Method Pavilion Financial Capital Theory Research

The Financial capital theory Rudolf Hilferding expound in his book <Financialcapital> constituted the key link of the transition of Marxism from Classic capitalistcritical theory to Modern capitalism critical theory, and also the main source ofImperialism theory which Lenin as a representative, so occupies an important positionin the history of Marxism development. His work illustrates the latest economicphenomenon of the development of capitalism at the time. He believed that thecharacteristic of ‘Modern’ capitalism is the concentration process which performancefor ‘discard free competition’ because of the form of cartel and trust, on the otherhand performance for the more and more close relationship between bank capital andindustrial capital. Because of this relationship the capital performance for the form offinancial capital which is the highest and the most abstract form itself. Theoryanalysis on the financial capital campaign must based on the analysis andinvestigation on every phenomenon about it and its relationship with bank capital andother capital form. The relationship between bank capital and industrial capital mustbe explained by the state of the basic form of monetary capital and production capitalwhich put forward the issue of the role and nature of credit. Going back to answer allthe above questions, we must make clear the nature and function of currency.With the development of modern capital form, the currency also transforms fromclassical value currency to modern media currency. Credit is the whole capitalisteconomic system foundation, also is the key to financial capital are created. Thegenerations of modern capital form from the vertical view if bank capital arises fromindustrial capital and then go back to the process of industrial capital; Form thehorizontal looked is the enterprise company’s privatization and monopolizationprocess. Financial capital finally completed in these two processes. And at the sametime, the stock exchange as ‘capital market’ and the commodity exchange emergenceand development. But the development of capitalism can’t eliminate competition andcrisis, on contrary, it sharpened competition and crisis, and bring a series of social,ecological crisis.Straighten out the financial capital theory method pavilion has an important roleof knowing the modern form of capital; understanding the capitalist stage ofdevelopment; understanding the current global financial crisis. Contemporaryfinancial capital has the very big difference with the financial capital which RudolfHilferding described. Main performance in contemporary financial capital already does not depend on the real economy and exist. So the contemporary capitalisteconomy is present economic accelerated financialisation, financial increasinglyvirtualization, entity economy is hollowed, daily consumer lending, the country’s highforeign debt, people’s mass poverty and so on six main trends. And financial capitalon the regime has more and more influence even hijacked the whole country andsociety. Financial crises indicates that lack of social interests leading industrialcivilization has no future, the answer of social is only that occupies productionmaterial, reconstruction individual ownership.