[Marxism] The mother of all carry trades

S. Artesian sartesian at earthlink.net
Wed Nov 4 11:17:11 MST 2009


Maybe, maybe not.  I think the question to be put to those anticipating a 
big shift away from the US as the center of capitalist power-- is such a 
shift possible without global depression and war?   And if not, what do they 
think, identify as the trend in China, India, Russia, Ecuador, Venezuela, 
Thailand, etc. etc. before depression and war erupt?  I think I can identify 
a trend towards all-out class war-- a trend that hopefully pre-empts war and 
depression.

In the meantime... in the meantime, I think as Marxists we would be better 
served  by losing this fascination with gold as the "ultimate store of 
value,"  the universal equivalent, etc. etc.  First, ever since the 19th 
century, there simply has not been enough bullion around to "float" the 
actual exchange values contained in the production of commodities.  Now you 
might argue that then all the prices of those commodities should plummet, 
but we have an historical example of that plummeting-- in the "long 
deflation"  generally from 1873-1892?96?, and that deflation in commodity 
prices had nothing to do with stores of gold or the "value of gold," but 
rather the transformation of capitalism from extensive appropriation of 
surplus value, i.e the aggrandizement of absolute surplus value, to 
intensive appropriation of surplus value, i.e the aggrandizement of relative 
surplus value through intensive application of machinery to commodity 
production.

The gold fetish is the holdover, the nightmare of mercantilism from which 
the bourgeoisie have never completely emancipated themselves.

Traders can make a lot of money trading, not owning, gold.  All commodities 
are supposed to be trading platforms.  Central banks don't make any money 
holding gold as a reserve, especially if, in the great secular shift to the 
"new industrializing economies of Asia," the demand is for liquidity, liquid 
assets, investable capital in production, rather than asset-backed 
securitization.

So what's it mean, that India is buying gold?  Several possible answers:  1) 
I don't know  2) they don't know  3) fear and greed [always a good answer 
when considering the actions of the bourgeoisie] 4) India anticipates 
another radical contraction in the global economy, and a dearth of demand 
for investing capital.


----- Original Message ----- 
From: "Donal Ó Cófaigh" <donaloc at hotmail.com>
To: "David Schanoes" <sartesian at earthlink.net>
Sent: Wednesday, November 04, 2009 11:57 AM
Subject: Re: [Marxism] The mother of all carry trades




Maybe two interesting FT articles related to this...






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