Re: Re: Re: Re: Current (heterodox)thinkingoninterestrates?

["Charles Brown" <CharlesB@xxxxxxxxxxxxxxxxxxxxx>]

>>> Jim Devine <jdevine@xxxxxxxxxxxxxxx> 04/06/00 05:04PM >>>


>CB: From whom do they [banks] borrow ? Aren't the biggest creditors, net
>creditors ?

they borrow from all people who have bank accounts, though the most
important are those who can afford to save most and also can afford to keep
the largest amounts in the bank.

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CB: Is Chase Manhattan a net debtor to its bank account holders ? How many people is that ?  How about Morgan Guaranty or progeny ? What is the money trail here ?

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>CB: Stagflation seemed to be a pinnicle of monopoly price fixing

currently, we're having the opposite of stagflation, i.e., low official
unemployment rates and low inflation.

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CB: And we don't have deflation. Everything is just perfect.

It is like the manufacturing monopolists ( oligopolists) got the prices so high, they are getting their pound of flesh, and the finacial monopolists prefer not to have inflation as it cuts their profits; and finance dominates in this era of finance capital anyway.

There is never anymore deflation, lowering of prices as a general trend. This seems an evidence of institutionalization of a monopoly price fixing.

CB