On Tue, 02 Sep 2008 19:47:37 -0400, Les Cargill wrote:
> The Trucker wrote:
>> On Tue, 02 Sep 2008 09:56:00 -0700, Shrikeback wrote:
>
>
>
>> Speculative bets on shortages, or creating
>> shortages do absolutely nothing to enhance production. They, in fact,
>> impede production. The use of "savings" in this way is not an example of
>> capital.
>>
>
> 1) Speculation isn't particularly "capitalist" - it does not
> involve technological development of the means of production.
This part is correct.
> 2) Without speculation, transactions become all but
> impossible. Speculation is the means by which price
> signalling occurs. Longs and shorts both take
> positions, the buyers steer towards one or the other.
This part may also be correct. But the problem is that it has little to
do with real research and development. The university grant system for
the development of new pharmaceuticals or for the development of new
fuels or new engineering is an example of technological innovation outside
of SPECULATION as we see it, say, in commodities or in stock markets.
Outside of IPO stuff, it is really doubtful that speculation accomplishes
a damned thing.
--
"I know no safe depository of the ultimate powers
of society but the people themselves; and
if we think them not enlightened enough to
exercise their control with a wholesome
discretion, the remedy is not to take it from
them, but to inform their discretion by
education." - Thomas Jefferson
http://GreaterVoice.org/extend
