There is talk in Japan of hiking up interest rates to flush out the apparently tremendously inefficinet companies that are considered a principal source of the recessionary conditions there. Increasing interest rates is a way of restricting credit. Consequently money grows correspondingly scarcer. As a result of these developments the economy will experience even further contraction and many business may go to the wall. This will tend to create the conditions necessary for a restoration of profitability to levels that will provide the conditions for economic recovery. But despite the popularity today of cynically berating Marx's Kapital any such move to hike up interest rates leads to a contraction of credit and increasing inaccessibility of money even if it happens in a regulated manner. This is just how Marx described the course of the cyclical crisis. As the economy nose dives towards depression the availability of credit drys up and money becomes less accessible. In the case of Japan this same process takes a extended and regulated form. However eventually the state, despite its strength, is forced to observe the law of value and jack up interest rates. At the end of the day the law of value shines through. Comradely regards George Be free to check out our Communist Think-Tank web site at http://homepage.eircom.net/~beprepared/ Subscribe to Revcommy Mailing Community at [EMAIL PROTECTED] --- from list [EMAIL PROTECTED] ---
