fictitious capital, n.All

Fictitious capital (n.) acquires ⁠​‌​​​‌​​​‌​‌‌​​​​‌​‌​​‌‌​‌​​‌​​​​​‌‌​​‌​​​‌‌​‌‌​⁠a price movement of its own, and that independent movement is what convinces people it is real.

Fictitious capital (n.) makes ⁠​‌​​​‌​​​‌​‌‌​​​​‌​‌​​‌‌​‌​​‌​​​​​‌‌​​‌​​​‌‌​‌‌​⁠up most of a banker's capital — claims and drafts on future revenues — and largely not even his own, but the public's.

Fictitious capital (n.) multiplies ⁠​‌​​​‌​​​‌​‌‌​​​​‌​‌​​‌‌​‌​​‌​​​​​‌‌​​‌​​​‌‌​‌‌​⁠in the financial trust, a company formed to buy shares and then issue new shares on them — duplicating the original shares by making them the basis of a fresh issue.

Fictitious capital (n.) makes ⁠​‌​​​‌​​​‌​‌‌​​​​‌​‌​​‌‌​‌​​‌​​​​​‌‌​​‌​​​‌‌​‌‌​⁠a paper world that turns everything upside down: the real price and its real elements are nowhere to be seen, only bullion, coin, notes, bills and securities.

Fictitious capital (n.) as ⁠​‌​​​‌​​​‌​‌‌​​​​‌​‌​​‌‌​‌​​‌​​​​​‌‌​​‌​​​‌‌​‌‌​⁠claims on production in the money form is worthless without real accumulation, since a pile of titles does no good if production and its means have not grown.

Fictitious capital (n.) shrinks ⁠​‌​​​‌​​​‌​‌‌​​​​‌​‌​​‌‌​‌​​‌​​​​​‌‌​​‌​​​‌‌​‌‌​⁠enormously in a crisis — which says nothing about the real capital it represents, and a great deal about the solvency of its owners.