dhenwood at PANIX.COM
Fri Apr 7 11:12:35 MDT 1995
At 8:21 PM 4/6/95, Ron Press wrote:
>My question is. In the money market we have M-M-M or -$-. Whence
>comes M' or /\M
>Is it because the equation is really M-C-M-M-C-M or -C--$-C-$.?
>Where /\M comes from the extended or expanded cycle which is
>hidden in the simple representation of the money market. Or is
>there a qualitatively different system governing the money market
>From what Wall Street calls the "real" sector, ultimately. Interest and
dividends are a fraction of profits, and in the case of consumer finance, a
fraction of wages - a kind of secondary extraction of SV. Just as
government debt is capitalized taxes, consumer debt is capitalized wages.
Pension fund contributions are also a fraction of wages; these too are
capitalized and deferred. For most of the life of the pension the K is
under the management of what Marx called the bankocracy (what's the German
Some of the M' for individual Ks comes from the negative M' of other
players. Professionals typically make money from the losses of incompetent
small and novice investors. Veteran traders often speak of extracting
"tuition" from new babes on the floor.
Financial markets allow the Kists to earn their profits as members of a
class rather than proprietors of single firms. Many family companies have
gone "public" in Asia & Latin America by selling stock - but little of the
stock proceeds were invested. It just transformed the ownership patterns
from individual proprietors to rentiers as a class.
[dhenwood at panix.com]
Left Business Observer
250 W 85 St
New York NY 10024-3217
--- from list marxism at lists.village.virginia.edu ---
More information about the Marxism