vol 3 – banks comes.
ch. 24-26
interest bearing capital.
there is no natural way of interest.
interest is fixed by supply and demand and competition.
vol 1 dont talk about supply and demand.
vol 1 coercive laws of competition as just enforcer. not much importance.
vol 2 works on those.
here these explain everything!
common capital of the class.
capitalists are divided into 2. money capitalists and production capitalists.
this distinction gets internalize. any capitalist has a dual personality. [10:00]
everybody living on interest.
fantasy – capital is really money capital which can earn interest. real property relations.
that capital is distinctive from what productive capitalist does.
since productive capitalists works. profit on production is about is really wages of superintendent.
managerial class.
distinction between ownership and management.
joint stock company, share holders own it. CEO is manager.
Book – “Growth of managerial class” 1930s.
fractioning of capitalistic class managerial and owners.
how managerial class extracts surplus at the expense of the owners.
interest and rate of profit.
rate of return from productive capital and same from money capital.
interest bearing capital appear autonomous and independent. but subordinate to the world of production of surplus value.
vol 1 – money is supreme fetish. it disguises value. but at the same time it represents.
fetishes capital lead to explosion of 1847-48. monetary crisis. 1857-58 also.
fetishes capital and fetish
it is real fetish – we go to super market, do carry a piece of money and we do buy commodity. marx call this fetish because that transaction disguises what the nature of labour is and amount of labour in the commodity. we cannot see it.
fetish is not people smoking too much etc. [20:00]
interest is the price of capital is completely irrational expression from the start. here commodity has a double value. firstly a value, and then a price is different from its value although price is a money expression of value. a price qualitatively distinct from value is an absurd contradiction.
value of value – a totology?
irrational, contradictory. marx use these words. but he does not mean it not like in the Sarah Palin speech.
money is value form commodity
conscious, honor, etc not a commodity.
imaginary price-form
money also has a price
land rent
certain quantities in mathematics – irrational numbers.
Marx is a greek scholar. he very familiar with Pythagorean idea. whole world is understood in terms of whole numbers or its fractions there off. later Hyppasus (Hipparchus?) proved there are certain numbers cannot be reduced to fractions. pi, sqrt(2). irrational numbers are extremely important.
irrational numbers are incommenserable and contradictory.
interest rate is like irrational numbers
interest is a relationship between capitalists. internalized in capitalistic class
if you buy/lent a land there is a transaction. in money there is no transaction.
with money even property right did not change. you lent the money still its urs. you want it back with a part of surplus value. [seems wrong]
rent and interest are most complicated thing. even marx did not fully resolved it. [30:00]
value of value
price and value
symbolic economy
immaterial spectacle, real Olympic opening ceremony
1847, 1857 crisis same as 2007, 2008 crisis.
in 1847, 1857 crisis Bank of England could not respond to the crisis. they suspended Bank Act. pumped in liquidity.
Now FED violated its charter QE, [40:00]
interest earning capital
part of the profit is paid as interest.
you cannot understand justice without understanding social relations in which the notion of justice is embedded. which is a characteristics of certain mode of production.
liberal theory of justice is a burgious theory of justice.
slavery is unjust, but wage labour is not.
usury is unjust, but interest just rate of interest
what is just and unjust is entirely depend on social relations.
in Plato’s Dialog discussion about nature of justice. Plato said justice is what ever the powerful people decide should be. ie, justice is the ruling classes.
working day, fare wage – worker can make arguments internal to liberal theory of justice
lending happens in commodity form [50:00]
but he said he focus on money form.
prudong ? thought that interest has nothing to do with value production. because he has no theory of surplus value. he though we can give free credit. his free credit bank did not lasted 6 months.
lot of ‘appear’ in these sections, means there is lot undergoing beneath.
legal transaction are separate actual production
money capitalist and industrial capitalist. [1:00:00]
he dont want to deal with particularities
ch22
there is no natural rate of interest
money market. lenders and borrowers. [1:10:00]
capital in itself
class relations within the capitalistic class.
property side of capital and
interest bearing capital is capital as property as against capital as function.
class struggle against interest bearing capital. [1:20:00]
diffusion is power of class struggle. capital is abstract
wage of superintendent
worker supervision and management
hierarchy of wages
marx uses an example of workers owned co-op enterprise.
Mondragon co-op
started paraffin sth. then they setup credit institutions so that they dont have to go to money market. then build retail enterprise.
pay 1:3 (low:high) average is 1:4.2 highest is 1:9
in US its now 1:600 [1:30:00]
joint stock companies a number of governing and supervisory boards to management and supervision. in fact a mere pretext for the robbery of shareholders and their own enrichment.
rise of managerial class
words used by marx has a technical meaning.
irrational – irrational number since it is irrational we cannot ignore it. eg pi very important number in mathematics. its irrational in that sense, not its crazy. it has a different form of circulation than the other forms. eg, interest. its not fixed like value of commodity which is fixed by value of labour input- socially necessary labour time. interest is fixed by supply and demand, competition. these features marx generally exclude from analysis.
fetish – it is not imaginary. it is very real. it disguises something. fetish of supermarket. you go there pay money get commodity unaware of the labour, raw material etc. invest money in bank account, you get 3% interest. from where 3% come from? bank invest in govt bonds, it gets 3% interest. govt do crazy thing like fighting wars etc. you feel like something is created by the investment that bank did. actually nothing is produced. but bank get 3% interest. this is fetish.
for vulgar economics, which seeks to present capital as an independent source of wealth, of value creation, this form is of course a godsend, a form in which the source of profit is no longer recognizable and in which the result of the capitalist production.
surplus value is disguised.
519. compound interest [1:40:00]
geometric progression
compounding growth
historically compounding growth 2.25% from 1780s
minimum adequate growth is 3%
proletarian grow by 2 billion people in last 30 years. that is necessary.
total 6.8 billion. 4 billion is wage labour force. do micro finance and get 2 billion more.
[credit system] -> M – P – C – M + dm <- [credit system]
credit system supplies loan capital
credit system also supplies "Discount Bills of Exchange"
gives money to production as well as realization. [1:50:00]
merchant capitalist – doubles as money capitalist.
last crash – credit system is lending money to build houses. credit system then provides mortgages to buy house.
california – people who giving credit to producers is guaranteeing sale because irrespective buy's ability they are lending to buyers. sub prime came by that.
they operated in both ends.
in vol 1 Marx talk about wage labour, "capitalists are in a position that they can manage both supply and demand for labour." they produce relative surplus population to technological changes
same to automobiles
buying house even before its built. can buy at discounted rate.
Engels – India trade?
long time to get goods from place A to place B. Sues canal changed that.
