THE BANKS AND THE CANCER STAGE OF CAPITALISM: FROM CAUSE TO CURE | Prof John McMurtry (1997)

(Abstract)

There is a hidden war of value codes in the world today. On the one hand, there is the life code of value: Life → Means of Life → More Life (L → M of L→ L1). On the other hand, there is the money code of value: in its classical form, Money → Commodity → More Money ($ C → $1). In its carcinogenic form, this sequence becomes: Money → More Money → More Money ($ → $1 $2  $n). The latter money sequence of value is decoupled from any commitment to life function and is driven by the lending and investment cycles of banks. This paper demonstrates the carcinogenic properties of this sequence at the social level of life-organization.

The second part of the paper proposes a remedy. The first step consists in making the government-conferred privileges of banks – creating money by credit and lending others’ money stocks at compound interest – accountable to society’s life requirements. The second step consists in returning central banks to their constitutional mandate of lending to governments rather than alienating this function to private banks. The article concludes by arguing that the great obstacle to Canada’s and other countries’ economic well-being is the abdication by governments of their sovereign powers over society’s money supply, and the long cultivation of public ignorance on this ultimate issue of public policy and value decision.

John McMurtry
Department of Philosophy
University of Guelph

Bank of Montreal Distinguished Visitor Lecture, Trent University, March 13, 1997. Read More

‘The capitalist life crisis’ by Jeff Noonan

The failure of the Durban Conference on Climate Change, (December, 2011) to agree to anything more substantial than that all nations would work together to develop binding targets for reduced greenhouse gas emissions by 2015 is a metonym for the life-crisis besetting globalised capitalism.[1] Because global capitalism subordinates what John McMurtry calls “life-value”  to the expansion and accumulation of  money-value, it progressively undermines the conditions of planetary life-support, human life-requirement satisfaction, and meaningful human life-capacity development and enjoyment.[2]  Resources, relationships, practices, norms, institutions, and forms of life-activity have life-value when they:  a) satisfy objective requirements of human life-maintenance, reproduction, and development, b) thereby enabling the expression and enjoyment of the human life-capacities of sentience, imaginative and cognitive thought, and creative activity in ways which are, c) life-coherent.  McMurtry’s principle of life-coherence asserts that in order to be good, expressions of life-capacity must not only follow from the free choices of the agents who enjoy them, but must also, “consistently enable ecological and human life-together.”[3] In other words, good forms of individual life-capacity expression must contribute to, rather than undermine, the natural field of life-support and the social field of life-development within which individual life-activity is grounded.   The vaunted “liberties” of liberal-capitalist society are blind to the natural and social grounds upon which all good lives ultimately depend.  Hence, capitalism is a system that necessarily generates crisis in all important dimensions of being alive.  In the present essay I will explore the four most fundamental dimensions of capitalist life-crisis and the adequacy of egalitarian liberal, human rights-based cosmopolitan, and twenty-first century socialist responses to them.

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