Money in the twenty-first century
Financialisation as a product of virtual fictitious financial capital
in Twenty-first-century capital
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On the basis of the political-economic nature of commodity-simulacra posited in Chapter 6, the authors provide a theoretical derivation and empirical support for the new nature of money as a virtual product of fictitious financial capital. Money possesses a new set of contradictions and functions, which are demonstrated. This analysis helps the authors reveal the essence of financialisation. As a result of financialisation, money increasingly becomes virtual money. It is transformed gradually from a real product, a universal equivalent, into a probabilistic phenomenon, depending on the current state of global fictitious financial capital.

The reasons for the development of this phenomenon are connected with the expansion of virtual fictitious financial capital, the stage of development of financial capital at which fictitious capital, as the main form of financial capital, acquires a virtual character. The term ‘virtual’ in this case signifies an increased degree of separation of the movement of fictitious capital from the underlying real capital, in which the market valuation of a significant part of fictitious capital is more dependent on the manipulations of the largest capitals and states than on the movement of real capital. Also in the mix are the illusory forms of the ‘debt economy’. This situation leads inevitably to the hyper-realised dangers of crisis and deregulation.

The authors’ conclusions are demonstrated through generalised data that characterise the contradictions and the new quality of the modern financial market, and through a critical analysis of major works on finance capital and financialisation.

Twenty-first-century capital

Critical post-Soviet Marxist reflections

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