supply and demand

8. Free Market Construct

Revised November 18, 20113

The Free Market Construct will give you a contrast with the Open Market Construct.  The Open Market is governed by exact prosperity creating technology.  The Free Market has very little if any prosperity creating technology.  The little it has in prosperity creating technology is being violated to the extreme.  The Free Market has been taken over largely by rewarded non-producers and counter-producers. They sit on the demand side of the definition of the Free Market and take money, value, energy, wealth, capital and power without placing supply on the market. The rewarded non-producers and counter-producers continually drain organizations,  societies, nations and mankind of the money, value, energy, wealth, capital and power. This money, value, energy, wealth, capital and power is created by the Producers.

It is very important to remember, the Free Market is a Market.  It works like any Market.  It is always working 24/7 in establishing the value for all commodities, trades, goods and services placed on it.  Even when non-producers and counter-producers take money without placing supply on the Market, the Market sets value.  However, the value of these commodities, trades, goods and services is higher than it should be.  This is because non-producers and counter-producers make demands without balancing them with supply.   The Market senses a low supply in relation to demand and the prices go up.  This is commonly called inflation.  When supply is low, prices go up.  When supply is high or abundant, prices go down.

 The definition of the Free Market is, a Market in which prices are controlled by supply and demand, without government regulations and restrictions. 

  • The Free Market allows for advantages by non-producers and counter-producers.  It allows monopolies and all other ways a non-producer and counter-producer can dream up.  They use these advantages to take money, value, energy, wealth, capital and power off the market without exchange for it with supply.
  • Technically speaking the Free Market should not be open to non-producers and counter-producers.  The definition of Free Market “strictly” implies that commodities, trades, goods and services must be supplied in order to demand or take money from the Market.  Supply, “in supply and demand,” implies commodities, trades, goods and services.  Commodities, trades, goods and services must be placed on the Market in exchange for any money received.  The money can be used to place a demand on the Market for other products.
  • Non-producers and counter-producers use one half of the Free Market definition.  They use the demand side of the Free Market definition.  They leave out the supply side.  Or, they fix and control the supply side to their advantage.
  • The non-producers and counter-producers enter into the Free Market and take money, value, energy, wealth, capital and power from it without a product exchanged for it.  This is catastrophic for individuals, families, organizations, societies, nations, mankind and environments!   Today in 2011 we are experiencing the result of this activity, on the Free Market, by non-producers and counter-producers.  We are in a deep world wide recession as a result.
  • The Free Market has no restrictions except keeping all government regulations out of it.
  • The Free Market does not restrict monopolies or any other way non-producers and counter-producers control the supply and demand.  They use methods of controlling supply and demand to receive more money than what their products are worth.
  • The Free Market doesn’t prevent people from taking a non-productive and counter-productive advantage in the Market.
  • The greatest difference between the Open Market and the Free Market is; “the Open Market does not allow for non-producer and counter-producer participation.  The Free Market allows for non-producer and counter-producer participation.”  Non-producers and counter-producers have wrecked many a society and nation.  They have been allowed to participate in the Market without exchange for the money, value, energy, wealth, capital and power they received.
  • Non-producers and counter-producers are found in all levels of a society.  They are located from the poorest among us all the way to the wealthiest among us.  There are no exceptions; non-producers and counter-producers, whether rich or poor, are non-producers and counter-producers.  They are a heavy burden and liability for organizations, societies, nations and mankind!

Producer Rewarded Open Market Economics
The Science of Economics
By R P Obrigewitsch
December 19, 2011

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7. The Open Market Construct

Revised November 18, 2013

This article will cover the principle differences between the Open Market and the Free Market.  It will define the Open Market.  The Open Market Construct specifies, the Market must be open to all Producers on equal terms.  It is restricted exclusively to the activity of Producers.   Non-producers and counter-producers have excluded themselves by exerting destructive forces against all Markets.  They are on the outside of Markets destroying them.  These principles are not specified, implied or applied in the Free Market system.

  • In the Open Market Construct, Open to all producers on equal terms means, all Producers must have equal access.  There must be no advantage for any one Producer.  This is not the case in the Free Market.
  •  The Open Market is open to all producers with no restrictions for any and no advantages for any.  This is not the case in the Free Market.
  • The Open Market is not open to non-producers and counter-producers.  The Free Market is open to non-producers and counter-producers.
  • Non-producers and counter-producers cannot enter into the Open Market and take money and wealth.  They cannot take money and wealth without a product exchanged for it.
  • The Open Market restricts the action of marketing to Producers only.  It does not allow government regulation except maintaining the Market open to all Producers on equal terms.  It does not allow non-producers and counter-producers access to the Market.  All individuals must bring products to the Open Market before they receive money.
  • The Open Market does not allow monopolies or any other way non-producers and counter-producers can control supply and demand.  The control of supply and demand gives non-producers and counter-producers the advantage of receiving more money than what their products are worth.
  • Non-producers and counter-producers are exclusively restricted from participating in the Open Market!   Producers are King in the Open Market!  They create the money, value, energy, wealth, capital and power through the production of commodities, trades, goods and services.
  • The Open Market prevents people from taking a non-productive and counter-productive advantage in the Market.
  • This is the greatest difference between the Open Market and the Free Market.   The Open Market does not allow for non-producer and counter-producer participation.  The Free Market allows for non-producer and counter-producer participation.  Non-producers and counter-producers have wrecked many a society and nation by being allowed to participate in Markets.  They have been allowed to participate without exchange for the money, value, energy, wealth, capital and power they receive.
  • Non-producers and counter-producers are found in all levels of a society.  They are located from the poorest among us all the way to the wealthiest among us.  Non-producer and counter-producers, whether rich or poor, are non-producers and counter-producers.  There are no exceptions! They are a heavy liability and burden on Organizations, Societies, Nations, Mankind and Environments!
  • The Open Market establishes the value of commodities, trades, goods and services.  Producers are the driving force behind the mechanism that gives commodities, trades, goods and services their value.  Producers place the demand on the market.  The market through competition among all commodities, trades, goods and services establishes value.  Producers are the determining force in the market that sets the correct value.  Producers assert their drive through the market to establish the value of the commodities, trades, goods and services.
  • Everyone must place commodities, trades, goods and services on the market before they can take any money.  They must be real commodities, trades, goods and services.  Refer to “What is a Product” in http://youcreatemoney.com.

An Open Market must be open to all Producers on equal terms!  There are no exceptions!  The Open Market always establishes the value of all commodities, trades, goods and services based on supply and demand.  This is a fact in nature.  Upon evaluation it is found to be a self-evident truth.

Producer Rewarded Open Market Economics
The Science of Economics
By: RP Obrigewitsch
December 11, 2011

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5. Free Market vs. Open Market

Revised November 18, 2013

This article on Free Market vs. Open Market is an article comparing the two types of Markets.

I will start with the definition of a Free Market; a Market in which prices are determined by the forces of supply and demand, 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.  I will expand that to say, there must be interplay of commodities, trades, goods and service offered for sale and purchased.  This interplay of commodities, trades, goods and service offered for sale and commodities, trades, goods, and services purchased establishes a Market.  This is how all Markets are established. Non-producers and counter-producers take money out of the Market without offering any supply in return.  When they take money without offering any supply in return they are really stealing the money, value, energy, wealth, capital and power from the Market and the Producers.

Examples of non-production and counter-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 and counter-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 they place on the Open Market and receive money in return for.

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 and counter-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 and counter-producing speculators are taking the money from you with no exchange to you for the money.

The Producing speculators buy shares in commodities.  They take delivery of the commodity.  They convert the commodity into new production.  The Producing speculator then exchanges the new product “supply” on the market for money.

The non-producing and counter-producing speculators buy shares in commodities.  They do nothing with the commodity.  They 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.  This demand causes the price to go up.  When non-producer and counter-producer speculators purchase shares in oil the price of oil increases.  This speculation causes the price of gas at the pump to rise.  These rewarded non-producing and counter-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 commodities, trades, 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 and counter-producers don’t bring a “supply” to the Free Market they must not ever take any money, value, energy, wealth, capital or power 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 a 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 commodity, trade, good or a service, to the Market when receiving money, there is no Market.  It can’t exist.  When a Market does exist the non-producers and counter-producers destroy it.  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 Producers on equal terms” and restricted to the participation of Producers only.  Only producers can create and construct a Market.  Non-producers and counter-producers cannot create and construct a Market.  They can only destroy and destruct a Market.

The Open Market, “open to all Producers on equal terms,” is similar to the Free Market.  The Free Market, which we have seen, is  being “attempted” to be established today.  The Free Market is based upon the dynamics (forces) of supply and demand.  So 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 established today,” is because the non-producers and counter-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 and counter-producer.

The Free Market is attempted to be established today because the Producers are attempting to create a Market while the non-producers and counter-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 and counter-producers tear it down.

The Free Market does not give equal access!  It is the opposite of equal access.  The Non-producers and counter-producers have access to steal the money, value, energy, wealth, wealth, capital and power with no supply (commodities, trades, goods and services) required in exchange for the money.  The Producers are required to provide supply in exchange for their money.  Equal access means; in order to receive money, you must always exchange supply, “a commodity, trade good or service,” for the money without any special advantages.

Non-producers and counter-producers don’t do that.  They work, 24/7, developing schemes to take money, value, energy, wealth, capital and power from the Market without exchanging “supplied” commodities, trades, goods and services for it.  The non-producer and counter-producer out-exchange actions destroy the Market, Society, Nation, themselves and their families.  The Non-producers and counter-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 prosper with.  This created energy, by the Producers, is what gives a Nation its power and strength.

Non-producers and counter-producers can only do one thing when participating in a Market and that is destroying it.  The “Free Market” is in a constant struggle to establish itself.   This is because the non-producers and counter-producers continue to steal the money, value, energy, wealth, capital and power from it with little or no “supplies” exchanged for it.  The Free Market is constantly attempting to be established by the Producers in the society.  These attempts continue to be beaten back by out-exchange Non-producers and counter-producers.

With these constant destructive thrusts, by the Non-producers and counter-producers 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, Nation, themselves and their families.  This destruction of the Market is an observed activity in societies where non-producers and counter-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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1. The Open Market!

Revised November 17, 2013

The Open Market Construct is the third important Axiom in Economics.  The first important Axiom in Economics is; ALL MONEY IS CREATED THOUGH AND BACKED BY PRODUCTION.  The second important Axiom in Economics is; THE PEOPLE WHO CREATE THE PRODUCTION OWN THE PRODUCTS AND THE MONEY RECEIVED FOR THE PRODUCTS WHEN THEY ARE EXCHANGED ON THE OPEN MARKET.  When the producers exchange the production on the Open Market they own the money units received for it.  The fourth important Axiom in Economics is; MAINTAIN A CONSTANT MONEY SUPPLY, NO EXCEPTIONS.  Maintaining a constant money supply standardizes the entire Economic System.  This is like the Metric System being standardized with the standard meter.

The Open Market is a Market.  The Open Market Construct is defined in the Producer Rewarded Open Market Economic System.  All Markets exist because of supply and demand forces. If there are no supply and demand forces, there are “no Markets.”  The supply and demand forces inject life or dynamics into a Market.

The most important parts in the Open Market Construct are (1.)  The Open Market is “open to all on equal terms,” (2.)  The Open Market is a “pure supply and demand” marketing system and (3) The Open Market is, restricted to Producers and only Producers.”  The Open Market is restricted to the activity of Producers because, Producers create all Markets.  Non-producers and counter-producers destroy Markets and thus, are excluded by their nature. They have excluded themselves by being a counter force to the force dynamics that operate all Markets.  In this case they are a counter force to the  Open Market.  They, at some time, have made a decision to be a counter force to the existence and prosperity of the Market and themselves, organization, societies, nations, and mankind.  The Open Market Construct is activated and propelled by the supply and demand principles used by Producers.  The Producers use the supply and demand principles when purchasing and selling commodities, trades, goods and services on the Open Market.

Producer Rewarded Open Market Economics
The Science of Economics
By RP Obrigewitsch
October 2, 20011

 

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Sunday, October 2nd, 2011 Open Market Economics No Comments
 

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