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Michael Hudson wrote previously that never in Karl Marx's wildest dreams would he have foreseen the dominance of productive capital by finance capital, as is now occurring. The problem now is chiefly financial rent seeking (financial capitalism) rather than land rent (feudalism) or monopoly capital (productive capitalism), although vestiges of these remain.
As Hudson, Black, Tavakoli and others observe, the problem with financial capitalism is not only excessive rent seeking (dependent on moral hazard created by government guarantees implicit and explicit) that is systemically dangerous, but also rampant fraud and other financial crime, which even the FBI warned about in the run up to this crisis, to no avail.
Could it be the the financiers are the new de-facto feudal landlords as they have extended credit to bid up land prices effectively extracting land rent?
Pure financial rent is extracted from our need to save, invest and insure for retirement. With dersory state pensions we are corralled into their greedy jaws. They leech a grand existence at the expense of our retirement outcomes.
Is that a Tilley hat btw?
A man of practicality over fashionable good looks ;)
6 comments:
Damm right its systemic.
Come on America! Create a new currency that will absorb labor and re-assert equality. Take back your labor!
Labor needs to alley itself to capital, as in labor produced capital. The common enemy is financial rentiers.
@ James
Michael Hudson wrote previously that never in Karl Marx's wildest dreams would he have foreseen the dominance of productive capital by finance capital, as is now occurring. The problem now is chiefly financial rent seeking (financial capitalism) rather than land rent (feudalism) or monopoly capital (productive capitalism), although vestiges of these remain.
As Hudson, Black, Tavakoli and others observe, the problem with financial capitalism is not only excessive rent seeking (dependent on moral hazard created by government guarantees implicit and explicit) that is systemically dangerous, but also rampant fraud and other financial crime, which even the FBI warned about in the run up to this crisis, to no avail.
Nicely put Tom.
Could it be the the financiers are the new de-facto feudal landlords as they have extended credit to bid up land prices effectively extracting land rent?
Pure financial rent is extracted from our need to save, invest and insure for retirement. With dersory state pensions we are corralled into their greedy jaws. They leech a grand existence at the expense of our retirement outcomes.
Is that a Tilley hat btw?
A man of practicality over fashionable good looks ;)
Andrew, I think that Michael Hudson would say that traditional land rent has been amplified by financializing real estate.
Andrew: Tilley hat?
Columbia.
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