Contradictions Of The Economic Crisis Causes New Solution: The Capital Expansionary Capital Control

Since a large amount of subprime lending formed the bad account, several large financial institutions declared their bankruptcy; a serious financial crisis was ultimately breakout in US,2008. Its influence spread over the major financial market (as EU and Japan) worldwide rapidly. So the sub-prime crisis evolved into a global financial "tsunami." This financial crisis break out in the US, Which claims to have the world's most advanced and complete financial system and management system, concentrate the global financial elite, attracted extensive attention and discussion from both the domestic and foreign scholars. As a learner and researcher in the domain of Marxist theory, I felled into meditation.After the first universal overproduction crisis broke out in U.K., cyclical economic crisis became a lingering shadow for the capitalist countries. Through studying the history of economic crisis, we can find that economic crisis break out in different forms various with the times development and present its distinctive characteristics. The economic crisis before the 20 century break out in the form of overproduction; while in the 1930s the economic crisis emerge in the way of "great depression"; by 1970s the economic crisis appear as "stagflation"; in the end of 20 century, the crisis was characterized by the financial crisis break out in some "emerging market countries"; In this crisis, the U.S. sub-prime mortgage crisis becoming the detonation cord. So, what is the internal links among different type of economic crisis? What is the common contradiction of various economic crisis? What is the logic of crisis Morphological evolution?Economic contradiction was the research object of the economic theory, a lot of related research outcomes appeared since the emergence of economic crisis. Some of these viewpoint received a widely recognition and became the classic crisis theory. The writer grouped these classic crisis theories into two categories, one is the causes of the economic crisis theory by the bourgeois economists; the other is the causes of economic crisis theory in the domain of Marxism. The writer studied them intensively. The changed reality should be guided by the theory that has already been developed. On the basis of critical inherited the predecessors'theory; the writer established a new perspective for analyzing the economic crisis, which is to start from the inner contradictory movement of capital to find the root causes of the crisis and the evolution of the logic. Expansionary is the nature of capital, and also expansionary of capital's rights. In the process of the growth of the capital's rights, the control force of capital is also been increased gradually and the contradiction between capital and the others under its control. It will restrain the expansionary of capital. The economic crisis is the inevitable production of the capital's contradictions being intensified. As long as capital occupied the dominant status in the socio-economic relations, it is inevitability to exist the contradictory between expansionary and control force, this lead to the arise of economic crisis.The reason for various type of economic crisis emerge in different stages of capitalist development is that in different historical periods the dominant form of capital is different, although different type of capital confront the same category of contradiction between expansionary and control force, the concrete manifestation of the contradictions is diverse. Industrial capital is the first historical form of capital to achieve the scale of expansion. For the industrial capital, its expansion concentrated on the expression of production scale. In the process of expansion, the industrial capital continually improves his control force to the factor as labor and colonial. When this control force increased to a certain extent that inhibits the social purchasing power, a large amount of production which has been expanded would not be converted into monetary capital. So, the contradiction under the guidance of industrial capital epitomized overproduction.Despite the repeated break out of overproduction crisis, the capital was still not stop the pace of expansion, and gradually evolved into the monopoly stage. Through monopoly the capital further strengthen the control to various factors of production, large capital strengthen the control to the small capital; industrial capital strengthen the control to the commercial capital; in this way they can obtain excess monopoly profits. Monopoly makes the contradictions of the industrial capital increasingly acute, the frequency of the crisis breakout been speed up, the disruptive level been increased, these compelling capital to seek new ways for expansion and proliferation. In such a situation financial capital emerged, replaced the industrial capital and became the dominant form of capital.Financial capital is not only the combination of bank's capital and industrial capital, but the unity of capital. Hence both its ability to expand and the scale have been unprecedented increased. The expansion of financial capital not only limited within the banking sector, but also penetration to other economic sectors. This means the expansion of financial capital is the dual expansion both in the industrial areas and the financial sector, this triggering the contradiction is also double, which showed in the ways of the banking crisis and the overproduction. The contradictions of financial capital stop the attempt of capital continue to expand in the real economy. Capital began looking for a new channel that could proliferation without going through the production and circulation of material---that is fictitious Capital. After the full virtualization of currency, the fictitious capital chasing the crazy dream of expansion globally on the basis of a variety of financial derivative instruments and a large number of mixed financial institutions. However, the proliferation of virtual book ultimately depended on the residual value of the real economy, one side was the shrinking real economy that had been controlled, the other side was crazy expanding fictitious economy, the contradiction between these two sides eventually leaded to the broke out of financial crisis.To this day, fictitious capital still dominated the economy globally. Developed countries enjoy a variety of physical goods and services by the developing countries through the printed of so-called "hard currency" rather than their own production. The decadent and parasitic of capitalism show vividly in the fictitious capital. If Humans want to eliminate the impact of the economic crisis completely, we must get rid of the Materials'control to people and the capital's control to the labor.