Anonymous Coward writes:
"http://www.theguardian.com/commentisfree/2014/mar/ 18/truth-money-iou-bank-of-england-austerity
Back in the 1930s, Henry Ford is supposed to have remarked that it was a good thing that most Americans didn't know how banking really works, because if they did, 'there'd be a revolution before tomorrow morning.'
Last week, something remarkable happened. The Bank of England let the cat out of the bag. In a paper called "Money Creation in the Modern Economy", co-authored by three economists from the Bank's Monetary Analysis Directorate, they stated outright that most common assumptions of how banking works are simply wrong, and that the kind of populist, heterodox positions more ordinarily associated with groups such as Occupy Wall Street are correct. In doing so, they have effectively thrown the entire theoretical basis for austerity out of the window."
(Score: 0) by Anonymous Coward on Wednesday March 26 2014, @09:56PM
All that is fine, but the premise falls apart when the purchase has been made. Nobody will pay more than they want to. I think what's confusing you is that people *wish* things were cheaper but ultimately demand keeps the price up. It is nothing to do with faith or whimsy. That guy selling bottles of water at the stadium, he might be able to charge a hundred, but he will not be able to charge a thousand for exactly that reason.
There are lots of variables, but it is not mysticism.