sipila at sipila at
Wed Oct 13 12:24:13 MDT 1999

The text below for information and for free use.

The monetary basis of capitalism fails.

Profitmakers´ world is not real.

The monetary basis of capitalism fails. Money is only a surface phenomena
which somehow reflects the state of production, productional powers and
productional relations and concrete added values in the world.

In capitalism monetary evaluations give a false picture of reality because
essential part of the money in the world and especially stock exchange
rates and corresponding assessments do mostly not include real values but
speculatory evaluations, imaginations and beliefs. As an ideology
capitalism is based on money without steady basis.

Only about 1% of the giant amount of money in world economy is based on
real values. 99% is formed of speculations.

At individual level bottomless greed for money can be seen even as a
symptom of psychiatric illness. At general level utopistic idea of eternal
economic growth may be considered a pathological phenomena. Creating buying
hystery by means of advertising has got a form of brainwash. Healthy
economy is directed to saving, not to additioning of consumption.

The world is threatened by ecological catastroph. The use of oil and coal
is rapidly destroying our climate. However, capitalism is interested only
in increasing consumption and use of fossile fuels and in the corresponding
monetary evaluations. Life is not important. So called climate conferences
are plain theatre. Because of the contradictory situation they cannot and
they will not make any kind of significant operational decisions.

At this very moment the headquarters of capitalism trie desperately to
stabilise all economic values in the world. Solving this equation seems
impossible because of many unknown factors and because the real potential
power of capitalism is decreasing. Additionally, there are factors in the
equation which cannot be handled with monetary values or measures.

Socialism in the economic sense of the word is by no means any kind of
utopy like a belief in eternal economic growth. In socialism there is also
money. However, socialist money does not include speculative elements.
Value of a developed socialist community currency is steady. This makes
long-term economic planning possible. The value of socialist money is based
on real work and production. In socialism unemployment is an absurd thing.
The world is full of work to be done.

The nuclear question concerns labour, organization and justness. The
bourgeois discussion avoids these topics when concentrating all attention
in money. Of course, work and working units must product, but money is a
far too simple means to measure the results of production.
There are countries with excellent state of public economy. Their
currencies may be strong. At the same time poverty and all forms of illfare
increase in these communities. What can we measure with money in this kind
of situation?

The importance of money in monetary communities decreases also because of
technical developement. Banknotes are easy to be forged. According to
general opinion accounting systems are nowadays realiable. Quite the
contrary. The advanced computer technics makes doctoring the books
especially easy at all levels. Sums can be removed or changed by pressing a
button. Even old saved files can be easily manipulated afterwards.

Capitalism is based on money. Money is especially now not a valid basis for
any kind of ideology. Collapse of rouble has caused dispelling of
capitalist illusion in Russia. In the merging world crashing of one
currency affects worldwide monetary assessments.

Local and worldwide trade is necessary. However, these activities can be
arranged on basis of long-term plans and by democratic controlled bi- or
multilateral mechanisms without speculative values. Succesful barter trade
systems exist already now at local levels here and there around the world.
They are out of the control of world capitalism.

The temporary monetary upgoings of uncontrolled capitalist economy
concentrate in big cities and industrial centers. At the same time  real
poverty increases in the countryside and in the underdeveloped areas.

Heikki Sipila


P.O. Box 66
00841 Helsinki - Finland
+358-40-7177941, fax +358-9-7591081
e-mail sipila at


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