The Real Movement

Communism is free time and nothing else!

Month: August, 2019

How did Newton properly analyse the transcendence of gravity in 1666?

Not to speak ill of the dead, but Wright was an idiot.

Erik Olin Wright, MaxPo Lecture:

“I don’t give any particular reverence to anything Marx had to say about anything because it would be quite astounding that someone in the middle of the nineteenth century would have properly analysed the contradictions of capitalism in the 21st century to understand what the dilemmas of its transformation and its emancipatory transcendence might be.”


“The motion of a rocket from the surface of the Earth to a landing on the Moon can be explained and described by physical principals discovered over 300 years ago by Sir Isaac Newton. Newton worked in many areas of mathematics and physics. He developed the theories of gravitation in 1666, when he was only 23 years old. Some twenty years later, in 1686, he presented his three laws of motion in the ‘Principia Mathematica Philosophiae Naturalis.'”

An interesting new mandate for the Fed…

In December of last year, I speculated that the Fed is playing games with the economy in order to tank it just prior to the 2020 elections. I further speculated that Powell may be doing this in order to ensure that Trump loses the election.

Now, former New York Federal Reserve chief Dudley adds his view that the Federal Reserve Bank has a duty to manage United States politics as well as its economy:

There’s even an argument that the election itself falls within the Fed’s purview. After all, Trump’s reelection arguably presents a threat to the U.S. and global economy, to the Fed’s independence and its ability to achieve its employment and inflation objectives. If the goal of monetary policy is to achieve the best long-term economic outcome, then Fed officials should consider how their decisions will affect the political outcome in 2020.

Trump has declared war on the Federal Reserve…

Taken from CNBC:

The knives are out. Trump will campaign against the Democrats by using the Fed as a foil. Just to be clear, the Fed is a proxy for Wall Street. When the Democrats rush to its defense, they will destroy their own credibility.

If anyone but Trump were president right now, this country would be losing its mind…

What you are looking at in the chart below is likely the most frightening chart available to economists today: 10 year benchmark long-term government bond yields for Germany, France, Switzerland and Japan. The chart shows that yields for each of these countries has reached or broken through the dreaded zero-lower-bound.

I think, the implications of this chart are that most advanced economies of the world market are now firmly trapped in a deflationary death spiral.

10 year benchmark long-term government bond yields for Germany, France, Switzerland and Japan (Source: St. Louis Federal Reserve)

If Donald Trump were not president, economists would be losing their minds about right now. The reason they would be losing their minds is simple: the above chart shows that monetary policy is dead and U.S. allies have no real tools at their disposal to fight the onrushing catastrophe. Without a massive fiscal stimulus on order of World War II, the United States will quickly follow its allies into the abyss.

But a massive fiscal stimulus package at this time would guarantee the reelection of Donald Trump and no one wants that. So they have their fingers crossed.