The financial system, the first global dictator 1

Grazia.tanta@gmail.com 28/10/2020 1
The financial system, the first global dictator - 1
The effects of capitalism result from its logic of infinite growth for the value
created, taking the production of useful goods and services for Humanity as a
subsequent and not the central objective. At the top of the decisions are
intelligent evildoers and ambitious imbeciles whose only aim is to create value,
in the case of so-called entrepreneurs or, to raise GDP in the case of political
classes.
Summary
1 - The affirmation of a Big Brother
2 - Total credit directed to the non-financial sector (% of GDP)
3 - Total credit granted to the public sector (% of GDP)
******* // *******
1 - The affirmation of a Big Brother
The financial system as the dominant element in contemporary capitalism, takes
advantage of the immaterial nature of the information it uses and compiles,
publishes with great today, without going into great detail as to their
dependents atomized - businesses, particularly small and medium-sized and,
families, individuals. It is the BIS - Bank of International Settlements that is in
charge of this aggregating function, by countries and groups of countries, such
as the Euro Zone or the G20.
Obviously, on a global scale, even though it is composed of several great
powers, some more autonomous than others, installed in midst of great rivalries,

these powers are nonetheless competing, fighting, concerting, within the scope
of variable geographies of power.
The volatility of financial markets intersects with the speed with which
transactions are made; the global character of his work makes him
knowledgeable about heritage, income, transactions and consumption, the
place of work and housing, travel and, travel, in a degree of detail beyond what
we can imagine. On the other hand, the promiscuous connection with the state
apparatus allows the financial system and the state powers to have a fine
knowledge of our lives.
Quantum computing will allow, with big cost savings, storage, treatment and,
the exchange of data, with unprecedented amounts of information, in a very
short time and at very low cost. And it will join another great leap forward, the
abolition of physical cash (possibly in 2023, the Eurozone).
Money, in its many forms of physical presentation, is something that has
existed, in various forms, since the most ancient antiquity, to facilitate
exchanges; its abolition is unprecedented denudation on the part of States, the
financial system, technological giants specialized in collecting detailed
information about people (Google, Facebook...) and Big Data. The plan that
Google intends to execute in NewYork, in harmony with Andrew Cuomo, is
configured with digitalization, teleworking, atomization, impoverishment,
absence of rights; all properly monitored, either in spending, both in taste,
contacts and, exchanges of information, a plan recently well explained by
Naomi Klein.
In capitalism, money is the blood that circulates in its veins - in natura (currency
and notes) or under a virtual way as deposits, stocks, bonds and these virtual
elements called derivatives. In the next future, all records of income,
acquisitions, donations, all transactions in which we participate, go through a
crucible called the financial system. This, in turn, closely related with the States
and, monitoring the political classes, will facilitate the addition of the fiscal drain
on the job, such as pay as premium, for state intervention in the pacification of
the common people, in the work; or, the dismantling of any contestation, with
an efficiency far superior to the performance of political oppositions, today, to a
large extent, mere folklore. As for personal data, its degree of updating, in real
and historical terms, will be used, indistinctly by the financial system and by the

state entities themselves, which, today, in many cases, spend resources on
databases, which are too often poorly constructed and outdated.
In the case of Europe, there will probably not be a full replacement of the known
physical currency, recognizes Christine Lagarde, president of the ECB. In July of
the current year, the Bank of France chose, among other candidates, Accenture,
HSBC (an acronym for Hong Kong and Shanghai Banking Corporation) and, one
of the main banks in the world and also Societé Generale for an experience of
using a digital euro. This apparent Bank of France leadership materialized
shortly before in a positive test of a digital euro on a blockchain. It is known that
post-Brexit Britain is also studying the digitization of the currency and that the
Italian Banking Association intends to accept the digital euro.
Another step in the transition to reality as imagined by Orwell several decades
ago, inspired an exquisite democrat called Stalin, the great architect of state
capitalism which, respectfully, developed the thesis of Lenin, admirer of
Taylorism and Fordism, "scientific" ways of organizing work, increasing
productivity and the share of value available to capitalists. In capitalism, the
more concentrated and totalitarian power is, the more the abstract role of work
is reaffirmed, only as it generates pain of value, regardless of whether the
product is a shirt, a television or, a war airplane. The production of goods or
services aims at reproducing the invested capital while the goods produced are
just means for that purpose. Its usefulness to people is not central, it is ancillary,
it follows the need for capital for its accumulation to infinity. And if the planet is
insufficient to contain the capital's gluttony... so much the worse for the planet.
Today, the political and economic dominant force, it is not a nation-state with
guarded borders and police on every corner or, huge holder of military power; it
is a composite entity, non-state, non-national, establishing a discreet but
omnipresent super-power, global, tentacular, with all the powers on human -
and even on the vast majority of nation-states - running as zealous interpreters
and executors of actions inherent to the interests of the financial system. This
zeal is the responsibility of the political classes that constantly undertake bad
theater, fighting their members for a place in this global power. And you don't
need to have a big intellectual brain or technical skills; it is enough to know how
to please those in charge, and it is very easy to fit such a José Manuel Barroso in
this profile.

The financial system has increased its discretion a lot, in proportion to its power.
Decades ago, on every corner was a store open to the public, where credit
operations, deposits and, cash withdrawals were carried out, in person;
everything, however, in a markedly national context. Even before the internet,
cash withdrawal points emerged, without a trip to bank counter, from a
possession of a personalized card with a chip for this purpose, offered by the
bank and later, it was charged with an annual commission.
To the extent that the capabilities of storage and traffic information were
developing, specially depositors, borrowers, speculators and, swindlers, banks
were losing notoriety in the streets and gaining power as credit providers,
capturing individuals and businesses by increasing values in debt; and the latter
has been flooding and restricting the States, which abandoned school,
transportation and, housing to the gluttons of private companies. And, in
parallel, the financial system has been collecting information on populations in
total promiscuity with State databases.
Having information about the surrounding world, especially about the possible
threats arising from it, has always been the instrument for the search for an
advantage at all times, an instrument of power - in times of counties, duchies
and, kingdoms, as in the subsequent nation-states. The magnates of the
transition from the medieval era for the modern age lent money to monarchies
but not constituted in the financial system since the creation of fit money to
kings and embryonic nation-states who knew how to multiply, faking - always
necessary to their aims, by reducing the gold or silver content.
Central and private banks were created to accompany the great development of
colonial trade, the slave trade, war and, industrialization, expanding the
monetization of national economies. The financial system received the capital
resulting from looting, became internationalized, becoming an essential element
in the life of nation-states, State apparatus, companies and, individuals. More
recently, the creation of the euro was a decisive element in the (uneven)
integration between most of the European Union's nation-states, with the
subordination of the old national central banks, made dependent on the ECB,
curiously based in Frankfurt, in the nation that became the anchor of the
European Union, especially after Brexit.

Nation-states were developing and deepening partnerships with each other in
various fields - transport, trade, tourism, migration, education, and, military
businesses and interventions... beyond monetary integration, a key element in
the economic and political integration. On the other hand, the information
accumulated in the financial system and its supporting technical means is an
essential asset; the dependence of States, companies and, individuals on the
credit offered, without much parsimony, by the financial systems, anchors
consumerist habits, unreasonable indebtedness or, with amortization plans over
dozens of years, with personal and material guarantees in cases of default. The
dangers faced by the system are related to the contradiction between the
volume of credit granted and the precariousness of debtors, especially in the
face of conflict situations or crises arising from the financial system itself, as
happened in 2008; and that, due to its size, required the intervention of the
States, substantially increasing their levels of indebtedness and as chronic users
of the fiscal punishment, ordinary or extraordinary, exercised on the peoples - to
avoid greater losses for the globalized financial system, although not uniform or
under a pyramidal direction.
The central objective of the financial system is to increase the volume of capital;
and, its revenue is to generate capital from nothing. The balance sheet of the US
Federal Reserve was in dollars, 12 * 10 ^ 11 to 8/31 2008; 49 * 10 ^ 11 on
12/31/2019 and 70 * 10 ^ 11 on last May. In the Eurozone, the corresponding
items were, in euros, 4692 * 10 ^ 9 on February 28 and 6705 * 10 ^ 9 on September
2.
All these capitals claim remuneration. And are the States, through the political
classes, monitored on the top, by the financial system, which is in charge of
presenting the "guides of payment" with the world population - in the form of
austerity, tax hikes, unemployment, cuts in rights… keeping to a great hidden
scandal, working hours equal to or greater than a hundred years ago, a time
when workers fought for eight hours of work.
2 - Total credit directed to the non-financial sector (% of GDP)
Next, we will look at several statistical series related to credit. Firstly, for some
European countries and the whole of those that have euro as their currency; and
for the period extending from 1995 (even without the euro in use) to March this

year, the dawn of the coronavirus crisis. Second, we will observe the evolution
towards large economic and population aggregates - Eurozone and G20 – and,
the two largest economic powers - China and the USA.
Among the considered countries, it is observed various behaviors in the context
d the whole of loans to non - financial sector; that is, the families, the State and,
the companies producing goods and services.
Two situations deserve particular attention. Portuguese and German.
The credit granted by the financial sector in Portugal, in the period 1998/2012
rose from 1.8 to 3.6 times the value of GDP and whose responsibility lies
essentially in the credit policy (if any) issued by the party-state, PS / PSD that
has been always in power, in that period as in almost all the life of the current
post-fascist regime. What stands out are the much higher levels to the average
of the eurozone and other referenced countries.
The intervention of the troika and the sinking of the financial system have
caused a huge drop in credit granted in the last eight years, with current levels
close to those observed in 2008 (300% of GDP); and a recapitalization of banks
from their dominance by foreign capital, in addition to those that were extinct
or that drag on in a long and expensive agony, namely the bank we call
polynomial - BES, Banco Bom, Banco Mau, Novo Banco - delivered to a vulture
fund with public funding.
In the German case, there is great stability in the proportion of credit granted to
families, states (central or federated), companies that produce goods and
services, relating to GDP. Throughout the period, loans granted reached a
maximum of 200% of GDP in 2010 and a minimum of 177.5% in 2018.

All other countries maintain strategies for marked credit growth, albeit at
different levels. France maintained a great regularity in the growth of the
indicator throughout the period considered, while all the others proceeded to
brakes and slight setbacks, except Portugal and, as mentioned above, Spain. It is
worth noting the huge relative growth of Greek debt in 2011/13, with a break in
the previous period and, great stability after 2013; in return, they occured large
losses in living standards and cuts in salaries and pensions.
For the large aggregates, there is a great parallel between the Eurozone and the
USA, although with some distance from 2012, until recently. For China, the
growth of the constituted debt is notable, from 99% of GDP in 1995 to 274.4%
in March, standing ahead of the rest of the aggregates; capitalist development
in a highly competitive environment requires a high degree of mimicry. It
remains to be seen when the inflection or breakdown will begin, since domestic
consumption in China cannot reach infinity; export Chinese may find obstacles
(besides the... Trump sanctions), payment by importing countries and, the
massive foreign investment, especially in the context of the Silk Routes, may find
it difficult to refund the countries involved.

3 - Total credit granted to the public sector (% of GDP)
In the period considered, the credit granted in the eurozone to the public sector
represents from 75% of GDP to the equivalent of the entire product of all euro
countries.
With the Spanish exception, up to 2007 there is a great stability of the share of
credit to the public sector in the global product, in the selected countries, as in
the euro area as a whole. This exception corresponds in large part to the
consulate of the ultra-conservative Aznar (1999-2004), which his successor
Zapatero continues until 2007, with a great increase in public sector debt since
then, which Rajoy has continued until 2014, from which stagnates the weight of
public credit in the total GDP. As is evidente, in market democracies, the
economic and financial policy does not undergo major changes with the
turnover between a party in power and, its twin brother in the opposition, on
vacation, until a new period of application begins. with the same economic
policy, with new faces. This is so evident that the reason for the elections is not
even understood and, even less, the acceptance of the peoples of this rotation
between corrupt gangs.

As of 2007, there has been a general increase in credit granted to the public
sector, which has tended to stabilize since 2014, with the task of saving the
financial system fulfilled, in the parts contained in each nation-state. The
intermediate period is characterized by large growths in this debt, namely in
Greece, Italy and Portugal, in addition to Spain as mentioned above; but placing
the first three with much higher rates of public indebtedness from the
interventions and pressures of the caretaking institutions, especially the IMF,
ECB and derivatives, the EU, in some cases joined together, those, under the
tenebrous name of troika.
In recent years, it is showed a chart of regularities. The highest public debt is
recorded in Greece and Italy, which have that tradition; to which was added
Portugal, which, in 1998, with Germany, held the lowest public debt in the table.
The English case, whose neoliberalism gave in to the need to turn to the support
of its financial system, showed, in 2014, a debt almost triple that recorded at the
beginning of the century.
France maintains a slow growth in the weight of its public debt sector, without
sudden changes. For its part, Germany starts the period under analysis with
public debt compared to that of Portugal (in terms of percentage of the
respective GDP's, that is to say), reaches a maximum of 87.6% in 2010 and then

decreases to stand in 2020 with slightly higher levels than 22 years ago. For
those who appreciate the variety… there is a lot to choose from…
For large economic aggregates or, for the two largest powers, there is slow and
smooth growth in public debt, if the period of turbulence that followed the crisis
opened in 2007 is excluded. The Eurozone, after a period of initial of great
stability in public indebtedness, below 80% of GDP, 2008 began a period of
regular increases in indebtedness that peaked in 2014, stabilizing around the
dimension of GDP since then.
The USA has maintained values similar to those in the Eurozone since 2007,
showing a large increase in public debt compared to the period before the
subprime crisis .
Finally, China, in the 25 years shown in the graph, has evolved its public debt
very slowly, from 21.2% to 58.4% of GDP, with some acceleration in recent years.
However, its level of indebtedness is inferior to the Western competition, here
represented by the EU and, by the US.
(to be continued)
This and other texts in:

http://grazia-tanta.blogspot.com/
http://www.slideshare.net/durgarrai/documents
https://pt.scribd.com/uploads

The financial system, the first global dictator 1

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