At 29/10/01 17:40 -0800, you wrote: >Chris, you are talking about two different conditions. In one case, >credit is scarce because of a depression. In Japan, credit is abundant. >-- >Michael Perelman >Economics Department >California State University >Chico, CA 95929 > >Tel. 530-898-5321 >E-Mail [EMAIL PROTECTED]
Yes. I was wondering why. The classic description by Engels of capitalist crises observes in 1877 that the world was at that time going through its 6th crisis since 1825. In this he describes how the "markets are glutted" (as in present day Japan) but further "hard cash disappears, credit vanishes". I wonder whether we are looking at the same cyclical processes only cushioned rather than cured by the additional Keynesian interventionist attempts by central government at least to avoid a crisis of the circulation of finance capital. It just can do nothing about restoring the rate of profit. And with the newly coined(?) term 'liquidity trap' we see that even if such measures make the crisis less acute, they may make it worse. Chris Burford
