മൂലധന പഠനം -20

In ch 36 vol 3
money seeks return from somewhere in Capitalistic society.
Fictitious capital – Lending money to somebody for some purpose and getting a rate of return out of that person, even though he is not producing anything. thats why it is called Fictitious. no surplus value is created. eg: borrow money to buy a house. you have to pay bank a rate of interest. but you are not producing any surplus value in your house.
extract money from land using land rent. land is not a commodity that can be produced. so can create an artificial scarcity. speculative form. if rate of return from the production is very low then banking capital can go to these other areas. now its happening. money capital is shifting to other forms of investment. lot of speculation on land and property since 2001.

common capital of the class.
Issac Pareya Banker in Paris
san simon 1813
he give advice to kings. He talked about a united Europe a good idea. EU now can be said as a san simonian ? project.
Same as Adam smith, who also writing to the statesmen. to influence their public policies.
artisan class.
he was interested huge infrastructure projects. asked for combine distributed capital to for one single combined capital and form institutions for managing it.
when Louis Napoleon came to power. 1852

[10:00]
big public works.
Construction of Sues canal, building rail roads.
for big public works its need association of capital. credit institutions. Pareya?
they had big fight with Rothschild?.
p.727 – “The monetary system is essentially Catholic, the credit system essentially Protestant”. ‘The Scotch hate gold.’

if you put your faith in paper money or gold. Rothschild for gold and Pareya for paper money. when the crash came in 1867 Pareya got bankrupt. Rothschild won.
metal reserves as convertibility of bank notes. pivot of the entire credit system. The central bank is the pivot to credit system. so metal reserve pivot of banks.

what is the relationship between wall street and main street or city and high street (uk)
monetary system is a barrier for the speculative push for the expansion. so the credit system is crucial for the expansion of capitalists.
the disciplinary apparatus that connects main street with wall street is the money commodity gold.
credit system is bursting out of barriers of accumulation. limitlessness of money capital. IOY.

global financial system does not have a metallic base.
gold prices.
reality check. bank of England or FED. but they are human institutions, does they do the right thing? with gold this is not an issue.

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1844 bank act
p.688 problem of central bank
Bank of England to Issue department and a banking department
Issue department – issues notes for gold. any time get back gold
banking department – bills of exchange, issue bonds etc rest of the banking activities.
1848. people dont trust notes. suddenly banking department ran out of cash, gold. but the other department has huge gold reserve.
suspended bank act in 2 years. show the Issue department gold as reserve for banking department
if you have an institution that does not work in a crisis what kind of institution is that?

Marx never says that bank act caused the crisis. in a crisis bad bank act made thing worse.

Monetarily bankrupt but then left with physical assets.
Novel – Money. battle between Rothschild and Pareya

[30:00]
speculative nature
ch36
capital exists before capital mode of production

usury dual function.
usury for primitive accumulation
usury undermine the power of feudal classes
Usurer’s capital and mercantile wealth

[40:00]
monetary power vs landed power
landed power is fixed in space. monetary power is mobile
whoever has the mobility will win. useres and mercantile have more mobility. they undermined the power of landed property.
“credit system develops as a reaction against usury.”
Fathers of the Church, Luther, or early socialists.
interest bearing capital started as subordinate to capitalistic mode of production. but later it freed and became dominant. when it works as common capital of the class then its dominant.
interest and usury
some US states Maryland has anti-usury laws. which in turn anti-interest laws.
porn shops in US charged for usury
Luther said -fare rate of interest and usury …

“The more a dominant class is able to absorb the best people from the dominated classes, the more solid and dangerous is its rule”
credit system does that. micro financing is example.
entreprenial activity
state debt and people who with holds that debt.
bondholders can discipline states like PIGS countries. But whether bondholders ever discipline USA?
bondholders vs state power

[50:00]
Fiscal military state in the 16 and 17th century
bank of england and goldsmiths. goldsmiths dont want bank of england mediating between them and rest of population. they resisted formation of bank of england.
Marx said, “money system can never be free from the precious metals.” But this wrong after 1971. by the same reasons he said.
finance and state has so coupled together that it not possible to have an independent state power to do any regulation.
immanent form of capitalistic mode of production
state is simply a tool for capital.

ch28. money capital works at both ends of the circulation. lend money to capitalists also lend money to population to buy stuffs.
eg housing market
whose side money capital will take on crisis? they close to capitalist so dont let them bankrupt, but the population.

[1:00:00]
ch27
equalization of profit rate
reduction of circulation costs
credit system – cost and time
acceleration
joint stock companies
social form of capital.
“this is the abolition of capital as a private property within the capitalistic mode of production.”
lot of capital is circulating just for interest. thats why profit rate is not falling as it should be.

[1:10:00]
Cooperative factories, run by workers themselves. socialization of production
opposition between capital and labour is abolished here

credit system has dual character
Laws of Issac Pereire
Associated labour

marx saying this transition happens naturally. no political party or state power anything supporting this.

sensimon – mondragon corporation – artisan producers
left criticism of mondragon is like marx saying here that they act like joint stock companies.

DH is not accepting this chapter. lot of overlap, or confusion. not clear.
utopians of those period.

[1:25:00]
role of banks
M – lp & mp – P => C1 – M + dm
^ ^
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Pic: Cappital-vid-8-vol2-1.png

this draws interest out of this.

difference between capital and currency
there is only one money. but money has different functions.

in production side there is circulation of capital.
in realization side there is circulation of revenue.

ch29
nature of capital
illusory and fictitious

US treasuries are form of fictitious capital. they dont invests. they just claim revenue from the state.

the formation of fictitious capital is called capitalization.