Financialization and the Emergence of Neoliberal Nomadism Lauri Holappa, 18.9.2008 ESF 29.4.2019

Misunderstanding neoliberalism The difference between neoliberalism and capitalism (cf. David Harvey: accumulation by dispossession) Neoliberalism and ”disaster capitalism” (cf. Naomi Klein: The Rise of The Shock Doctrine) Neoliberalism and military Keynesianism Neoliberalism and social conservatism 29.4.2019

Neoliberalism: The emergence of virtual economies and the re-emergence global finance Keynes: ”Of the maxims of orthodox finance none, surely, is more anti-social than the fetish of liquidity, the doctrine that it is a positive virtue on the part of investors to concentrate their resources upon the holding of "liquid" securities. It forgets that there is no such thing as liquidity of investment for the community as a whole... The actual, private object of the most skilled investment today is "to beat the gun", as the Americans so well express it, to outwit the crowd, and to pass the bad, or depreciating, half crown to the other fellow." Conclusion: Global demand management (ICU) and capital controls  Bretton Woods System (BWS) Keynes on BWS: ”Not merely as a feature of the transition, but as a permanent arrangement, the plan accords to every member government the explicit right to control all capital movements. What used to be a heresy is now endorsed as orthodox.” BWS and capital controls: Right to control all capital movements (including multilateral controls) Encouraging capital controls IMF empowered to request a member to implement controls 29.4.2019

The success of the BWS: Basic mechanisms Capital controls  slashing the over-liquidity  capitalizing real investments Income equalization  boosting total consumption Public investments 29.4.2019

The success of the BWS: Results Unequalled economic growth Full employment Increasing equality Improvement of economic democracy 29.4.2019

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After The Collapse Capital account liberalization  conditioning economic policymaking Macroeconomic policies: Anti-inflationary emphasis Supply side solutions Above all: Misallocation of resources 29.4.2019

Economic dynamics of neoliberalism: A Minskyan circle Hedge financing  speculative financing  Ponzi financing Systemic nodal point in the shift from hedge to speculative finance The end result: Debt deflation 29.4.2019

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Neoliberal nomadism Neoliberalism and financialization are undermining territorialized economies Neoliberalism as deterritorializing class project Solutions: Reterritorialization or global democratization? 29.4.2019