Re: [OPE] A profit squeeze in Germany? A study in punk economics

From: paul bullock <>
Date: Wed Dec 24 2008 - 08:20:37 EST

Hi Jerry,

By 'conceivable' I meant in the minds of the majority of bourgeoise themselves at the moment, as I said and highlight in the quote you provide. Of course there are already those clear minded haute bourgeoise and their pet pyschopaths that are resolved to harden their position and face a longer term battle, involving open class and then international wars to solve the situation. My statement clearly excludes the idea that I think simply centralising bank credit can solve the crisis in an innoffensive way.

By 'seizure', I meant in the sense of being forced to prevent a default - as we have seen, followed bysome sort of effort to force a solution eg insisting upon mortage moratoria, small business maintenance etc. If the banks stay frozen then the state has to manage the general deflation of debt. Otherwise, as they have learned by experience, there would have been an immediate 1929 type panic working through, more sudden and socially much more dangerous for the owners.

Certainly to maintain what they call 'liquidity' ie the reemergence of credit rather than the establishment of hoards, all sorts of fixes will be attempted...... but the use of so much state debt in effect means that the state has once again firmly reestablished itself in the economic field as the strategic head of that hideous combination 'state-monopoly capitalsm'. The state cannot allow the 'motor' industry to collapse, this is central to the military industrial complex. In this situation blaming 'bad capitalists' will no longer serve as the liberals' excuse for defending 'the market', for it is undoubtedly the STATE that is holding this shambles together for a few thousand High net wealth Individuals, as they are politely called by the UN.

  ----- Original Message -----
  To: Outline on Political Economy mailing list
  Sent: Monday, December 22, 2008 2:06 PM
  Subject: RE: [OPE] A profit squeeze in Germany? A study in punk economics

  The only conceivable way that the bourgoisie can think of managing expansion at the moment, is for the state to seize the funds in the banks ( held by businesses of all sorts), including pension funds, and spend itself to simplify matters. This is a 'solution' consistent with their own 'demand' led conceptions of market expansion that overides individual capitalist protests. Otherwise/also, the state has to create credit for its own use, indebting the state and pray that the spending generated that way will, justified la Keynes balanced budget multiplier, repay itself through expansion.

  Paying the workers in imperialist countries more is now out of the question,

  Hi Paul B:

  I agree that a general wage increase is out of the question at the present time.
  On the contrary, I think we can expect (and have already seen to some extent)
  a reduction in the standard of living of the working class through various means,
  including an increase in regressive taxation (one TV station in NYC referred to
  increased state and local taxes and fees as "nickel and diming the working class").
  But, why is the seizure of bank funds "the ONLY only conceivable way" (emphasis added)
  out of the crisis? I'm not convinced that if they tried that it would bring about the desired
  result for capital.

  In solidarity, Jerry


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Received on Wed Dec 24 08:28:55 2008

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