---------- Forwarded message ----------
Date: Mon, 04 Mar 96 23:09:43 EST
From: Iwao Kitamura <ikita@st.rim.or.jp>
To: ope-l@anthrax.ecst.csuchico.edu
Subject: Re: weakness and vulnerabilities
Dear friends,
I've just caught up to the front line.
Michael:
>In raising the question of weaknesses and vulnerabilites, I was thinking of
>following Marx's approach to look at the nature of the capitalist system to
>see where its weakest points might be. Certainly, the credit system
>makes capitalism vulnerable. I have not looked at the numbers, but merely
>drawing our money out of the banking system within a short period of time
>could set off a crisis, except that the Fed would obviously take counter=
>actions.
My concern about the credit system is not only its function of re-allocation
of funds among capitalists but also its function of helping extending demands
for the economy.
I think this is not a principle level question (or is it?). In analysis of
the current development, one can see that international financial market
worked as a tool of extending demands for capital goods in developing countries
in order to absorb the excess products in major imperialist countries in
'70s. This, however, revenged international financial market in '80s.
One can see also the function of consumer (worker) credit as providing
demands for capitalists and additional exploitation through interest
payment in domestic economy. Increase in public debt plays a similar
roll.
So this sort of function of the credit system today shows weakness and
vulnerability of capitalism. My question lies whether this is an expression
of the deepening general crisis.
Michael:
>On a broader level, I think that the concept of fictitious capital, and I
>would suggest that it could be extended to what me might call fictitious
>value, represents a broader approach to this subject.
The term 'fictitious value' seems to me very attractive. I'm looking
forward to it to be explained.
in OPE-L solidarity,
Iwao
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Iwao Kitamura
E-mail: ikita@st.rim.or.jp