Economic Independence Day - Part III
Pride and Elegance
On July 26, 2025, Forbes published a review written by John Tamny of my book, The Moneyball Method. It was also published on July 18, 2025, at RealClearMarkets.com. This brief essay will focus on a quote from their thirteenth paragraph:
Of course, the truth embraced by Shupe that “money in circulation will always maintain its ideal level” rejects all the fabulism on Wall Street, academia, and within the economic commentariat that aggressive creation of what they imagine is “money” instigates stock-market rallies. What an insult.
Beginning at the end of that excerpt, it is an insult - intentional or not - that is fabricated by demand-side and monetary economic types to gain power and influence over the wealth creators of a society. Furthermore, fabulism is a kind way to say “dishonest.”
Like any religion, the monetary mystics have assigned intrinsic value to their “printed money” that does not exist. But as objective investors, we have a choice. Pay recognition and respect to the creators who obey reality before commanding it - or pay indulgences to the priests and potentates of academia and central banking.
To appreciate the gibberish of the chattering class, consider this week’s commentary from UPenn’s Wharton School professor emeritus Jeremy Siegel: “the economy simply doesn’t require restrictive real rates with money growth subdued and inflation trending in the low 2-3% band . . . that shift historically supports equity multiples – particularly for rate sensitive segments.”
Instead of the “restrictive real rates” and “subdued money growth” with “inflation trending” that “supports equity multiples” for “rate sensitive segments” dogma, I’ll focus on the important phrase: “the economy simply doesn’t require.” According to whom? No economist or committee of credentialed “experts” can deliver anything required by a complex economic system. Nothing.
But let’s define that without contradictions. Healthy economies require political liberty, economic freedom and objective law. That’s it. In that order. The most ingenious, efficient, graceful and just economic systems form organically. That defines elegance.
In turn, capitalism conducts transactions under the trader principle of voluntary production and mutual profit. Conversely, the introduction of force stifles innovation, incentivizes waste and lines the pockets of statist actors who produce nothing but economic chaos.
However, there’s another reason to highlight Dr. Siegel. His claim to private-sector wealth and fame is his 1994 book Stocks for the Long Run. One that was used by the investment industry to bolster their arguments for market inefficiency, conservative return assumptions and stay the course. I was there.
Objective investors have pride and aren’t having it. To learn more about your economic Independence Day, please click the link below:
https://www.amazon.com/Moneyball-Method-Middle-Class-Manifesto-Objective/dp/1696009111/