The Power Bloc of Finance Capital and the Debacle of the Central Bank: Toward the Final Crisis.

Rivera, Miguel; Lujano, Benjamín; García, Josué; Araujo, Oscar

One of the most fundamental changes taking place in the present phase of capital development is the emergence of a power bloc of finance capital. The concentration and centralization of capital in the context of digital technology and globalization has brought about a unification of the circuits of the different fractions of capital (productive, financial, and commercial), giving birth to finance capital. Thanks to neoliberal doctrine, finance capital has achieved a wide field of maneuver, and converted into a power bloc, it follows a monopoly factional strategy with a variety of social impacts. Central bankers, under a false guise of impartiality, have become partners of this power bloc, acting as its lenders of last resort and validating its preferences in market strategy and credit management. This article analyzes and discusses three topics: a) the role played by finance capital in the accumulation of capital, in particular, its conversion into a power bloc and the economic and socio-political consequences of that change; b) the economic implications of a bailout of finance capital by the lender of last resort; and c) the consequences of the change from quantitative easing to quantitative tightening, in order to return the rate of interest to its historical level.

FINANCIAL bailouts; INTEREST rates; ECONOMIC impact; CAPITAL financing; SOCIAL impact

International Critical Thought, 2024, Vol 14, Issue 4, p591

2159-8282

Academic Journal

10.1080/21598282.2024.2434803