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A spectre is haunting global capital — the spectre of falling rates of profit
The ultra-low and sub-zero interest rates reflect a system afflicted by a falling rate of profit, says FAWZI IBRAHIM
CENTRAL ROLE: People wearing face masks walk past the Bank of England and the Royal Exchange in London

THE much-discussed and sometimes ridiculed Marxist theory of the tendency of the rate of profit to fall has come into its own. 

The historic low interest rates are testimony to its validity; ultra-low interest rates are recognition of ultra-low rates of profit. 

The theory is dazzling in its simplicity. The rate of profit is the ratio of profit divided by capital expenditure also known as capital stock. 

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