On Apr 12, 2012, at 2:20 PM, raghu wrote:
On Thu, Apr 12, 2012 at 1:04 PM, Shane Mage <[email protected]>
wrote:
This is shameless demagogy. Kennedy doesn't even admit that for every
speculative dollar betting on a price increase there is a
speculative dollar
betting the other way.
That doesn't prove anything. Speculation can amplify price movements
both ways i.e. vastly increase price volatility, so it is not wrong to
say that when prices are elevated [depressed] , part of the increase
[decrease] is directly
attributable to the actions of speculators.
Which is relevant only to the short-term speculators themselves.
Over the longer term it's the fundamentals that count and the
speculation washes out.
What are the "shorter" and "longer" terms is the question.
Socialists, however, with absolutely no possibility of short-term
political influence have to think only of the long term in their
economic perspectives. Those who line up intellectually with the
Obamas and Kennedys out of fear that Tweedledumber will win in
November have no perspective at all, neither as economists nor as
socialists.
Shane Mage
"Thunderbolt steers all things." Herakleitos of Ephesos, fr. 64
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