cross-posted from: https://lemmygrad.ml/post/3264448

Lenin in Imperialism talks about the emergence of finance capital as the major driver of imperial conquests. These days we have seen trends of "financialisation" of western economies coupled with deindustrialisation.

I guess what confuses me is why this trend towards financialisation a thing where you cede real material industrial power in favour of large banks.

  • Wheaties [comrade/them]
    ·
    6 months ago

    Owning industrial production gives you power, but that power lacks flexibility. Factories exist somewhere, need to be staffed with people that live near it, require a flow of raw materials to work on. Your power over it ends where the property line does. Financialisation lets you use existing capital as leverage; take out a loan with your factory as collateral, and now your assets are liquid. You can by shares in factories and companies all around the world -- your reach is extended and, so long as you don't default, you haven't actually given anything up to do so.