Re: "Supply And Demand"
Not wanting to wake sleeping dogs (or cats) but I thought this may be of interest to those seeking an 'alternative' understanding of supply and demand.
Firstly, if you haven't already please read and understand "Say's Law"
http://en.wikipedia.org/wiki/Say's_law
Say's law says that "Supply creates its own demand" Ooo controversial! well not really.
When you apply this to the financial markets you can see how those that print money are able to control supply and in doing so control demand, therefore, demand in the conventional sense has absolutely no effect on price! Come again?
foreigner said:
Now lets take Wallmart, they flood the market with cheap Chinese goods and produce purchased with banker backed bucks, not profits. This is intended to control the market in the same way the FX market is controlled. From the supply side.
When price turns it is not becuase of a "supply demand imbalance" (in my opinion) the money makers have merely cut or increase the supply of a given currency or another which they are in a position to do regardless of demand(hence the impending economic crisis).
Now, if thats the case, then why do they bother going after stops?! My guess is banks do this for the same reason Governments prevent you from starting your own army, control.
In fact, as we know, Governments go to great lengths to prevent both these things happening, Libya for example.
Another place you can see this affect is in the property market. When you see a city being overdeveloped with high end apartments (like Dubai) its not becuase the "economy" is booming, its merely becuase the banks have increased the supply of money therefore the supply of building rises, Nothing to do with demand from buyers.
This is the very reason we shouldnt be sucked in by what we SEE, all is not what it seems.
Keep living in your own little world.. While you wondering what Michael would do there..Enjoy 8)
