Abstract
This chapter explores in more detail the process of the dematerialization of wealth under capitalism and presents the practices employed for unequal appropriation through speculation, which has meant the creation of ever more advanced forms of mercantile relationships. Carcanholo demonstrates convincingly that, as the creative forms of parasitic speculation advance, both money and capital are dematerialized in their concrete forms, throwing off the operational impediments to the expanded reproduction of speculative capital, including creating new forms of regulation of securities transactions, which have come to dominate decisions throughout the capitalist world.
This chapter was originally published in Portuguese with Revista da Sociedade Brasileira de Economia Política, 8, pp. 26–45, in 2001, and was translated into English by Kenton James Keys.
This is a preview of subscription content, log in via an institution to check access.
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
Notes
- 1.
Alves Pinto’s (1997) excellent article seems to suggest more the idea of financial capitalism as a stage of capitalism than that of financial capital as a concept of Marxist value theory. The more theoretical determinations of the concept are not specified, although he relates it to that of fictitious capital.
- 2.
We recall that productive capital is the functional form or autonomous functional form of industrial capital.
- 3.
If it were so, it would not be autonomous.
- 4.
We understand that the over-accumulation of capital takes on, under present conditions of capitalism, the form of parasitic speculative capital dominance. The simple reference to overaccumulation , although not incorrect, has the disadvantage of not highlighting the dominant character of speculation. The idea that parasitic speculative capital originated from the surpluses of value from the normal circulation of industrial capital, and particularly of productive capital, does not seem satisfactory to us. These leftovers would be the result of the normal difficulties, due to natural and technological limitations, of harmonious circulation and the cycle of capital. Circulation and the cycle of capital, masterfully analysed by Marx in Volume II of Capital (1992) and by Hilferding (1973), necessarily produce inactive money capital. The sums derived therefrom should coalesce and should operate, according to them, in the sphere of speculation. We believe that this is not enough to explain the current phase of capitalism, the dominance of parasitic speculative capital and the subordination of the logic of production.
- 5.
Germer is one of the authors who has most seriously and intensely discussed the Marxist theory of money and who, in several of his works, criticizes this thesis, although he acknowledges that, with the development of capitalism, the bond of money with gold has become increasingly distant: “With the progressive development of the banking system, throughout the development of capitalism, especially after World War I, the bond of the monetary standard with gold became more and more distant, until, through a succession of events that culminated in 1973, it appeared to have completely disappeared…” (Germer 1998, p. 564). Nevertheless, he maintains the idea of the indispensable materiality of money: “… in Marx’s theory, there is no immaterial money, only forms derived from money to carry out some of its functions, such as credit money” (Germer 1997a, p. 109, footnote).
- 6.
By several other authors too, see the bibliographical references.
- 7.
See Germer (1997a, p. 109, footnote).
- 8.
“In the functions of the circulating medium, money has been replaced by two instruments of circulation, derived from two of its functions, on the one hand, state paper currency of forced circulation, which is a form of sign of value and which has its origin in the function of the means of circulation of money (OC I, page 108) and, on the other hand, credit money in different forms. Credit money, whose most developed forms are the bank note and the central bank note, are spontaneously born of the function of money payment medium (OC, I, p. 117), which in turn has its origin in the emergence of a new economic relationship, commercial credit, or the creditor/debtor relationship, which overlaps with the relationship of value, that is, of seller/buyer” (Germer 1997a, p. 121).
- 9.
Cf. also Germer (1998, p. 574).
- 10.
- 11.
We do not know whether the above-mentioned authors, particularly Germer, would agree on the suggested reformulation, but this does not matter much for our purposes. It would be a reformulation but would continue to be characterized as a theoretical perspective on capitalist social relationships and a prisoner to the physical materiality of the general equivalent. It is, perhaps, a little less radical but, in all ways, it sustains the inevitability of gold as a measure of ultimate values. We cannot agree with such a perspective, which is also a prisoner of a material conception of the nature of capitalist wealth.
- 12.
The theory of production prices shows that, in capitalism, this equalization occurs only by chance.
- 13.
In Volume 1, chapter 1, section 3, of Marx (1990).
- 14.
The development of the commodity, the development of value, the development of forms of value, the development of commodity relationships and, therefore, of commercial society are, in fact, different faces of the same development (Carcanholo 1993). It not only reaches back to the birth of capitalism but goes beyond it. Market development has not been interrupted by the emergence of capitalism but proceeds more rapidly than ever before.
- 15.
In order to understand the concept of value substantiation, see: Carcanholo and Nakatani (1999).
- 16.
Cf. the following passages of Marx. The first, referring to the simple form of value: “In order to inform us that its sublime objectivity as a value differs from its stiff and starchy existence as a body, it says [the linen – RC] that value has the appearance of a coat” (Marx 1990, p. 144). The following passage refers to the total or unfolded form: “Form B distinguishes the value of a commodity from its use-value more fully than the former” (1990, p. 155). For a broader discussion on the subject, see: Carcanholo (1993, pp. 26–28). In addition, Corazza expresses in a synthetic and very clear way the question: “The succession of forms of manifestation of the value of goods always goes in the direction of a liberation from materiality, toward ever more independent, autonomous and free forms of materiality, that imprison immaterial value, as a straitjacket, a boundary, a barrier to the social, abstract, and expansive nature of value. In many passages Marx emphasises this aspect” (Corazza 1998).
- 17.
Here is a difficulty: for it should be gold as an international or universal currency. The pyramid would not properly represent the scheme of credit money. It is not, however, gold found here but the dollar that cannot really replace it in that role (Brunhoff 1985, p. 45).
- 18.
Here is a difficulty: for it should be gold as an international or universal currency. The pyramid would not properly represent the scheme of credit money. It is not, however, gold found here but the dollar that cannot really replace it in that role (Brunhoff 1985, p. 45).
- 19.
This thesis could be contested, saying that when that day comes, the torments will be so frequent that gold will continue with its function. We tend to agree with this argument.
- 20.
A simpler example of criterion, at a more abstract level of theory, would be that of salary equal to the value of the labor force and uniformity of the rate of profit.
- 21.
Assuming that gold is simply a commodity of luxury consumption and is, therefore, an input of the main commodities of the system, technological changes in its production (as it is not difficult to understand) will not alter the structure of the prices relative to other commodities to each other. The only thing that will change is the set of its relative prices in relation to other commodities.
- 22.
Clearly, in conditions of capitalist crisis, especially those determined by speculative logic, when credit conditions and confidence in the normal functioning of the system fail, the role of gold and, to a lesser extent, that of other less dazzling commodities such as silver, copper, and so on, as real wealth, regains its key importance.
References
Alves Pinto, N. P. (1997). O capitalismo financeiro. Crítica Marxista, 5, 9–26.
Brunhoff, S. de. (1978). A moeda em Marx. Rio de Janeiro: Paz e Terra.
Brunhoff, S. de. (1985). Estado e capital: uma análise da política econômica. Rio de Janeiro: Forense Universitária.
Carcanholo, R. A. (1993). A dialética da mercadoria: guia de leitura/O capital: ciclos, circulação e rotação: roteiro de estudo. Cadernos Ange, 4.
Carcanholo, R. A., & Nakatani, P. (1999). O capital especulativo parasitário: uma precisão teórica sobre o capital financeiro, característico da globalização. Ensaios FEE, 20(1), 284–304.
Corazza, G. (1998). Marx e Keynes: sobre dinheiro e economia monetária. XXVI Encontro Nacional de Economia. Anais. Vitória: Anpec.
Germer, C. M. (1997a). Componentes estruturais da teoria do dinheiro no capitalismo. Revista da Sociedade Brasileira de Economia Política, (1). Rio de Janeiro: Sette Letras.
Germer, C. M. (1997b). O dinheiro de crédito e as funções do dinheiro no capitalismo. XXV Encontro Nacional de Economia. Anais. Recife: Anpec.
Germer, C. M. (1998). O conceito de padrão-ouro e os equívocos da economia política. III Encontro Nacional de Economia Política. Anais. Niterói: SEP/UFF.
Hilferding, R. (1973). Finance capital. A study of the latest phase of capitalist development. London: Routledge & Kegan Paul.
Marx, K. (1990). Capital: Critique of political economy (Vol. I). London: Penguin Books.
Marx, K. (1992). Capital: Critique of political economy (V. II). London: Penguin Books.
Author information
Authors and Affiliations
Editor information
Editors and Affiliations
Rights and permissions
Copyright information
© 2019 The Author(s)
About this chapter
Cite this chapter
Carcanholo, R.A. (2019). Speculative Capital and the Dematerialization of Money. In: Mello, G., Sabadini, M. (eds) Financial Speculation and Fictitious Profits. Marx, Engels, and Marxisms. Palgrave Macmillan, Cham. https://doi.org/10.1007/978-3-030-23360-0_3
Download citation
DOI: https://doi.org/10.1007/978-3-030-23360-0_3
Published:
Publisher Name: Palgrave Macmillan, Cham
Print ISBN: 978-3-030-23359-4
Online ISBN: 978-3-030-23360-0
eBook Packages: Economics and FinanceEconomics and Finance (R0)