[PEN-L:4711] Re: Trond's Debt/Asset polarization model

[BILL MITCHELL <ECWFM@xxxxxxxxxxxxxxxxxxx>]

Jim has said:

>> Money-lending under conditions where no surplus-product is
>> produced is qualitatively different from money-lending where
>> a surplus-product is produced.

Trond replied:

>Where liquidity is absent, economic
>activity grinds to halt. If there is a gross imbalance of the
>financially polarized type - "blood" is overconcentrated in part of the
>system while it is lacking elsewhere - the crisis is fundamentally the
>same whether we have a modern surplus-producing capitalism, or a
>(relatively) static pre-capitalist economy.

bill> the difference i think jim is aiming to highlight is the difference b/tw
a monetary economy where surplus is the goal of production from the
pre-capitalist economies where surplus was produced but it ws transparent to
the producers of the surplus and gained by "extra-economic" means (feudal laws
etc).

further, in simple commodity exchange money is  not germane to the process.
people produce to gain other consumables with higher use values. capitalism
does not operate like that at all. credit arrangements tie complete chains of
capitalists (from extractor of raw material through to final seller of good)
together in the uncertain process of surplus realisation. much more can go
wrong in this type of system than that of pre-capitalism where the relations
were less complex.

just babbling on the net :-)

kind regards
bill
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