Ronin_5

Then do you want to explain the 1:1 correlation between interest rates and inflation?

Or this investopedia article?

https://www.investopedia.com/ask/answers/12/inflation-interest-rate-relationship.asp

And a market crash would be something like the Great Depression, where there was world-wide hyperinflation and money was worthless. This specifically happened because the gov refused to bail out corporations.

The closest that we’ve gotten was Covid. But even then, it was understood that there would be a recovery after vaccine deployment.

That’s fairly idealist of you to claim that.

Why is it idealist? Three reasons:

First of all, the means of production, (and through which we can sustain the population density in the states) is industry. Without industry, farms will not be able to generate enough yield to sustain our population density.

Secondly, suppose that a revolution happens, and the American experiment is ended. Will the workers and the people who have revolted, agree to give the means of production to the aboriginals, essentially placing them as a new ruling class? It would be against working class interests.

Thirdly, human society will organize themselves in response to material conditions. In the case of the capture or gifting of the industrial mode of production to the aboriginals, the previously equitable aboriginals will reorganize themselves to for a new capitalist class.

A more equitable solution is to have aboriginals take part in the revolution and subsequently collectively own the land and means of production alongside the working class.

Racial and other hierarchies are developed in response to not just capitalism, but rather property, the defence of property, and the conquest of properties. As it is, whiteness is just another word for the capitalist class, as representative for the ruling hierarchical class. For example, Obama is white.

So, to get rid of whiteness, you must change/reorganize our current mode of production. (A la Lenin) But to have enough bargaining power to do that, you must organize across all the intersections.

And how do we do that? By focusing on our common interests, organizing around our common interests, and fighting for our common interests. How do we not do that? By focusing on our differences and hiding the capitalist contradiction through arguing about the contradiction between intersections.

What Volcker did wasn’t special. Interest rates must be raised or lowered in proportion to inflation caused by supply or demand disruptions. That’s it.

It’s one of the many maintenance mechanisms needed to maintain capitalism. If handled incorrectly, without centralized control, the economy will crash every time there’s a disruption. That’s why we say there’s no such thing as the free market.

In this case, interests rates were raised in response to the 1979 oil crisis causing massive inflation. It’s not a conscious choice or a change in policy, but rather a response to material conditions.

As a result, this is why you need to look at trends on a longer scale in order to even out these disruptions to find the macro trend. And these macro trends usually have to have something huge as a root cause, like the fall of a rival superpower. Not a temporary increase in interests rates.

If the inflection had happened in 1983, then the profit margin wouldn’t have fallen to all time lows in Jan 1992.

If the Soviet Union did not dissolve, then there would still be a bipolar world order, and profit margins would have stagnated due to a lack of opportunity for exploitation.

As I said, look at the trend. There’s only one major inflection point throughout the entirety of the data, and that’s in 1990, corresponding with the collapse of the USSR.

Or you can take a look at the link I posted.

Publicly traded assets grew on the scale of 15-30% annually, over these two years

That’s the covid recovery. When looking at ROI trends, you need to look at 10 yr blocks.

Furthermore, ROI is measured as profit margin. Currently, there is a trend upwards, the start of which corresponds to the fall of the Soviet Union.

https://dqydj.com/sp-500-profit-margin/