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Market Axioms

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The common conception is that market are desgined for wealth creation.

I'm seeking the truth of the axioms of the financial and recource markets. Can those who know please enlighten me.

Before I start capitals are used for emphasis only, and please forgive any offence if you take any as that is not my intention.

Here are my current views on

"markets are desgined for wealth creation"

This is sort of right, in the same way that the war on terror is about spreading freedom to others. If one only took leaders staments then it would seem so. But a close examination of the motives and the big picture shows that Oil is to America* (see below) like sugar was to the British Empire and wheat was to the Roman Empire.

*America is not the right label (what ever label you choose to give to the current capitalist rulers cos they sure aint just Americans, hereafter they are referred to as X1)

The Rulers of X1 (as opposed to the figureheads in the media) could not let democracies with their fickle swings of opinion take hold over Afghanistan or Pakistan. Because thats where one pair of oil and gas pipelines will bring the blood (that pumps through the current system) to the market. Tolerate or encourage democracies in that region, such that X1 would have to appease or bargain (give and take without compulsion) with those people...FORGET IT.

General Musharaf is a dictator but the BBC recently keep referring to him as "president" to legitimise our cooperation with him (he is really the govenor of that colony for us).........

The bigger picture looks opposite to the middle range view and the close up view is even worse (recent elections in America and many unconstitutional laws and practises).

Granted you may disagree and discount all of this sofar. But lets see if the next part can be denied.

Back to topic.

Markets were designed for wealth creation but lets take a look at the big picture....

The first ever listed company on the London stock exchange was the East India Company. Through this outfit Britain added India as a colony. Wealth my friend was transfered not created.

From the medium range view it would have looked like creation in London but a dispassionate holistic world view would show transfer of wealth, this is what markets are designed for, transfer not creation and they're not fussy where it comes form beit from abroad, ther own employees, thier own subjects you and me anyone, they dont care

After the first international exploit the markets are now used for international regional and domestic** wealth transfer (not creation)....... IT IS A WAR FOR PROFITS*** ....AND ALL IS FAIR IN WAR.

**Some examples of domestic wealth transfer include (South Sea Bubble, Tech Bubble, Housing Bubbles).

***PROFIT: The underlying meaning of this is wealth creation. Profit can only be real on a comparative basis and as such is measured in comparative terms so some one works for 100 hours and i take his money for giving him something that i worked for 5 seconds.

Various traded equities and derivatives are called instruments.

(Look into the root meanings of the word "instrument" you will find it quite interesting and not without purpose).

And now the finale!!!!

What would undermine the WEALTH TRANSFER that markets are designed for.....MORALITY!!!!!!!!!!!

I am not sure of these conclusions and dearly ask those who do know for sure the structures and axioms of the market to please judge this and give me the truth where I was incorrect (by PM if you prefer). Because I really want to get to the bottom of all this.

If your self esteem it attached with the notion that this system is morally good. Then your ego will defend you from this attack (you wont see it [if there is any truth in this view]).

But you can be free; master your ego.

Kind Regards all


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Markets facilitate trade and the efficient allocation of resources. If you believe in the principles of capitalism and the "guiding hand", this is the best way for economies to operate.

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markets are about getting a good equilibrium of supply and demand,sure.....that's why if someone produces a product that everyone wants,within no time competitors spring up....that's a good thing.

...the wealth transference bit comes in when you acknowledge there are some people who are adept at playing this game and will quite happily seduce the ill-informed and naive into playing too......the only safe option is not to play it when everyone else wants to!!...you have less chance of winning!

think RISK* or monopoly and you can't go too far wrong!!!

...everyone has their own strategy for winning monopoly,but the sheep always think the best one is to put hotels on park lane and mayfair....IT ISN'T!!!!

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markets are about getting a good equilibrium of supply and demand,sure.....that's why if someone produces a product that everyone wants,within no time competitors spring up....that's a good thing.

Right. Economics 101. That's why in the real world, hot industries are never a good idea to bandwagon onto. Growth companies attract new entrants, which destroy profits for everyone. That's why you need a company with that illusive competitive advantage to protect it from competitors and maintain profit margins.

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Official answer:

The market is used for moving capital from those with it (investors) to those that need it (producers/industry). It is also used to allow all people to own shares in companies so that in a capitalist society a larger number of people can share the wealth.

My answer:

The market is used to extract money from amateur investors. It also acts as an inflation/recession proof form of investment for the very rich. e.g. old money will survive in the market 100 million in the market will survive a 50% drop and recoup those losses later and the dividends keep everything sweet.

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