{"resolved":true,"match_type":"uuid","source_type":"original_book","book_id":"4a3d22bd-c5b9-47a4-a022-bd35d44d9bfe","title":"Zombie Capitalism Global Crisis and the Relevance of Marx","author":null,"edition":null,"publisher":null,"year":null,"isbn":"9781608461042","requested_by":"printed_page","book":{"source_type":"original_book","book_id":"4a3d22bd-c5b9-47a4-a022-bd35d44d9bfe","id":"4a3d22bd-c5b9-47a4-a022-bd35d44d9bfe","uuid":"4a3d22bd-c5b9-47a4-a022-bd35d44d9bfe","title":"Zombie Capitalism Global Crisis and the Relevance of Marx","normalized_title":"zombiecapitalismglobalcrisisandtherelevanceofmarx","author":null,"edition":null,"publisher":null,"year":null,"isbn":"9781608461042","isbns":["9781608461042"],"parsed":true,"ai_readable":true,"document_type":"book","page_count":426,"navigation_url":"https://workshop.closeclaw.top/ai/book/4a3d22bd-c5b9-47a4-a022-bd35d44d9bfe","title_url":"https://workshop.closeclaw.top/ai/title/Zombie%20Capitalism%20Global%20Crisis%20and%20the%20Relevance%20of%20Marx","fixed_page_url_template":"https://workshop.closeclaw.top/ai/book/4a3d22bd-c5b9-47a4-a022-bd35d44d9bfe/page/{printed_page}","path_api_url_template":"https://workshop.closeclaw.top/api/ai/book/4a3d22bd-c5b9-47a4-a022-bd35d44d9bfe/page/{printed_page}","read_url":"https://workshop.closeclaw.top/api/ai/read/4a3d22bd-c5b9-47a4-a022-bd35d44d9bfe","page_url":"https://workshop.closeclaw.top/api/ai/books/4a3d22bd-c5b9-47a4-a022-bd35d44d9bfe/page","search_url":"https://workshop.closeclaw.top/api/ai/books/4a3d22bd-c5b9-47a4-a022-bd35d44d9bfe/search"},"page":{"printed_page":63,"pdf_page":63,"physical_index":63,"physical_index_base":0,"printed_page_status":"recognized","page_sha256":"9c51d15f4d686499066b359a796a5efc0ba08e935a32fc9ca33fc72a18d06cd0"},"chapter":"Zombie Capitalism Global Crisis and the Relevance of Marx","content":"Once capitalism is fully developed as the dominant way of producing in a particular economy, the lending of past profits by those productive capitalists who do not wish to immediately reinvest becomes the chief source of the funds for those capitalists who do wish to invest but lack suficient past profits to do so. The financial system emerges as a network of institutions that mediate between different productive capitalists (and the state, insofar as discrepancies that exist between its immediate tax income and its immediate expenditure lead it to also borrow and lend).\n\nThose who run the financial institutions are out to make profits just as much as the productive capitalists are. They have funds of their own (their banking capitals) which pay for the expense of their operations and bridge any gap that might open up between their lending and borrowing (or, at least, are meant to bridge the gap-all too often in the history of the system they have not), and they expect to earn a profit on them, just as the productive capitalists do on their capitals. There is a difference, however. The financial capitalists' profits do not come directly from production, but from a share they get of the productive capitalists' profits in return for lending to them-that is, interest payments.\n\nThe rate of interest has often been confused in mainstream economic writings with the rate of profit. But in fact the level and direction of movement of the two are quite diferent. The rate of profit, as we have seen, is determined by the ratio of surplus value to investment in the production process. By contrast, the rate of interest depends solely upon the supply and demand for loanable funds. If there is more money available for lending in an economy, then the rate of interest will tend to fall; if there is an increased demand for borrowing it will tend to rise.\n\nSince the profits of productive capitalists are the major source of the funds for lending, a high rate of profit will encourage a lower rate of interest. On the other hand, if profits are low, more productive capitalists will themselves want to borrow and this will exert a pressure for interest rates to rise. How these contradictory pressures on interest rates work themselves out depends on other factors, particularly borrowing and lending by the state and the movement of funds in and out of a national economy. But these other factors cannot do away with the pressures of real production on the financial sector.\n\nThe Dynamics of the System\n\n63","previous_page":62,"next_page":64}