RUSSIA OUT OF WESTERN UKRAINE, THE U.S. OUT OF EUROPE.

WAR RETURNS TO EUROPE. AND THE VICTOR IS THE USA.

EMPERICAL SUPPORT FOR THE “DOUBLE-SOLUTION” TO THE TRANSFORMATION PROBLEM.

This is a theoretical piece which concludes the years of work I have put into refining and correcting the ‘double-solution’ to the transformation problem. The solution remains loyal to Marx’s methodology found in Chapter 9 of Volume 3 and is employed to complete the solution to the transformation problem. I will say it again, the law of value stands or falls on our ability to explain the transformation problem and therefore the relation between underlying values and circulating prices.

I have been asked why the two distributions of 26 need to be equivalent. The reason is that the first distribution of 26 yields specific ‘prices of commodities’ which when they circulate becoming input prices, yield specific prices of capital. Only by using the second 26 (divided between capital and profit) are those specific prices captured. Anything more than 26 and anything less than 26 would yield different prices of capital. Thus the prices of capital found in the articles are not accidental, rather they are real as if executed by competition.

SEASONAL ADJUSTMENTS. WHEN UP IS DOWN AND DOWN IS UP. The intriguing case of January U.S. retail sales and its effect on the markets.

I have corrected a mistake in the original. Nominal (unadjusted) retail sales fell by 20% not 25% between December and January.

TWO DAYS IN FEBRUARY THAT ROCKED THE US STOCK MARKETS.

STATEMENT ON UKRAINE. A GLOBAL ISSUE.

Shortly after I wrote this article, Biden, having spoken to European leaders issued a statement calling for US citizens to immediately vacate the Ukraine because war was imminent and that it could become global. Every time France and Germany de-escalate the US escalates because the Ukraine is part of their grand plan against China. And for the first time, the US markets took Biden at his word.

THIS WEEK IN THE MARKETS. WHEN GOOD NEWS IS BAD NEWS.

The coming 2 weeks are going to be a challenging for the markets. Next week the all important Consumer Price Index for January will be released. The following week the retail sales estimate for January will be released. If the CPI comes in as expected or higher this will be bad for the markets. And if this is followed by a weaker than expected retail number the markets will be under siege. If however the CPI number comes in better than expected, the fall out from the retail sales number will be less severe.

CHINA 2021 FULL YEAR REPORT.