Karat an i Marx Kant Trans Critique

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    Introduction: What Is Transcritique?

    Kantian philosophy is called transcendental, as distinct from tran-scendent. Simply stated, the transcendental approach seeks to castlight on the unconscious structure that precedes and shapes experi-ence. And yet, cant it be said that from its very inception, philoso-phy itself has always taken just such an introspective approach? Ifthat is the case, then what distinguishes Kantian reflection? Kantsunique way of reflection appeared in his early work, Dreams of aVisionary. Kant wrote, Formerly, I viewed human common senseonly from the standpoint of my own; now I put myself into the posi-

    tion of anothers reason outside of myself, and observe my judg-ments, together with their most secret causes, from the point of viewof others. It is true that the comparison of both observations resultsin pronounced parallax, but it is the only means of preventing theoptical delusion, and of putting the concept of the power of knowl-edge in human nature into its true place. What Kant is saying hereis not the platitude that one should see things not only from onesown point of view, but also from the point of view of others. In fact,it is the reverse. If ones subjective view is an optical delusion, thenthe objective perspective or the viewpoint of others cannot but be anoptical delusion as well. And if the history of philosophy is nothingbut the history of such reflections, then the history of philosophy is

    itself nothing but optical delusion. The reflection that Kant broughtabout is the kind that reveals that reflections in the past were opticaldelusions. This Kantian reflection as a critique of reflection is

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    engendered by pronounced parallax between the subjective view-point and the objective viewpoint. To explain, take an example of atechnology that did not exist in Kants time.

    Reflection is often spoken of by way of the metaphor of seeingones image in the mirror. In the mirror, one sees ones own facefrom the perspective of the other. But in todays context, photogra-phy must also be taken into consideration. Compare the two. Al-though the mirror image can be identified with the perspective ofthe other, there is still certain complicity with regard to ones ownviewpoint. After all, people can see their own image in the mirror as

    they like, while the photograph looks relentlessly objective. Ofcourse, the photograph itself is an image (optical delusion) as well.What counts then is the pronounced parallax between the mirrorimage and photographic image. At the time photography was in-vented, it is said that those who saw their own faces in pictures couldnot help but feel a kind of abhorrencejust like hearing a taperecording of ones own voice for the first time. People gradually be-come accustomed to photographs. In other words, people eventu-ally come to see the image in the photograph as themselves. Thecrux here is the pronounced parallax that people presumablyexperience when they first see their photographic image.

    Philosophy begins with introspection as mirror, and that is where

    it ends. No attempt to introduce the perspective of the other canchange this essential fact. In the first place, philosophy began withSocrates dialogue. But the dialogue itself is trapped within themirror, so to speak. People alternately criticize Kant for having re-mained in a subjectivist self-scrutiny, or search for a way out of thatin the Critique of Judgments introduction of plural subjects. But thetruly revolutionary event in philosophy had already occurred in Cri-tique of Pure Reason,where Kant attempted to obliterate the complic-ity inherent in introspection precisely by confining himself to theintrospective framework. Here one can observe the attempt to intro-duce an objectivity (qua otherness) that is totally alien to the con-ventional space of introspection mirror. Kant has been criticized

    for his subjective method, lacking in the other. But in fact, histhought is always haunted by the perspective of the other. Critique ofPure Reason is not written in the self-critical manner of Dreams of a

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    Visionary. And yet, the pronounced parallax has not disappeared.This emerged in the form of antinomy, which exposes the fact thatboth thesis and antithesis are nothing more than optical delusions.

    In part I, I reread Kant from this perspective. The same is true ofpart II. For instance, in The German Ideology Marx criticized theyoung Hegeliansa group to which he himself had belonged justmonths before, when he was exiled to France. To Engels, this bookpresented a new view of history that replaced German idealism withan economic purview. German ideology was nothing more than thediscourse of a backward nation, attempting to realize conceptually

    that which had already become a reality in the advanced nation ofEngland. But for Marx, it was by stepping outside of Germanys ide-ology for the first time that he was able to experience an awakening,accompanied by a certain shock. This was to see things neither fromhis own viewpoint, nor from the viewpoint of others, but to face thereality that is exposed through difference (parallax). When hemoved to England, Marx devoted himself to the critique of classicaleconomics, which was then dominant. In Germany, Marx had al-ready carried out the critique of capitalism and classical economics.What was it that endowed Marx with the new critical perspective thatcame to fruition in Capital?It was an occurrence that, according tothe discourse of classical economics, could only be an accident or

    mistake: the economic crisis, or more precisely, the pronouncedparallax brought about by it.

    What is important is the fact that Marxs critique was always bornfrom migration and the pronounced parallax that results from it.Hegel criticized Kants subjectivism and emphasized objectivity. Butin Hegel, the pronounced parallax discovered by Kant is extin-guished. Likewise, the pronounced parallax discovered by Marx wasextinguished by Engels and other Marxists. As a result, one is leftwith an image of Kant and Marx as thinkers who constructed solid,immovable systems. A closer reading, however, reveals that theywere in fact practicing constant transposition, and that the move todifferent discursive systems was what brought about the pronounced

    parallax. This is obvious in the case of the exiled Marx, but the samething can be observed in Kant as well. Kant was not an exile in spa-tial termshe never moved away from his hometown of Knigsberg.

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    Rather, it was his stance that made him a kind of exile, a man inde-pendent from the state: Kant rejected a promotion to a post inBerlin, the center of state academia, instead insisting on cosmopoli-tanism. Kant is generally understood to have executed the transcen-dental critique from a place that lies between rationalism andempiricism. However, upon reading his strangely self-deprecatingDreams of a Visionary Explained by Dreams of Metaphysics, one finds itimpossible to say that he was simply thinking from a place betweenthese two poles. Instead, it is the parallax between positions thatacts. Kant, too, performed a critical oscillation: He continuously

    confronted the dominant rationalism with empiricism, and thedominant empiricism with rationalism. The Kantian critique existswithin this movement itself. The transcendental critique is not somekind of stable third position. It cannot exist without a transversaland transpositional movement. It is for this reason that I havechosen to name the dynamic critiques of Kant and Marxwhichare both transcendental and transversaltranscritique.

    According to Louis Althusser, Marx made an epistemologicalbreak in The German Ideology. But in my transcritical understanding,the break did not occur once, but many times, and this one in par-ticular was not the most significant. It is generally thought thatMarxs break in The German Ideologywas the establishment of histori-

    cal materialism. But in fact that was pioneered by Engels, who wrotethe main body of the book. One must therefore look at Marx as alatecomer to the idea; he came to it because of his obsession with aseemingly outmoded problem (to Engels)the critique of religion.Thus Marx says: For Germany the criticism of religionis in the maincomplete, and criticism of religion is the premise of all criticism.1

    He conducted a critique of state and capital as an extension of thecritique of religion. In other words, he persistently continued thecritique of religion under the names of state and capital. (And thiswas not merely an application of the Feuerbachian theory ofself-alienation that he later abandoned.)

    The development of industrial capitalism made it possible to see

    previous history from the vantage point of production. So it is thatAdam Smith could already pose a stance akin to historical material-ism by the mid-eighteenth century. But historical materialism does

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    not have the potency to elucidate the capitalist economy that cre-ated it. Capitalism, I believe, is nothing like the economic infrastruc-ture. It is a certain force that regulates humanity beyond itsintentionality, a force that divides and recombines human beings. Itis a religio-generic entity. This is what Marx sought to decode for thewhole of his life. A commodity appears at first sight an extremelyobvious, trivial thing. But its analysis brings out that it is a verystrange thing, abounding in metaphysical subtleties and theologicalniceties.2 Here Marx is no longer questioning and problematizingmetaphysics or theology in the narrow sense. Instead, he grasps

    the knotty problematic as an extremely obvious, trivial thing.Thinking this way about Marx, one realizes that an equivalent ofhistorical materialismor even what is known as Marxism for thatmattercould have existed without Marx, while the text Capitalcould not have existed if not for him.

    The Marxian turnthe kind that is truly significant and thatone cannot overlookoccurred in his middle career, in the shiftfrom Grundrisseor A Contribution to the Critique of Political Economy toCapital: it was the introduction of the theory of value form. Whatprovoked Marxs radical turn, which came after he finished writingGrundrisse, was his initiation to skepticism: It was Baileys critique ofRicardos labor theory of value. According to David Ricardo, ex-

    change value is inherent in a commodity, which is expressed bymoney. In other words, money is just an illusion (Schein in Kant).Based upon this recognition, both Ricardian Leftists and Proudhoninsisted on abolishing currency and on replacing it with the labormoney or the exchange bank. Criticizing them as he did, however,Marx was still relying on the labor theory of value (akin to Ricardo).On the other hand, Bailey criticized the Ricardian position by claim-ing that the value of a commodity exists only in its relationship withother commodities, and therefore the labor value that Ricardo in-sists is inherent in a commodity is an illusion.

    Samuel Baileys skepticism is similar to Humes criticism thatthere is nothing like a Cartesian ego cogito; there are just many

    egos. To this position, Kant responded that yes, an ego is just an illu-sion, but functioning there is the transcendental apperception X.But what one knows as metaphysics is that which considers the X as

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    something substantial. Nevertheless, one cannot really escape fromthe drive [Trieb] to take it as an empirical substance in various con-texts. If so, it is possible to say that an ego is not just an illusion, but atranscendental illusion. Kant achieved this position later in his life;but first his dogmatic slumber had to be interrupted by Humesskepticism. And in this precise manner, Marx must have been se-verely stricken by Baileys skepticism. But, again, like Kant, Marxdeveloped this thought into another dimension, which I would liketo call the transcendental reflection on value.

    Classical economics held that each commodity internalizes a labor

    value. But, in reality, commodities can have values only after theirrelationship is synthesized by money, and each one of them is givenits value. In reality only prices exist as the indicators of the mutualrelations between commodities. Thus Bailey stressed that the valueof a commodity exists only thanks to its relationship with other com-modities. But Bailey did not question what expresses price: money.In other words, he did not question what relates commodities toeach other and composes the system: that is, money as the generalequivalent. Money in this sense is totally irrelevant to money as sub-stance like gold or silver; rather, it is like a Kantian transcendentalapperception X, as it were. The stance to see it in relation to its ma-teriality is what Marx called fetishism. After all, money as substance

    is an illusion, but more correctly, it is a transcendental illusion in thesense that it is hardly possible to discard it.

    For mercantilists and bullioniststhe predecessors of classicaleconomicsmoney was an object to be revered. This was evidentlythe fetishism of money. Scorning this, classical economists positedthe substance of value in labor in and of itself. But this so-calledlabor theory of value did not resolve the enigma of money; rather, itreinforced and sustained it. Both Ricardothe advocate of thelabor theory of valueand Baileyits radical critic (and the unac-knowledged primogenitor of neoclassical economics)managed toerase money only superficially. As Marx said, in times of crisis, peoplestill want money suddenly, going back to bullionism. The Marx of

    Capitalstands on the side of the mercantilist, rather than Ricardo orBailey. By criticizing both Ricardo and Bailey on such a premise, hiscritique elucidated aformthat constitutes the commodity economy.

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    In other words, what Marx focused on was not the objects them-selves but the relational system in which the objects are placed.

    According to Marx, if gold becomes money, that is not because ofits immanent material characteristics, but because it is placed in thevalue form. The value formconsisting of relative value form andequivalent formmakes an object that is placed in it money.Anythinganythingthat is exclusively placed in the general equiva-lent form becomes money; that is, it achieves the right to attain any-thing in exchange (i.e., its owner can attain anything in exchange).People consider a certain thing (i.e., gold) as sublime, only because

    it fills the spot of general equivalent. Crucially, Marx begins his re-flections on capital with the miser, the one who hoards the right toexchangein the strict sense, the right to stand in the position ofequivalent format the expense of use. The desire for money or theright to exchange is different from the desire for commodities them-selves. I would call this drive [Trieb] in the Freudian sense, to distin-guish it from desire. To put it another way, the drive of a miser isnot to own an object, but to stand in the position of equivalent form,even at the expense of the object. The drive is metaphysical innature; the misers goal is to accumulate riches in heaven, as it were.

    One tends to scorn the drive of the miser. But capitals drive to ac-cumulate is essentially the same. Capitalists are nothing but rational

    misers to use Marxs term. Buying a commodity from someonesomewhere and selling it to anyone anywhere, capitalists seek to re-produce and expand their position to exchange, and the purpose isnot to attain many uses. That is to say that the motive drive ofcapitalism is not in peoples desire. Rather, it is the reverse; for thepurpose of attaining the right to exchange, capital has to create peo-ples desire. This drive of hoarding the right to exchange originatesin the precariousness inherent in exchange among others.

    Historical materialists aim to describe how the relationships be-tween nature and humans as well as among humans themselvestransformed/developed throughout history. What is lacking in thisendeavor is any reflection upon the capitalist economy that orga-

    nizes the transformation/development. And to this end, one musttake into consideration the dimension of exchange, and why the ex-change inexorably takes the form of value. Physiocrats and classical

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    economists had the conviction that they could see all aspects of so-cial relations transparently from the vantage point of production.The social exchange, however, is consistently opaque and thus ap-pears as an autonomous force which we can hardly abolish. Engelssconviction that we should control the anarchic drive of capitalistproduction and transform it into a planned economy was little morethan an extension of classical economists thought. And Engelssstance was, of course, the source of centralist communism.

    One of the most crucial transpositions/breaks in Marxs theory ofvalue form lies in its attention to use value or the process of circula-

    tion. Say a certain thing becomes valuable only when it has use valueto other people; a certain thingno matter how much labor time isrequired to make ithas no value if not sold. Marx technically abol-ished the conventional division between exchange value and usevalue. No commodity contains exchange value as such. If it fails torelate to others, it will be a victim of sickness unto death in thesense of Kierkegaard. Classical economists believe that a commodityis a synthesis between use value and exchange value. But this is onlyan ex post facto recognition. Lurking behind this synthesis as eventis a fatal leap [salto mortale]. Kierkegaard saw the human being as asynthesis between finity and infinity, reminding us that what is atstake in this synthesis is inevitably faith. In commodity exchange,

    the equivalent religiousmoment appears as credit. Credit, the treatyof presuming that a commodity can be sold in advance, is an institu-tionalization of postponing the critical moment of selling a com-modity. And the commodity economy, constructed as it is uponcredit, inevitably nurtures crisis.

    Classical economics saw all economic phenomena from the van-tage point of production, and insisted that it had managed to demys-tify everything (other than production) by reasoning that it was allsecondary and illusory. As a result, it is mastered by the circulationand credit that it believes itself to have demystified, and thus it cannever elucidate why crisis occurs. Crisis is the appearance of the crit-ical moment inherent in the commodity economy, and as such it

    functions as the most radical critique of the political economy. Inthis light, it may be said that pronounced parallax brought bycrisis led Marx to Capital.

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    In the preface to the second edition of Capital, Marx openly avowed[himself] to be the pupil of that mighty thinker Hegel.3 In fact, Marxsought to describe the capitalist economy as if it were a self-realizationof capital qua the Hegelian Spirit. Notwithstanding the Hegelian de-scriptive style, however, Capitaldistinguishes itself from Hegels philos-ophy in its motivation. The end of Capitalis never the absolute Spirit.Capitalreveals the fact that capital, though organizing the world, cannever go beyond its own limit. It is a Kantian critique of the ill-contained drive of capital/reason to self-realize beyond its limit.

    And all the enigmas of capitals drive are inscribed in the theory

    of value form. The theory of value form is not a historical reflectionthat follows exchangefrom barter to the formation of money. Valueform is a kind of form that people are not aware of when they areplaced within the monetary economy; this is the form that is discov-ered only transcendentally. In the reverse of his descriptive orderfrom form of value, money form to miser to merchant capital toindustrial capitalone has to read Marxs retrospective query fromthe latter to the former. Classical economists rebuked the businessesof bullionists, mercantilists, and merchant capitalists of the previousage and denounced their economic role. They argued that whilethey earn profit from the difference of unequal exchange, industrialcapital makes money from fair, equal exchange: it derives profit

    from the division of labor and cooperative work. In contrast, Marxthought of capital by returning to the model of merchant capital.He saw capital in the general formula: Money-Commodity-Money.This is to see capital essentially as merchant capital. Capital underthis light is a self-increasing, self-reproductive money. This is themovement M-C-M itself. The case of industrial capitalwhich isusually considered to be totally differentdiffers only in that therole of C is a complex that consists of raw material, means of pro-duction, and labor-power commodity. And this last, labor-powercommodity, is truly inherent in industrial capital. For industrial capi-tal earns surplus value not only by making workers work, but also bymaking them buy backin totalitywhat they produce.

    Classical economists claim that merchant capital (or mercantil-ism) conducts unequal exchange misses the point. The fact is, whenmerchant capital attains surplus value from the exchange between

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    different value systems, each tradeeither M-C or C-Mis strictlybased upon equal exchange. Merchant capital attains surplus valuefrom spatial difference. Meanwhile, industrial capital attains surplusvalue by incessantly producing new value systems temporallythat is,with technological innovation. This categorical division does notprevent industrial capital from attaining surplus value from the ac-tivity of merchant capital. Whatever the kind, capital is not choosy inhow it attains surplus value; it always attains surplus value from thedifference of value systems by equal exchange within each deal. But,one of the points I want to pose is that how surplus value is earnedin

    contrast to how profit is earnedis strictly invisible, and the wholemechanism remains in a black box, as it were. Thus invisibility is alsoa condition for the struggle within the process of circulation.

    It is troubling that many Marxists posit surplus value only in theexploitation of the production process rather than in the differ-ences between value systems. These Marxists see the relationship be-tween capitalists and wage workers as a (disguised) extension of thatbetween feudal lord and serfs and they believe that this was Marxsidea. But it originated in the Ricardian Socialists, who drew fromRicardos theory of profit the idea that profit making is equal to theexploitation of surplus labor. This became the central theory of theEnglish labor movement in the early nineteenth century. Though it

    is true that Marx himself said a similar thing time and again and itmay entertain a vulgar ear, it should be distinguished from that as-pect of Marx that actually elucidated the enigma of surplus value.The best it can do is to explain absolute surplus value (achieved bythe elongation of the labor day), but not relative surplus value(achieved by the improvement of labor productivity)the particu-lar characteristic of industrial capitalism. What is more, seeing therelationship between capitalist and wage worker in comparison withthe relationship between feudal lord and serf is seriously misleading:first, it results in envisioning the abolishment of the capitalist econ-omy from the vantage point of the master/slave dialectic; and sec-ond, it leads to centralizing the struggle in production process by

    ignoring the circulation process.The Marx of Capital, in contrast, stresses the priority of the circula-

    tion process. In the manner of Kant, Marx points out an antinomy: He

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    says, on the one hand, that surplus value (for industrial capital) can-not be attained in the process of production in itself, and, on theother hand, that it cannot be attained in the process of circulationin itself. Hence, Hic Rhodus, hic salta! Nevertheless, this antinomycan be undone, that is, only by proposing that the surplus value (forindustrial capital) comes from the difference of value systems in thecirculation process(like in merchant capital), and yet that the differ-ence is created by technological innovation in the production process.Capital has to discover and create the difference incessantly. This isthe driving force for the endless technological innovation in indus-

    trial capitalism; it is not that the productionism comes from peopleshope for the progress of civilization as such. It is widely believed thatthe development of the capitalist economy is caused by our materialdesires and faith in progress; so it is that it would always seem possi-ble to change our mentality and begin to control the reckless devel-opment rationally; and further, it would seem possible to abolishcapitalism itself, when we wish. The drive of capitalism, however,is deeply inscribed in our society and culture; or more to thepoint, our society and culture are created by it; it will never stop byitself. Neither will it be stopped by any rational control or by stateintervention.

    Marxs Capitaldoes not reveal the necessity of revolution. As the

    Japanese Marxian political economist, Kozo Uno (18971977)pointed out, it only presents the necessity of crisis.4And crisis, eventhough it is the peculiar illness of the capitalist economy, is the cata-lyst for its incessant development; it is part of the whole mechanism.The capitalist economy cannot eradicate the plague, yet neither willit perish because of it. Environmentalists warn that the capitalisteconomy will cause unprecedented disasters in the future, yet it isnot that these disasters will terminate the capitalist economy. Also, itis impossible that capitalism will collapse by the reverse dynamic,when, in the future, commodification is pushed to its limitit isimpossible that it would die a natural death.

    Finally, the only solution most of us can imagine today is state reg-

    ulation of capitals reckless movement. But we should take noticeof the fact that the state, like capital, is driven by its own certainautonomouspowerwhich wont be dissolved by the globalization of

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    capitalism. This autonomy should nevertheless be understood in dis-tinction from the sense of historical materialisms doctrine that stateand nation assume superstructure in relationship with economicbase; they are relatively autonomous to, though determined by, it.First of all, as I have suggested, the very notion that the capitalisteconomy is base or infrastructure is itself questionable. As I havetried to elucidate in the book, the world organized by money andcredit is rather one of illusion, with a peculiarly religious nature.Saying this from the opposite view, even though state and nation arecomposed by communal illusion, precisely like capitalism, they in-

    evitably exist thanks to their necessary grounds. Simply put, they arefounded on exchanges that are different from the commodity ex-change. So it is that no matter how many times one stresses their na-ture of being imagined communities,5 it is impossible to dissolvethem. As young Marx pointed out vis--vis another bind: To abolishreligion as the illusoryhappiness of the people is to demand the realhappiness. The demand to give up illusions about the existing stateof affairs is the demand to give up a state of affairs which needs illusions.The criticism of religion is therefore in embryo the criticism of the valeof tears, the haloof which is religion.6 The same can be said of stateand nation.

    After reflecting upon value form, the Marx of Capital seems

    to explicate the historical genesis of commodity exchange in thechapter Process of Exchange. There he stresses that it beganin between communities: The exchange of commodities beginswhere communities have their boundaries, at their points of contactwith other communities, or with members of the latter. However, assoon as products have become commodities in the external relationsof a community, they also, by reaction, become commodities in theinternal life of the community.7 Despite its appearance, this depic-tion is not strictly of a historical situation, but the form of exchangethat is discovered and stipulated only by a transcendental retrospec-tion. Furthermore, Marxs statement, which I quoted earlier, is infact based upon the premise that there are other forms of exchange.

    Commodity exchange is a peculiar form of exchange among otherexchanges. First, there is exchange within a communitya reciproc-ity of gift and return. Though based upon mutual aid, it also

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    imposes the communitys codeif one does not return, one will beostracizedand exclusivity. Second, the original exchange betweencommunities is plunder. And rather it is this plunder that is the basisfor other exchanges: For instance, commodity exchange begins onlyat the point where mutual plunder is given up. In this sense, plun-der is deemed a type of exchange. For instance, in order to plundercontinuously, it is necessary to protect the plundered from otherplunderers, and even nurture economico-industrial growth. This isthe prototype of the state. In order to keep on robbing, and robbingmore and more, the state guarantees the protection of land and the

    reproduction of labor power by redistribution. It also promotes agri-cultural production by public undertakings such as regulating waterdistribution through public water works. It follows that the statedoes not appear to be abetting a system of robbery: Farmers think ofpaying tax as a return (duty) for the protection of the lord; mer-chants pay tax as a return for the protection of their exchange andcommerce. Finally, the state is represented as a supra-class entity ofreason.

    Plunder and redistribution are thus forms of exchange. Inasmuchas human social relations entail the potential of violence, theseforms are inevitably present. And the third form is what Marx callsthe commodity exchange between communities. As I analyze in de-

    tail in the book, this exchange engenders surplus value or capital,though with mutual consent; and it is definitively different from theexchange of plunder/redistribution. Furthermore, and this is thefinal question of this book, a fourth kind of exchange exists: associa-tion. This is a form of mutual aid, yet neither exclusive nor coercivelike community. Associationism can be considered as an ethico-economic form of human relation that can appear only after a soci-ety once passes through the capitalist market economy. It is thoughtthat Proudhon was the first to have theorized it; according to myreading, however, Kants ethics already contained it.

    In his famous book, Imagined Communities, Benedict Anderson saidthat the nation-state is a marriage between nation and state that

    were originally different in kind. This was certainly an importantsuggestion. Yet it should not be forgotten that there was anothermarriage between two entities that were totally heterogeneousthe

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    marriage between state and capital. In the feudal ages, state, capital,and nation were clearly separated. They existed distinctively as feu-dal states (lords, kings, and emperors), cities, and agrarian commu-nities, all based upon different principles of exchange. States werebased upon the principle of plunder and redistribution. The agrar-ian communities that were mutually disconnected and isolated weredominated by states; but, within themselves, they were autonomous,based upon the principle of mutual aid and reciprocal exchange.Between these communities, markets or cities grew; these werebased upon monetary exchange relying on mutual consent. What

    crumbled the feudal system was the total osmosis of the capitalistmarket economy. But the economic process was realized only in thepolitical form, of the absolutist monarchy. The absolutist monarchi-cal states conspired with the merchant class, monopolized themeans of violence by toppling feudal lords (aristocracy), and finallyabolished feudal domination (extra-economic domination) entirely.This was the very story of the wedding between state and capital.Protected by the absolutist state, merchant capital (bourgeoisie)grew up and nurtured the identity of the nation for the sake of cre-ating a unified market. Yet this was not all in terms of the formationof the nation. The agrarian communities, that were decomposedalong with the permeation of the market economy and by the ur-

    banized culture of enlightenment, had always existed on the founda-tion of the nation. While individual agrarian communities that hadbeen autarkic and autonomous were decomposed by the osmosis ofmoney, their communalitiesmutual aid and reciprocitythemselveswere recovered imaginarilywithin the nation. In contradistinctionfrom what Hegel called the state of understanding (lacking spirit),or the Hobbesian state, the nation is grounded upon the empathy ofmutual aid descending from agrarian communities. And this emo-tion consists of a feeling of indebtedness toward the gift, indicatingthat it comes out of the relation of exchange.

    It was amid the bourgeois revolution that these three were legallymarried. As in the trinity intoned in the French Revolutionliberty,

    equality, and fraternitycapital, state, and nation copulated andamalgamated themselves into a force forever after inseparable.Hence to be strict the modern state must be called the capitalist

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    nation-state. They were made to be mutually complementary, rein-forcing each other. When economic liberty becomes excessive andclass conflict is sharpened, the state intervenes to redistribute wealthand regulate the economy, and at the same time, the emotion ofnational unity (mutual aid) fills up the cracks. When facing this fear-less trinity, undermining one or the other does not work. If one at-tempts to overthrow capitalism alone, one has to adapt statism, orone is engulfed by nationalist empathy. It goes without saying thatthe former appeared as Stalinism and the latter as fascism. Seeingcapitalist commodity exchange, nation, and state as forms of

    exchange is possible only from an economic stance. If the concept ofeconomic infrastructure has significance, it is only in this sense.In the modern period, among the three principles of exchange, it

    was the commodity exchange that expanded and overpowered theothers. Inasmuch as it operated within the trinity, however, it is im-possible that the capitalist commodity exchange could monopolizethe whole of human relationality. With respect to the reproductionof humans and nature, capital has no choice but to rely on the fam-ily and agrarian community; in this sense capital is essentially depen-dent upon the precapitalist mode of production. Herein exists theground of the nation. On the other hand, while absolutist monarchsdisappeared by bourgeois revolutions, the state itself has remained.

    The state can never be dissolved and subsumed into the representa-tives of national sovereignty (i.e., government). For the state, nomatter what kind, always exists as the bare sovereign vis--vis otherstates (if not always to its nation); in crises (wars), a powerful leader(the subject of determination) is always called for, as evidenced inBonapartism and fascism.

    One frequently hears today that the nation-state will be graduallydecomposed by the globalization of capitalism (neo-liberalism).This is impossible. When individual national economies are threat-ened by the global market, they demand the protection (redistribu-tion) of the state and/or bloc economy, at the same time asappealing to national cultural identity. So it is that any counterac-

    tion to capital must also be one targeted against the state and nation(community). The capitalist nation-state is fearless because of itsmakeup. The denial of one ends up being reabsorbed into the ring

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    of the trinity by the power of the other two. Countermovements inthe past, such as corporatism, welfare society, and social democracy,resulted in the perfection of the ring rather than its abolition.

    Marx thought that the socialist revolution would be possible onlyin the most advanced country, England, because socialism was sup-posed to be possible only in the stage where bourgeois society wasfully ripe, ripe enough to decompose. Nonetheless, in reality itcould not have seemed less likely to him that it would occur. In theparticular situation where universal suffrage was installed and laborunions strengthened, revolution seemed like it had receded even

    farther into the distance. What really receded, however, was the rev-olution that was imagined from the vantage point of and as an ex-tension of bourgeois revolution; the fact was that from that junctureon, a different kind of revolution came to be called for. One shouldnot forget that it was under such circumstances that Marx cameto grips with the task of writing Capital. His recognition that a criti-cism of capitalism would no longer suffice made him write such amonumental piece.

    After Marxs death, as the social democratic party in Germanymade remarkable advances, Engels came to abandon the classicalconcept of violent revolution and believe in the possibility of revolu-tion via parliamentary means. This was the path to social democracy,

    in which the state manages the capitalist economy and redistributesthe wealth to the working class. Next, Engelss disciple Bernsteineliminated the last dregs of the revolution fantasy that were stillpresent in Engels. Meanwhile, Marxism was established along theline of Leninism, which rejects such visions of social democracy.However, at the end of the twentieth century, the left has ultimatelyreturned to Bernsteins way of thinking. Clearly, this is to completelylose sight of the critical need to supersede (aufheben) the capitalistnation-state. In World War I, social democrats not only failed to pre-vent the war, but also got involved in the frenzy of nationalism. Andit is quite possible that they will repeat the same faux pas in the fu-ture. Yet, as all of us know well by now, Leninism cannot replace it.

    Is there an alternative? I would posit that it can be found in Capital,the book Marx wrote as he deliberately remained in England wherethe possibility of classical revolution was fading away. As I have

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    explained, the trinity of capital, nation, and state is rooted in thenecessary forms that human exchange could assume, and therefore,it is nearly impossible to get out of the ring. Marx in Capital,however, discovered an exit, the fourth type of exchange: association.

    The Marxists of the late nineteenth century overlooked the com-munism of later Marx, the idea that an association of associationswould replace the Capital-Nation-State. In The Civil War in Francewritten as an address to the general council of the internationalworking mens associationMarx wrote: If united co-operative soci-eties are to regulate national production upon a common plan, thus

    taking it under their own control, and putting an end to the con-stant anarchy and periodical convulsions which are the fatality ofcapitalist productionwhat else, gentlemen, would it be but Com-munism, possible Communism?9 The association of producers/consumers cooperatives has been conceptualized and practiced bysocialists since Robert Owen, and by Proudhonist anarchists. In Cap-ital, too, Marx considers cooperatives in comparison with stock com-panies and highly appreciates them: While stock companies are onlypassive abolition [aufhebung] of the capitalist system, the positiveabolition is discovered in the cooperative of which stockholders areworkers themselves.10 But Marx saw their limits as well. They are des-tined either to fail in the fierce competition with capital, or to turn

    themselves into stock companies. For this reason, both Lenin andEngels ignored them or, at best, marginalized them as subordinateto labor movements. On the other hand, and notwithstandingthe limits, it was precisely in them that Marx saw the possibility ofcommunism.

    Bakunin attacked Marx as a centralist thinker by associating himwith the state socialist Lassalle. He either did not know or ignoredthe fact that Marx was critical of Lassalles direction (the Gotha Pro-gramme) to have the state protect and foster cooperative produc-tion. Marx was clear: That the workers desire to establish theconditions for co-operative production on a social scale, and first ofall on a national scale, in their own country, only means that they

    are working to transform the present conditions of production, andit has nothing in common with the foundation of co-operative soci-eties with state aid. But as far as the present co-operative societies

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    are concerned, they are of value onlyinsofar as they are the indepen-dent creations of the workers and not protgs either of the govern-ment or of the bourgeois.11 In other words, Marx is stressing thatthe association of cooperatives itself must take over the leadershipfrom the state, in the place of state-led cooperative movements,whereby capital and state will wither away. And this kind of proposi-tion of principle aside, Marx never said anything in particular aboutfuture prospects.

    All in all, communism for Marx was nothing but associationism, butinasmuch as it was so, he had to forge it by critiquing. Marxs thinking

    fell between that of Lassalle and Bakunin. This oscillation allowedlater generations to draw either stance from Marxs thought. But whatwe should see here is less contradiction or ambiguity than Marxstranscritique. What was clear to Marx was that it is impossible tocounter the autonomous powers of the trinity by simply denouncingthem. Based as they are upon certain necessities, they have au-tonomous powers. In other words, functioning as they are as transcen-dental apperception, not only are they irresolvable but also evenrevive stronger. To finally abolish the trinity, a deep scrutiny into (andcritique of) them is required. Where can we find the clue to form thecountermovement? This, I believe, is in the theory of value form inCapital. In the preface, Marx clarified his stance as follows:

    To prevent possible misunderstandings, let me say this. I do not by anymeans depict the capitalist and landowner in rosy colors. But individualsare dealt with here only in so far as they are the personifications ofeconomic categories, the bearers [Trger] of particular class-relations andinterests. My standpoint, from which the development of the economic for-mation of society is viewed as a process of natural history, can less than anyother make the individual responsible for relations whose creature he re-mains, socially speaking, however much he may subjectively raise himselfabove them.12

    The economic categories mentioned here signify the forms ofvalue. Who are capitalists and proletariats is determined by wherethe individuals are placed: in either relative form of value or equiva-

    lent form. This is totally irrespective of what they think. This struc-turalist view was a necessity. Here Marx did not suffice with simplyaccusing capitalism of immorality; this is the essence of Marxian

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    ethics. In Capital, there is no subjectivity. Even capitalistsespeciallythose in stock companiesare agents of capitals movement, butnot subjects. The same is true of workers. So it is that people eitherread in Capitalthe (natural historical) law of history whereby a capi-talist society gradually yet apodictically turns into a communist soci-ety, or sought motives of revolutionary acts in pre-Capitaltexts. As isevident, however, neither method worked. Concerning the former,it is totally impossible to assume that capitalism will end autotel-ically. In principle there cannot be a telos as such in natural history.Concerning the latter, what was discovered in those texts was, more

    or less, subsumed into a narrative of the Hegelian dialectic of masterand slave: that is, proletariat qua slave will finally rebel against bour-geoisie qua master at the extremity of alienation and impoverish-ment. In this narrative, a workers rebellion is supposed to takeplace in the production process as a general strike, and this wouldlead to their seizure of state power. I cannot believe that Marxs posi-tion at the time of writing Capitalwas such. If Capitalhas been rathershunned by Marxists themselves, it is more because of the difficultyin finding a prospect of revolution therein. And the new revolutionwould have to be different from those which could happen in vari-ous places of the world outside England and North America. Then,how is a revolution possible in the world where there seems to be no

    moment for subjective intervention to appear?The fact that in value form place determines the nature of the

    subject who occupies it nevertheless does not prevent capitalistsfrom being subjective. Since capital itself is the subject of a self-reproductive movement, the agentscapitalistscan be active, andthis activity is precisely that of money or the position of purchaser(the equivalent form). On the other hand, those who sell the labor-power commodityworkershave no other choice but to be pas-sive. In this relationality, it is only natural that they can only engagein an economic struggle wherein they negotiate with capitalists overtheir own commodity price. It is absolutely impossible to expectworkers to stand up under such conditions. If this has occurred his-

    torically, it has been thanks to social chaos resulting from war, or asituation where employers were particularly villainous. But it isnot that workers resistance against capital is totally hopeless. The

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    movement of capital M-C-Mnamely, the realization of surplusvalueis dependent upon whether or not products are sold. Andsurplus value is realized in principle only by workers in totalitybuy-ing back what they produce. In the production process, the relation-ship between capitalist and workers is certainly like that betweenmaster and slaves. But the process of capitals metamorphosis (ortransubstantiation) is not so one-dimensional as to be defined bythat. Because at the end of the cycle, capital, too, has to stand in theposition of selling (the relative form of value), and it is precisely atthis moment and this moment only that workers are in the subjec-

    tive position. This is the place where the commodities of capitalistproduction are soldthe place of consumption. This is the only placewhere workers in totality with purchasing power are in the buyingposition. Marx articulated this: What precisely distinguishes capitalfrom the master-slave relation is that the worker confronts him asconsumer and possessor of exchange values, and that in the form ofthepossessor of money, in the form of money he becomes a simple cen-ter of circulationone of its infinitely many centers, in which hisspecificity as worker is extinguished.13 For capital, consumption isthe place where surplus value is finally realized, and for this objec-tive precisely, the only place where it is subordinated to the will ofconsumers/workers.

    In the monetary economy, buying and selling as well as produc-tion and consumption are separated. This introduces a split in theworkers subject: as workers (the sellers of labor-power commodity)and consumers (the buyers of capitalist commodities). In conse-quence, it comes to appear as if corporations and consumers werethe only subjects of economic activities. It also segregates the laborand consumers movements. In recent history, while labor move-ments have been stagnant, consumers movements have flourished,often incorporating issues of environmental protection, feminism,and minorities. Generally, they take the form of civil acts, and arenot connected to, or are sometimes even antagonistic to, the labormovement. After all, though, consumers movements are laborers

    movements in transposition, and are important only inasmuch as theyare so. Conversely, the labor movement could go beyond the boundsof its specificity and become universal inasmuch as it self-consciously

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    acts as a consumers movement. For, in fact, the process of con-sumption as a reproduction of labor-power commodity covers awhole range of fronts of our life-world, including child care, educa-tion, leisure, and community activities. But what is at stake here isobviously related to, yet clearly different from, the process of repro-duction in the sense of Gramsci: the cultural ideological apparatisuch as family, school, church, and so forth. In this context, it is firstand foremost the process of the reproduction of labor-power as atopos of ordeal for capitals self-realization, and hence the positionin which workers can finally be the subject.

    Marxists failed to grasp the transcritical moment where workersand consumers intersect. And in this sense, the anarcho-sandicalists,who opposed them, were the same. They both saw the specific classrelation in the capitalist economy (capitalist and wage workers) as aversion of that of feudal lord and serfs. They both believed that whathad been evident in the feudal system came to be veiled under thecapitalist commodity economy; therefore, the workers are supposedto stand up and overthrow the capitalist system according to the di-alectic of master and slave. But in reality, workers do not stand up atall, because, they believe, the workers consciousness is reified by thecommodity economy, and their task as the vanguard is to awakenworkers from the daydream. They believethat the reification is caused

    by the seduction of consumerist society and/or manipulation by cul-tural hegemony. Thus, to begin with, what theyshould and can do isto critically elucidate the mechanism. Or to say it outright, that isthe only business left for themtoday. What Fredric Jameson calls thecultural turn is a form of despair inherent in the Marxist practice.There are various forms of the despair, but they are, more or less, allthe result of production-process centrism.

    What about civil acts that overlap the consumption front? In keep-ing a distance from labor movements, they lack a penetrating stancetoward the capitalist relation of production. They tend to be ab-sorbed into the social democracy that, approving the market econ-omy, seeks to correct its shortcomings through state regulations as

    well as redistribution of wealth.I said that Marx of Capitaldid not present an easy way out of capi-

    talism. But, from the beginning, there is no way for Capital, the

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    scrutiny of money that transforms into capital, to present a directprocedure for abolishing/sublating it. The Marxists after Engels,who read the theory of value form merely as an introduction, didnot develop any account of money themselves. They imagined thatthe state regulation and planned economy would abolish the capital-ist market economy, brushing aside the fact that abolishing themarket economy would be equal to abolishing free exchanges of in-dividuals. Their stance was based totally on the labor theory of value(of classical economics), that is, their vision totally belonged to thedomain of the value system of capitalist economy. From this stance,

    the best we got was the vision of a society where everyone gets whathe or she earns. They were blinded to the autonomous dimension ofmoney that Marx tackled in Capital. As I have said, money is notmerely a denominator of value, but a mediating function throughwhich all individual commodities are exchanged, and throughwhich the value-relation among all commodities is constantly ad-justed and readjusted. For this precise reason, money exists as an or-ganizer of the system of commodities, namely, a transcendentalapperception X of human exchange. Certainly in the everyday marketeconomy, money qua illusion is hypostatized. Due to fetishism, themovement of capital occurs as an auto-multiplication of money. Bour-geois economists stress the superiority of the market economy by

    veiling the aspect of capitals movement. Yet one cannot abandonthe market economy in general. It would result in a total loss. Andagain, there is no prospect of abolishing capital and state in socialdemocracy that acknowledges but controls the capitalist marketeconomy.

    The ultimate conclusion of Capitalis the antinomy: money shouldexist; money should not exist. To supersede (aufheben) money equalsthe creation of a money that would fulfill the conflicting conditions.Marx said nothing about this possible money. All he did was critiqueProudhons ideas of labor money and exchange bank. Proudhon,too, was based upon the labor theory of value; he sought to make acurrency that purely valorizes labor time. Here there was a blind

    spot: Labor value is conditioned by the social exchanges via money; itis formed as value only after the fact of the exchange. That is to say,the social labor time qua substance of value is formed via money,

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    which thus cannot replace money. Labor money would tacitly relyon the existing monetary economy; even if it tried to challenge theexisting system, it would just be exchanged with the existing moneyfor the difference in price with the market value. What it could do atbest would be to neutralize money.

    Having this antinomy in mind, the most exciting example to me isLETS (Local Exchange Trading System), devised and practiced byMichael Linton since 1982. It is a multifaceted system of settlementwhere participants have their own accounts, register the wealth andservice that they can offer in the inventory, conduct exchanges

    freely, and then the results are recorded in their accounts. In con-trast to the currency of the state central bank, the currency of LETSis issued each time by those who receive the wealth or service fromother participants. And it is so organized that the sum total of thegains and losses of everyone is zero. In this simple system exists aclue to solving the antinomy of money.

    When compared to the exchange of mutual aid in traditional com-munities and that of the capitalist commodity economy, the nature ofLETS becomes clear. It is, on the one hand, similar to the system ofmutual aid in the aspect that it does not impose high prices with highinterest, but, on the other hand, closer to the market in that the ex-change can occur between those who are mutually far apart and

    strangers. In contrast to the capitalist market economy, in LETS,money does not transform into capital, not simply because there is nointerest, but because it is based upon the zero sum principle. It is orga-nized so that, although exchanges occur actively, money does notexist as a result. Therefore, the antinomymoney should exist andmoney should not existis solved. Speaking in the context of Marxstheory of value form, the currency of LETS is a general equivalent,which however just connects all the wealth and services and does notbecome an autonomous entity. The fetish of money does not occur. InLETS, there is no need to accumulate money as the potency of ex-changes, nor is there worry about an increase of losses. The system ofvalue-relation among wealth and services is generated via the curren-

    cies of LETS, but the wealth and services are not unconditionally com-mensurable, as in state currencies. Finally, among them, labor value asthe common essence would not be established ex post facto.

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    LETS is neither simply economic nor simply ethical. It creates aneconomico-ethical association. While the mutual aid in traditionalcommunities compels fidelity to them, and the market economiescompel the belonging to the communities of currencies (states), thesocial contract in LETS is like Proudhons association. Individualscan quit a particular LETS and belong to another LETS anytime. Un-like the currency of a state, the currency of LETS is really currenciesit is a multiplicity. More important, in contrast to other localcurrencies, LETS offers each participant the right to issue his or herown currency (simply by the act of registering/recording in an ac-

    count). To say that one aspect of the sovereignty of the state exists inthe right to issue currency means that LETS actually offers sover-eignty to the multitudes, going far beyond the specious motto sov-ereignty resides in the people. Therefore, the potency of LETS isnot just to protect and stimulate the local economy. It engenders anassociation that entails principles of exchange other than those ofthe Trinity.

    The last crucial aspect of LETS is that it is formed in the circula-tion process, where consumers hold the initiative. While conven-tional cooperatives of producers as well as consumers tend to falterin the hopeless competition with full-hearted capitalist enterprises,LETS could nurture the free, autonomous subjectivity of consumers-

    as-workers. Only when LETS and the financial system based upon itexpand, it should be said, can the noncapitalist producers and con-cumers cooperatives autonomously exist. But, in terms of strategy,LETS itself cannot terminate capitals auto-multiplying movement.It would remain as partial, complementary to the market economy,no matter how popular it would become. For this reason, what isrequiredaside from the movement that seeks to ex-scendent14 cap-italist economy like LETSis the struggle remaining withinthe capi-talist economy. Where can they be united? It goes without sayingthat it is in the position where workers appear as consumers,namely, at the front of circulation.

    In the movement of capital M-C-M, capital has to confront two

    critical moments: buying labor-power commodity and selling prod-ucts to workers. Failure in either moment disables capital fromachieving surplus value. In other words, it fails to be capital. That is

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    to say that in these moments workers can counter capital. The firstmoment is expressed by Antonio Negri as Dont Work! This reallysignifies, in our context, Dont Sell Your Labor-Power Commodity!or Dont Work as a Wage Laborer! The second moment says, likeMahatma Gandhi, Dont Buy Capitalist Products! Both of themcan occur in the position in which workers can be the subject. But inorder for workers/consumers to be able not to work and not tobuy, there must be a safety net whereupon they can still work andbuy to live. This is the very struggle withoutthe capitalist mode of pro-duction: the association consisting of the producers/consumers co-

    operatives and LETS. The struggle withininexorably requires thesecooperatives and LETS as an extra-capitalist mode of production/consumption; and furthermore, this can accelerate the reorganiza-tion of capitalist corporation into cooperative entity. The struggleimmanent in and the one ex-scendent to the capitalist mode of pro-duction/consumption are combined only in the circulation process,the topos of consumers workers. For it is only there that the mo-ment for individuals to become subject exists. Association cannotexist without the subjective interventions of individuals, and such ispossible only having the circulationprocess as an axis.

    Karl Polanyi likened capitalism (the market economy) to cancer.15

    Coming into existence in the interstice between agrarian communi-

    ties and feudal states, capitalism invaded the internal cells and trans-formed their predispositions according to its own physiology. If so,the transnational network of workers qua consumers and consumersqua workers is a culture of anticancer cells, as it were. In order toeliminate capital, it is imperative to eliminate the conditions bywhich it was produced in the first place. The counteractions againstcapitalism within and without, having their base in the circulationfront, are totally legal and nonviolent; none of the three can inter-rupt them. According to my reading, Marxs Capitaloffers a logicalground for the creation of this culture/movement. That is, theasymmetric relationship inherent in the value form (between com-modity and money) produces capital, and it is also here where the

    transpositional moments that terminate capital can be grasped. Andit is the task of transcriticism to make full use of these moments.

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