On Feb 22, 2009, at 9:13 AM, Ted Winslow wrote:
>
> This still seems to be using "saving" to mean that part of current
> income (wages, profits, etc.) that isn't "consumed" (i.e. that part
> that has its counterpart in the current output of investment goods -
> newly produced plant, equipment and inventories).
>
> How can "saving" in this sense "drive up the price of assets,
> financial and otherwise"?
>
> The value of such "saving" must be equal to the value of the current
> output of investment goods. There isn't an additional amount that
> can be used to purchase and drive up the price of financial and non-
> financial assets "beyond their value in terms of capitalised future
> returns".
It is "Saving" in the Treatise, not the General Theory, sense that drives up asset prices and forms fictitious capital.
Shane Mage
> This cosmos did none of gods or men make, but it
> always was and is and shall be: an everlasting fire,
> kindling in measures and going out in measures."
>
> Herakleitos of Ephesos