Finance capital turns a sum of money into a larger one, without creating exchange value and ‘realizing’ it through sale, i.e., without transforming it into money or, in other words, without itself going through a process of creating a surplus value.
This is a miracle the entire world regards as completely normal – at any rate as long as it works. All the more does it deserve a natural explanation.
Part I. The Basis of the Credit System:
On the Art of Lending Money
1.
The capitalist business world’s notorious shortage of money and how it is managed and exploited through the first fundamental equation of finance capital: Money becomes a commodity as capital and thereby itself money-capital
2.
Creating credit and money through the second fundamental equation of banking: Debts function as capital and generate ability-to-pay
3.
The permanent endeavor to bring about security in the credit business by means of the third fundamental equation of financial capital: Liquidity generates trust, trust generates liquidity
4.
Certifying finance capital’s credit and money creations through the equation the state adds as “bank of banks” to the other three: Whatever functions as money in the credit institutions’ payment transactions is a fully adequate substitute for the legal money “commodity”
To follow:
II. The development of finance capital’s credit capacity
III. The state and its relation to the financial sector
