[Marxism] more liberal wisdom on oil

Rakesh Bhandari bhandari at berkeley.edu
Mon Jun 30 19:56:09 MDT 2008

The energy trader I run into at the kiddie park says that such forces
cannot account for more than 50% of the increase over the last five years.
One expects feverish speculation to be followed by a reabsorption of money
into domestic productive investments as businesses take advantage of the
bottom of the business cycle to resume accumulation. But over the last ten
years money has poured from NASDAQ/fiber optics to real estate to
(apparently) commodities. Many mainstream economists, including Bernacke
himself, speak not of a savings glut but a dearth of opportunities for
productive investment, and the speculative bubbles have had progressively
worse consequences for the development of the productive forces.  The
apparent speculation  in commodities, in part a symptom of declining
profitability on new investments, seems to compound the underlying
problem.  A most effective way to prevent the complete  collapse of the
profitability of idle liquid capital--idle money capital not destined to
be reabsorbed in productive investment at any point in the business
cycle--has historically been the securing of real investment outlets for
capital export, and historically that has been the gravest danger to world

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