katepe

The capitalist is entirely identified with surplus value; when it dies, the world dies with it. In realityland it is capitalism that is apocalyptic. Correlation is the situation produced by the need for increasingly rapid and voluminous transfers throughout the financial network; credit, what is transferred. Profits are made by balancing local risks, and then striking at increasingly slighter and briefer differentials. The strikes must therefore be delivered with ever-greater force. So there must be ever more channels and ever more liquidity to pour through them. Thus the rise in the extension of “leverage” — the ratio of borrowed to held assets — is not a “failure of fundamentals” but an absolute inevitability of finance capital. Another way to describe the relation between correlation and credit, alongside channels and liquidity, is that between circulation and production. They too are part of the series of guarantees. They too have to be believed.Consumer credit is bottom turtle. - katepe