Monthly Archives: February 2016

Exporting the Externalities

For about the past thirty years, the US has been exporting the externalities associated with the commodity fetish. Exporting manufacturing jobs also exported the pollution that goes with it. For capitalists, it reduced the cost of doing business–the rent. Commodity … Continue reading

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Warenfetischismus

In the first volume of The Capital, Marx describes the commodity fetish (“warenfetischismus”). It’s kind of like Adam Smith meets Freud, and it’s not unlike the dialogue we see today, assessing the probable outcome of voting for Secretary Clinton or … Continue reading

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Roaring to Success, Beyond the Excess

Funding the liability is an associative property that has emergent value. The EU reports “negative inflation,” for example. In other words, deflation! If there ever was an emergent value, deflation (the thing that causes famine and war) is definitely it … Continue reading

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Democracy in America

(Options and Futures to Believe In) Let’s say you have a lot of money on loan. You have to loan it because you own most of it. Since the objective is to get more back than you put in, “making” … Continue reading

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Relative Speed and Transactional Interpretation

In the physical world, speed is a relative value. That means it has a Transactional Interpretation (TI). How you model the physical world determines the interpretation, forming a feedback loop. The interpretation may not be “reality” at all, but (like … Continue reading

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The Bid to be In The Loop

Every month, CME takes bids to store oil in the LOOP (the Louisiana Offshore Oil Port). Although these contracts are commodity-futures contracts, buyers bid for storage space to manage the supply (in contango). Since oil is in overproduction (a recurrent … Continue reading

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Storage Capacity (and the Declining Rate of Profit)

TBTF banks have billions of dollars in reserves to cover loans made to bring the price of oil down. Whether the actual reserve amounts will really cover the default risk is an approximation, which forms an arbitrage argument. The argument … Continue reading

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