1. monied capitalist lend to industrial capitalist
   1. Take % of profit
   2. contributes to formation of average profit
   3. problems
      1. creates artificial duality between lenders/borrowers
      2. does not allow for proper analyses of conflict between lenders and borrowers
      3. does not account for creation of capital
2. concentrations of idle money are systematically generated in course of reproduction of social capital. Credit system transforms into IBC, redirected to accumulation
   1. 3 stages
      1. credit system mobilizes stagnant money
         1. idle profits, reserves, depreciation funds
      2. transformed into IBC
         1. through credit system plain commercial money becomes money capital
            1. has use value, can initiate or expand cycles – produce average profit
            2. can be traded as IBC
            3. IBC is formed as average profit-generating capacity is bought/sold
            4. money capital remains with owner - IBC is borrowed/lent
            5. owners compensation is share of average profit – interest
      3. redirected to accumulation
   2. outside the process of accumulation
   3. interest payments are redistribution of surplus value
      1. reflect demand/supply IBC in normal course of accumulation
      2. do not contribute to formation of average profit
   4. lender/borrower opposition – quantitative devision of total profit
      1. could think of industrial capitalist as employees of money capitalist
      2. still monied v productive
   5. problems
      1. still artificial duality
      2. assumes use value able to generate average profits
         1. then why would the monied not utilize use value, instead of just interest
3. lapavtisas approach- credit system is social mechanism thats forms IBC
   1. advantages
      1. better theoretic background for lending for non-productive purpose
      2. regardless of where money is put, lender still command payment of interest
      3. interest is augmentation of money by lending
         1. can be extracted from all money revenues, regardless of surplus value
   2. value leaks from circuit of capital - social foundation
      1. circulation hoards - reserves
      2. production hoards - depreciation funds
         1. money hoards from profit
      3. turnover hoards
         1. time
   3. transforms into IBC
      1. in contrast to commercial/money dealing capital
         1. which earns % of total surplus value
         2. remains in sphere of exchange
         3. participate in formation of average rate of profit
      2. IBC formed outside circuit
         1. accelerates turnover
      3. allows for understanding of why P>i
         1. IBC ultimately reliant on spare funds generated in circuit
         2. no objective foundation on social reporduction
         3. pure price without relation to law of value