On Apr 26, 2008, at 5:34 PM, Jim Devine wrote:
...Usually, there's a positive relationship between the measured
rate of profit and the expected rate of profit. Expectations are
usually based to an
important extent on reality...
The reality that is important at the onset of "crisis" is a second
derivative. When new capacity comes on line only to find that instead
of adding to sales it mainly allows the retirement of "obsolete"
plant--a real, profitable cost saving but for much less return than
had been hoped for. And too, when profits are rising so, normally,
are interest rates and capital-goods prices. Enough reason to cut
back on investment, the process whose degree and duration determines
the severity of the "crisis."
Shane Mage
"Thunderbolt steers all things...it consents and does not consent to
be called Zeus."
Herakleitos of Ephesos
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