For the first time the scheme of reproduction of Finance capital scheme as smoothstone higher institutional power over the entire social reproduction of humanity, and how it differs from the circuit of reproduction of capital, clearly illustrates the difference between the simulacrum of money from money and the simulacrum of the price of the goods from the price of the goods.
Bill gates recently spoke about “the economy in which we live”, said that we live in a “capitalism without capital”. Gates spoke mainly about “empirical fact” that “the share of the world economy, which cannot be described within the framework of the old model [of economic theory], is constantly growing”, referring to the so-called “intangible investments”, but without prejudice to the full implementation of a modern world currencies and social functions of money.
Let’s try to understand all this through the essay, which is written by the author as a series of “notes” of popular scientific lectures on the subject, which is specified in the specific form understood not only bill gates, but many “scholars professors from the economy”, including also a number of “Nobel” laureates in Economics.
This whole cycle of popular science lectures will predpochla also formulated further General comment on the definition of the value of money as money commodity.
Unit of the money commodity (gold) value, its value is equal to a certain amount of working time measured in working hours of simple labor, and in all sorts of present historical conditions necessary for the production of metal bars of gold of a certain purity (purity) and weight.
Socially necessary labor time of production of gold as the money commodity here also includes socially necessary labor time delivery to market metallic bullion gold, performing the function of the money commodity, as well as the working time socially necessary for future conservation use value of these ingots of gold metal.
General and money form of exchange value, contrast, simulacra of money and prices.
An extensive form of exchange value of goods, which has become a universal form of exchange value of goods, one of which is the monetary form of exchange value (prices) of commodities approved by the public as a universal practice, the universal form of exchange value, is a system of equations that demonstrate the equivalence of exchange of goods in simple commodity production.
In volume 1 of th “Capital. Criticism of political economy” Marx quotes “complete, or comprehensive, form of [exchange] value”: “z commodity A = y commodity B or = v commodity C or = n commodity D or = x commodity E or = etc. (20 yards of canvas = 1 coat or = 10 lb. tea or = 40 lb. coffee or = 1 quarter of wheat or = 2 ounces gold or = 1/2 ton iron or = etc.)”
The General form of value miss, because the money form of value is precisely the universal form of value in which the universal equivalent is not any, not any product in General, but only a single product, for which social practice is enshrined public function money (cash goods).
Formula of the universal form of value of the goods is also the formula of the money form of value of goods, which is just a special form of the universal value of the goods. Therefore, cash value of goods cash is the universal form of value of goods.
Universal money form of exchange value (prices) of goods as a system of equations of equivalent exchange all goods for cash goods as follows:
1 coat =
10 pounds of tea =
40 lbs of coffee =
1 quarter of wheat = = 2 ounces of gold
½ Ton of iron =
X commodity A =
A valid measure of value as such (unlike her transformed form — exchange value) is the labor-time socially necessary for the production (including the production process of the product, and the subsequent preservation of its consumer properties (use-value), and delivery to the market) of each of the respective commodities and is calculated in working hours of simple labor.
Socially necessary labor time of production of any commodity is measured by the working hours appropriate to the work. But the working time of each specific work, featuring his usual professional complexity, public practice, not given in ordinary working hours of labor directly.
Socially necessary labor time, expressed in working hours of simple labor, is given only indirectly, firstly, after the fact, second, and “behind the scenes” of all this regular and systematic exchange of goods with each other, in the third. It is given only as abstract labor time, “numbered” in the working hours of simple labor and socially necessary in these social conditions for the production of corresponding standard metal ingot of gold, performs the function of money.
After all, the working time of production of the money commodity, thirdly, there is the working time professionally specific complicated labor, which should also be “calculated” after the fact (through regular exchange of all other goods and “behind the scenes” exchange of goods) in working hours, simple work simple data historically in the public production environment. That is, in the terms of use specific technical basis of social production in General and production of gold metal, including, including the existing level of development and institutional forms of the social division of labor and cooperation, the institutional forms of social organization of production, exchange, distribution and consumption of goods.
Since all this is true in practice, so far as the universal form of value takes the following conditional form:
1 coat =
10 pounds of tea =
40 lbs of coffee =
1 quarter of wheat = = 2 ounces of gold = 2000 hours of simple labor
½ Ton of iron =
X commodity A =
The specific proportions of exchange of certain quantities of each product for a certain amount of money commodity, as well as the amount of socially necessary working time (labour) embodied in each of the goods, in every historically this moment in the development of social production different.
Understanding the variability of the proportions of equivalent goods at cost and, accordingly, quantities of socially necessary working time “is calculated” in working hours of simple labor and materialized in each of the products you will need after. And at this stage consideration can and should be limited given the conventional example, necessary and sufficient for the presentation of the subject.
If there are no changes in either the sectoral structure of public goods production or in the total weight of the applied labour, neither in its performance nor in its (labor) intensity, nor in the other, affecting the value the value of the goods, conditions of production and delivery them to the market, the values embodied in the products of labour remain unchanged. Therefore, remain unchanged and also the proportions of exchange of all goods for cash goods and a year, two, and three, and through any other number of years for which the specified condition is true the same amount of socially necessary labor embodied in each commodity.
Let us now compare with this the universal monetary form of value the system of equations distribution (under the exchange) of goods, which established the public practice of global financial capital as a system of simulacra of the prices has occurred, for example, in 2012, and literally three years later – in 2015.
2012
1150 dollars. USA = 10.3 barrels of oil ~ 80 working hours
1150 dollars. USA = 0.7 oz. of gold ~ 70 working hours
1150 dollars. US = 0,6 tons of aluminum ~ 700 working hours
1150 dollars. US = 2,9 min potrebkorziny USA ~ 150 working hours
1150 dollars. USA = min “price” of labor in the United States per month ~ 50 working hours
2015
1150 dollars. US = 21.7 barrels of oil ~ 168 working hours
1150 dollars. US = 1.1 ounces of gold ~ 110 hours
1150 dollars. US = 0.75 tonnes of aluminium ~ 870 working hours
1150 dollars. US = 2,9 min potrebkorziny USA ~ 150 working hours
1150 dollars. USA = min “price” of labor in the United States per month ~ 50 working hours
Socially necessary labor time embodied in the quantity of goods specified for 2012 and 2015, is calculated conditionally based on the global volume of production of the relevant goods, the number of workers employed in this production, the duration of working time per employee in hours per year and the proportion of living and dead labour in the production of the relevant goods.
The coefficient of difficulty of the collective laborer producing the relevant goods worldwide, its the (difficult labor) with respect to the common labour of all mankind, the calculations were not taken into account.
However, the coefficient of difficulty of production of the same product (identified in the tables, in particular) over three years (2012 to 2015) were hardly changed. In this part of the application or not application of such a coefficient does not change anything, and you cannot change that illustrate these tables.
Similarly, it is not essential the accuracy with which the values of the socially necessary working time embodied in the goods specified in these tables. For a General understanding of the merits, the importance order of these variables for each product and quality compliance with the reality of those General proportions, which correlate these values among themselves the following tables. This procedure and quality compliance is met and more at this stage of the consideration of the subject is not necessary.
With regard to the working time embodied in the minimum consumer basket of the USA and in the labor force per worker of the United States, the author proceeded from the fact that the US is a simple labor force (analogy with simple labor in Marx), in the first place. The exchange value of labour (wages) for the relevant period, and second, is equal to the value of the means of life necessary for simple reproduction of the labor force during the same for its duration period as the period of use of the labor force that is paid a salary. In the simple reproduction of this simple (for US conditions) of the working forces, thirdly, it requires so much money to life, how many of them included in the minimum consumption basket in the United States.
The third is by definition of the minimum consumer basket in USA, which is defined by statistical observation (systematic interviews) of the actual consumption of households throughout the United States more than 300 of goods of mass demand, which is why in appropriate proportions are included in the minimum consumer basket.
The value of the minimum consumer goods basket in USA, calculated in U.S. dollars, per person per month in 2012 was approx. $ 400 a month. Real (minus the “inflation”) the value of the minimum consumer basket and in 2015 in the US essentially remained unchanged in comparison with 2012.
Comparison of the presented systems of equations of the distribution, under the guise of exchange, the same goods in the United States in 2012 and 2015, clearly indicates the absence of even a hint of any signs of equivalence of such “exchange”, as well as the absence of any signs of the social functions of money in US dollars in the commodity world.
Given the so-called “prices” of goods is the real exchange value (price) of these goods; in fact they are only simulacra of prices, and nothing else.
In the complete withdrawal of money from public practice and their total replacement simulacra money exchange value (price) of the goods is not determinable. In these circumstances, is not, and never can be but one practicable, and, moreover, applicable in droves, the method of measuring the exchange value of goods.
Producers of all goods and the whole mass of the consumers of all these goods now not have and do not know the method of determining exchange value (of a system of equations or proportions of equivalent exchange for other goods) or, in other words, the prices of any of these products — they have no meter (measures) of exchange value or the exchange of goods. But the items there — everything is now done and alienated as commodities.
But the equivalent exchange of goods is now not possible, it is not, and can not be. What is possible and what is? Since the full withdrawal of money from public practice and their total replacement simulacra of money is possible only in the distribution of products under the guise of exchange, and there is only the distribution of goods under the guise of exchange.
These findings — the most significant while all still contained.
The scheme of processing (metamorphosis of capital) in the functioning of money.
Processing of capital is merely a shorthand expression of the fact that the productive capital used in the development of commodity production. That is, capital remains continuously in the process (processes) of your smoothstone cost, regularly changing in this process their form (money form of capital in the commodity form of capital and back to the monetary form of capital — metamorphoses of capital).
From textbooks on political economy known to the General scheme of the metamorphosis (the processing) capital developed by Marx: D — T … T’ — D’.
However, this scheme is correct only for the creation of a capitalist enterprise “from scratch”, i.e. for the case of “initial” advance of money capital in the company. But after the company has already created, that is, starting from the second cycle of reproduction of the individual capital, this scheme is not correct. Why?
The fixed capital of the enterprise already exists, it is not only already created, but was used for one production cycle, so the wear is minimal, it does not need to purchase anew, to carry out commissioning, etc., that production could be resumed again in the same scale.
What is required for this? From public practice, even the majority of the bourgeois inhabitants is known that the resumption of production on the same scale capitalist to what they already have, require only working capital.
But in reality the capitalist is required to advance not the whole circulating capital for wages employees are paid they are not prior to the production of goods, and after one or two weeks, and even months of work of employees in the enterprise. In other words, not capitalist initially advances (loans to) employees of the enterprise, but on the contrary — employees initially lend (advance) capitalist.
In part of money capital necessary for the payment of wages, the capitalist is only required that the amount of money which is determined by the term market sales of commodity capital produced by his company, and the receipt of the proceeds from sales of money. However, this does not change anything in the fact that not the capitalist advances (loans to) employees, but employees in every cycle of working capital and private capital in General, systematically lend (advance) hired them to do the work of the capitalist.
The capitalist is not required to advance money-capital to purchase the other part of circulating capital — that which includes raw materials, semi-finished products, consumables, spare parts and tools, fuel and lubricants and other consumables, electricity and heat… But this is only one of the costs of the capitalist, of advances due to working capital are not limited. Production sales of produced commodity capital, receipt of and disposal proceeds from the sale of the money-capital is impossible without performing many necessary institutional formalities established by applicable legislation and contractual framework of the capitalist with other capitalists and other persons.
Thus, for the resumption of production on the same scale on the second and all subsequent cycles until the expiration of full depreciation of fixed capital to the capitalist is required to advance not all used their capital in cash. The capitalist is not required to advance only an additional money-capital, the magnitude of which is determined by the value of the working capital you need to advance until his return from the sphere of circulation of goods produced by his company.
Additional cash capital required by the capitalist and also to expand them to the scale of its production, which is distributed between the main and circulating capital in the same proportions as the initially advanced money-capital. The case of modernization, technical upgrading, reconstruction and overhaul of the entire enterprise or part thereof applies to the full depreciation of all applicable fixed capital or part of it, but because for them considering the original schema (formula) metamorphosis (of processing) capital re is correct.
But what is then a valid scheme (formula) metamorphosis (of processing) capital already in the process of reproduction?
Money-capital originally advanced in fixed capital, exists in nature — it is not cash (D), and the commodity form of capital is So Advanced is advanced working capital, which originally exists in the form of money — But because it is an additional (added to previously avansirovannoy, that is, to avansirovannoy in the previous cycle) the capital, it — D’. Here, “input”: T + D.
In the actual process of production of goods, that is, in the process of applying the capital have now: at the entry of the T — fixed capital in commodity form + T’ (added to working capital in commodity form) + RS (labor in commodity form); and the “output” of the MT — produced commodity capital, the aggregate value of which is increased product embodied in living labour, and transferred to a goods dead labor (depreciation of fixed capital plus the value of consumed working capital in the form of commodities, in addition to the cost of labor).
But, except for the produced commodity capital “output” from the process of production (the labor process) are, first, the entire constant capital in kind, however, the value of its cost — it is not the entire constant capital and constant capital minus depreciation transferred to cost of manufactured goods. And, secondly, to have also and labor, as played once again ready for productive consumption is a product not only the process of its use-reproduction at the expense of that part of circulating capital which is expended as salaries, but also the process of its productive consumption, as advanced in the production of goods.
However, part of the process of reproduction of labor power as once again ready for productive consumption of the goods is outside the productive consumption of that labour power (this product), but because it is in nature is not included in the production of goods, the productive consumption which alone is reproduced (and stored is increasing) the individual capital.
But the magnitude of its exchange value (wages) reproduces the commodity labor power (ability to work) was in the past (already implemented) productive consumption of the working force, that is, it fully paid to the capitalist is already embodied in the commodity labor capital for the capitalist the wage earners.
And that is why it employees with all your work advance the capitalist — not only in wages, but in the part of the surplus value that is created by a living labour embodied in the commodity capital produced by this living labour, and which has a capitalist as his private property. But it is not limited to the above.
Profit and all other economic categories in which processing capital of the consciousness of its personification, the capitalist, will be discussed later when considering the phenomenology of processing capital in its contrast to the ontology of processing capital. At this stage of the consideration of the General scheme of processing capital the essential distinguishing excessive — they complicate the presentation and complicate his understanding, not being absolutely necessary.
Consequently, this production actually part of the circuit (“formula”) of the metamorphosis of capital is now as follows: (T + T’ + RS) … (the labor process) … (T + RS + T-tТ),
where T is a constant tТ capital and is the depreciation of the constant capital (as the economic term “tear“depreciation, wear and tear).
Transform into money-capital that commodity capital, which is produced by living labour in the process of productive use of capital, this transformation is outside the scope of the actual production in the sphere of circulation of goods. There is a transformation T in D not in D’ (we have this additional working capital advanced for the production of T), namely D, that is, the money commodity, which value its value is equal to T. in Other words, the capital existing in the form of some goods in kind equivalent in value is exchanged for another, namely, cash, goods in kind — this is the change of commodity forms of capital in the money form of this same capital, in the language of the ancient Hellenes (Greeks) is literally called the metamorphosis of capital.
Thus, we obtain the desired diagram of the processing of capital, which now looks like this: T + D — (T + T’ + RS) … (T + RS + T-tТ) — D.
In all subsequent cycles the productive use of capital this scheme remains unchanged until then, until there is full depreciation of constant capital, or the capitalist does not start expansion of the scale of production or until the elimination of this production. For some reason it happens — for the newly derived scheme is irrelevant. Diagram of metamorphosis (of processing) capital, in any of these cases will be different: either it will be the original scheme (D — T … T’ — D’); or — derived us scheme of processing capital for the purpose of its reproduction, supplemented by part of the original scheme; or the scheme tТ — D in case of liquidation proceedings.
With regard to the capitalist social production of humanity as a whole, we considered schemes of processing capital fundamentally remain the same. However, the scale of capitalist production has expanded to the limit, reaching and subjugating, turning in its integral organic moments, the whole process of reproduction of the human race, in the first place. And these schemes, and secondly, internally is extremely differentiated, progniusis in accordance with the burgeoning nomenclature and assortment of manufactured goods.
Therefore, the scheme of the process of expansion developed, that is capitalist commodity production will be addressed under the consideration of the relation between ontology (the essential content) of the processing capital and phenomenology (forms of manifestation on the surface of economic life) the same processing capital. For without such consideration, nothing is impossible to understand how the economy really works on the basis of the capitalist social mode of production, as well as in how she naturally considers inevitable historical limit itself the entire economic and social formation.
The scheme of processing (metamorphosis) financial capital (beginning).
What happened with the scheme of processing capital as a result of full withdrawal of money from public practice and their total replacement simulacra money?
A simulacrum of the money commodity is not and the cost has therefore no socially necessary labor time simulacrum of money is not of any (neither universal, General or private) equivalent in the exchange of goods can’t participate.
Therefore, in the schemes of processing capital money (E) now there is no any kind!!! This — firstly, and, secondly, in these schemes there is also no capital, because money is the original simple form of capital.
This is so? Is the capital really has disappeared? But what is now sold all of that fixed and working capital commodity in nature, without which advances in the production of the production of goods is absolutely impossible?
Let’s start with the fact that public capital is converted into financial capital at the global upheaval in the distribution of private ownership of capital, organic moment and the condition which is the full withdrawal of money from public practice and their total replacement simulacra of money. No other capital, except financial capital, since in society there.
Therefore, since dỏ лжно line to speak only and only about the processing circuits of financial capital. Cash forms of financial capital has not, but all of the commodity form, possessed by capital other than monetary forms, financial capital is preserved. Therefore, social production as it was developed for commodity production, as such — developed commodity production — it left.
Financial capital, first of all, there is a higher institutional power over the entire process of social reproduction of mankind, the agents of which are not only financial capitalists (personification financial capital) is exactly the same as before the capitalists were agents (personifications) of social capital, but corporations are financial capitalists, and all public authorities.
Higher institutional power over the process of social reproduction of humanity exchanged goods with any of their agents, and not in need of this exchange. Otherwise — it is not the government and not a master, but equal in rights with the contractor on the contract, but the counterparty after all this nothing more than an agent of Finance capital, that is, in legal terms, is entirely dependent and subordinate it from financial capital. This contradiction is insoluble, but it is nothing more than kazhim (illusion) does not exist in reality, but existing in the bourgeois reality of contradiction, which (kazhim) is entirely due to the ideology, replicable financial capital.
All power if it is power and yet it is power, dispose of all the assets that it owns and over which reigns Supreme. Every individual capital, too, was the Supreme authority over the whole production process, organized and carried out by individual capital, and he exercised this authority by means of instructions, orders, commands, which are obligatory for all without exception of persons subordinate to this individual capital.
Unlike capital, financial capital initially have higher total power over the entire process of social reproduction of humanity as a whole and in all its parts. Higher institutional power of financial capital on the Ground under these social conditions there is no other institutional authorities (any public authority, like any corporate power, institutional power).
All authority carries out the distribution and redistribution solely and exclusively by means of orders (orders), and nothing else, the failure of which is punishable inevitable and forced (by threat of force and/or by the direct application of force physical and institutional, including power law, not only spiritual power and material force of ideology that took over the masses).
The power of capital was a necessary prerequisite, condition and organic point in the scheme of processing of the capital, but she participated in this scheme, not directly but indirectly. In this mediation the participation of government capital in the schemes of processing was not only money and relations of exchange value (prices) of goods, but also the expropriation of the majority of individuals who consequently, in the absolute most part, “sell” capital exclusively and only their ability to work or die from hunger.
The transformation of the entire social capital in the global financial capital is the universal expropriation of all mankind, except active members of the global international corporations are financial capitalists that are directly personifying financial capital.
This General expropriation of the set of all representatives of the absolute majority of mankind in such social conditions of the reproduction of themselves in which they either submit to the power of global financial capital, or the agents of financial capital consistently destroying them by the use against them of the means of war, terror, genocide etc. and it will happen with them, till they submit or are destroyed or not expropriat their expropriators — nothing else they have not given, and henceforth will not be given.
Thus, the scheme of processing of the global financial capital is nothing but the scheme of samosatene higher institutional power of global financial capital over the entire process of social reproduction of humankind through the total implementation of the developed commodity production and total distribution of all goods, without exception, through the simulacra of the simulacra of money and prices (financial-distribution of ratings of products).
This scheme can be expressed as either FC — T … T’ — FC’, or as T + FC’ — (T + T’ + RS) … (T + RS + T-tТ) — FC, where FC is the financial capital. In this scheme, essentially and symbolically, too (but not “the name”) is much more correct to use instead of “FC” a different designation, namely “EVE” — institutional authority. But this will be discussed in the next author’s “outline”.
(to be continued)
Vladimir Vasiliev, 18-19 February 2020.
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