In defense of the bailout and the Federal Reserve

I

ilkhan

Well-Known Member
Ok Medicine man I know you asked Doc how we would get rid of the system as it stands. I am going to take the liberty and explain it the way Ron Paul did with a little add on by me. You use executive order 11110 that JFK put in place. You order the treasury dept. To begin printing US notes ( I believe these were Silver certificates, RP would probably have used a stable basket of commadatities or just gold). Then what you do is allow the market to decide which is better. By allowing people to be payed in and conduct business with these US Notes. The central banking scam has happened before in this country both Jefferson and Jackson defeated it. JFK gave it a go, until somebody killed him. (not implying anything here). Priced in gold a model T ford cost 385 bucks or about 19 one ounce gold double eagles in the 20s. The cost of a modern F-150 pick-up is about 15000 dollars in todays money, but priced in gold its about 20-21 1 ounce gold (at 750$ an ounce)double eagles or about 400 Bucks. Which would you rather buy??

The real problem with Gold is that If you have a war (or massive social welfare programs)you have to pay for it. Thats where the problem historically has come up. A nation decides let us have a jolly good war. Then spending goes through the roof and you need to make money out of nothing thats were these bankers come in. Lincoin instead of taking the Bankers loan at about 36% interest printed debt free Greenbacks. Saved the nation a whole lot of grief.

Bank runs wouldn't be a problem if banks were not using a fractional reserve banking scam. Creating currency out of thin air and then expecting us to pay interest on it, what a great idea, for them.

Look I know allot of people don't like religion and religion and politics are to things you never bring up in polite society. But Christ used force only one time in the bible, once. Who did the Son of God, the one person who has created one of the largest bases of followers in the world today by advocating peace love and blaa blaa blaa. Who??? People who were playing games with money. Thats what the Fed does, it plays Games with money. The Crooks have only gotten smarter Invented new games and told us we are all to stupid or uneducated to understand what they are doing. That is why it is Counter intuitive because people with Common sense and who pay attention realise its a scam. A scam that incourages greed and excess by the government and all the way down to the people.

Doc what is it gonna take for you to see what most of us are saying?? When you lose your job, when your money is worthless. Your a smart, well read guy, I can tell your smarter then me (And I don't say that often) But the system you adocate is wrong. (IMHO) But I guess time will tell. All I'm saying is If this system of total fiat currency goes bust think before you just let them set up a new central bank scam and get back to real money. Its an option thats all I'm saying. I'm not going to lecture you about reading Austrian economics, nuff said.

I know one thing, I'm gonna be pissed if they use this as an excuse for a North American Union or the Amero (or what ever name they want to give it even if it is gold backed).

Long Live the Republic And RP 2012!!
 
medicineman

medicineman

New Member
ilkhan said:
Ok Medicine man I know you asked Doc how we would get rid of the system as it stands. I am going to take the liberty and explain it the way Ron Paul did with a little add on by me. You use executive order 11110 that JFK put in place. You order the treasury dept. To begin printing US notes ( I believe these were Silver certificates, RP would probably have used a stable basket of commadatities or just gold). Then what you do is allow the market to decide which is better. By allowing people to be payed in and conduct business with these US Notes. The central banking scam has happened before in this country both Jefferson and Jackson defeated it. JFK gave it a go, until somebody killed him. (not implying anything here). Priced in gold a model T ford cost 385 bucks or about 19 one ounce gold double eagles in the 20s. The cost of a modern F-150 pick-up is about 15000 dollars in todays money, but priced in gold its about 20-21 1 ounce gold (at 750$ an ounce)double eagles or about 400 Bucks. Which would you rather buy??

This is assuming the price of gold remained constand from then till now

The real problem with Gold is that If you have a war (or massive social welfare programs)you have to pay for it. Thats where the problem historically has come up. A nation decides let us have a jolly good war. Then spending goes through the roof and you need to make money out of nothing thats were these bankers come in. Lincoin instead of taking the Bankers loan at about 36% interest printed debt free Greenbacks. Saved the nation a whole lot of grief.

Bank runs wouldn't be a problem if banks were not using a fractional reserve banking scam. Creating currency out of thin air and then expecting us to pay interest on it, what a great idea, for them.

This is what I've been led to believe also, a nest of unscrupulous Bankers riding high on our (The US taxpayers) breaking backs. Living in the shadows and piling up huge sums of money to sweeten their pot.

Look I know allot of people don't like religion and religion and politics are to things you never bring up in polite society. But Christ used force only one time in the bible, once. Who did the Son of God, the one person who has created one of the largest bases of followers in the world today by advocating peace love and blaa blaa blaa. Who??? People who were playing games with money. Thats what the Fed does, it plays Games with money. The Crooks have only gotten smarter Invented new games and told us we are all to stupid or uneducated to understand what they are doing. That is why it is Counter intuitive because people with Common sense and who pay attention realise its a scam. A scam that incourages greed and excess by the government and all the way down to the people.

Greed is the enemy. From the lowly Janitor, to the richest dude on the planet, greed rules. Just give me mine and go away.

Doc what is it gonna take for you to see what most of us are saying?? When you lose your job, when your money is worthless. Your a smart, well read guy, I can tell your smarter then me (And I don't say that often) But the system you adocate is wrong. (IMHO) But I guess time will tell. All I'm saying is If this system of total fiat currency goes bust think before you just let them set up a new central bank scam and get back to real money. Its an option thats all I'm saying. I'm not going to lecture you about reading Austrian economics, nuff said.

Dr. Pot and you are both, (In my humble estimation), smarter (More educated) than I, But yes I can surely see the deck is stacked and stacked in favor of the rich, in every way possible. People call me jealous, and that may be a fair analysis, I mean, who wouldn't want to live larger and have the finest things in life, the American dream. Problem is, unless you invent something, win the lottery or are able to blackmail a rich dude, all that education and hard work may land you in the unemployment line with thousands/millions of other over-educated fools.

I know one thing, I'm gonna be pissed if they use this as an excuse for a North American Union or the Amero (or what ever name they want to give it even if it is gold backed).

Long Live the Republic And RP 2012!!
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I'm with you on the Republic thingy, but R.P., now that will take some refinement, I'm definently not ready to privatize the nation. After watching the corporations steal our country, I have serious issues with private industry.
 
Doctor Pot

Doctor Pot

Well-Known Member
I think this is a very good article on how this crisis happened, I'm putting it up top so it doesn't get buried in my post:

http://www.nytimes.com/2008/11/26/opinion/26friedman.html?em

“Long Beach Financial,” wrote Lewis, “was moving money out the door as fast as it could, few questions asked, in loans built to self-destruct. It specialized in asking homeowners with bad credit and no proof of income to put no money down and defer interest payments for as long as possible. In Bakersfield, Calif., a Mexican strawberry picker with an income of $14,000 and no English was lent every penny he needed to buy a house for $720,000.”

So what will change after this bailout? Well, I'm sure there'll be a lot more regulation than before. I maintain that they were necessary, even though they were extremely distasteful.

ilkhan said:
Ok Medicine man I know you asked Doc how we would get rid of the system as it stands. I am going to take the liberty and explain it the way Ron Paul did with a little add on by me. You use executive order 11110 that JFK put in place. You order the treasury dept. To begin printing US notes ( I believe these were Silver certificates, RP would probably have used a stable basket of commadatities or just gold). Then what you do is allow the market to decide which is better. By allowing people to be payed in and conduct business with these US Notes. The central banking scam has happened before in this country both Jefferson and Jackson defeated it. JFK gave it a go, until somebody killed him. (not implying anything here). Priced in gold a model T ford cost 385 bucks or about 19 one ounce gold double eagles in the 20s. The cost of a modern F-150 pick-up is about 15000 dollars in todays money, but priced in gold its about 20-21 1 ounce gold (at 750$ an ounce)double eagles or about 400 Bucks. Which would you rather buy??
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Considering none of us were capable of buying a model T during the 20s, we don't have that choice. There are a lot of reasons gold wouldn't make a good currency, and I've given at least three of them in this thread at various times. But sure, let's see a bunch of them again:

  • Bank runs - during times like these, people would want gold, not securities or certificates. Lots of people would try and withdraw their gold at once, the value of gold would shoot up, and we'd have deflation.
  • With constant inflation, it's a lot harder for bankers to make money exchanging currencies. If all currencies are constantly losing value, you're fighting an uphill battle. On the other hand, if currency remained at a more or less constant value, there would be enough bankers trying to make money off currency exchanges that it would destabilize the dollar. And you'd still be pissed at bankers, but just for different reasons. :p
  • The amount of gold on this planet is increasing slower than the population. This virtually insures deflation, which is worse than inflation for a number of reasons which I've mentioned.
  • Most of the gold and platinum mined today comes from Russia or South Africa. Buying it from them would increase the trade deficit.
  • It's true that money has no inherent value, but then gold doesn't either. Remember King Midas? Everything he touched turned to gold, but he couldn't do anything with it, and the novelty wore off quickly. Gold's value comes from the fact that there's a limited supply of it and that people are willing to trade other things for it. Kind of like paper money.
  • Gold is used in industry now, whereas it didn't have much industrial use before the 20th century. If an industry that uses gold announces a change in plans, this can send the value of gold up or down depending on the news.
  • Not until after WW2 did your average citizen have the ability to access world news immediately. If a bank run happened today, it would spread far more quickly than during the 19th century. And even back then, the bank runs were pretty bad.
  • Gold's value fluctuates quite a bit, especially during tough economic times. If the value of currency was based on gold, this would not be a good thing. The value of currency needs to be stable, since it's the thing you use to measure the value of other things against. Prices in stores would necessarily be higher to account for that uncertainty.
  • Gold's value is based on random global economic forces. The US dollar's value is controlled by the Federal Reserve. Even if the Federal Reserve doesn't do a great job controlling the value of money, it's bound to do a better job than what amounts to a random number generator.

The real problem with Gold is that If you have a war (or massive social welfare programs)you have to pay for it. Thats where the problem historically has come up. A nation decides let us have a jolly good war. Then spending goes through the roof and you need to make money out of nothing thats were these bankers come in. Lincoin instead of taking the Bankers loan at about 36% interest printed debt free Greenbacks. Saved the nation a whole lot of grief.

Bank runs wouldn't be a problem if banks were not using a fractional reserve banking scam. Creating currency out of thin air and then expecting us to pay interest on it, what a great idea, for them.
Click to expand...
So you're saying a bank needs to have all the money that its depositors have deposited in cash? Then how would they make loans or generate interest?

Look I know allot of people don't like religion and religion and politics are to things you never bring up in polite society. But Christ used force only one time in the bible, once. Who did the Son of God, the one person who has created one of the largest bases of followers in the world today by advocating peace love and blaa blaa blaa. Who??? People who were playing games with money. Thats what the Fed does, it plays Games with money. The Crooks have only gotten smarter Invented new games and told us we are all to stupid or uneducated to understand what they are doing. That is why it is Counter intuitive because people with Common sense and who pay attention realise its a scam. A scam that incourages greed and excess by the government and all the way down to the people.
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Come on, you know better than that. Jesus was mad because they were changing money in the temple, which was supposed to be a place of worship. If they'd been changing money somewhere else, I doubt he would have cared. He did get mad at that one fig tree too, and cursed it, remember that? A lot of things are counterintuitive without being a conspiracy. For instance, intuitively many people think of deflation as being good because their money increases in value. But the greatest period of deflation was 1929-1933, and anyone who understands economics knows the problems deflation can cause.

Doc what is it gonna take for you to see what most of us are saying?? When you lose your job, when your money is worthless. Your a smart, well read guy, I can tell your smarter then me (And I don't say that often) But the system you adocate is wrong. (IMHO) But I guess time will tell. All I'm saying is If this system of total fiat currency goes bust think before you just let them set up a new central bank scam and get back to real money. Its an option thats all I'm saying. I'm not going to lecture you about reading Austrian economics, nuff said.
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The Austrian school assumes that market forces can't be measured or modeled, but computers and modern data systems have made doing that pretty easy nowadays.

If the economy collapses, I have all my money in gold and platinum, so I'll be doing great! Also my family has connections in South America, and my dad is a farmer so if anything I'll be doing better than average. I guess I do have less reason to be worried than most of you guys! :blsmoke:

I know one thing, I'm gonna be pissed if they use this as an excuse for a North American Union or the Amero (or what ever name they want to give it even if it is gold backed).

Long Live the Republic And RP 2012!!
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The whole concept of the North American Union appears to have come up in a think-tank, and then conspiracy theorists picked it up and ran with it. But think-tanks come up with crazy ideas all the time. Between WWI and WWII, some military think-tanks came up with a plan to invade Canada, for instance, but no one seriously planned to do that either.

Ron Paul will be like 80 years old in 2012... good luck!
 
I

ilkhan

Well-Known Member
Medicine Man I couldn't agree more the about privatization it does need to be regulated to a certain extent I mean like I said the crooks just think of new games to play then when people figure it out they grab the loot and run saying its not our fault its the system. Well thats the way i see it.

Gold does stay stable from 1837 to 1913 it only changed about 75 cents it wasn't until The Fed got involved that it changed drasticly. It stays reletivley stable moreso than the floting dollar thats for sure. The example i showed you was the price at its commodatities value (approximatly). Prices have really changed very little (when priced in gold) only quality and technology have increased.

I don't mind rich folks they are needed and really are what it means to be sucsesful in the US. But only when they earn it through honest buisness not unfair practices. But really once you have a home in the city a nice lake house a boat and a couple cars maybe some land what more does a man really need?? These people have more power through unfair policies then any person should have.

Look Ron Paul is an Idealist ok no doubt. But I support him because he makes sence. He is honest (even John McCain said he was the most honest man in congress) and I wanted an Idealist with libretarian leanings I wanted someone to slam the breaks on this train and let everyone take stock in the situation. I agree with his policies reguarding finance. I agree with his policies on Terrorism. Put a 2 billion dollar Letter of Marque and reprisal on Osamas head. Enouph that it wouldn't matter where he was he would be hunted down and have the pertruding parts of his body removed. I don't like littering nations with depleated uranium (You want to talk about the enviroment) I don't want our troops in all these other countrys, and many countrys don't want them there either. And ultumatly he would have cut spending but would have had to work with congress he wouldn't have had dictitorial powers. He couldn't, for example, just end the Dept of Education and he knew this. He would have been a great president or at least an honest one.
 
Dfunk

Dfunk

Well-Known Member
Doc Pot it's great that you like our new president, but I feel as well as many others that you are sadly mistaken about what goes on in our government & banking system. Hope is nice to have, but they don't care about you anymore than you care about me & that's the truth. They have goals that don't necessarily involve the nations best interests. I also don't believe they want us gone...without us the system dosen't work.
 
Doctor Pot

Doctor Pot

Well-Known Member
ilkhan said:
Medicine Man I couldn't agree more the about privatization it does need to be regulated to a certain extent I mean like I said the crooks just think of new games to play then when people figure it out they grab the loot and run saying its not our fault its the system. Well thats the way i see it.

Gold does stay stable from 1837 to 1913 it only changed about 75 cents it wasn't until The Fed got involved that it changed drasticly. It stays reletivley stable moreso than the floting dollar thats for sure. The example i showed you was the price at its commodatities value (approximatly). Prices have really changed very little (when priced in gold) only quality and technology have increased.
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On average, gold has been worth roughly the same over the long term, but it's fluctuated like crazy over the short term. If you wanted to buy an ounce of gold this past October 7th, you would have paid $918 for it. If you wanted to buy the exact same ounce of gold two and a half weeks later, you'd only have to pay $692.

I don't mind rich folks they are needed and really are what it means to be sucsesful in the US. But only when they earn it through honest buisness not unfair practices. But really once you have a home in the city a nice lake house a boat and a couple cars maybe some land what more does a man really need?? These people have more power through unfair policies then any person should have.

Look Ron Paul is an Idealist ok no doubt. But I support him because he makes sence. He is honest (even John McCain said he was the most honest man in congress) and I wanted an Idealist with libretarian leanings I wanted someone to slam the breaks on this train and let everyone take stock in the situation. I agree with his policies reguarding finance. I agree with his policies on Terrorism. Put a 2 billion dollar Letter of Marque and reprisal on Osamas head. Enouph that it wouldn't matter where he was he would be hunted down and have the pertruding parts of his body removed. I don't like littering nations with depleated uranium (You want to talk about the enviroment) I don't want our troops in all these other countrys, and many countrys don't want them there either. And ultumatly he would have cut spending but would have had to work with congress he wouldn't have had dictitorial powers. He couldn't, for example, just end the Dept of Education and he knew this. He would have been a great president or at least an honest one.
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He's honest, I'll give him that. But I do think he's too ideological to be president. He'd need to represent the whole country, not just the 10% of Americans or so who agree with him.
 
Titania

Titania

Well-Known Member
The U.S bailout is a perfect example of business class socialism, these are the same people who advocate deregulation and free markets ect ect ect. They want common people to pit themselves against one another in a high anxiety, competitive society; while safe in the knowledge that if their gambling goes wrong the the population can save them. Any decent person accepting this outrageous injustice, might as well bend over and let the corporate cock-shafting commence.
 
hom36rown

hom36rown

Well-Known Member
Doctor Pot said:
We export more than China, or at least we did in 2005:
http://www.nationmaster.com/encyclopedia/List-of-countries-by-exports

Interesting, that the largest exporter in the world is actually Germany. We need to learn a thing or two from them. But yeah, we also import way more than China so we have a net deficit.
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Once again, this does not mean a god damn thing! We still import more than we export, have been for decades, and now we have to pay all that red ink back...simple as that.

Doctor Pot said:
That's the thing, economic collapses tend to increase the value of the dollar because they make everyone lose money. Fewer dollars mean dollars are more valuable. If the economy collapsed, the government would have a really tough time paying back all that debt, since it wouldn't have much income. It would be even worse for them.
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this is just plain wrong, if our economy collapsed, the value of the dollar would not go up.....it would drop like a stone.
 
Doctor Pot

Doctor Pot

Well-Known Member
Titania said:
The U.S bailout is a perfect example of business class socialism, these are the same people who advocate deregulation and free markets ect ect ect. They want common people to pit themselves against one another in a high anxiety, competitive society; while safe in the knowledge that if their gambling goes wrong the the population can save them. Any decent person accepting this outrageous injustice, might as well bend over and let the corporate cock-shafting commence.
Click to expand...
Are you for anything, or just against everything?

hom36rown said:
Once again, this does not mean a god damn thing! We still import more than we export, have been for decades, and now we have to pay all that red ink back...simple as that.
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You implied that we export nothing, my point was merely that we do. I didn't deny that we have a trade deficit, nor did I deny that it was a problem. In fact, I said more than once that it is a problem. But this is a problem that we can't solve with a collapsed economy.

this is just plain wrong, if our economy collapsed, the value of the dollar would not go up.....it would drop like a stone.
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Oh, you mean like during the Great Depression?
 
hom36rown

hom36rown

Well-Known Member
Doctor Pot said:
For the last two decades, inflation has been around 3%. Will the proposed response to this crisis increase inflation? Almost certainly, probably to around 5%. But considering it was 11% during the Vietnam War, that's not too horrible. At least it's not as bad as the alternatives.
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The govt's cpi index is ridiiculous, and is not a very accurate means of measuring inflation. Inflation has really been running rampant for decades. ANd the way we are handling things now, it is going to be much much worse.
 
hom36rown

hom36rown

Well-Known Member
Doctor Pot said:
You implied that we export nothing, my point was merely that we do. I didn't deny that we have a trade deficit, nor did I deny that it was a problem. In fact, I said more than once that it is a problem. But this is a problem that we can't solve with a collapsed economy.
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Yes well, printing money isnt going to fix our trade defecit or our economy, just rob you and me.
 
Doctor Pot

Doctor Pot

Well-Known Member
hom36rown said:
The govt's cpi index is ridiiculous, and is not a very accurate means of measuring inflation. Inflation has really been running rampant for decades. ANd the way we are handling things now, it is going to be much much worse.
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You think the CPI must be wrong, therefore it is? Any evidence?
 
FLoJo

FLoJo

Well-Known Member
ya gold fluctuates wildly over the short term, but is constant in the long term, whereas our dollar is consistent in the short term, but fluctuates wildly in the long term...

i would much rather have something that holds value over long term, especially when pitted against the commodity (the dollar) that consistently loses value in the long run.. put the two together and you have a commodity which will give you returns well over any CD, money market, mutual fund, savings acct. etc.. just look at the statistics

the dollar now is what was a few cents in the thirties.
from the year 1800 to 1913, the year the fed was born gold fluctuated less than a dollar hovering right around 20 dollars an ounce.

from 1913, to present it has gone as far as about 1000 an oz. where as the dollar now buys about what it did in the 30s for a couple cents.

the value of gold is directly correlated with the health of the economy because it has represented real wealth for thousands and thousands of years. as much as we would like to look at economics macro or micro it is still a HYPOTHETICAL study. what economics says happens does not always happen that way, because our economics is based on the thought of a FREE MARKET SYSTEM, which we are not!! we have outside influences that can manipulate any portion of our economy and makes economics flawed.. study all you want, quote all the theories in the book, but it doesnt change the fact that it is not what is happening, or will happen to us in the future.

i wish economics was like the laws of gravity but it is not. it is flawed, and so is our economy.

FLo
 
Doctor Pot

Doctor Pot

Well-Known Member
Dfunk said:
Do you just believe everything your told?
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I generally believe what is most widely accepted unless I can find good reason to believe otherwise. For instance, if inflation was much higher than the CPI indicates, prices would be going up fairly quickly. But my grocery bill is about the same as it was five years ago and most of the stuff that has gone up went up about the amount that the CPI would predict. Therefore, I'm assuming the CPI is more or less accurate, because I haven't experienced anything that would make me believe it was deliberately made wrong.

I've found that this works better than just implicitly distrusting everyone with any sort of power.
 
Doctor Pot

Doctor Pot

Well-Known Member
FLoJo said:
ya gold fluctuates wildly over the short term, but is constant in the long term, whereas our dollar is consistent in the short term, but fluctuates wildly in the long term...
Click to expand...
Noooo.... the dollar declines slowly and steadily over the long term.

i would much rather have something that holds value over long term, especially when pitted against the commodity (the dollar) that consistently loses value in the long run.. put the two together and you have a commodity which will give you returns well over any CD, money market, mutual fund, savings acct. etc.. just look at the statistics
Click to expand...
Then buy something that holds value over the long term. Nothing's stopping you.

the dollar now is what was a few cents in the thirties.
from the year 1800 to 1913, the year the fed was born gold fluctuated less than a dollar hovering right around 20 dollars an ounce.

from 1913, to present it has gone as far as about 1000 an oz. where as the dollar now buys about what it did in the 30s for a couple cents.
Click to expand...
And like I've said before, so what? Why does this even matter?

the value of gold is directly correlated with the health of the economy because it has represented real wealth for thousands and thousands of years. as much as we would like to look at economics macro or micro it is still a HYPOTHETICAL study. what economics says happens does not always happen that way, because our economics is based on the thought of a FREE MARKET SYSTEM, which we are not!! we have outside influences that can manipulate any portion of our economy and makes economics flawed.. study all you want, quote all the theories in the book, but it doesnt change the fact that it is not what is happening, or will happen to us in the future.
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I don't really understand this paragraph. I posted a bunch of reasons why a gold standard wouldn't work so well today, did you read them?

i wish economics was like the laws of gravity but it is not. it is flawed, and so is our economy.

FLo
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Yeah, economics is more complicated, but it does follow certain rules, like the law of supply and demand.
 
FLoJo

FLoJo

Well-Known Member
Doctor Pot said:
Noooo.... the dollar declines slowly and steadily over the long term.
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Yessssss... the dollar slowly and steadily decreases in value over the long term which in the end, comes out to be a large fluctuation from its original value.



Doctor Pot said:
Then buy something that holds value over the long term. Nothing's stopping you.
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I am, and I want others to have good info to make good decisions.. not put trust into a fiat currency and bullshit financial tools like CDs, savings accounts, stocks, bonds, money markets, etc..


Doctor Pot said:
And like I've said before, so what? Why does this even matter?
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it matters because it compares a system we used to be under, and that has worked for thousands and thousands of years, compared to a system which has self destructed itself in less than a century. yes it has its problems and flaws, but not near like the problems we are facing today and the ramifications of our ignorance and trust in financial mumbo jumbo.


Doctor Pot said:
I don't really understand this paragraph. I posted a bunch of reasons why a gold standard wouldn't work so well today, did you read them?
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because you are giving examples and justifications based on a system that we do not even follow. and again a gold standard currency may not be the finite answer, but a currency BASED on a commodity is much safer and more stable than this monopoly money we are using.


Doctor Pot said:
Yeah, economics is more complicated, but it does follow certain rules, like the law of supply and demand.
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yes well the law of supply and demand is not a concrete law, it can still be manipulated by outside sources. economic theory, is just economic theory.. the laws of economics are not constant, and easily influenced. it is based on certain assumptions that must be maintained in order for the theory to work, you are basing your observations on certain assumptions that may or may not be real, and in the REAL WORLD, and what is really happening, and who really controls aspects such as supply and demand, will dictate the outcome, not the theory of economics.
 
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