[Marxism] Supply and demand?

[S. Artesian]

 Marvin, couple of points:

1. Same sources that show steady increase in output and steady increase in 
consumption show no long term "super-acceleration" in the rate of 
consumption for the world as a whole, so I don't see how your demand 
argument holds up.  Actual demand among developing countries is confined 
pretty much to China and India, and has been offset by declines in developed 
countries.  By the way, output from the "transitional economies" (fSU) grew 
some 30% 2002-2006 while consumption grew only 14%.

2. I have stated nothing that  attributes the run-up in oil prices to 
"speculation." I do not believe speculation has "caused" the price 
inflation.  Speculation is a product.  One that accompanies capitalism every 
step of way, now waxing now waning.

3. Interesting point about gold.  Any numbers to back this up?  How much 
gold is in fact changing hands?  What volumes are being purchased in China, 
India, Viet Nam?

4.  I think the only way to analyze price inflation is by its function--  
what it accomplishes.  In these cases,  Carroll is right-- no market creates 
profit, but markets are the place where profits are apportioned and the oil 
price mechanism makes sure that the biggest get the biggest, in the attempt 
to offset a falling return on investment.  Yep, that's what I always say 
about capitalism, because that's how capitalism always is.  If it takes 
arson, then the markets produce arson to devalue assets and get them out of 
production; if it takes leveraged buy outs to strip assets out and spin them 
off, burdened with debt, only to shut them down, then we get leveraged buy 
outs; if it takes Volcker chomping down on his cigar, kicking up interest 
rates and creating a lost decade, then that's what we get; if it takes 
tripling oil prices to get the ROI for the oil majors to a happy point for 
their boards of directors and that means they have to shutter US auto plants 
(and this has been going on in the US since 05-06) and to take a few hundred 
planes out of the sky, bury them in the Mojave, and put another  2 million 
out of work, then we get tripling of oil prices.

----- Original Message ----- 
From: "Marvin Gandall" <marvgandall at videotron.ca>
To: <sartesian at earthlink.net>
Sent: Wednesday, July 09, 2008 4:57 PM
Subject: Re: [Marxism] Supply and demand?