretical free market.

If adam smith stood in front of a theatre of economists holding a rambutan and asked..’who can tell me the top of the jackfruit?’ probably most of the class would happily point to the stem of the piece of fruit he was holding in total ignorance of what either a rambutan or a jackfruit was..

Who can pick the bottom of the market.. or the top of the market?

The point I want to make is that what we are talking about is not a market. * a free market presupposes buyers and sellers (bulls and bears) engaged in commercial transaction. That scenario is so obviously not congruent with what we actually get on the ground which is constant manipulation of the conditions between producers and consumers. I am not pointing a finger at government or monopolists or anyone else with sufficient leverage to manipulate the theoretical free market….. I wouldn’t want to be critical…..hehehe… the point is that the classic market mechanism scenario is a textbook fantasy that belongs fairly and squarely in pseudo-academia. Everyone knows that already but that is not what i'm talking about..

If a market is not a market then it follows that econometric models/ predictions are lies and nonsense and are probably there to distort the truth rather than reveal it. a pack of 52 jokers is not a deck of cards despite appearances.

such is the political structure of the world and the current level of the development of consciousness. It is non-market players that can call the shots.

Money seems to follow the law of economy which is that matter follows the path of least resistance. Water flows downhill. (I never claimed to have much new to say.) Politics and other businesses on the other hand follow a different rule. There it is about attracting support for group coordination. The two laws neither directly oppose one another nor are they synthesised. There is at times friction between them and it is part of the development of the human species to deal with it.

Central banks intervene in the market. They even publicise it. The swiss central bank intervened recently to keep their currency low. The americans are apparently attempting to do the same on a massive scale. the competitive devaluation race to the bottom makes a mockery of any pretention to respecting the principles of the free market.

So while a free market may be basically predictable, anything could happen in the tekram (that is market backward). People predicting the bottom of the market or the end of the current ‘global financial crisis’ should take up golf or something to spend their time more usefully. Whatever they are saying, its a lie.

As the true economics text on the emerald tablet in heaven says….. it’s a question of real demand. If in some economy there is a contraction, then it will pick up when it picks up. With a bit of luck, by the time it does the kind of irrational exuberance that characterised the earlier part of the decade will have learned a hard lesson.

I’m not holding my breath.

*(parenthetically, in a gay bar you will get tops and bottoms also and no one else has any business being there. Most people say that they are at times impossible to pick as well. heheh)

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