17 January 2020 — theplanningmotivedotcom
Just as the rate of profit and interest interact, so too financialization and production
This article not only examines turnover in the US economy during Quarter 3, but, includes an analysis of the composition of funding making up circulating capital. For the first time the contributions made by internal funds (provided by profit) and external funds (provided by bank credits) can be analysed, because the turnover formula yields circulating capital in real time. The results, beginning in 1955, show how abnormal the current period is in terms of this funding.