wall street

Xxxx Xxxxxx xxxxxxxxxx at xxxxxxxxxxxxx.xxx
Sat Mar 17 04:06:10 MST 2001

At 09:41 PM 3/16/01 -0600, you wrote:
> >This is merely a one-word condensation of _Wall Street_. George asked
>f>or a marxist account, not for a slogan. It is also a condensation of
> >what most of those on Wall Street would offer as an explanation.


Too much speculative noise. Speculation is not a slogan. It derives from
the real economy; from the _conflictual dual existence of money as being a
private commodity_ being traded in the foreign exchange market against
other currencies, and the _money in its social form_ underlying social and
class relations. Marxist political economist  Werner Bonefeld explains how
this contradiction between industrial and financial capital explains the
financial crisis in the 70s (Werner Bonefeld, Monetarism and Its crisis" in
the Global Capital, National State and the Politics of Money" )

***"Growing indebtedness which is not matched by an expansive exploitation
of labor; ie capital growth, sooner or later becomes intolerable as
interest charges absorb a growing proportion of the surplus value and make
productive investment increasingly unprofitable. At the same time
SPECULATIVE pressures on currencies intensifty because of inflationary
devaluation  and an accumulation of deficits which is not validated by the
exploitation of labor. In order to maintain credit as a claim on the
future, the exploitation of labor has to provide a real resource of
transfer with which to service the interest on the credit and if possible
to pay debts. In other words, credit sustained accumulation calls for an
effective exploitation of labor so as to provide the resources with which
to service debt. In the absence of an effective exploitation of labor, the
ration of debt to surplus value will continue to increase, undermining
profitability and future accumulation of capital, and so creating bad debt
and financial crisis" (p.41)

Standart economistic accounts from Wall Street subscribe to the contrary
view that markets reflect true prices or prices somehow adjust to market
conditions. Such a view is a market fundamentalist perspective and an
outright denial of speculation. Wall Street view is a crisis free view of
capitalism. (as Henry explained).  It does not explain the crisis in terms
of real economy or money in its social form.


Xxxx Xxxxx Xxxxxx
Ph.D student
SUNY at Albany
Nelson A. Rockefeller College
Department of Political Science
135 Western Avenue, Milne 102
Albany, NY, 12222

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