Biz about to discover Rate of Profit to fall and Marxism

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Other urls found in this thread:ł_Kalecki#Profit_equation

That's…not TROPF though. Like, it is part of it, but that's not strictly what it is.

You can find TROPF in IMF reports though :)

See this recent Global Financial Stability Report

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Full page

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look how it dips, soon comrades… soon

When the next financial crisis hits it will be much harder than in 2008, considering the profit rate now even lower. Also, can anyone explain the uptick in the US profit rate since Trump's inauguration?

I thought they were losing trade war pretty heavily and other than that i couldn't think of a reason…

maybe he just is le ebni presibent with good economiggs :DDDDD

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my explanation would be the tax cuts and deregulation increased profits just enough to make it appear on the graph, so it'll be a one-time way to keep the thing afloat before it crashes down again.

Link to the thread?

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Just buy the dip bro

do they ever realize that the understanding of markets as given to them by the capitalists always dictates that buying is a good idea no matter the context? Is that not even a little bit suspect?

i don't understand how the current monetary system works.
if money is supposed to represent resources then where does profit, money earned from stocks trading and that sort of thing come from?

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Money is emitted by central banks.

In order to understand the monetary system, it is important to understand the difference between real and fictitious capital.

You best start believing in crises of capitalism

You're in one

Also, that OP, while well-intentioned, probably should read more news

He hasn't stumbled on some secret conspiracy, everyone involved in finance knows global production is slowing even if day traders are in denial about it.

when taxes on corporations and red tape are cut profitability goes up.

This time there won't be Chinese infrastructure spending to rescue the decadent west.

Money is stored in the balls.

What a powerful dialectic!

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the central banks loans major banks and the government money. the major banks loan it out to businesses and smaller banks to make a profit with interest. however because of the tendency of the capitalist system to concentrate capital the profits end up stashed in corporate and private bank accounts and never reinvested into the hands of workers. this means there isn't enough money to go around, which means the only way to sustain the system is with continuous borrowing. the only way to enable this continuous borrowing is to continually cut the interest rate for loans until the central bank is running negative interest rates: paying interest to large banks with no expectation of return because of the neoliberal doctrine that the rich know how to run an economy. this is already occuring in Europe, however due to banker's fears of inflation devaluing their holdings that hasn't actually occurred for decades the ECB enforces austerity on its member governments to pay for this policy.

governments use the money they borrow to pay for services, however because a government is not a for-profit entity it inevitably ends up in debt. this means they become the slave of their bondholders and with exceptions of the US (due to the US dollar's status as the world reserve currency established immediately after WW2 and therefore always in demand) and China (which intelligently implemented capital controls) are forced to acquiesce to the demands of international capital to open themselves to exploitation under threat of currency manipulation crashing their economies.

in advanced economies the rate of profit is declining due to the increasing wealth concentration from the flawed design of the system, while developing economies are saddled with debt to ensure that the profits of the mobilization of their resources in global trade inevitably end up in the hands of moneyed interests.

there is an alternative for developing countries to borrowing from international lenders: enabling the system of exploitation by financing western capitalist interests. buying stocks and bonds and strengthening the purchasing power of western consumers to encourage the cycle of money flow: see the Saudis pouring money into Silicon Valley startups. however this cannot last forever because the advanced economies are slowing down despite all central bank attempts to allow debt based growth forever.

the stock market is an illusion since a great deal of the companies including the renowned "FAANG" tech stocks don't actually generate profit, however for investors they simply don't care how long the company can last or how gruelling working conditions are as long as they get their share of the revenue. the prices go up and down depending on how much they've managed to suck from the average fool last quarter. those that aren't profitable rack up even more debt on bank books to pay their lenders, and the banks proceed to package the loans from multiple companies into "collateralized loan obligations" and sell these to get more cash to lend out again. this on paper is not as bad as the mortgage situation in 2008 because a company is supposed to generate money, while a house doesn't, but that doesn't mean it does.
if a crash does come the government will start using its tax revenue for more bailouts yet again, or authorize the banks to seize deposits in a bail-in if it does not have the capacity to borrow more in an extraordinary circumstance.

to summarize everyone is in debt forever to pad out the pockets of the wealthy, however the capacity to actually pay the debt doesn't exist. historically there have been four paths to debt settlement, none of them enjoyable: 1) the government forces transfers of wealth from the rich to the poor 2) massive private and public bond defaults bankrupting financial institutions and the wealthy 3) hyperinflation resulting in existing debt obligations being meaningless 4) the government redistributes wealth to the public en masse in the mobilization and exercise of a war, however this may just be due to the fact that wars create shortages and inflation depreciating the face value of returns

a very relevant quote from the congressional testimony of economist Marriner Eccles during the great depression. note that savings in an economic sense is basically hoarding:

It's an effect of it.

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How are the people of /biz/ doing now?

The Kalecki-Levy profit equation has the answer.

Short answer:ł_Kalecki#Profit_equation

Long answer:

Wouldn't it come, ultimately, from the value created by production ?