Background:
No to the EU has published EiT paper on Norwegian tilslutting EU financial supervision, where they copes formal aspects of a so tilslutting. Dei Furthermore societal aspects of financial capital and society, and national sovereignty in this context, host not discussed. In my contribution will be argued that Norway has fared better than the EU in both the public budget and the fiscal area. And it will be argued that the increased internationalization, liberalization and growth in the financial industry will take part in boosting the economic crisis that has minted dei European and the US-American economy since 2008. It is therefore difficult to understand why Norway ytterlegare should subjugate ei so weak functioning duck economic saman inference that the EU and deira planlagde financial supervision.
the transition to more financial capitalism
the transition to EiT greater element of finance capitalism in national and international economy has Vore EiT characteristics the last few years. Problema by this transition are renowned among scientists and partly also elles: Firstly leads relative increase in the financial industry to weakening of the conditions for productive business because ein is increasingly being part of the capital is bound up in unproductive financial transactions in. Secondly leads to finance growth to greater risk of bubble formation in the economy; ie rapid growth that do not have real economic content. As we have seen globally after samanbrota in large credit company Lehman Brothers and Goldman Sachs, which initiate the financial crisis in 2008. Furthermore, the financial growth to greater social inequality due clearly higher wages and anna inntening in the financial sector than otherwise in the economy. , Before finally leading financial growth to more economic globalization of di sector in particular is international. This suggests that the increased proportion of financial capitalism in the economy drive forward increased economic globalization and an equivalent reduction of awarded individual national economies.
The last of dei four consequences will næringsliberalistar and free trade style hang all abilities see as an advantage: Di more international economy and free trade, di Rikar we shall be; so this has Vore and both EU and US policy, and so this is the Norwegian economic and political power elite’s policies. Cf.. efforts from these to get liberalized also occupational sector through TISA negotiations. But for many of us are this context far from so clear: Limit rundowns and internationalization of the economy leads to increased power to global corporate and financial actors. That automatically would lead to GDP growth and better conditions for most people, is at best naive. This involves the pursuit of increased conversion in ein far as possible, globalized financial sector and increased power and performance for those who participate in this finansektoren. Supplemented with a not coated tru from many politicians that growth shallows expansion in the financial sector will automatically comet people for good.
Economy and confidence
no the financial industry’s most Vore seen as other industries in capitalist and mixed economic countries, it will say that ein economic sector where investment and work effort will create jobs and income. In some countries -særlig with ‘distinctive marketability of liberal governance as US and UK-constitute the financial industry in particular ein large part of the national economy. UK – ie especially England with London’s financial environment City – is the country in the world that has had the largest share of financial sector in the national economy; the opposition of more than twenty percent of GDP. In the US financial grow to 7% of GDP, but the industry has a total of 25% of the privately created surplus in US economy (Time Magazine 19, 2016). Sidan these two countries instead of click have risen as economic well-closed, has a perceptions become that finance is not just ein industry sector as others. Many also believed that di greater financial, di Rikar host country.
Just in such courts thought awarded individual Icelanders from Kring 2000. Sidan second quarters rich in oppdrevne finansspekulasjonar, could well also they get it. Dei should have the same right as the United States and England when it gald to be rich to translate money and valuables. Through a rough capitalization of the fishing industry, built on the state passed freely buy and ward off fish quotas, lasted created EiT monetary surplus in reiarlag and banks which then lasted useful to frenetic finansspekulasjonar. We know the result: All banks in Iceland lasted bankrupt and the Icelandic krona has not yet been internationally traded by the country’s economic saman breaches; or have become convertible as we hear in the financial language. This bitter Icelandic experience shows that the financial industry not is completely like other industries.
The financial industry shows clearer than something else nourishment that capitalist economic system is based on trust. Such a system is in But really fragile constructions. This is providing that there is general tiltru to assessments made in the economy – first and foremost the value of money – and the government that the opposition behind. Betray that confidence, also failed economy. Such failure saw ein during the Depression in the interwar period and such lack of confidence there will be a no for dei Anglo-American samanbrota in banks and credit company from 2008. The important thing is that this public trust not just debt finance. It is to come to grief total economy and the whole community. How this has been illustrated dei eight years ago dei major US and British speculation the institutions are losing over. When faith in stocks and securities failure, failure also threatened the community where stocks and securities are measures of values in business.
Hall of pengar
Weft of financial transactions in the same way as anna private economic resturants means that pengar host tradable as goods – such as trade artefacts – even if they original and authentic was not created for such omsetnad. It is this fictitious commodity makes Inga of pengar as the Hungarian economist Karl Polanyi Meinte not have foreiners with sound professional community building. By Gjere land, labor and money subject to conversion at par with goods, the society umenneskeleggjort and will interactively break together, said Polanyi in his major work in 1944. What happens after 2008 could be interpreted so that Polanyi get straight: If so, then breaking many of nasjonaløkonomiane in the west real world together because they have made funds for goods. A fate that Norway Much good has Vore sheltered from the di we have a one as rich natural resource-based economy which is subject to reasonable nationally constructed regulation schemes. And in comparing with Iceland: Speculation scope in dei Norwegian banks were relatively clearly less in Norway in 1990s the than in Iceland in 2000s. We had ein well functioning national economy that was big enough that we could manage to take the loss as saman broke our banking entailed. This relationship talet was Much worse in Iceland. Icelanders had simply not ein sufficient national economy to bear dei gigantic national bank tapa.
Ei provisional summary must be that it is very problematic as to warrant making funds for freely tradable doctor artefacts in society. And even though it may be a lot to seats for banks, enterprises and INDIVIDUAL persons on this in ein period. Transition to more finance-based economy appears to bring an inflated, not real economic anchored omsetnad of securities and money. For various reasons it may be necessary in the trust that people have the money and the economic and political system weakening throws. Then ein artificially inflated economy based on speculation fast break together, and the downturn will be bigger the more ein have speculative keyed valuation of cash and securities their value. The særeigne why this finance-based downturn is that the valuation of pengar and other symbolic artefacts for economic value is based solely on trust. In our time, this kind saman broke personnel have a concrete expression: There are bubbles that brest. To look more closely at this type boblebresting can ein better uncover what that seems to produce these farlege bubbles and what that required to prevent them, and the comet out of them.
Saman Brot
it is the fragile public confidence in dei financial scheme that makes inflated bubbles, and bubbles brest, so dangerous in our society types. When bubbles brest, it is the public trust that smokes. People no longer believe that the banks can take care of money deira. And not least: Dei has not tru of money its value will holding himself up. Dei align to putting money in the bank, or worse: withdrawing money in the bank and Goyma those in madrassa, as the heroes. Ie dei frei star self to salvage what they have because they have lost confidence that banks can take care of money deira. Dei societal negative consequences are easy to see: Common people ask not save their money available for loans to the country say productive resturants. Capital Drought reinforce the economic downturn. Source of extra core ein equally important negative effect. People save for something in bakhand for those poorer times as dei calculates the core. National care omsetnad and economic growth diminishes. This type of dynamics with boblebresting after keyed growth is useful as an explanation for the surprisingly strange saman broke what was the worlds second largest economy for drygt two decades ago, nemleg Japan. (M.A. in various numbers of “The Economist” and in the standard work “Global Shift” economic globalsering by Peter Dicken). In Japan it was boblebresting based on ein inflated real estate marketability which was the basis for the financial and economic downturn.
When confidence in banks and financial system failures in our types of society, the government basically only one thing as to warrant making : They must restore confidence. As someone says: Capitalism must Berg from one’s self. Or to be based on the Polanyi: Marknaden as sjølvregulerande autonomous institution edge together because ein has allowed Marknaden include EiT field nemleg pengar, who does not should be included in the market.
Sidan Marknaden no longer works for financial transactions in, please the new major funding from other social institutions with other works ways to salvage the market. This must be done to endeavor to attreise confidence in banks. It will specifically say supplying banks so Much funding utanfrå that they do not go bankrupt so that they can continue to operate.
A such mechanism applied då national governments in Norway in 1990s the and other countries they last years, has benefited billions of taxpayers rob their money to save banks that are comet in disability because of Presteigne speculation. It aims in such cases therefore larger than only to salvage banks; purpose debt to restore confidence in the economy, so that the wheels can come in once again. This mechanism will be a focus also in progress in relations between nations and within the field EU: billion from the European Central Bank, and from the EU and Germany, with debt relief in order to prevent economic saman quarries in Greece are being made not just to salvage Greece and grekarane. Transmission is in addition to prevent the crisis in Greece and otherwise in Southern Europe will disseminate to the rest of the EU, and with the continuing of the global economy. It is about preventing saman breach in trust for an international economic system that is in big problem.
financialization as disease
It is precisely this mismanaged international financial system that the EU financial supervisory experience must intervene in. the question is only how it should be done. Originally, the purpose of the EU financial supervision to intervene in the inflated financial expansion that several and several meiner was the utløysande cause of the crisis from 2008 (Source: Financial Expert Kenneth Haar from Corporate Europe Observatory in Brussels in the class struggle 2/7 2016). But now see it unfortunately appears that the prevailing tone in Brussels on the contrary has been the liberalization of the financial sector in the wake of dei confining austerity that came after the crisis and the bankruptcy of 2008. This means adding more of the poison that led to the impasse after 2008 and that large parts of youth cohorts in Europe and the US framleis suffering under the form of a massive unemployment.
If the purpose of the EU’s proposed financial supervision had Vore ensuring tightening to avoid dei financial crises we no is almost certain the need comet under EiT liberalized regime for this industry, it had Vore ein reason for Norway to endorse the audit. But when ein not have necessary in tightening of regulations that aim with the Financial Market Authority, the Norwegian participation not a phenomenon purpose. With membership under such conditions, the Norway only helps to legitimize dei damaging to the consequences of increased liberalization and internationalization of the financial industry which has minted dei recent decades.
Eit very important insight into these damaging to mechanisms to finance expansion appears at the ein extensive article in the latest issue that Time magazine (19, 2016). Here’s how it ein no thinking in parts of the tone set vande American Krinsen when debt finance and community development. This journal is the liberal aust state-USA its international main body. Here host the main problem in the US economy defined as financialization. That means ein growth in the financial sector and ein infiltration of this sector in other parts of the economy and society as ein see as damaging to the total of the US economy. The title of the posting is talande because the victory chorus serious situation for the American system no is considered nemleg, “Saving Capitalism.” This is portrayed so finansieringssykja in US-American economy is not just snowshoes for the US economy and American society, but actually also for the capitalist system marketability an sich . Ein ongoing duck and very surprisingly strange snunad in the American public opinion in favor of socialist or social democratic society, being in the journal produced acting as a clear characters that faith in the liberal American social model is beginning to crumble.
Dei Norwegian based experience versus EU’s
When it comes to the EU today, you know we provisional not about milliardinnskota from taxpayers all abilities in the EU to heavily indebted countries such as Greece and Vidar operations in banks and credit companies that have Vore in crisis because of oppdreven financial speculation, the ache in the long term. But when it comes Norway, so know we that the central government efforts to salvage national banks in Norway still work during crisis of the 1990s. In Norway lasted the Norwegian banking system restructured and losing into our national economy as power to defy dei international downturn. This had partly say cause in sensible restructuring schemes in banks and bankers who were viljuge to adapt and that could job. But it is equally important that the rapid and well-functioning duck Norwegian her Restructuring was based on the customer work involving the Norwegian national bank Marknaden had confidence that banks and the basic national government was able to arrange up.This gave the necessary result that Norwegian nationals continued to save, invest and consume in confidence that national governments and national banks were to rely on.
After the presentation about Norwegian tilslutting EU financial supervision is therefore the situation follows: Norway shall provide renounced national control over parts of our economy and our financial system as we know exerted for our country. This should be replaced with tettare integration in an international and supranational controlled economic system that no has major economic problem, with sustained a high unemployment after the financial crisis in Europe and the US from 2008 developed into a general economic crisis. What we also know, is atEU works poorer than our system when it comes to general economic development and as regards regulation schemes if it works to intervene in economic development when there is a problem.
Furthermore, it is also clear that no being seen big question characters in academic and in the enlightened public debate both in Norway and internationally as the continued liberalization and growth in the financial economy. It’s is increasingly being unanimous view that uncontrolled speculation and expansion of this sector is the utløysande the reason for the general crisis in the west physician economy from 2008. As far as we can see, suggests dei artistically challenged we no have, that EU financial supervision in this situation will put facilitate increased financial liberalization.
Conclusion
So do host two different reasons why Norway should not join the EU financial supervision. The first reason is that our national economy and our regulatory schemes exerted better than EU countries their finances and regulatory schemes. The second reason is that with an eventual Norwegian tilslutting EU financial supervisory host validated the national and international liberalization of the financial sector. Everything indicates no that another such liberalization in this sector only will intensify the crisis in the international economy.
Norway, the West and the global community no need to build public welfare and social equality are not more financial capitalism, but less growth and more regulation in the financial economy. To this contributes Norway today best by not joining the EU financial supervision, but by maintaining holding Novera, well-functioning national schemes and by focusing on supplementary schemes in future.
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