What Saul calls a crisis offluidity I call pooling and dispersion. Money accumulates and needs to be dispersed. wc
----- Original Message ---- From: saul ostrow <[email protected]> To: [email protected] Sent: Fri, August 24, 2012 9:05:38 AM Subject: Re: Subjective - Objective The present crisis of Capitalism is one of fluidity - too much wealth is held in reserve - for there are no areas of investment that will bring the same guaranteed rate of return (profit) that the stock market and currency manipulation does. The reason for the present attack on the middle class (wages,pensions, housing, savings) is that these represent untapped reserve of wealth (profit). Meanwhile it is estimated that corporation have taken 3 trillion dollars out of circulation and sit upon this as a cash reserve - in that they have noting to invest it in. Meanwhile worker productivity is at its highest ever do to new technologies, materials and production methods - thus more can be produced with less labor and this raises the rate of profit - which means increasing segments of the population are driven into poverty or considered marginal. Unregulated Capital drives to monopoly and to poverty in that the logic of profit is one of self-cannibalism. The lower the cost of labor the higher the rate of profit - yet this means to maintain the rate of profit one must drive down the cost of labor - but the result of this is you begin to eliminate a setor of your potential market for they can not afford your products - the band-aid that was invented to conceal and deal with this flaw was the invention of the credit industry in the 1960s - in which one borrows against future income. We see that were this has gotten us - it was the credit industry that Obama had to bail out by deregulating banks and permitting them to become joined to investment houses. In other words we are not talking about individuals but a systemic flaw - that is hidden behind a 19th century vision of capitialism (which was expansionist) -
