Then do you want to explain the 1:1 correlation between interest rates and inflation?

Or this investopedia article?

https://www.investopedia.com/ask/answers/12/inflation-interest-rate-relationship.asp

And a market crash would be something like the Great Depression, where there was world-wide hyperinflation and money was worthless. This specifically happened because the gov refused to bail out corporations.

The closest that we’ve gotten was Covid. But even then, it was understood that there would be a recovery after vaccine deployment.

What Volcker did wasn’t special. Interest rates must be raised or lowered in proportion to inflation caused by supply or demand disruptions. That’s it.

It’s one of the many maintenance mechanisms needed to maintain capitalism. If handled incorrectly, without centralized control, the economy will crash every time there’s a disruption. That’s why we say there’s no such thing as the free market.

In this case, interests rates were raised in response to the 1979 oil crisis causing massive inflation. It’s not a conscious choice or a change in policy, but rather a response to material conditions.

As a result, this is why you need to look at trends on a longer scale in order to even out these disruptions to find the macro trend. And these macro trends usually have to have something huge as a root cause, like the fall of a rival superpower. Not a temporary increase in interests rates.

If the inflection had happened in 1983, then the profit margin wouldn’t have fallen to all time lows in Jan 1992.

If the Soviet Union did not dissolve, then there would still be a bipolar world order, and profit margins would have stagnated due to a lack of opportunity for exploitation.

As I said, look at the trend. There’s only one major inflection point throughout the entirety of the data, and that’s in 1990, corresponding with the collapse of the USSR.

Or you can take a look at the link I posted.

Publicly traded assets grew on the scale of 15-30% annually, over these two years

That’s the covid recovery. When looking at ROI trends, you need to look at 10 yr blocks.

Furthermore, ROI is measured as profit margin. Currently, there is a trend upwards, the start of which corresponds to the fall of the Soviet Union.

https://dqydj.com/sp-500-profit-margin/

I think that just by making this post, you already know how this is going to play out.

At the very least, these indicators can be viewed as how much their conditions could potentially improve.

Measures such as the stock market and GDP were meant to act as proxies for measuring how well the economy was accomplishing its stated purpose, which is to improve the standard of living for everyone.

I would argue that they aren’t and never have been a measure of how well the economy is at distributing resources. Stocks haven’t been accessible to the working class until recently. And GDP is neither normalized to PPP nor gives any indication as to its distribution among the populace.

The “economy” (read: bourgeois economy) has never been connected to the masses. If you measure how well businesses are performing, then it only tells you how well businesses are performing. That’s why these indicators are lagging and not leading.

Remember when we ran out a rocket scientist that went overseas and gave China ICBM’s? Let’s do that again.

Yea, I just want to give you some context going into the speech.

Trade with EU is exploitative of eastern Ukraine and the trade deal will prevent its development. The whole of Ukraine was split on the issue between east and west.

The whole thing started with the comprehensive trade agreement between Ukraine and the EU. Yanukovich had wanted trade with both Russia and the EU. But both Russia and the EU were forcing Ukraine to pick a side. Making a trade agreement with the EU would have forced Ukraine to change their regulations, negatively impacting trade with Russia, and having them become more dependent on the EU. There was also a significantly higher chance their net trade would decrease if they signed this agreement. So if they went with the EU, it would have totally screwed over eastern Ukraine.

I should mention that at the time, Russia was providing the majority of trade with Ukraine by a fairly wide margin. So it was much more practical to go with Russia.

The decision to put the EU trade agreement on hold, had sparked euromaiden, leading Russia to reclaim Crimea in response, which sparked the civil war.

I should also mention that Ukraine is a third world backwater country. Its gdp per capita is lower than some African nations, and is three times lower than their neighbours Russia and Poland. It’s not a country full of Nazis and reactionaries, no more than Guatemala. It’s just people who’ve been fucked over and exploited.

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So that was a load of crap that doesn’t go into the causes of inflation. Here’s a brief summary of how inflation actually works:

Inflation is when the value of a good grows IN PROPORTION to the value of money. Yes, both things have value independent of each other, and as such, we can see supply driven inflation if a country’s currency is devalued with respect to other countries, as it makes it difficult to import feedstock.

There are two primary causes of inflation: supply driven inflation, and demand driven inflation. Supply driven inflation is when not enough goods are produced, as with covid supply chain disruptions. Demand driven inflation is when demand grows with respect to supply, as with using graphics cards to mine bitcoin.

It should be noted that even these are market forces caused by suppliers and consumers, suppliers and consumers themselves don’t directly set prices. The people who own the suppliers do. They must read and manipulate market conditions in order to get the most profit out of their product.

During covid, we have had supply driven inflation due to supply chain disruptions, and hoarding to a lesser degree. However, when these issues have been resolved, we haven’t witnessed prices going back to normal. This is because the bourgeois have successfully read and manipulated market conditions.

In a way, what the bourge has done is a variant of the application of the mass line. They saw that material conditions had forced consumers to acclimate to higher prices, making the conditions ripe for another price increase. So that’s what they did, then they sold it as the new normal.

TBC

It’s a useful way of viewing risk/reward and it’s not incompatible with communist theory.

For example, if you take the prisoner’s dilemma and change the risk/reward structure, you can change the equilibrium such that it’s far more likely to have people cooperate.

Unfortunately, that’s not really something that people talk about all that often, because it’s only used to optimize winnings for one party, not to optimize for maximum societal benefit.

🏴‍☠️

9/10 i thought it would be 50/50 nazis/zionists but it wasn’t.

You can use a small knife to depress the tab that locks into the ratcheting.

I do it a lot to re-use zip ties

Capitalism vs socialism