Global Political Economy Project (Gpep)
In this example too much cash capital is looking for worthwhile funding alternatives. Since investments in financial belongings have turn into increasingly profitable up to now many years, money capital is disproportionately subtracted from industrial manufacturing and employed as fictitious capital. This form of money capital is fictitious because it is without any material basis in commodities or productive activities. Although not generating any surplus value within the labour process, fictitious capital can reproduce itself (M–M’) through the representation of a claim on the belief of future surplus worth. A prime example for this course of is the global monetary disaster of 2007–2008 which was triggered by excessive derivatives buying and selling (fictitious capital) in subprime mortgages.
In order to complete this critique of bourgeois economics, an acquaintance with the capitalist form of manufacturing, trade and distribution did not suffice. The varieties which had preceded … Read More