[Marxism] Eight Theses on the Economic Crisis

Waistline2 at aol.com Waistline2 at aol.com
Wed Mar 4 14:43:43 MST 2009

. . . a Marxist unraveling of crisis, any crisis begins with  Marxism and the 
environment of private property; an assessment of ones specific  state of 
development of the productive forces and the condition of the  workers as value 
The financial crisis that came to a head in the fall of 2008 expresses the  
increasing destruction of value that is undermining the system of exchange. The 
 continuing financial instability threatens the collapse of the entire world  
economy. This collapse is taking place in the context of the working class  
taking it on the chin - as falling wages, for 30 relentless years. 
The speculative bubble as housing - temporal phenomena, is not simply a  case 
of  "just speculation," but rather, expresses speculation in a wholly  new 
environment. Speculation today is not the old historical form of "tulip  
speculation." The emergence of a new technological regime allows an entirely new  
international architecture - infrastructure, of finance to come into existence  
and dominate finance capital. 
In the temporal sense the housing bubble began deflating - visibly, in  2005, 
specifically at the front of the curve. The front of the curve was  Florida, 
Nevada (Vegas) and Arizona to a large degree. The index establishing  the 
front, was and remain new housing starts and the entire productivity  
infrastructure represented in new housing starts. As this tangible index  expanded so did 
exotic financing. Specifically, the more economically stable  layers of the 
working class found it easier to "move up" on the basis of easy  credit and 
speculation; and so did successive layers of the working class.  Inasmuch as 
credit extension is theoretically unlimited, credit - not debt, was  extended to 
all and the next generation by inference. 
Game over.  
Less than three weeks ago President Obama fled to Florida, ground zero, to  
launch his political battle against his sectarian opponents in Congress to pass 
 his "stimulus bill:" the historic Southern fascist axis. He picked Florida  
precisely because it is ground zero and to indicate the line would be "drawn  
here."  The images were broadcast nation wide.  Entire communities  rendered 
New housing starts as an index, peaked and the layoffs began; credit began  
incrementally drying up as the smart money sought refuge in safe havens,  
awaiting the next Ponzi scheme. New housing starts was used as an index -  this 
time, because it gives a view on how many more suckers are left to enter  the 
Ponzi game. It is in fact a credit crisis rather than its mirror image  
expression as "debt crisis" financing. Hence the liquidity crisis. 
Game Over. 
Right now to day, from every quarter of the bourgeoisie, is the clarion  call 
to destroy commodities and productive forces. "Burn down," "bull doze"  but 
by all means eliminate the glut in the housing market. Reestablish the  
material index for the imaginary relations. 
The destruction of productive forces is at hand. 
Someone scream "Firrrrrrrrrrreeeeeeeee!" 
In what some call the "mathematization of the market," electronic  technology 
(read: the progress of industry,  . . .read the progressive  accumulation of 
productive forces) makes it possible to bundle, re-bundle,  divide a bundle 
into one hundred components, track, and pay dividends on  investments in 
financial derivatives, credit default swaps, currency and price  speculation, and 
various other financial investments. The 1/100th part of the  bundle sold and 
resold is valueless. The investors are accumulating huge hoards  of wealth and 
inflicting catastrophe on the world's poorest workers. But this  wealth does not 
reflect value.  The labor deployed to create this wealth is  not simply 
divorced from material production but is deployed to manipulate  symbols. 
Nay, the 1/100 th part of the bundle sold and resold is "exotic" or a super  
symbolic mathematical relations. No one can figure out or predict how far down 
 the rabbit hole goes. 
"Bur baby burn . . . burn the house down"
"Tear the roof off the sucker." 
The sudden loss of wealth in the current crisis expresses the prolonged  
decline in the amount of socially necessary labor (value) in the mountains of  
commodities generated by the world economy. No form or amount of re-regulation,  
nationalization of risk, or other government intervention can accomplish a  
return to a sound economy on the old foundation. The old foundation of society  
is the electro-mechanical configuration of the productive forces. Restoration 
of  profitability on the old foundation would mean devolution and destruction 
of the  very financial architecture that created the form of this crisis: its  
financial/speculative form. 
The incremental 20 year building up of the revolution in the mode of  
production; the increasing elimination - outing, of labor from production,  drives 
the value of all commodities, including the commodity labor to zero. Zero  is 
the line that is the cost of reproduction of the workers class, rather than  an 
abstract "nothing" or "no labor deployed" or a hideous vision of  the  machine 
society/civilization of the Matrix movies. 
In response to the declining rate of profit and the contracting market for  
real goods, trillions of dollars had flooded into financial instruments,  
speculation, and other investments that rest only remotely, minutely and  
abstractly on the real production of value, or rather an expanded value.   These 
trillions of dollars dwarf the value of the real economy. More than $1,000  trillion 
is invested in these financial instruments on the world financial  market – 
the equivalent of 20 years' real, value-producing, labor-employing  global 
The FROP is not a mere tendency but a law of capital manifesting the  
property relations. This is not an abstract thing but super material. It is the  
material relations of production that is the focus. From the largest point of  
view what is taking place is no more or less than the development (progress) of  
industry. The development of industry is the product of science and innovation 
 but can only manifest itself on the basis of all the laws inherent to 
bourgeois  production. The external form of the sum total of these laws is the 
anarchy of  production or competition, which means in the last instance competition 
in  reducing the cost - value, socially necessary labor of commodities. The  
increasing destruction of value hurls capital out of the bond with labor; 
forces  it to flee to areas of greater returns. 
The historical limit has been hit. Now comes the social consequence . . .  to 
your neighborhood. My neighborhood got hit in 1997.  
Capital ruptured from value production, appearing as modern speculation is  
not the meaning of fiction capital. Fiction capital is capital not ruptured 
from  value production and appearing as the "not of promise." A promissory note, 
index  to tangible commodities.  
Speculative capital is "kukoo." 
Capital ruptured from value production is impossible.
But there it is. 
Then an era of social revolution begins. 
Communist Revolution. 
Unite or Perish.
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