Re: General Theory Seminar --Savings and Investment

["ÁÎ×Ó¹â HenryC.K.Liu ¹ù¤l¥ú" <hliu@xxxxxxxxxxxxxx>]

"William B.Ryan" wrote:

> Profit itself is very much a function of the rules and definitions of
> accounting.

Two decades ago, during high inflation situations, the dispute between FIFI
(first in-first out) and LIFI (Last in first out) was extremely serious in
determining cost, profit and inventory value.

> Entrepreneurs incur debt as they invest, which is expensed into
> production over time through depreciation.  If, on the other hand,
> debt is somehow shifted from firms to consumers, the rate of profit
> --while the shifting is occurring to the limit of the shift--increases
> commensurately, thereby becoming available for investment or squander.
>
> Much debt masquerades as equity.
>

Moreover, acclerating rate of debt masquerade actually leads to negative
equity through balloned growth - a visible reality on the NASDAQ which is
all negative equity masquraded by potential future earnings with below water
premature liquidation value.

Henry C.K. Liu