Wednesday, October 12, 2016

Zero operating profits macro regime ZOP

ZOP places funding for additional investment outside the firms themselves

The credit system becomes the means to real accumulation

Firm level risk however is not increased over all

But firm by firm new investments and the existing debt jacket interact
With the credit standards

Depreciation as the remaining component
Of  net cash flow at ZOP

firms committed to  simple self reproduction
Neither increasing or decreasing output rates and inventory levels
Only replacing existing plant and equipment
 have no  autonomous source of discretionary spending

Only profitable prospects can induce expansionary spending
  However  credit worthiness
Becomes an obstacle
What might be lost by an end to form level autonomous self expansion

What about autonomous self contraction

The existing firm level debt jacket