Accumulation Paths Of Financial Capital

This paper attempts to Hilferding’s financial capital theory, anadvanced form of capital accumulation of financial capital that way, thatis how the formation of financial capital in the current development ofwhat, and how to gain advantage in the socio-economic status, and byvirtue of conduct accumulation of their own to provide the core offinancial capital, and analyze a range of movement of financial capitalwhich is mixed with the accumulation of several ways. Meanwhile, thefinancial capital of Discrimination academia some understanding ofconcepts and their accumulation.This paper first describes the formation mechanism of financialcapital. Pointed out that financial capital is the core of the credit, capital,financial capital relative to other advantages, the key lies in the credit,currency centralized monopoly control over the formation of freedom.Banks are typical morphology of the initial financial capital, the bank dueto currency operations functions, as payment intermediaries, in thedevelopment of capitalism, and gradually evolved into the most importantcredit intermediary, instead of using bank credit business credit, currencymonetize social capital and under the control of the stock issued shareregime activities.Financial capital formation, the first is a lot of money or creditcentralization of capital, including the cyclical movement from the realeconomy freed currency, idle small capital and so on. Initially banks havean advantage in this regard, with the development of capitalism, moneycapital intensive with new ways of forming addition to banks ’ capital giants."Such as industrial capital accumulation due to its huge, with ahuge money-capital, are also engaged in financial activities. Anotherexample of financial disintermediation, the large-scale investmentinstitutions focus directly on social capital, while controlling industrialcapital and fictitious capital activities, can be regarded as financial capital.To arrive at the core of financial capital to the monetary, creditdominance based Capital Group as an implementation of the integratedfunctions, while controlling the real economy and virtual economy, andthe strength of these two mutually reinforcing, in addition, commodities,development of real estate finance, the financial capital but also easy tocontrol real estate, resources and other commodity prices. Financialcapital to the dominance of monetary capital as the basis for theaccumulation of productive accumulation and unproductive, andultimately to recover money for the purpose of capital appreciation.International financial capital is currently the dominant form offinancial globalization, financial capital available in two dozenderegulated financial markets to invest in value-added activities. Thetypical form of international financial capital, such as: theAnglo-American pension funds and mutual funds, large multinationalconglomerates, international investment banks.International financial capital to invest in global activities, sharing ofworld economic growth outcomes or direct transfer of wealth from othercountries, capital markets, increasing the proportion of institutionalinvestors, international financial capital to actively penetrateconglomerate mergers and acquisitions, speculative, the formation ofintense competition.According to the core concepts of financial capital, can make somejudgments. Financial capital and industrial capital is a virtual combinationof both, reflecting the real economy and virtual economy linkages, virtualeconomy crisis, temporary decline, but also with the real economy is notnecessarily linked with the financial capital of the decline; movement offinancial markets has own laws, the financial crisis does not necessarilylead to real economic crisis; there is competition between financial capital,concentrated financial capital but also the use of economic cycles, centralized economic and financial crisis, combined to enhance theirstrength.Then, pointing out ways to finance capital accumulation: therealization of entrepreneurial profits will obtain ownership by virtue ofthe expected future income capitalized value of fictitious capital in thevirtual capital markets to sell into real money capital; manipulate thevirtual capital markets and financial market, engage in speculativeactivities, collecting deprive small idle funds, direct access to real money,to achieve wealth transfer; monopoly control of real estate, resources andother commodity prices to obtain differential rent, absolute rent,monopoly rent, direct transfer of wealth to the community levy a largetribute. The accumulation of different pathways are not completelyseparate, is interwoven in its entirety during exercise.Finally, the evaluation of the financial capital accumulation and itsimpact. Be productive while financial capital accumulation, withproduction initiative, in order to obtain business profits, will becapitalized periodic cycle, reproduction process freed currency, and idlesmall capital collected, with the best combination of the latestachievements, and promote the development of production, with aprogressive. On the other hand for the accumulation of financial capitalunproductive, speculative nature of parasitism. Non-productive activitiessuch as the accumulation of speculative financial sector relativeindependence movement, would lead to a financial crisis, and even spreadto the real economy; accumulation of excess production, the crisis willlead to unproductive accumulation of financial capital to improve the rent,the cost price, cause stagflation, exacerbating the difficulties ofproductive accumulation and the formation of the wealth of the wholesociety deprivation accelerated social differentiation.