Summer of 2020 will be remembered as the Great Decoupling – the point in time when Financial Capitalism decoupled from the Capitalist economy.
Yanis Varoufakis explains in 22 minutes what I have been trying to write about this month as part of this workshop. Something I find humbling and exhilarating at the same time!
I hinted at this phenomenon in a recent post titled Reality Has Split In Two – The Money World and the Real World. Yanis managed to summarize it in a single tweet!
Financial capitalism has decoupled from the capitalist economy, skyrocketing out of Earth’s orbit, leaving behind it broken lives & dreams. As the UK sinks into the worst recession ever, & US edges toward failed state status, FTSE100 goes up 2% & S&P500 breaks all time record!
You can get the whole story of the capitalist trajectory from the end of feudalism to the Great Decoupling in this first part of the interview
Yanis Varoufakis in Conversation with Daniel Denvir – streamed live on August 13, 2020
Here is a little index:
00:55 the Great Decoupling
10:36 from Feudalism to Capitalism
14:25 the Second Industrial Revolution
15:17 Industrial Capitalism scales – Mega Firms and Mega Banks
17:15 how money is created
18:44 after 1929 – the New Deal and Bretton Woods agreement
19:11 after 1971 – the post Bretton Woods world order
20:05 the beginning of financialization
20:51 Capitalism after 2008
22:00 The necessary transformation to post-Capitalism