The serious damage started over the last 4 decades, when financial markets became “institutionalized “shifting from the domination by wealthy individuals of the past few centuries. This institutionalization created the “shadow banking system “ a term used during the 2000´s which was consisting of financial entities-funds such as  pension , mutual , index, exchange traded, hedge plus insurance companies, banks  and investor groups .That institutionalization was a result of the financialization of the economy which in conjunction with neo-liberalism and globalization has transformed the real economies worldwide shifting their gravity from the production & service sectors and  starving them of financial resources plus forcing them to allocate disproportionate amounts to the finance industry and stagnate.

Speculation kept shifting between stock markets, housing markets and commodity markets and between developed and emerging economies. The slowing growth on the real economy in US in the early 70´s created a large capital surplus and financialization become its only outlet out of stagnation and via neoliberalism and deregulation of the industry became a viable option. Then globalization made it possible to export it and persuade, corner or attack specific strategic emerging economies and enforce the neo-liberalization & financialization of their economies.

From 2008 to the 2020 the developed world’s central banks have pumped into the global markets about $16 tril ’of QE which represented 20% of the annual global GDP and has distorted the economies and the markets to the degree that no one could really estimate where the equilibrium of deflationary and inflationary danger was and how to regain that balance without overheating of choking the economy. Central banks kept that QE for so long trying to ensure that their economies did not plummet into a recession or depression. However this has been an economic tool to be used sparingly and for a very short term instead of becoming a permanent economic policy tool. That should be the job of governments drafting daring structural changes to stimulate the economies, something that never happened. Whatever GDP growth was appearing during those years was only a direct result of the inflationary effect the QE had, circulating through the economies masked as growth. It was not robust enough though to convince anyone with brains to believe that it was real growth and that is why it kept going for so long. The inability of the capitalist system to produce inflation was causing serious alarm, indicating that the economies were moving in unpredictable unchartered territory. This is where the damage of the financialization has caused to the real economies globally. It was artificially determining demand and supply forces crippling the real economic forces from demonstrating the true directions.

WREAL believes that this new blend of financialization and  information technology under which the monetization of the information is an entirely new economic & political system, that succeeds the dying  Capitalism.

It called it  INFINANCIALISM or INFINAL, ironically suggesting that it is the ruling system’s final stand.