Capitalism dwells upon the maximisation of profits.The capitalist class invests on commodity production and earns profit by attaining the hidden value in the commodity when the commodity is sold in the market.Thus the profits of the commodity is the unpaid labour .Labour is like any other commdity and is sold by the worker to the capitalist to earn livelihood.The worker adds value to the product which the capitalist realises while he sells it in the market.Thus the unpaid labour is the profit that is again capital.As capitalism matures and there is a saturation of available markets and competition grows there is a squeeze in the profits of the capitalist class.
To ensure the sustainability of profits the bourgeois tries to reduce the wages as much as possible . But this in turn affects his own market.Thus with growing technology automation we see more and more people being thrown out of work or else in a more optimistic way the wages are slashed.
Thus the bourgeois digs the grave for the system to collapse.As the cost of labor nears zero and chronic over production results in a lot of goods and very few people to consume.This results in the wastage of productive capital and resources.Thus the profitability of investment in the production of commodities reduce.
Enter Speculative Capital:
Speculative capital is like a casino where people gamble for profits.Unlike productive capital this does not create any value add.It just magically creates profits out of money.The growing financial liberalisation has facilitated the free flow of capital across borders.This picks up soft investment targets like the real estate and creates an artificial bubble that is bound to burst. It controls nation governments and economies.It achieves its goals by policy prescriptions to the governments through IMF and world Bank.Usual policy suggestions are:
->Anti inflationary policies
->Destroy social security and Unions
->Privitisation of public Utilities.
Thus speculative capital just makes investments and builds up artificial bubbles which one day is bound to crash like the one that happened in the US.
The amount of speculative capital flowing around the globe is thrice the size of the actual economy .
Now its the final stages of capitalism where productive investment is not producing any value add and profits of commodity are not getting realised . The markets dont have a mechanism to sell all that is produced . Imperialism earlier and the present day globalisation are just efforts to achieve the same.But there are limits to the every expanding appetite for profits of the capitalistic class. The system is in deep crisis .