The matter Julio refers to has made clearing operations, once fairly simple,
a matter of immense complexity creating very highly paid positions for the
scattering who grasp current clearing house issues.

I guess those salaries would be part of the extra drain on the surplus Julio
speaks of.

Carrol

> -----Original Message-----
> From: [email protected] [mailto:pen-l-
> [email protected]] On Behalf Of Julio Huato
> Sent: Saturday, July 20, 2013 1:54 PM
> To: Progressive Economics
> Subject: [Pen-l] Financialization
> 
> A quick note out of nowhere.
> 
> For whatever reason, I've had to read a number of papers on the
> so-called phenomenon of "financialization," and nowhere have I found
> mention of Marx's insightful point that the development of modern
> banking and financial organizations entails the centralization of
> myriad functions that, otherwise, individual capitals would have to
> perform, but much less efficiently (i.e. with a greater expense of
> society's surplus labor globally considered).  This centralization
> accomplished by modern centralized finance -- Marx noted -- tends to
> reduce the faux frais (the waste of surplus labor time) of capitalist
> reproduction regarded as a totality.  In our times, one has to view
> Wall Street, the City of London, and to a lesser extent Zurich, Tokyo,
> Frankfurt, etc. as rationalizing an enormity of minute transactions
> that, without the "scale economies" in question, would require an
> enormous expenditure of global surplus labor time scattered across the
> system.  Now, this is a structural phenomenon, separate from the
> cycles, generally speaking.  Here, I mean e.g. that the gradual
> dismantling of Bretton Woods, which spanned the forex financial boom
> from the 1970s on, that later on managed to undo Glass-Steagall, etc.
> further expanding the "industry," has to be distinguished from the
> secular process of centralization and economy of surplus value that
> Marx referred to as linked to the development of modern finance.
> 
> Comments?
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