Fictitious Capital

Philip L Ferguson PLF13 at
Wed Dec 22 14:02:29 MST 1999

George P wrote:
>Given the large amounts of fictitious capital in existence in the form of
>bonds and shares
>etc and the long run rise in the price of shares it must be that the
>accumulation of
>capital in the West has been sufficient to sustain this bull market.

More likely, the prevalence of fictitious capital indicates the *weakness*
of the accumulation process.   The fact that investments are going into
shares, junk bonds, derivatives, futures markets, bets on spiders crawling
up walls, and god knows what else, rather than into the production process
- which is what capital accumulation refers to - indicates the weakness of
the production process, which is where actual value is created, and thus
indicates the potential for turmoil ahead.  The problem is that the working
class is in so weak a position that the turmoil is unlikely to be converted
into a real crisis.

The stock market crash of 1987 revealed the underlying weakness of the
accumulation process and the capitalists have been quite lucky to manage to
keep the show on the road since.  Without a change in the balance of class
forces in favour of the working class, however, they will always find
mechanisms for escape.

Philip Ferguson

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