This article argues that the oil price shocks of the 1970s triggered a wave of global financialization led by Western banks and the US State that disconnected actual production from social reproduction in hundreds of indebted countries after 1982. It draws on a case study of Citibank lending in Mexico, the first country (of dozens) to default on the spate of cross-border loans spurred by new petrodollar (oil/gas debt) recycling strategies. I argue that this turn to fictive production—now ubiquitous as a neoliberal strategy—as well as the accompanying social exclusion that results, calls for rethinking the concept of “mode of production” in efforts to characterize late capitalism.
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