FightTheFascismFeb 3, 2019
"There were three exits from the crisis of profitability that #capital took: #neoliberal restructuring, #globalisation, and #financialisation. Neoliberal restructuring essentially meant redistributing income from the #middle class to the rich to provide the latter the incentive to invest in production."
http://longreads.tni.org/state-of-power-2019/global-finance/
Global Finance, power and instability

Tackling financial power requires not only examining the power of the big banks, but the role financialisation has within the global economy and capitalism's tendency towards overproduction and instability.

Longreads
Show threadFightTheFascismFeb 3, 2019
"#Globalisation of production involved locating production facilities in low-wage countries to increase profitability. While these two strategies brought a rise in profitability in the short term, in the medium and long term they were self-defeating since they brought about a downturn in effective demand by cutting into or preventing the rise of workers’ #wages."
#Capitalism
#Financialisation
Show threadFightTheFascism

"That left #financialisation. Financialisation had a number of key aspects, but three must be stressed.

First, financialisation involved the massive creation of #indebtedness in the population to substitute for stagnant #incomes in order to create demand for goods and services."

Feb 3, 2019 at 8:37pmWeb
Show threadFightTheFascismFeb 3, 2019
"The ability to remain unaccountable to society despite having inflicted on it a grievous wound is the ultimate measure of #power. The bailout of the biggest US #banks, despite the obvious bankruptcy of some and the role they had all played in bringing about the worst economic #crisis in the US since the Great Depression, testified to the tremendous power that had been amassed by finance capital."
#Financialisation
#Capitalism
#Corruption
#Banks
Show threadFightTheFascismFeb 3, 2019
"There were obvious differences in the way financial #crises unfolded in the US and #Europe. But there was one thing that they shared: the ability of the financial sector to go unpunished and remain unaccountable for its massive mistakes. As in the US, this was the ultimate measure of the #power finance capital had achieved over both #society and the #state."
Show threadFightTheFascismFeb 3, 2019
"What needs to be done?
1. Restrict operations of #hedge funds and close tax havens;
2. Ban mortgage-backed securities and #derivatives;
3. Move towards 100 per cent reserve banking;
4. #Nationalise financial institutions that are ‘too big to fail’;
5. Re-institute the Glass–Steagall Act that placed a ‘Chinese wall’ between commercial banking and investment banking;"
#Financialisation
#Crisis
#Capitalism