Debt Rattle April 18 2016

 

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    DPC Coaches at Holland House Hotel on Fifth Avenue, NY 1905 • Oil Prices Plunge After Doha Output Talks Fail (AFP) • Oil Producers Get Worst Possible
    [See the full post at: Debt Rattle April 18 2016]

    #27757
    rapier
    Participant

    This articles new stage of capitalism is properly called neoliberalism. A word the author didn’t use I don’t think which is surprising because the existence of neoliberalism the ideology has leapt into the consciousness of our commentators. Where a year ago most never even thought of the word now it is popping up everywhere. Before most refused to even believe it existed despite having no idea what it meant. Now many acknowledge its existence if still a bit sketchy about its meaning.

    In brief neoliberalism means that markets are super information processing entities which by definition produce the proper outcome. It’s sort of like the old invisible hand on steroids. The market being assigned God like powers or probably more accurately markets being made God.

    It’s true that economics and politics are reaching new levels off integration but it gets pretty dodgy to call the result capitalism. Capitalism, the ism, the system, was theorized into existence in Europe in the 1800’s and by 1880 or so Classical economics based upon the idea of capitalism was formalized. The biggest opponent of Capitalism, Marx, probably gave the theory of capitalism and big ‘E’ Economics its biggest boost by simply identifing it. In the formation stage it was understood that politics and economics were entwined but in the US lead by the University of Chicago, that idea was pushed aside and Economics was declared a thing of its own. Best left unfettered by government which should be read politics.

    Well I’ve gone on too long. I should add that the acceptance of ‘money printing’ represents the flowering of Modern Monetary Theory which unknowingly overthrows the basic underpinning or our debt based money and thus rejects the stored value basis of money, Leaving only its transaction function. I say unknowingly because most don’t know that debt is what gives money its value now. That has been forgotten so MMT is already half way home. If a system with a money with no fixed value can endure I’ll leave to the future to find out. I am certain the planet won’t.

    #27758
    rapier
    Participant

    Also for what it is worth last weeks close of the S&P index broke a chart downtrend channel dating back to last May. So by old fashioned chart technical analysis this signals a new multi year uptrend. It should be noted this old timey sort of analysis doesn’t mean prices will rise much or even a new bull market. It could mean a range bound market or it could just mean nothing at all but I’ve found it’s always best not to dismiss the charts out of hand. Just saying.

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