Saturday, September 17, 2011

Monetizing Market Value

Understand that monetized, market value--added risk value--is to grow the economy, but it is positioned to grow profits with little or no growth (with little or no risk). Value, then, is derived from its accumulated deprivation, not legitimate distribution of capital. Understand that a legitimate distribution not only diffuses risk, it diffuses power--exactly what capitalists want to prevent.

A free market empowers consumers, meaning that power is exercised from the bottom up, not the top down, which is why capitalists tend to describe democracy as an unstable form of government. Capitalists work to consolidate power--create an economy of scale--not because it is more efficient, or generally beneficial, but because it accumulates power--risk--to be exercised from the top down.

Both politically and economically, monetarism is being used as a mechanism--a technology--for gaining a favorable market position. At the same time, however, technology also tends to naturally--empirically--pull us toward the right thing to do. Monetizing for deconsolidation (freedom) rather than consolidation (subjugation) is entirely possible.

Capitalists, despite forever singing the praises of an empirical, free-market efficiency, do everything they can to resist it (reduce the risk it presents). They do everything possible to make it look like free-market economics is a passe technology for organizing risk. They do everything to make the market-risk proportion look like it naturally progresses into its organized consolidation (which defeats its diffused, market value and the ability to sanction without government intervention).

To avoid the risk of direct, democratic accountability, capitalists do not want a free market to demonstrate. If it does, then we come to expect risk to be systemically diffused in priority. Crises will be prevented in a monetized, diffused, free-market proportion rather than a post-hoc proportion of consolidated risk (which provides the elite with the currency of power--massive debt).

We can see the post-hoc proportion currently at work. Deliberations of the Joint Deficit Reduction Committee have Democrats at least making an effort to identify attributions, but Republicans are determined to argue the consolidated, risk proportion post hoc.

According to the Republican delegation, the large size of the deficit (massive debt) causes reduction of GDP. Their participation on the Committee is devoted to proving this post-hoc fallacy of the risk proportion.

Consolidation of the risk proportion causes reduction of GDP. Massive debt is the effect. Therefore, debt reduction will not cause GDP. Arguing that it will is a temporal fallacy.

In order to avoid crises, capitalism monetizes massive debt to support the profit margin without employment (the income needed to support the margin). So, you see, in a complex way, value is systematically exacted (bought and sold) with the intention of being risk prone while appearing averse to a false, risk ontology. The result is an economy that is both stagnant and inflationary to avoid unemployment being transformed into the declining rate of profit.

Remember that "the" classical, unavoidable, economic "risk" capitalism innovatively offsets at any cost--falsely referred to as the paradox of thrift--is "the declining rate of profit." In order to avoid "the risk," capital is positioned and repositioned to maintain the profit margin which, when manipulated, accumulates the risk to be avoided.

While unemployment profitably increases the supply of labor, there is a point of diminishing returns. Unemployment (income deprivation) naturally reduces the profit margin (deflation, or general economic crises, naturally occurs). By monetizing the risk value, the diminished empowerment of the free market (unemployment, which accumulates into fully "gamma" risk in a political dimension) is turned into a profit, which provides the incentive to accumulate more and more of the risk (unemployment) like we have now.

Stagflation turns the liability of unemployment (the declining rate of profit) into an asset (which capitalism, in various forms, describes as "thrifty" or a necessary condition for growth). Instead of capital being transformed into productive value, it is conserved in the form of accumulating wealth. The consolidated value keeps the economy in a continuous state of crisis, like we have now, with highly compressed cyclical trending and high-frequency stochastic oscillations of an oversized, too-big-to-fail, risk proportion.

Shareholders are always renting risk to extract value from it (to exact detriment) rather than produce added value (GDP). The economy is organized to systematically produce ever-larger losses to derive, and consolidate, ever-larger gains at an ever-higher frequency in an ever-larger proportion that is too big to let it fail.

What the Joint Committee will do is accumulate even more risk. By elite authority, "the risk" will be extended, cleverly reasoned to save the free market with its continued consolidation.

Foolish to think that consolidation of power will save us from tyranny, but that is our fate constructed by joint committee, binomially self-determined.

There is another fate, nevertheless, to be constructed. Monetized, market value--added risk value--can be used to ensure economic stability. Rather than stochastically stumble into the next crisis, it is possible to position for profit without deprivation.

As long as we are always being conditioned for a random walk into the next crisis, it will always appear that value can only be derived with little or no risk from its accumulated deprivation. It is time we all understand--exactly the opposite is true.

Yes, we are all "Fed Up" and it is time to use the technical means evolved to manage the risk with market value traduced by capitalists who want to use it to crown themselves king.

Consolidation of power is what America is not.

Understand that a free market does not consolidate power. It not only diffuses risk, it diffuses power. It keeps want-to-be tyrants directly accountable to "the risk"--exactly what capitalists venture to avoid with what only appears to be a blamelessly random walk.

Those who think market value can be continuously consolidated will not be prepared to cover their shorts.

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