[lbo-talk] Capitalism on Derivatives? (Was: Responsibilities)

Doug Henwood dhenwood at panix.com
Sun Feb 28 18:21:43 PST 2010


On Feb 28, 2010, at 9:10 PM, SA wrote:


> I wonder if the appearance of this new form of circulating money
> that's only used to buy financial assets, never consumer goods, is
> part of the reason why the past 25 years has seen so much asset-
> price inflation and so little consumer-price inflation.

Well, there was also the war on the working class, which lowered wages and therefore reduced price pressures at the same time it increased profitability, which justified higher valuations on financial assets and gave the upscale more money to put into those revalued financial assets, etc.



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