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Raquel Landau's avatar

"The Return of Primitive Accumulation"

Fabio, this section of your article is a brilliant contribution to Marxist theory. Bravo!

Mark Heffernan's avatar

Surely, Fabio Vighi, you can offer more than a chronology of the expropriation. What prevents you from going deeper into the analysis of the core assumptions about money itself when giving your chronology of Capitalism?

For example, you speak of "capitalism’s mounting monetary contradictions. For decades, the inflationary pressures generated by financial expansion and debt accumulation were largely displaced onto the peripheries of the world economy through unequal exchange, currency hierarchies, structural adjustment and the exorbitant privilege of reserve currencies."

But what stops you from explaining 'inflation' at the core conceptual analysis of the mistaken understanding of money itself? Surely you are not suggesting that the process of 'financialization' itself was/is legitimate and that it was just managed poorly by way of displacement "onto the peripheries of the world economy through unequal exchange, currency hierarchies, structural adjustment and the exorbitant privilege of reserve currencies."

If your presentation claims to challenge the 'logic and contradictions of capitalism' then surely you are not leaving the core assumptions about money itself to stand and just critiquing its implementation....right? Let me offer this

From the abstract:

“In the European colonies, land expropriation and forced labor were used, but another important means of forcing indigenous populations to work as wage-laborers or produce cash crops was taxation and the requirement that taxes be paid in colonial currency. This paper provides an overview of this method, and documents its historical importance, concentrating on Africa. Taxation also played an important role in the monetization and commoditization of African economies, and in the rise of a peripheral capitalism. As the paper demonstrates, Marx was not unaware of money taxes functioning in this manner, and the phenomenon was in no way limited to Africa.” - Matthew Forstater

From the above paper by Forstater: ".... The problem was that if the subsistence base was capable of supporting the population entirely, colonial subjects would not be compelled to offer their labor-power for sale. Colonial governments thus required alternative means for compelling the population to work for wages. The historical record is clear that one very important method for accomplishing this was to impose a tax and require that the tax obligation be settled in colonial currency.

This method had the benefit of not only forcing people to work for wages, but also of creating a value for the colonial currency and monetizing the colony. In addition, this method could be used to force the population to produce cash crops for sale. What the population had to do to obtain the currency was entirely at the discretion of the colonial government, since it was the sole source of the colonial currency. This method was widespread and important enough to be called “a secret of colonial capitalist primitive accumulation” (since it was not the only method, it must be called “a” secret). This practice is extremely well documented, yet it has hardly ever been mentioned as an important method of primitive accumulation."

"......Several points concerning the role of direct taxation in colonial capitalist primitive accumulation need to be made. First, direct taxation means that the tax cannot be, e.g. an income tax. An income tax cannot assure that a population that possesses the means of production to produce their own subsistence will enter wage labor or grow cash crops. If they simply continue to engage in subsistence production, they can avoid the cash economy and thus escape the income tax and any need for colonial currency. The tax must therefore be a direct tax, such as the poll tax, hut tax, head tax, wife tax, and land tax. Second, although taxation was often imposed in the name of securing revenue for the colonial coffers, and the tax was justified in the name of Africans bearing some of the financial burden of running the colonial state, in fact the colonial government did not need the colonial currency held by Africans."

"....The requirement that taxes be paid in colonial currency rather than in-kind was

essential to producing the desired outcome,...."

You will notice that the author does not challenge the legitimacy of the "imposition of the currency." And neither do you in your reference to "financial expansion and debt accumulation."

Since colonial times we have remained faithful servants to an illiterate and impossible system of imposed make believe.

What is it that prevents you from challenging the first illegitimate claim by government to “issue” (by “fiat”) acCounting units or its handing off of this process to banks?

It is the math of money (as presently conceived and structured) that should have told us that when everything is linked (monetized & commoditized) to inherent instability then everything, including community capacity and coherence, future generations, the natural world, will get sacrificed in vain attempts to respond to the illiterate imperatives of money (NOT part of the natural world) that remain unquestioned at the conceptual level.

Your presentation seems to ignore the initial imposed imperial illiteracy. So, for you the question is one of policy within the illiterate paradigm as opposed to the illiterate and unnecessary impulses toward war and the attempts to control those natural resources and using the further imposition of the same illiteracy about currency from one nation over another! Talk about compound illiteracy! Now every country is using this 'operating system' for control of the populace within its borders (as if that is not bad enough!) ...trouble is that the fighting between countries is so illiterate that countries are going to war over nonsense conceptual make believe!

We are killing each other over monetary illiteracy NOT "capitalism’s mounting [policy based] monetary contradictions."

Based on the core problem of monetary illiteracy I will submit that the question of "inflation" must be viewed from a different angle:

Abstract:

“This document is the result of a rigorous control system theory stability analysis of the current world de facto standard currency system and identifies a root instability in the form of the growth component of Debt associated with the money creation process. It first establishes the inherent instability of Common Lending Practices (application of interest). Then the analysis further charts the logical consequences of said root instability as it affects the economy as a whole and identifies how it provokes a systematic divergence between debt and value attributed to wealth in past cycles with the minimum value required in current and future cycles as those incorporate past unpaid debt i.e. systematic compounding of debt. It also identifies how the only means available within the system design for staving off inflation is through the continued contribution of collateral wealth as guaranty for the creation of new principal debt money commensurate with past debt growth. Finally it illustrates that compounding debt inevitably leads to a point where an inability to provide new wealth to guaranty new money to keep up with debt growth becomes chronic at which point either runaway inflation or a definitive collapse of the system inevitably ensues.”

http://bibocurrency.com/images/pdfdownloads/Formal%20Stability%20Analysis%20and%20experiment%20%28final%29%20rev%203.4.pdf

While it appears that the reversion to "violent expropriation" is the 'next phase' you would like us to look at, it seems you are not addressing the means by which the initial "imperial imposition" harnesses the otherwise unwilling domestic labor in service of empire and the means by which the very 'violent militarized enforcers' are "paid" by way of all that absolute illiteracy as regards the 'imperial creation of the currency' described above. This process has been described by Graeber and many others, yet you choose to leave it out of the 'critique' you claim to be presenting. Why?

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