On the falling rate of profit…


It’s the falling rate of profit… my thoughts for the past few days exactly… but it gets complicated… at present, the govt is essentially bankrolling the maintenance of corporate america, esp. through the fed’s quantitative easing and perpetually low interest rate (thus making corporate stock much more comparatively appealing for investment than bonds, etc., and still much of the stock surge has been powered by companies buying back there own stock, i.e., providing an internalized solution for their own overliquidity)… in effect, corps are borrowing money for nothing from the govt and using that money to raise the value of their own stocks… thus the function of the “stock market” is that of leaking fiat-created public $$$ directly to shareholders… basically, it’s a circuitous mechanism for a handful of owners to extract money from the public treasury… there is even little pretense of investment (i.e., the falling rate of profit)… hence… the place we’re at might be thought of as a special kind of liquidity trap, one bankrolled oddly enough by the govt… a notion which is a perfect contradiction in Keynesian terms, and yet we see it in reality very clearly nevertheless… Keynes assumed that the govt would spend money into existence, but our govt lends more money into existence than it spends into existence and that money is not being invested so much as hoarded… accordingly we are no longer in Keynesian territory… the entire economic system bears a startlingly similar appearance to a single system of patronage.

About 11again

Used to be an academic... now I'm a washed up academic. I like cooking, blues music, black writers, and morally compromised people of all persuasions.
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