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Cake day: August 17th, 2023

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  • What Volcker did wasn’t special. Interest rates must be raised or lowered in proportion to inflation caused by supply or demand disruptions. That’s it.

    It’s one of the many maintenance mechanisms needed to maintain capitalism. If handled incorrectly, without centralized control, the economy will crash every time there’s a disruption. That’s why we say there’s no such thing as the free market.

    In this case, interests rates were raised in response to the 1979 oil crisis causing massive inflation. It’s not a conscious choice or a change in policy, but rather a response to material conditions.

    As a result, this is why you need to look at trends on a longer scale in order to even out these disruptions to find the macro trend. And these macro trends usually have to have something huge as a root cause, like the fall of a rival superpower. Not a temporary increase in interests rates.








  • Measures such as the stock market and GDP were meant to act as proxies for measuring how well the economy was accomplishing its stated purpose, which is to improve the standard of living for everyone.

    I would argue that they aren’t and never have been a measure of how well the economy is at distributing resources. Stocks haven’t been accessible to the working class until recently. And GDP is neither normalized to PPP nor gives any indication as to its distribution among the populace.

    The “economy” (read: bourgeois economy) has never been connected to the masses. If you measure how well businesses are performing, then it only tells you how well businesses are performing. That’s why these indicators are lagging and not leading.



  • Trade with EU is exploitative of eastern Ukraine and the trade deal will prevent its development. The whole of Ukraine was split on the issue between east and west.

    The whole thing started with the comprehensive trade agreement between Ukraine and the EU. Yanukovich had wanted trade with both Russia and the EU. But both Russia and the EU were forcing Ukraine to pick a side. Making a trade agreement with the EU would have forced Ukraine to change their regulations, negatively impacting trade with Russia, and having them become more dependent on the EU. There was also a significantly higher chance their net trade would decrease if they signed this agreement. So if they went with the EU, it would have totally screwed over eastern Ukraine.

    I should mention that at the time, Russia was providing the majority of trade with Ukraine by a fairly wide margin. So it was much more practical to go with Russia.

    The decision to put the EU trade agreement on hold, had sparked euromaiden, leading Russia to reclaim Crimea in response, which sparked the civil war.

    I should also mention that Ukraine is a third world backwater country. Its gdp per capita is lower than some African nations, and is three times lower than their neighbours Russia and Poland. It’s not a country full of Nazis and reactionaries, no more than Guatemala. It’s just people who’ve been fucked over and exploited.