It is well enough that people of the nation do not understand our banking and monetary system, for if they did, I believe there would be a revolution before tomorrow morning.
The accumulation and structure of finance capital
Before we start, we must note that the process accumulation of industrial and financial capital differs in each case. Industrial capital’s accumulation can be captured by the synthetic circuit M – C – M+MΔ, where M is money, C is commodity, M+ΔM the initial sum of money plus a profit. Financial capital operates differently: here we have no commodity mediating between our initial capital and the revenue of ventures. Here, accumulation is produced by employing money in financial markets with the objective of producing a bigger quantity of money in very little time. In this case, our circuit becomes M – M+ΔM.
The ways in which financial enterprises…
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