Neoliberalism, the Financial Crisis and the End of the Liberal State

The article turns to Deleuze and Guattari's concept of state capitalism and their theorization of money and debt in their critique of capitalism to develop an analysis of the governmental management of the current crisis determined by ordo- and neoliberalism. The paper argues that analyses which fail to properly recognize the power of capital to determine both state apparatuses and economic policy thereby fail to grasp the real functioning of money, debt and the Euro in the crisis and end up unwittingly supporting liberalism. This is true of positions such as heterodox theory that, though critical of conventional and neoliberal political economy, nevertheless continue to uphold the state as an independent or mediating mechanism in relation to the power of capital. The neglect of the role which money plays in the strategies of capital to control both the creation of value and the functioning of the state is to be found even in Foucault's genealogy of neoliberalism, a neglect which undermines his analysis of power. The paper highlights the implications of the standpoint of state capitalism for a more incisive analysis of the current crisis that reveals what is at stake for political struggles.