Thanks Dannyboy, I sort of proved it out with my other new Taprite regulator I bought to get my son set up at his place. I am very surprised, but I guess anything is possible, maybe I got a bad one or there is something stuck somewhere. even a partial blockage to the gauge I would assume it would eventually rise to where the pressure really is. I don't know what the insides look like to speculate if it is possible that the gauge is reading a pressure different from what is going out. I suspect the gauge itself must be damages inside somehow. It moves up and down with the pressure, but it seems like at a much different scale than what is on the dial. Like a high pressure gauge with a low pressure dial/face.
So for right now I bled my keg, attached my sons regulator from his keg (currently carbing at 20 psi) and I gave my keg a 12 psi "charge" and then disconnected. I am afraid to leave my regulator on it as I have no idea what the actual pressure is going in, other than it must be way higher than the gauge reads.
I will look at the bright side, at the end of all this I will have all kinds of back up equipment so there will never be a beer emergency I cannot handle. And I learned soooo much about this subject. Thanks to all you guys again for the tips and advice!