by Summary:
Review and critique of the latest OECD World Economic Outlook, from a Marxian POV. Useful. The key for me, as readers of this blog know, is what is happening to the profitability of capital in the major economies. If profitability is rising, then corporate investment and economic growth will follow – but also vice versa. But if profitability and profits are falling, debt accumulated will become a major burden. Eventually the zombies will start to go bankrupt, spreading across sectors and a slump will ensue. Financial prices will quickly collapse toward the real value of their underlying productive assets.Indeed, according to Goldman Sachs economists, the prices of financial assets (bonds and stocks) are currently at their highest against actual earnings since 1900!What the OECD and
Topics:
Mike Norman considers the following as important: business cycle, Debt, financial cycle, global economy, Marxian Economics, minsky moment, OECD, productivity
This could be interesting, too:
Review and critique of the latest OECD World Economic Outlook, from a Marxian POV. Useful. The key for me, as readers of this blog know, is what is happening to the profitability of capital in the major economies. If profitability is rising, then corporate investment and economic growth will follow – but also vice versa. But if profitability and profits are falling, debt accumulated will become a major burden. Eventually the zombies will start to go bankrupt, spreading across sectors and a slump will ensue. Financial prices will quickly collapse toward the real value of their underlying productive assets.Indeed, according to Goldman Sachs economists, the prices of financial assets (bonds and stocks) are currently at their highest against actual earnings since 1900!What the OECD and
Topics:
Mike Norman considers the following as important: business cycle, Debt, financial cycle, global economy, Marxian Economics, minsky moment, OECD, productivity
This could be interesting, too:
Michael Hudson writes Debt Makes the World Go Around
Dan Crawford writes GOP Social Security – the Phasing Out
Frances Coppola writes Where has all the money gone?
L. Randall Wray writes Are Concerns over Growing Federal Government Debt Misplaced?
Review and critique of the latest OECD World Economic Outlook, from a Marxian POV. Useful.
The key for me, as readers of this blog know, is what is happening to the profitability of capital in the major economies. If profitability is rising, then corporate investment and economic growth will follow – but also vice versa. But if profitability and profits are falling, debt accumulated will become a major burden. Eventually the zombies will start to go bankrupt, spreading across sectors and a slump will ensue. Financial prices will quickly collapse toward the real value of their underlying productive assets.Michael Roberts Blog
Indeed, according to Goldman Sachs economists, the prices of financial assets (bonds and stocks) are currently at their highest against actual earnings since 1900!
What the OECD and IMF reports show is that if there is a downturn in profitability, the next slump will be severe, given that private debt (both corporate and household) has not been ‘deleveraged’ in the last nine years – indeed on the contrary.…
Boom or bust?
Michael Roberts