Interesting exchange on overproduction (from psn-l)

["David Schanoes" <Schanoes@xxxxxxx>]

CB,

Well you are certainly not alone in noticing the difficulty in syntax,
and construction in that post on overproduction.  Mike Friedman did
also, and I responded to him with what I hope is a clarification.  Since
I am not at home, I don't have access to that response so I have asked
him to post it.  Hope it helps, and won't take offense if it adds to the
difficulties.

I think what we have to look for in the "over" production is the rate
of return, the rate of profit, and the immensity of the capital to be
reproduced ever larger, ever more quickly.  And the best way to do that
is in the concrete studies of the semiconductor, steel, cement, copper,
etc. industries.  And then it is that critical convergence or
interlocking of overproduction and the falling rate of profit that
really does it up right.

We can see exactly that convergence in the FROP in the US in 97-98 with
overproduction of these industries on a world scale, particularly in the
NICs of Asia, and Brazil, leading to the "currency" crises of Thailand,
Indonesia, South Korea, etc. which quickly became debt crises, spreading
to Brazil, Russia, Argentina, etc.

dms


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