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Global Crisis and Reproduction of CapitalMoney Capital, Fictitious Capital and “Toxic” Capital

Global Crisis and Reproduction of Capital: Money Capital, Fictitious Capital and “Toxic” Capital [Money capital, as a seemingly autonomous entity, does not produce value. Its “profit” arises as interest and dividend from industrial profit for productively invested loans, as interest on taxes levied by the state to service the public debt and as interest from wages for consumer loans to workers. Money capital corresponds to a real value that is either productively invested or consumed privately, but which can expand fictitiously, thus creating a “toxic value”. Financial derivatives created an opaque environment and permitted an unprecedented growth of fictitious value and of its “toxic part”. They stimulated consumption and investment for a while, but they also led to an unsustainable growth of debt that was an integral part of neoliberal schemas of accumulation.] http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png

Global Crisis and Reproduction of CapitalMoney Capital, Fictitious Capital and “Toxic” Capital

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Publisher
Springer International Publishing
Copyright
© The Editor(s) and The Author(s), under exclusive licence to Springer Nature Switzerland AG 2019
ISBN
978-3-030-05724-4
Pages
45 –59
DOI
10.1007/978-3-030-05725-1_4
Publisher site
See Chapter on Publisher Site

Abstract

[Money capital, as a seemingly autonomous entity, does not produce value. Its “profit” arises as interest and dividend from industrial profit for productively invested loans, as interest on taxes levied by the state to service the public debt and as interest from wages for consumer loans to workers. Money capital corresponds to a real value that is either productively invested or consumed privately, but which can expand fictitiously, thus creating a “toxic value”. Financial derivatives created an opaque environment and permitted an unprecedented growth of fictitious value and of its “toxic part”. They stimulated consumption and investment for a while, but they also led to an unsustainable growth of debt that was an integral part of neoliberal schemas of accumulation.]

Published: Jan 29, 2019

Keywords: Financial derivatives; Opacity of financial system; Fictitious value; “Toxic value”

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