1.4 Free Market vs. Open Market

I will start with the definition of ; a Market in which prices are determined by the forces of , without government regulations or restrictions. (Thorndike/Barnhart Dictionary)

The definition of Supply is; the quantity of any commodity in the market ready for purchase, especially at a given price. (Thorndike/Barnhart Dictionary)

Supply is the most important part of the definition of Free Market.  Supply and Demand is; the interplay of the quantity of goods offered for sale at specified prices and the quantity of goods purchased at those prices in the Free Market. (Thorndike/Barnhart Dictionary)

There must be this interplay of goods offered for sale and goods purchased in order to have a Market of any kind.  When take out of the Market without offering any supply in return for it they are really simply stealing the and from the Market and the .

Examples of Non-production are, speculation on commodities, excess military spending, wars, farm subsidies, monopolies, corporate welfare, expanding the money supply by banks, any receiving of money without an exchange for it, or insufficient exchange for the money and any other form of welfare.

We will use speculation as an example of rewarding non-production.  There are two types of speculators.  There are speculators who buy commodities with the intent to take delivery and then take delivery of the commodities.  They either consume the commodities or convert them into new products that they place on the and receive money in return.

Then there are speculators who buy shares in commodities with no intent to take any delivery of the items at all.  They buy low and sell high.  They are there to make money with no exchange in production for it.  They simply offer no production in return for the money they take from the Market!   They offer no supply in return for the money they take out of the Market.  There was no intention to take possession of the commodities for their personal use or for use in future production.  This violates Free Market principles to the extreme!  There must always be Supply placed into the Market and it must be worthy of exchange for any money anyone takes out.  These speculators who buy shares in commodities without taking possession of the commodities are rewarded Non-producers.  They are stealing money by simply shuffling paper.  This is not production.  When they bid up the price of oil and sell it at a higher price, without taking possession of it or using it in future production, we the Producers pay a higher price for gas at the pump.  The Non-producing speculators are taking the money from you with no exchange to you for the money.

The Producing speculators buy shares in commodities, take delivery of the commodity, convert it to new production and exchange the new product “supply” on the market for money.  The non-producing speculators buy shares in commodities, do nothing with it and turn around and sell it at a higher price.  This action of purchasing commodities with the purpose of buying low and selling high places a demand on the commodity and this demand causes the price to go up.  When, for example this is done with oil, the price of oil rises causing the price of gas at the pump to go up.  These rewarded non-producing speculators are taking your money with no exchange for it, to you or to the Market.

Supply, in the definition of Free Market, states explicitly that there must be goods and services placed on the Free Market in order to have a Market and in order to have a working Market.  Since Non-producers don’t bring a “supply” to the Free Market they must not ever take any money, wealth and/or from it.  This is a very important factor in the definition of Free Market.  This Free Market they use today, and call a Free Market, is not the Free Market.  The one thing, “supply,” that is expressly needed to have a Market is not strictly enforced.  In fact in today’s world there is no “true Free Market” in existence.  If people don’t bring a true supply, a good or a service, to the Market when receiving money, there is no Market.  Exchanging supplies is what a Market is all about.  If one comes to the Market with no supplies and demands money, he is not creating a Market.  Without supplies, no exchange could possibly take place and therefore no Market could exist.

The Open Market is a Market in which prices are determined by the forces of supply and demand, without government regulations or restrictions.  It is “open to all on equal terms” and restricted to the participation of producers only.  Only producers can create and construct a Market.  Non-producers cannot create and construct a Market; they can only destroy and destruct a Market.

The Open Market, “open to all on equal terms,” is similar to the Free Market which we see being “attempted” to be used today.  The Free Market is based upon the dynamics (forces) of supply and demand as is the Open Market.  They both are based on being free from government regulation and restriction.

The reason I say, the Free Market is being “attempted to be used today,” is because the non-producers continue to destroy the Market while the Producers work to create it.  It is not a Free Market in the sense that everyone must place a “supply” on it in order to receive money. The definition of freedom used in the Free Market is, “anything goes in this Market,” which includes the destructive forces of the Non-producer.

The Free Market is attempted to be used today because the Producers are attempting to create a Market while the Non-producers work in destroying it.  The most the Producers can do is attempt to create the Free Market.  As the Producers build the Market up, the non-producers tear it down.

The Free Market does not give equal access!  It is the opposite of equal access.  The Non-producers have access to steal the money and wealth with no supply (goods and services) required in exchange for the money.  The Producers are required to provide supply (goods and services) in exchange for their money.  Equal access means; in order to receive money, you must always exchange supply, “a good or service,” for the money without any special advantages.  Non-producers don’t do that.  They work, 24/7, developing schemes to take money, wealth and energy from the Market without exchanging “supplied” goods and services for it.  The Non-producer out-exchange actions destroy the Market, the Society, the Nation, themselves and their families.  The Non-producers, like vampires and parasites suck the energy out of the Society and the Nation.  On the other hand the Producers, create the energy for a Society and a Nation to with.  This created energy, by the Producers, is what gives a Nation its and strength.

Non-producers can only do one thing when participating in a Market and that is destroy it.  The “Free Market” is in a constant struggle to survive when the Non-producers continue to steal the money and wealth from it with little or no “supplies” exchanged for it.  The Free Market is constantly attempting to be used by the Producers in the society and these attempts continue to be beaten back by out-exchange Non-producers.

With these constant destructive thrusts, by the Non-producers, to destroy the Free Market, one could only conclude, their purpose is to destroy the Free Market.  This continued destruction of the Free Market leads to the destruction of the Society, the Nation, themselves and their families.  This destruction of the Market is an observed phenomenon in societies where non-producers are allowed to participate in the Market.

 

Producer Rewarded Open Market Economics
By RP Obrigewitsch
October 12, 2011
Revised October 14, 2011

 

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Wednesday, October 12th, 2011 Open Market Economics

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