Assimilation Model Discussion


The Main Conclusions from the Assimilation Model:

(1) Curent Trend: decreasing standard of living as the Govopoly System continues to Assimilate the Free-Competition Sector.
(2) Blaming events and trying to fix things both miss the point; the behavior follows from the structure of the system.
(3) Policies for responding to pressures in the system already appear in the system structure and help generate its behavior.

March 29, 2020 Update:

The recent market meltdown has to do with decades of of "moral hazard" and "easy money." When corporations borrow to buy shares - rather than tools of production, bubbles develop. Bubbles that feed themselves on up trends, also collapse quickly, wiping out reckless speculation.

Under the Govopoly System, the central bank bails out the Govopoly Speculators. The recent COVID-19 events provide a umbrella under which such bailouts may occur.

Look for COVID-19 to pass more quickly than the regulations surrounding it; for the Govopoly System to continue growing and for the Freedom Index to continue declining.

Look for the Fed and Treasury to merge and to provide "price support" for corporate and municipal bonds as well as shares of public companies.

Look, long term, for monetary and price inflation.

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(c) 2020 by Ed Seykota