If it looks like a duck, walks like a duck, quacks like a duck, smells like a duck…it’s probably not a lobster. No matter what the leading research analyst on ducks and lobsters says. Even if someone wins a Nobel Prize because they have determined that a duck is actually a lobster based on a sophisticated mathematical equation, it’s still a duck. Adam Smith, whom many call the father of economics, laid out the ground rules for supply and demand hundreds of years ago. In his book, “The Wealth of Nations,” supply and demand is explained in very simple terms. Smith, however, did not invent supply and demand. It has been here all along and guess what, it hasn’t changed and it never changes. When price is at a level where willing demand exceeds willing supply, price will rise. When price is at a level where willing supply exceeds willing demand, price will decline. Over the centuries, certain big name self-promoting economists have tried to twist this simple equation with fancy math to make a name for themselves, sell some books, and win fancy prizes, only to eventually be proven dead wrong. The math works, but it’s the old garbage in garbage out.
However, gravity… Continue Reading
