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socialist_n_TN

(11,481 posts)

3. No matter how much money, fictitious capital, and liquidity there is.......

Reply to cali (Original post)

Thu Sep 26, 2013, 06:39 PM

Sep 2013

it will NOT be invested into the productive sector of the economy because the rate of profit in that sector is low. And it's ESPECIALLY low COMPARED to the rate of profit on financial transactions. Profit is like water in that it will find it's own level. Unlike water which levels at the lowest point, profit will level at the highest. Since the rate of profit is higher in the financial sector than the productive sector, THAT'S where the majority of this liquidity winds up.

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A Supply Side Nightmare Scenario [View all] cali Sep 2013 OP

We certainly have a supply-side nightmare when it comes to the Nay Sep 2013 #1

K&R nt Mnemosyne Sep 2013 #2

No matter how much money, fictitious capital, and liquidity there is....... socialist_n_TN Sep 2013 #3