In my previous post on Marxmail I left out one important point. This point is, that in accounting for Iraq ONLY on the basis of assets and liabilities, which is the Colin Powell argument, it is important to understand the effects of revaluing assets in the account.
The christian fundamentalist balance sheet equation formally followed in the West is, as we know: assets = liabilities + net worth, where A liability is defined as a financial obligation, debt, claim, or potential loss. An asset is defined as any item of economic value owned by an individual or organisation, convertible into cash. Net worth is defined as total assets minus total liabilities of an individual or company (for a company, this is also called owner's equity or shareholders' equity or net assets). Suppose now that assets are revalued, so that the value of the assets becomes greater. In that case, net worth will increase. But not only that, because the relationship between assets and liabilities changes as well, and on that basis, we can incur new liabilities and increase liabilities. But, now suppose that liabilities are revalued, so that the value of liabilities becomes smaller. You guessed it, net worth will also increase. But not only that, because the relationship between liabilities and assets changes as well, and on that basis, we the assets actually increase in value if they are tradeables. For this, we get a christian fundamentalist imperative for the accumulation of capital: 1) The value of assets must be raised, and the value of liabilities must be reduced 2) The value of assets must be not be reduced, and the value of liabilities must not be increased But suppose that we can change the meaning of assets and liabilities. In that case, a liability might become an asset ! So you see, it is all in the way you look at what is an asset and what is a liability. You have to BELIEVE. Jurriaan
