Friday, October 10, 2008
no depression -- explosion of the simulacra
at least it's friday, folks.
kevin depew with another engagement on baudrillard's market and its resolution.
[C]urrency is nothing but a representation of value, a paper dollar simply an image that is intended to mean something between two parties in order to execute a transaction. ...
I understand there are those who disagree with structural deflation and who believe that central banks worldwide, in coordination with fiscal policy, will be able to intervene and resurrect banking and production. The outcome, it is asserted, will be inflation, or hyperinflation.
But again, if we see that "The Crisis of the Real" is really a crisis of reproduction, then we can also see that the very mechanisms of reproduction - fiat currency, fractional reserve banking, leverage - are broken, perhaps permanently so. In order for inflation or hyperinflation to displace this ongoing debt deflation, the mechanisms that facilitate reproduction and currency velocity must be intact. The last vestige of bull market hope is the hope, too, that the monetary velocity triggers are functional. They are not, and there is a significant probability that we may never again return to that place where they were.
you won't find a more elegant argument for deflation.