In my article “Mr. Putin’s Economic theatre of Operation, I cited “limiting demand” to
explain a Russian Iranian Oil Deal.
For most people, supply and demand is the simple concept of economics:
If more sellers (supply) show up than buyers (demand), the sellers must drop their
prices to sell their goods. They are competing with other sellers. The more perishable
the product, the faster they must sell it, the more willing they are to drop their prices.
If more buyers show up than sellers, the price goes up because buyers to not want to
go home empty handing. Specially if the product is in great demand. That is the
Now on to limiting demand.
“Limit supply and drive up prices. Limit demand, bypass the market, stablise the
economy.” ~ Slim Fairview
Look at what is happening from the standpoint of the two articles I wrote on the subject:
Putin’s Overture in Eurasia Minor
Mr. Putin’s Economic Theatre of Operation
China: Not the What the Where.
One important factor of the new paradigm and the recalculating of the numbers: it will
replace the following, specially regarding China.
“When the numbers are bad, the Wall Street experts gloat. When the numbers are
good, the Wall Street Experts doubt the numbers.” ~ Slim Fairview.
The concept of limiting demand will enable long term economic planning with a
reasonable degree of stability by rendering market forces irrelevant.
In addition, we seldom see ourselves as others see us. Look at us from the perspective
of emerging nations.
• Chinese People have suffered poverty and hunger.
• Russian People have suffered poverty and hunger.
• Americans are rolling in dough.
Remember! The perspective of people starving to death in emerging nations.
I will explain what I mean by limiting demand using golf as a metaphor. This is a lesson
about Economics. Golf is a metaphor. The takeaway is: Economics!
Golf Course # 1.
Fees: $50, per round in groups of four.
Anyone can play.
The demand exceeds supply.
Many are turned away.
Golf Course # 2.
Anyone can play.
Demand often exceeds supply.
Fees: $50, per round base rate plus extra fees with high demand.
If few people want to play, the fee is $50. As the demand rises, the fees may rise to
$100 or $150 per round. Many can’t afford the higher fees. Many are turned away.
Golf Course # 3.
Fees: $50, per round.
Demand limited to 500 members.
Not exclusive, not for the rich, not restricted. Simply Private.
Demand is limited, the fees are always $50, and everyone gets to play.
It should be obvious to all that price increases are more sever among those who can
least afford it. As this applies to food, in many industrialised nations there is a fixed or
limited demand and a stable supply, and a marketplace that can blunt the negative
impact on the less fortunate.
In the US and other industrialised nations there is certainly poverty and hunger.
In Emerging Nations:
• A Flood
• A Drought
• A Crop Failure
• A Migration of Starving Refugees