You Create Money

1.8 Establishing a Market

The Market Force is a naturally occurring phenomenon.  A Market occurs “only among producers” and in numbers greater than one person.  It occurs when Producers exchange goods and services with each other.  Today we use money as a medium of exchange, for the most part, to facilitate this exchange of goods and services.

Anytime you have 2 or more Producers exchanging their produced goods and services with each other you will find a Market.  A Market is established any time, anywhere goods and services are exchanged between two or more Producers.

Demand, put forth by individuals in their needs and wants for goods and services, is the factor that generates the Force in the Market.  Demand generates Market Force.  This is where the Market Force is created.  Producers and non-producers alike have needs and wants and can generate this demand force.

There are two sides to Demand on a Market.  There is the demand for money from the Market.  There is also the demand for goods and services, which are figuratively speaking, held in the Market Place.

When Producers make the demand on the Market for money, they bring along goods and services that contain value and energy. They place these goods and services on the Market and receive money equal in value to the value of the goods and services they themselves created.

When Producers make the demand on the Market for needed and wanted goods and services they exchange money, they have created, for these goods and services.  This money was created earlier by the Producer through the production of goods and services marketed on the Open Market.

These accompanied goods and services, exchanged on the Market, add more Products and Production Energy to the Market.  Production Energy is energy generated by the Producer and placed in the products during the act of production.  Production and Production Energy enhance and expand the Market.  The individual, his family, his community and his country, mankind and the environment benefit from an enhanced and expanded Market.

Exchanging goods and services on the Market via money for demanded goods and services keeps a Market in a healthy pro-survival state for all Producers in that society or country and for all of Mankind.  Here we find prices for all goods and services maintained at the correct exchange value.

When Non-producers make the demand on the Market for money, they don’t bring along any or not enough goods and services.  In some cases they bring along destructive contra- survival goods and services.  They receive money that they have not themselves created.  Their production is non-existent, or not enough production exchanged for the money received, or is destructive to the survival of themselves, society, mankind and the environment.  They are draining the Market of energy and value.  This causes a shrunken and unhealthy Market.  The Market is on the road to collapse.  Taking money without an exchange for it causes Markets to shrink and eventually collapse.

Any time you find an abnormally shrinking and collapsing Market, you can be sure you will find Non-producers taking money (energy and value) out of the Market without a correct exchange for it in produced goods and services.  Markets in their normal pro-survival operation will have some fluctuation up and down with a gradual upward expansion trend over time.  Anytime you find a Market fluctuating in an extreme up and down state, like a roller coaster, you can be sure non-producers are plying their non-productive activities in that market.

When non-producers make the demand on the Market for needed and wanted goods and services they exchange money, they have not created, for these goods and services.  They were out-exchanging when they first received the money, and they are out-exchanging now in using this money to purchase goods and services from the Market.  This out-exchange condition means, they have received more money value than they have placed production value on the Market in exchange for it.  This creates the situation of having more money in circulation in relation to products on the Market.  This causes inflation.  With this out-exchange-money, the non-producer uses to demand needed and wanted goods and services, he inflates the true value of all the goods and services on the Market.

When you multiply this one non-producer by the other thousands existing today we can see why we have this crippled economic system on this planet.  Here we find prices for all goods and services maintained at an incorrect exchange value.  The prices are usually higher on the Market.  When we have destructive production, which is really not production, the society pays an even higher price for correcting the destructive activity. The destructive production creates a negative effect on Producers.  Destructive production threatens the Producers survival and introduces a suppressive work environment.

Here are some examples of destructive activities; monopolies, street drugs, prescribed drugs and over the counter drugs that are not needed (they will inhibit production activities,) crime, over spending on Military (this leads to unnecessary wars that violently suppress production.)  Other examples are corporate welfare, welfare for the poor, welfare for agriculture, speculation without using the commodities for more production and services, taking more money than one has produced and not taking all the money one has produced.

Exchanging goods and services on the Market via money that is taken in an out-exchange activity for demanded goods and services, creates an unhealthy contra-survival state for all Producers and non-producers in that society or country and all of mankind.  The Producers have a very heavy burden in maintaining a surviving Market.

A Market occurs only among producers of goods and services!  It does not occur when non-producers take money, wealth and energy with no or not enough exchange in production for it.  Money taken though out-exchange destroys marketing, a society and mankind.  This action destroys an existing Market.  Taking money, without an exchange for it pulls value and energy out of the Market.  This  is theft or fraud.  Theft and fraud destroy Markets.  Production exchange constructs and builds Markets.

Producer Rewarded Open Market Economics
The Science of Economics
By R P Obrigewitsch
December 29, 2011

Tags: demand, demand force, Energy, establishing a market, market, market forces, money, non-producers, producers, production energy, products, value