“For decades, both right and left politicians bought into neoliberal economics. It’s not a pretty story. jamestalarico says 'trickle-down economics is not a theory, it is theft.'” (Evonomics, The Next Evolution of Economics) Trickle-down economics is not theft; it's just another perverse catchword for the system's modus operandi. The folks at Evonomics do not understand profit and, by consequence, how the economic system works. That's self-defeating for an economist, but economists are not scientists. What has evolved in economics is not science but political propaganda. This is the modus operandi: The free-market economy runs on profit. Macroeconomic profit is given by the axiomatically correct Profit Law Qm:=(I−Sm)+(G−T)+(X−M)+Yd. The Profit Law implies PublicDeficit=PrivateProfit Qm:=(G−T)>0, i.e., macroeconomic profit is (co-)produced by deficit-spending/money-creation, i.e., the growth of public debt. In free-market economies, public debt has increased with minor interruptions for over 200 years. Therefore, Qm:=(G−T)>0 has been a critical factor for Capitalism's survival. The free-market economy is temporarily saved from breakdown by the deficit-spending/money-creating duo of treasury/central bank, i.e., the State. This means that the premise of legacy economics, i.e., that the unfettered free-market economy is a self-adjusting, self-stabilizing, and self-optimizing system, is axiomatically false. This means that economics is failed/fake science. Economists are not scientists. They are mostly silly wafflers for a low-IQ audience. Evonomics is a case in point. The free-market polity is an Oligarchy with parliament / treasury / central bank / capital markets / big business / three-letter agencies as integral parts. With the other determinants excluded for the moment, private financial wealth grows with public debt. Eventually, WeTheOligarchy owns the financial assets, and WeThePeople owe the public debt and are taxed for interest on government bonds as long as the debt is rolled over. Interest payments on the debt reduce their disposable income for an indefinite time. The government taxes WeThePeople on behalf of WeTheOligarchy. This profit/interest/tax triple-whopper produces wealth for WeTheOligarchy and debt and real-income reductions for WeThePeople. On closer inspection, WeTheOligarchy gets three free lunches. This explains the observable distribution. To call this trickle-down is an obvious inversion of the system's modus operandi. It works no longer. This is where Evonomics comes in with a new story. In addition to legitimate monetary operations, the central bank is well-positioned to carry out or support illicit operations that are economically equivalent to putting counterfeit money into circulation. The volume of illicit deficit spending and money creation, as well as the quantity of Dark Money in circulation, is not publicly known. Therefore, Profit Theory, Distribution Theory, and Monetary Theory have no empirical leg to stand on. The financial subsector, big business, and billionaires recycle some of their profits and financial wealth to control major public, private, and political institutions. Thus, they corrupt the polity. Economics is no exception. In essence, this is how the self-alimentation and self-preservation of WeTheOligarchy work. Capitalism thrives on free lunches that are ultimately supplied by the duo of treasury/central bank, i.e., the State. Trickle-down has been one of the biggest propaganda hoaxes of all time. The modus operandi is still what it always was. Evonomics won't change anything.
— AXEC (@EgmontHandtke) November 6, 2026
This blog connects to the AXEC Project which applies a superior method of economic analysis. The following comments have been posted on selected blogs as catalysts for the ongoing Paradigm Shift. The comments are brought together here for information. The full debates are directly accessible via the Blog-References. Scrap the lot and start again―that is what a Paradigm Shift is all about. Time to make economics a science.
November 6, 2026
Occasional X: The foul spirit of political economics (CDXXXII)
November 2, 2026
Occasional X: How it works (DXXXIII)
“American military spending is only possible because the dollar is the reserve currency. This is not an opinion. It is arithmetic. The United States runs persistent deficits that would be unsustainable for any other country. It finances those deficits by issuing Treasury bonds.” (Sony Thang) With its double deficit, America has been the profit-maker for itself and the Rest of the World. That goes hand in hand with the dollar's role as a reserve currency. The free-market economy runs on profit. Macroeconomic profit is given by the axiomatically correct Profit Law Qm:=(I−Sm)+(G−T)+(X−M)+Yd. The Profit Law implies PublicDeficit=PrivateProfit Qm:=(G−T)>0, i.e., macroeconomic profit is (co-)produced by deficit-spending/money-creation, i.e., the growth of public debt. The Law implies also that America's foreign trade deficit, i.e., Qm:=(X−M)<0, is profit for the rest of the world, i.e., Qm:=(X−M)>0, which takes the form of currency reserves. In free-market economies, public debt has increased with minor interruptions for over 200 years. Therefore, Qm:=(G−T)>0 has been a critical factor for Capitalism's survival. The free-market economy is temporarily saved from breakdown by the deficit-spending/money-creating duo of treasury/ central bank, i.e., the State. This means that the premise of legacy economics, i.e., that the unfettered free-market economy is a self-adjusting, self-stabilizing, and self-optimizing system, is axiomatically false. This means that economics is failed/fake science. Economists are not scientists. They are mostly silly wafflers for a low-IQ audience. The free-market polity is an Oligarchy with parliament / treasury / central bank / capital markets / big business / three-letter agencies as integral parts. With the other determinants excluded for the moment, private financial wealth grows with public debt. Eventually, WeTheOligarchy owns the financial assets, and WeThePeople owe the public debt and are taxed for interest on government bonds as long as the debt is rolled over. Interest payments on the debt reduce their disposable income for an indefinite time. The government taxes WeThePeople on behalf of WeTheOligarchy. This profit/interest/tax triple-whopper produces wealth for WeTheOligarchy and debt and real-income reductions for WeThePeople. Via the foreign trade balance, America distributes part of its macroeconomic profit around the world. In addition to legitimate monetary operations, the central bank is well-positioned to carry out or support illicit operations that are economically equivalent to putting counterfeit money into circulation. The volume of illicit deficit spending and money creation, as well as the quantity of Dark Money in circulation, is not publicly known. Therefore, Profit Theory, Distribution Theory, and Monetary Theory have no empirical leg to stand on. The financial sub-sector, big business, and billionaires recycle some of their profits and financial wealth to control major public, private, and political institutions. Thus, they corrupt the polity. The direction of academic scientific research is controlled by grants. In essence, this is how the self-alimentation and self-preservation of WeTheOligarchy work. Capitalism thrives on free lunches that are ultimately supplied by the duo of treasury/ central bank, i.e., the State. America is still the source of profit free-lunches for itself and the Rest of the World. It's not the absolute amount of military spending that counts; it's the DEFICIT that counts; roughly speaking: ALL government spending (including social spending and interest on government bonds) minus ALL taxes.
— AXEC (@EgmontHandtke) November 2, 2026
October 31, 2026
Occasional X: How it works (DXXIX)
“Earnings come from revenue, not debt. Debt pays for the capex that shows up later.” (Kyle Thompson) “You realize that someone's revenue is someone else's debt-funded expense?” (zerohedge) Neither Kyle Thompson nor zerohedge understands the relationship between revenue, profit, and debt; and, by logical consequence, how the economic system works. The free-market economy runs on profit. Macroeconomic profit is given by the axiomatically correct Profit Law Qm:=(I−Sm)+(G−T)+(X−M)+Yd. The Profit Law implies PublicDeficit=PrivateProfit Qm:=(G−T)>0, i.e., macroeconomic profit is (co-)produced by deficit-spending/money-creation, i.e., the growth of public debt. In free-market economies, public debt has increased with minor interruptions for over 200 years. Therefore, Qm:=(G−T)>0 has been a critical factor for Capitalism's survival. The free-market economy is temporarily saved from breakdown by the deficit-spending/money-creating duo of treasury/central bank, i.e., the State. This means that the premise of legacy economics, i.e., that the unfettered free-market economy is a self-adjusting, self-stabilizing, and self-optimizing system, is axiomatically false. This means that economics is failed/fake science. Economists are not scientists. They are mostly silly wafflers for a low-IQ audience. If they are good at disinfotainment, they are rewarded the EconNobel for 'economic sciences', which is the most prestigious fraud for the self-stabilisation of a failed/fake science. In essence, private/public deficit-spending is how the self-alimentation and self-preservation of WeTheOligarchy work. It has nothing to do with optimal allocation of resources, free people on free markets, or democratic consumer choices. The financial wealth of WeTheOligarchy has ultimately been printed by the central bank. It's roughly equal to the public debt of WeThePeople. By currently exploding the deficit, President Trump is exploding the number of millionaires/ trillionaies/ zillionaires until the smooth recycling of public debt by government bonds goes on and WeThePeople can be taxed for the interest that the State collects for WeTheOligarchy.
— AXEC (@EgmontHandtke) October 31, 2026
October 20, 2026
Occasional X: The foul spirit of political economics (CCCXCVII)
“There's no such thing as a free lunch.” (Milton Friedman) Of course, there is. Milton Friedman never understood profit and, by consequence, how the economic system works. That's self-defeating for an economist. The free-market economy runs on profit. Macroeconomic profit is given by the axiomatically correct Profit Law Qm:=(I−Sm)+(G−T)+(X−M)+Yd. The Profit Law implies PublicDeficit=PrivateProfit Qm:=(G−T)>0, i.e., macroeconomic profit is (co-)produced by deficit-spending/money-creation, i.e., the growth of public debt. In free-market economies, public debt has increased with minor interruptions for over 200 years. Therefore, Qm:=(G−T)>0 has been a critical factor for Capitalism's survival. The free-market economy is continuously saved from breakdown by the deficit-spending/money-creating duo of treasury/ central bank, i.e., the State. This means that the premise of legacy economics, i.e., that the unfettered free-market economy is a self-adjusting, self-stabilizing, and self-optimizing system, is axiomatically false. This means that economics is failed/fake science. Economists are not scientists. They are mostly silly wafflers for a low-IQ audience. Milton Friedman has been the most prominent case. The free-market polity is an Oligarchy with parliament / treasury / central bank / capital markets / big business / three-letter agencies as integral parts. With the other determinants excluded for the moment, private financial wealth grows with public debt. Eventually, WeTheOligarchy owns the financial assets, and WeThePeople owe the public debt and are taxed for interest on government bonds as long as the debt is rolled over. Interest payments on the debt reduce their disposable income for an indefinite time. The government taxes WeThePeople on behalf of WeTheOligarchy. This profit/interest/tax triple-whopper produces wealth for WeTheOligarchy and debt and real-income reductions for WeThePeople. On closer inspection, WeTheOligarchy gets three free lunches. This explains the observable distribution. In addition to legitimate monetary operations, the central bank is well-positioned to carry out or support illicit operations that are economically equivalent to putting counterfeit money into circulation. The volume of illicit deficit spending and money creation, as well as the quantity of Dark Money in circulation, is not publicly known. Therefore, Profit and Distribution Theory has no empirical leg to stand on. The financial sub-sector, big business, and billionaires recycle some of their profits and financial wealth to control major public, private, and political institutions. Thus, they corrupt the polity. In essence, this is how the self-alimentation and self-preservation of WeTheOligarchy work. Capitalism thrives on free lunches that are ultimately supplied by the duo of treasury/central bank, i.e., the State. There are no free lunches for WeThePeople, but there are voluminous free lunches for WeTheOligarchy. Milton Friedman should have known this.
— AXEC (@EgmontHandtke) October 20, 2026
October 13, 2026
Occasional X: The foul spirit of political economics (CCCLXXXIII)
“Economic knowledge necessarily and inevitably leads to Capitalism. And it's not because all economists must be liberals, but because understanding the fundamental mechanisms of the economy forces one to question state interventionism” (Diego Angulo) Diego Angulo never understood profit and, by consequence, how the economic system works. That's self-defeating for an economist. The free-market economy runs on profit. Macroeconomic profit is given by the axiomatically correct Profit Law Qm:=(I−Sm)+(G−T)+(X−M)+Yd. The Profit Law implies PublicDeficit=PrivateProfit Qm:=(G−T)>0, i.e., macroeconomic profit is (co-)produced by deficit-spending/money-creation, i.e., the growth of public debt. In free-market economies, public debt has increased with minor interruptions for over 200 years. Therefore, Qm:=(G−T)>0 has been a critical factor for Capitalism's survival. The free-market economy is continuously saved from breakdown by the deficit-spending/money-creating duo of treasury/central bank, i.e., the State. This means that the premise of legacy economics, i.e., that the unfettered free-market economy is a self-adjusting, self-stabilizing, and self-optimizing system, is axiomatically false. This means that economics is failed/fake science. Economists are not scientists. They are mostly silly wafflers for a low-IQ audience. Diego Angulo is living proof. The free-market polity is an Oligarchy with parliament / treasury / central bank / capital markets / big business / three-letter agencies as integral parts. With the other determinants excluded for the moment, private financial wealth grows with public debt. Eventually, WeTheOligarchy owns the financial assets, and WeThePeople owe the public debt and are taxed for interest on government bonds as long as the debt is rolled over. Interest payments on the debt reduce their disposable income for an indefinite time. The government taxes WeThePeople on behalf of WeTheOligarchy. This profit/interest/tax triple-whopper produces wealth for WeTheOligarchy and debt and real-income reductions for WeThePeople. In addition to legitimate monetary operations, the central bank is well-positioned to carry out or support illicit operations that are economically equivalent to putting counterfeit money into circulation. The volume of illicit deficit-spending and money-creation, as well as the quantity of Dark Money in circulation, is not publicly known. Therefore, Profit and Distribution Theory has no empirical leg to stand on. The financial sub-sector, big business, and billionaires recycle some of their profits and financial wealth to control major public, private, and political institutions. Thus, they corrupt the polity. In essence, this is how the self-alimentation and self-preservation of WeTheOligarchy work. It has nothing to do with optimal allocation of resources, free markets, or free consumer choices.
— AXEC (@EgmontHandtke) October 13, 2026
October 8, 2026
Occasional X: Clueless economists / Distribution, Inequality (XXIII)
“People ask me what is my aim when I write on inequality (pre-order my book btw). Some expect me to answer that its because I want to show some people (like Zucman, Piketty and Saez) are wrong. They are wrong to think that. My objective is to speak to those who are interested in listening — whether they agree with me or not already. In fact, any true social scientist should think that way: the next margin of convincing people that your results are correct.” (Vincent Geloso) To think that he is a 'true social scientist' is the economist's methodological ur-mistake. Vincent Geloso never understood profit and, by consequence, how the economic system works. Because his Profit Theory is wrong, his Distribution Theory is wrong. The free-market economy runs on profit. Macroeconomic profit is given by the axiomatically correct Profit Law Qm:=(I−Sm)+(G−T)+(X−M)+Yd. The Profit Law implies PublicDeficit=PrivateProfit Qm:=(G−T)>0, i.e., macroeconomic profit is (co-)produced by deficit-spending/money-creation, i.e., the growth of public debt. In free-market economies, public debt has increased with minor interruptions for over 200 years. Therefore, Qm:=(G−T)>0 has been a critical factor for Capitalism's survival. The free-market economy is continuously saved from breakdown by the deficit-spending/money-creating duo of treasury/central bank, i.e., the State. This means that the premise of legacy economics, i.e., that the unfettered free-market economy is a self-adjusting, self-stabilizing, and self-optimizing system, is axiomatically false. This means that economics is failed/fake science. Economists are not scientists. They are mostly silly wafflers for a low-IQ audience. Vincent Geloso is living proof. The free-market polity is an Oligarchy with parliament / treasury / central bank / capital markets / big business / three-letter agencies as integral parts. With the other determinants excluded for the moment, private financial wealth grows with public debt. Eventually, WeTheOligarchy owns the financial assets, and WeThePeople owe the public debt and are taxed for interest on government bonds as long as the debt is rolled over. Interest payments on the debt reduce their disposable income for an indefinite time. The government taxes WeThePeople on behalf of WeTheOligarchy. This profit/interest/tax triple-whopper produces wealth for WeTheOligarchy and debt and real-income reductions for WeThePeople. In addition, by reshuffling debt, resetting interest rates, and taking losses, the central bank acts as a direct profit pump. Its losses reappear mainly as profits of the business sector, particularly the banking sub-sector. In addition to legitimate monetary operations, the Fed is well-positioned to carry out or support illicit operations that are economically equivalent to putting counterfeit money into circulation. The volume of illicit deficit-spending and money-creation, as well as the quantity of Dark Money in circulation, is not publicly known. Therefore, Distribution Theory has no empirical leg to stand on. The financial sub-sector, big business, and billionaires recycle some of their profits and financial wealth to control major public, private, and political institutions. Thus, they corrupt the polity. In essence, this is how the self-alimentation and self-preservation of WeTheOligarchy work and how 'The Great Enrichment' comes about.
— AXEC (@EgmontHandtke) October 8, 2026
November 20, 2023
The Fed's generation of profit, interest, and capital gains is second to none
November 5, 2023
Occasional Xs: How it works (C)
The correct term for the US political system is #Oligarchy. It thrives on #DeficitSpendingMoneyCreation=growing #PublicDebt. The macro #ProfitLaw implies #PublicDeficitIsPrivateProfit. So, #Democracy/#MarketEconomy are misnomers for the Oligarchy's self-alimentation with #Profit.
— E.K-H (@AXECorg) November 5, 2023
November 4, 2023
Occasional Xs: How it works (XCIX)
#Econ
— E.K-H (@AXECorg) November 4, 2023
The #MarketEconomy runs on #Profit. The #ProfitLaw implies #PublicDeficitIsPrivateProfit. With growing #PublicDebt, #FinancialWealth is steadily increasing. This self-alimentation with #FreeLunches increases the #Oligarchy's political #Power. The #OpenSociety is a fiction.
November 2, 2023
Occasional Xs: How it works (XCII)
The U.S. #Economy runs on #Profit. The macro #ProfitLaw ⇓ implies that the greater part is produced by #DeficitSpendingMoneyCreation. The institutional setup ― including #Congress/#Fed/#Treasury/#WallStreet ― guarantees the #Oligarchy's continuous self-alimentation with #Profit. pic.twitter.com/E5BXHcjim1
— E.K-H (@AXECorg) November 2, 2023
November 1, 2023
Occasional Xs: How it works (XCI)
The U.S. political system is an #Oligarchy. It thrives on #DeficitSpendingMoneyCreation = growing #PublicDebt. The macro #ProfitLaw ⇓ implies #PublicDeficitIsPrivateProfit. So, #Democracy/#Republic/#MarketEconomy are misnomers for the Oligarchy's self-alimentation with #Profit. pic.twitter.com/Sw71e7wvj1
— E.K-H (@AXECorg) November 1, 2023
October 6, 2023
Occasional Xs: How it works (LXIV)
The US political system is an #Oligarchy with Congress/Treasury/Fed/BigBusiness as integral parts. The #ProfitLaw ↓ implies #PublicDeficitIsPrivateProfit. The growth of #PublicDebt generates macroeconomic #Profit/#Interest. #Bidenomics is the self-alimentation of the Oligarchy. pic.twitter.com/GOqr1qGL39
— E.K-H (@AXECorg) October 6, 2023
October 5, 2023
Occasional Xs: How it works (LXIII)
The U.S. political system is an #Oligarchy with Congress/Treasury/Fed/BigBusiness as integral parts. The #ProfitLaw implies #PublicDeficitIsPrivateProfit. The growth of #PublicDebt generates macroeconomic #Profit/#Interest. #Bidenomics is the self-alimentation of the Oligarchy. pic.twitter.com/FiHdtCsHo2
— E.K-H (@AXECorg) October 5, 2023
September 30, 2023
Occasional Xs: What economists really do (XXV)
The correct term for the current political system is #Oligarchy. It thrives on #DeficitSpendingMoneyCreation=growing #PublicDebt. The #ProfitLaw implies #PublicDeficitIsPrivateProfit. So, the #FreiheitlichOrdnung is a misnomer for the Oligarchy's self-alimentation with #Profit.
— E.K-H (@AXECorg) September 30, 2023
September 29, 2023
Occasional Xs: What economists really do (XXIII)
The correct term for the current political system is #Oligarchy. It thrives on #DeficitSpendingMoneyCreation=growing #PublicDebt. The #ProfitLaw implies #PublicDeficitIsPrivateProfit. So, #Democracy/#MarketEconomy are misnomers for the Oligarchy's self-alimentation with #Profit. pic.twitter.com/YSTJpmHuL4
— E.K-H (@AXECorg) September 29, 2023
September 28, 2023
Occasional Xs: How it works (LVII)
The correct term for the current political system is #Oligarchy. It thrives on #DeficitSpendingMoneyCreation=growing #PublicDebt. The #ProfitLaw implies #PublicDeficitIsPrivateProfit. So, #Democracy/#MarketEconomy are misnomers for the Oligarchy's self-alimentation with #Profit. pic.twitter.com/dUIoux4jEd
— E.K-H (@AXECorg) September 28, 2023
September 23, 2023
Occasional Xs: How it works (LII)
The correct term for the current political system is #Oligarchy. It thrives on #DeficitSpendingMoneyCreation=growing #PublicDebt. The #ProfitLaw implies #PublicDeficitIsPrivateProfit. So, #Democracy/#MarketEconomy are misnomers for the Oligarchy's self-alimentation with #Profit. pic.twitter.com/bEYKFqLl1E
— E.K-H (@AXECorg) September 23, 2023
September 22, 2023
Occasional Xs: Clueless economists / Political Systems (I)
The correct term for the current political system is #Oligarchy. It thrives on #DeficitSpendingMoneyCreation=growing #PublicDebt. The #ProfitLaw implies #PublicDeficitIsPrivateProfit. So, #Democracy/#MarketEconomy are misnomers for the Oligarchy's self-alimentation with #Profit. pic.twitter.com/p6Q6Zmf2cE
— E.K-H (@AXECorg) September 22, 2023
September 17, 2023
Occasional Xs: How it works (XLXIV)
The U.S. political system is an #Oligarchy with Congress/Treasury/Fed/BigBusiness as integral parts. The #ProfitLaw Q≡(G−T)+(I−S)+Yd implies #PublicDeficitIsPrivateProfit. The growth of #PublicDebt generates #Profit/#Interest. #Bidenomics is self-alimentation of the Oligarchy.
— E.K-H (@AXECorg) September 17, 2023
June 28, 2023
Occasional Tweets: The 'eternal' self-alimentation of the Oligarchy ― how does it work? (III)
The US political system is an #Oligarchy with Congress/Treasury/Fed/BigBusiness as integral parts. The #ProfitLaw Q≡(G−T)+(I−S)+Yd implies #PublicDeficitIsPrivateProfit. #DeficitSpendingMoneyCreation & rising #Interest is significantly increasing the Oligarchy's #FreeLunch. pic.twitter.com/k7duFYpq4C
— E.K-H (@AXECorg) June 28, 2023







