But stimulus just means creating another bubble. Throwing money at the 
problem means that the problem must be lodged within the process of 
circulation. But the problem or contradiction lies within the process of 
production -the valorisation process. The problem has become so explosive 
because much of the Left and Right threw money at capitalism's problem. 
This created debt mountains and no real solution. The can was just kicked 
further down the alleyway. But this can kept growing the more it was kicked. 
The outcome has been bubble corporations and even a bubble working class. 
Inefficient corporations have continued to exist because of the growing 
expansion of credit. This "money throwing policy" led to a soft (feckless) 
working class that entertained a superstitious belief in the state as a 
benevolent force. This is why it lacks revolutionary class consciousness.

This new situation may lead to a dramatic change in the form of the working 
class.

Paddy Hackett

------------


-----Original Message----- 
From: Doug Henwood
Sent: Tuesday, August 09, 2011 7:44 PM
To: Progressive Economics
Subject: Re: [Pen-l] More on comparing U.S. debt position to household


On Aug 9, 2011, at 2:38 PM, raghu wrote:

> A classic Milton Friedmanite conservative Republican like Bernanke is
> bad enough, but Geithner is much worse: he shares the Wall St-centric
> world-view of the likes of Jamie Dimon.

Bernanke & Co. just announced they'll keep the fed funds rate at 
"exceptionally low levels...at least through mid-2013." Bernanke is about 
the only major economic policymaker in the world in favor of stimulus these 
days.

Doug
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