To Inform The Senior Lecturer – Yes, This Is How Capitalism Works

The Senior Lecturer at Islington Technical College is greatly exercised by the manner in which Deutsche Bank has laid off 18,000 people and, essentially, withdrawn from investment banking. The concern is misplaced, this is just how capitalism works. Which he’d know if he’d ever bothered to read – and understand, that slightly more difficult task – his Adam Smith.

We have some new thing. Doesn’t matter what it is, summat spiffing. It makes excess profits – above the normal rate of return upon capital – because it’s new and spiffin’.…

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Turkey’s Proof That Speculation Is A Zero Sum Game

A useful little proof from the current Turkish shenannigans that speculation, as speculation itself, is a zero sum game. Whatever is made by one participant on one side of the ledger is lost by another over on the other side of that same bet. At which point we can have two views about it all, something basically harmless that we should leave alone or perhaps something wasteful as it has no use and thus something we should limit or ban.…

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