[...] Some major events took place in the early 1970s, very significant. One of them was the breakdown of the Bretton Woods system, which we’ve talked about. That’s one force that set in motion very substantial changes that gave a big acceleration to the growth of multinationals. Transnational corporations now have an enormous role in the world economy. These are just incredible private tyrannies. They make totalitarian states look mild by comparison.
The other huge change was the extraordinary growth in financial capital. First of all, it’s exploded in scale. It’s absolutely astronomical. There are close to a trillion dollars moving every day just in trading. Also the total composition of capital in international exchange has radically shifted. So in 1970, before the destruction of the Bretton Woods system, which meant regulated exchanges, about ninety percent of the capital in international exchanges was real economy related, related to investment and trade. Ten percent was speculative. By 1990 the figures were reversed. By 1994, the last report I saw was 95% speculative and it’s probably gone up since. That has an extraordinary effect.