Cyber-Sawicky, I

Doug Henwood dhenwood at panix.com
Thu Oct 1 16:39:25 PDT 1998


Max, you write:


>The story goes that the trust fund is nothing but "IOUs." The IOUs in
>question are government bonds. Professionals who believe them to be
>quite real trade billions of these every day. The fact is that a
>capitalist economy runs on IOUs: government bonds, corporate bonds,
>stocks, paper money, mortgages and a million other things. We are well
>past the era when market exchange consisted of nothing but barter.

There's one oddity about this situation though - this is one branch of government borrowing from another. This is one of those things you have to savor as the wackiness of capital, which can capitalize dissimulated intent. At base, it's either a deferred taxation scheme or a deferred intent to roll over the debt rather than repay it. But in appearance, it's interest-bearing capital, the mother of every insane form, as KM said.

Doug



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