[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.
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.
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
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.
Unite or Perish.
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