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Guglielmo Carchedi’s bad advice for activists

Jehu The Commune 6 Comments

Keynesian economic policies don’t work, but fighting for these policies will? Guglielmo Carchedi’s essay on the so-called Marxist multiplier has me bugging. He is handing out bad advice to activists in the social movements and telling them this bad advice is based on Marx’s labor theory of value. The bad advice can be summed up concisely: Keynesian policies do not …

JehuGuglielmo Carchedi’s bad advice for activists
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CLUELESS: QE to Infinity

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Based on what I have described of Bernanke’s policy failure so far, is it possible to predict anything about the future results of an open ended purchase of financial assets under QE3? I think so, and I share why in this last part of this series. Author: Jehu Eaves Visit Jehu’s Website – Email Jehu I am a “marxist-in-recovery”, which …

JehuCLUELESS: QE to Infinity
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CLUELESS: Bernanke’s desperate gambit

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I stopped my examination of Bernanke’s approach to this crisis and the problem of deflation after looking at his 1991 paper and his speech in 2002. I now want to return to that series, examining two of his speeches this to discuss the problems confronting bourgeois monetary policy in the crisis that began in 2007-8. Author: Jehu Eaves Visit Jehu’s …

JehuCLUELESS: Bernanke’s desperate gambit
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CLUELESS: “Deflation is bad. M’kay?”

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The world market had been shaken by a series of financial crises, and the economy of Japan had fallen into a persistent deflationary state, When Ben Bernanke gave his 2002 speech before the National Economists Club, “Deflation: Making Sure “It” Doesn’t Happen Here”. Bernanke was going to explain to his audience filled with some of the most important economists in …

JehuCLUELESS: “Deflation is bad. M’kay?”
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CLUELESS: How Ben Bernanke is managing the demise of capitalism

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So I am spending a week or so trying to understand Ben Bernanke’s approach to this crisis based on three sources from his works. In this part, the source is an essay published in 1991: “The Gold Standard, Deflation, and Financial Crisis in the Great Depression: An International Comparison”. In this 1991 paper, Bernanke tries to explain the causes of …

JehuCLUELESS: How Ben Bernanke is managing the demise of capitalism
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How Quantitative Easing really works: Occupy Wall Street Edition (2)

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As a contribution to Occupy Wall Street’s efforts against debt, I am continuing my reading of William White’s “Ultra Easy Monetary Policy and the Law of Unintended Consequences” (PDF). I have covered sections A and B. In this last section I am looking at to section C of White’s paper and his conclusion. Back to the Future It is interesting …

JehuHow Quantitative Easing really works: Occupy Wall Street Edition (2)
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How Quantitative Easing really works: Occupy Wall Street Edition

Jehu Featured, The Commune 2 Comments

Since Occupy Wall Street appears to be undertaking a concerted push toward addressing the growing debt servitude of the mass of working families to Wall Street banksters, I thought it might be interesting to understand how the Federal Reserve is now doubling down on a policy of manufacturing an even greater debt burden for working families under the guise of …

JehuHow Quantitative Easing really works: Occupy Wall Street Edition
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Fiat currency: “No more money than a theatre ticket is”

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I am adding additional comments to my reading of Weeks’ paper, “The theoretical and empirical credibility of commodity money” (PDF). In my first reading, I identified a problem with Weeks’ presentation of what he asserts is empirical evidence supporting a link between commodity-money and price. In my second reading I explained how Weeks’ real contribution to my understanding is his …

JehuFiat currency: “No more money than a theatre ticket is”
From Wikipedia: A picture of a pre-1933 gold certificate currency

Paul Krugman on interest rates and gold: When a dollar was real money

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I apologize for this part of the series, because it is hopelessly geeky. Unfortunately, I see no way to move forward without getting into the weeds of Marx’s unique contribution to the theory of money at this point. Please bear with me on this. As I really need to explain the difference, before 1933, between a token currency and the …

JehuPaul Krugman on interest rates and gold: When a dollar was real money
MonopolyMoney

Paul Krugman on interest rates and gold: The Price of Everything, The Value of Nothing

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“The mode of production is in rebellion against the mode of exchange.” – Frederick Engels, Socialism: Utopian and Scientific, 1880 Krugman confuses the superficial relations of exchange for a deeper analysis of the capitalist mode of production. This failing might help him when he wishes to ignore the likely results of this sort of examination, but when he actually tries …

JehuPaul Krugman on interest rates and gold: The Price of Everything, The Value of Nothing
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Paul Krugman on interest rates and gold: Why gold is money and dollars are kindling

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I have a simple hypothesis for how Krugman managed to reach the correct conclusion regarding the relationship between the price of gold and the general level of economic activity: he probably started with his conclusion and tried to work backward. He needed an argument for why the rising price of gold might signal deflation rather than inflation. So, he took …

JehuPaul Krugman on interest rates and gold: Why gold is money and dollars are kindling
"ROAD HOG!!!"

Paul Krugman on interest rates and gold: “Mr. Magoo, you’ve done it again”

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Paul Krugman manages to stumble Mr. Magoo-like to his analytical destination through a series of comical errors. Krugman’s argument on gold and deflation is actually an argument on gold and depressions. Krugman begins by explaining that rising gold price has been popularly linked to the prospect of inflation created by the monetary policies of the Federal Reserve Bank. He has …

JehuPaul Krugman on interest rates and gold: “Mr. Magoo, you’ve done it again”
KRAKEN

Inflation, the negative rate of profit, and the Fascist State (Part seven)

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In part one of this series, I showed how inflation affects not only consumption but also production. In the former, inflation expresses itself in the fall of the consumption power of the mass of society. In the latter, inflation expresses itself as a fall in the actual realized rate of profit — a negative rate of profit arising not from …

JehuInflation, the negative rate of profit, and the Fascist State (Part seven)
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Inflation, the negative rate of profit, and the Fascist State (Part five)

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According to the Wikipedia entry on Executive Order 6102, the fine for hoarding gold was ten thousand dollars. At the same time, the executive order demanded all private holdings be turned in and exchanged for government issued ex nihilo dollars at an exchange rate of $20.67 per troy ounce of gold. Using this as our base measure, the fine for …

JehuInflation, the negative rate of profit, and the Fascist State (Part five)
Executive Order 6102

Inflation, the negative rate of profit, and the Fascist State (Part four)

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In the bare bones sketch of Marx’s theory I argued that the value of the object serving as money played no role in its function as money. This was incomplete, of course, but it served to advance my argument until I could directly address the implication of debasement of money by the industrial powers during the Great Depression. In reality, …

JehuInflation, the negative rate of profit, and the Fascist State (Part four)
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Inflation, the negative rate of profit, and the Fascist State (Part three)

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The Wikipedia definition of inflation includes this rather silly statement on the definition of the so-called “real value” of money: …inflation also reflects an erosion in the purchasing power of money – a loss of real value in the internal medium of exchange and unit of account in the economy. In this statement the “real value” of money is reduced …

JehuInflation, the negative rate of profit, and the Fascist State (Part three)
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Inflation, the negative rate of profit, and the Fascist State (Part two)

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I made the following points in the first part of this series: As regards the definition of inflation: The definition of inflation found in the Wikipedia entry is deficient because it assumes that the value of money is simply the reciprocal of the prices of commodities. This argument is a tautology which provides us with no real understanding of the …

JehuInflation, the negative rate of profit, and the Fascist State (Part two)
Core Inflation

Inflation, the negative rate of profit, and the Fascist State

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With the clock counting down to an alleged shutdown of federal government operations, I thought I’d take this moment to discuss and inflation and Fascist State economic policy. This is what Wikipedia has to say about inflation: In economics, inflation is a rise in the general level of prices of goods and services in an economy over a period of …

JehuInflation, the negative rate of profit, and the Fascist State