Clearly
In the United States, having money entitles you to use it as you see fit, within legal bounds of course. However, having money also entitles you to invest it in various forms of capital in order to draw a profit. What having money does not entitle you to, at least in a modern republic like the United States, is more money. In other words, one is free to invest their money in order to make more, but the simple having of money does not entitle one to more of it.
With a fiat money this is even more true, since the money itself is no longer a form of capital, but a pure token form of value. Having this sort of money does not restrict one's wealth, nor one's capacity to invest to make a profit, or even one's capacity to spend their money as they see fit, within legal bounds of course. The money still represents the power to command labor, which is backed by the faith in the government. Government representing political power, or the power to use force to compel obedience.
After the Great Depression, J.M. Keynes showed, in his classical text " The General Theory of Employment, Interest and Money" that interest on money is the one form of profit on capital (where money in those days was gold, and hence a form of capital) that does not find an equilibrium level in the market system, since it is the basic medium of exchange. As a result he discovered that the government needed to maintain the level of interest at or below the normal rate of profit. Well, since gold is a form of capital, when the gold is removed from behind the money, all interest on the make believe gold is at or above the normal rate of profit on real capital. In fact, the rate of profit is infinity, since one cannot divide by zero capital.
To balance this, all the government can do is release an accelerating rate of credit and encourage borrowing to push this make believe money into the economy to keep the exchange of goods and services on pace with the rate of interest. In otherwords, inflation becomes the basis of growth of the economy. Currently, the inflation adjusted DOW, based on 1971 dollars is about 2,180, compared with its current 11,000 nominal value. The two numbers are equal.
A nobility is defined as that class of individuals who have an entitlement to the labor and property of others who are not nobility. Article one section 9 of the United States constitution prohibits the recognition of a nobility class in the United States. So, how come there exists certain individuals who can exact a profit without investing in anything? Who can demand more money in the name of (a principal/principle defunct) interest simply because they have money?
I would really like an explanation for that one before the greater depression hits.
Help build a U.S. Capitalist Party write a comment.
With a fiat money this is even more true, since the money itself is no longer a form of capital, but a pure token form of value. Having this sort of money does not restrict one's wealth, nor one's capacity to invest to make a profit, or even one's capacity to spend their money as they see fit, within legal bounds of course. The money still represents the power to command labor, which is backed by the faith in the government. Government representing political power, or the power to use force to compel obedience.
After the Great Depression, J.M. Keynes showed, in his classical text " The General Theory of Employment, Interest and Money" that interest on money is the one form of profit on capital (where money in those days was gold, and hence a form of capital) that does not find an equilibrium level in the market system, since it is the basic medium of exchange. As a result he discovered that the government needed to maintain the level of interest at or below the normal rate of profit. Well, since gold is a form of capital, when the gold is removed from behind the money, all interest on the make believe gold is at or above the normal rate of profit on real capital. In fact, the rate of profit is infinity, since one cannot divide by zero capital.
To balance this, all the government can do is release an accelerating rate of credit and encourage borrowing to push this make believe money into the economy to keep the exchange of goods and services on pace with the rate of interest. In otherwords, inflation becomes the basis of growth of the economy. Currently, the inflation adjusted DOW, based on 1971 dollars is about 2,180, compared with its current 11,000 nominal value. The two numbers are equal.
A nobility is defined as that class of individuals who have an entitlement to the labor and property of others who are not nobility. Article one section 9 of the United States constitution prohibits the recognition of a nobility class in the United States. So, how come there exists certain individuals who can exact a profit without investing in anything? Who can demand more money in the name of (a principal/principle defunct) interest simply because they have money?
I would really like an explanation for that one before the greater depression hits.
Help build a U.S. Capitalist Party write a comment.
posted by lou_srewlect | 7:26 PM
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