"Markets are created to establish prices."
Believing that "markets are specifically established to determine prices," forces one to believe that investors have plowed billions into distribution centers, stores, work hours of cashiers and stockers of a supermarkets chain merely to put food on shelves to display offers on shelf tags. Of course, investors create supermarkets to trade property in food and other merchandise for property in cash and credit in purchases and sales.
The trading of property is the only reason why markets exist. In purchases and sales, individuals trade property, which is the right of ownership and never the things owned. Organized markets arise to facilitate purchases and sales of property for property.
Price quotation arises as an effect of highly-organized markets (think NYSE or COMEX). However, price quotation isn't a cause.
Price is a trade rate that reflects quantities in ratio.
Further, price results from expected future profit. For if no one believed he could earn income tomorrow beyond his expenses of eating, he would buy nothing today.
Academia economists with their pseudo-science of economics actually believe people exchange utilities for utilities. In their laughable theory, they believe a man will exchange only up to the margin of his satisfaction. Their comical theory is so incomplete that economists fail to consider that buyers also account for the bidding strength or weakness of the one with whom they are trying to strike a deal.
The basis of commerce, which is what men do, is the trade of property in pursuit of profit.
Gab It
