# Digital Financialization by Secrecy

##### Financialization Tyranny

<span style="white-space: pre-wrap;">In our digital age, in our </span>**Digital Financialized**<span style="white-space: pre-wrap;"> \[1\] age the Information Asymmetry is the core foundation of most tyrannies. </span>

> <span style="white-space: pre-wrap;">Phrases like "knowledge is power" became "information is power" and now reborn as "Information is gold" \[2\]. If information is the measure of modern power and wealth, then the asymmetry of information accessibility provides a tool for expansion of tyranny, old or new. </span>

<span style="white-space: pre-wrap;">To correlate the tyranny to financialization, first we need to study the 1980s innovations of </span>**Financialized Capitalism** <span style="white-space: pre-wrap;">\[3\] which begot the widespread global Digial Financialization. </span>

> <span style="white-space: pre-wrap;">Once there are digital networks in place to Financialize the capital, then asymmetric information access is a must to accumulate vast wealth with littlest labor, and the kind of wealth rooted in tyranny that exclusively inbreeds and begets tyrannies and tyrants abound. </span>

##### What is Financialization?

- Summarised by Lapavitsas \[4\] as "**profiting without producing**"
- <span style="white-space: pre-wrap;"> Financialized Capitalism \[3\] is being exploitative by </span>**supplying (vast) income to non-laborers**
- <span style="white-space: pre-wrap;">Financialization describes an economic process by which exchange is facilitated through the intermediation of </span>**Financial Instruments**
- Rather than focusing on making products or developing new services, many businesses now generate significant profits through financial activities (See Background)

<span style="white-space: pre-wrap;"> "</span>**profiting without producing**<span style="white-space: pre-wrap;">": guys who know no software or any computing and lead and profit from large software companies under their command! Imagine the heads of radiology department in a large medical facility who know nothing about medicine! And are paid vasts sums of money and shares in this medical business! </span>

"**supplying income to non-laborers**<span style="white-space: pre-wrap;">": multitudes of highly lucrative financial services which thirty years ago did not exist yet today their staff and management make vast sums of money for secretarial or mostly data-entry office activities! </span>

"**financial instrumen**<span style="white-space: pre-wrap;">t": A </span>**financial instrument**<span style="white-space: pre-wrap;"> \[6\] is a monetary </span>[contract](https://en.wikipedia.org/wiki/Contract "Contract")<span style="white-space: pre-wrap;"> between parties. They can be created, traded, modified and settled. They can be cash (currency), evidence of an ownership interest in an entity or a contractual right to receive or deliver in the form of </span>[currency](https://en.wikipedia.org/wiki/Currency "Currency")<span style="white-space: pre-wrap;"> (</span>[forex](https://en.wikipedia.org/wiki/Foreign_exchange_market "Foreign exchange market")); debt ([bonds](https://en.wikipedia.org/wiki/Bond_(finance) "Bond (finance)")<span style="white-space: pre-wrap;">, </span>[loans](https://en.wikipedia.org/wiki/Loan "Loan")<span style="white-space: pre-wrap;">); </span>[equity](https://en.wikipedia.org/wiki/Equity_(finance) "Equity (finance)")<span style="white-space: pre-wrap;"> (</span>[shares](https://en.wikipedia.org/wiki/Share_(finance) "Share (finance)")<span style="white-space: pre-wrap;">); or </span>[derivatives](https://en.wikipedia.org/wiki/Derivative_(finance) "Derivative (finance)")<span style="white-space: pre-wrap;"> (</span>[options](https://en.wikipedia.org/wiki/Option_(finance) "Option (finance)")<span style="white-space: pre-wrap;">, </span>[futures](https://en.wikipedia.org/wiki/Futures_contract "Futures contract")<span style="white-space: pre-wrap;">, </span>[forwards](https://en.wikipedia.org/wiki/Forward_contract "Forward contract")).

##### Financial Supremacy through Information Asymmetry

- If digital paperwork and signing digital contracts somehow translates to profit and actual money in traditional bank accounts, then if someone(s) control the flow and distribution of information and availability of the digital paperwork and signing digital contracts then a few can amass large wealth, hence the inexorable link between information asymmetry and financial power
- <span style="white-space: pre-wrap;"> Hedge fund managers, or massive retirement pension companies as examples, in secretive meetings with state and federal officials ,and more frequently these days with actual heads of states discuss secretive measures or new initiatives or simply insider-trading kinds of information exchange which both sides hugely benefit and even profit from and </span>**yet**<span style="white-space: pre-wrap;"> </span>**the ordinary people intentionally and tyrannically left out in the dark**<span style="white-space: pre-wrap;">! </span>

##### The Secrecy Pipeline in the hands of a few

<span style="white-space: pre-wrap;">Secrecy </span><span style="color: rgb(0, 0, 0);">→</span><span style="white-space: pre-wrap;"> Information Asymmetry </span><span style="color: rgb(0, 0, 0);">→</span><span style="white-space: pre-wrap;"> Financial Supremacy </span><span style="color: rgb(0, 0, 0);">→</span><span style="white-space: pre-wrap;"> Financialization </span><span style="color: rgb(0, 0, 0);">→</span><span style="white-space: pre-wrap;"> Digital Contracts/Instruments </span><span style="color: rgb(0, 0, 0);">→</span><span style="white-space: pre-wrap;"> Tyranny</span>

<p class="callout success"><span style="white-space: pre-wrap;">Take away the Asymmetry and allow for freely accessible information or distributed vast amounts of Secrecy, then the inference to Financial Supremacy becomes quite improbable. In short we, all peoples are doing well! </span></p>

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##### Background

> <span style="white-space: pre-wrap;">Rather than focusing on making products or developing new services, many businesses now generate significant profits through financial activities like </span>**stock buybacks**<span style="white-space: pre-wrap;">, </span>**complex derivatives**<span style="white-space: pre-wrap;">, and other monetary instruments. Nothing better shows this long trend, perhaps, than the rise of </span>**cryptocurrencies**—financial assets whose promise for practical uses is always somehow over the horizon but whose speculative returns can be felt today. \[5\]

##### Financialization in the US

**Total US Financial Assets as a Percentage of Gross Domestic Product (GDP) Since 1960**

<p class="callout danger">This chart tells us that for every $1 there is $4-$5 bogus paper money which has no backing by any asset, nor by any credit based upon the future GDP!</p>

This chart depicts the growth of the financial sector relative to the real economy in the U.S. over time, as measured by the ratio of total financial assets held by U.S. households and businesses to GDP. The increasing ratio over time means the financial sector is growing faster than the real economy, implying that a larger proportion of economic activity is related to the trading and holding of financial assets than the production of goods and services.

[![Screenshot 2026-08-22 at 14.47.07.png](https://wiki.compclassnotes.com/uploads/images/gallery/2026-08/scaled-1680-/screenshot-2026-08-22-at-14-47-07.png)](https://wiki.compclassnotes.com/uploads/images/gallery/2026-08/screenshot-2026-08-22-at-14-47-07.png)

<p class="callout warning"><span style="white-space: pre-wrap;">TODO: Code this chart from actual data source. </span></p>

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<span style="white-space: pre-wrap;">\[1\] </span>[https://en.wikipedia.org/wiki/Financialization](https://en.wikipedia.org/wiki/Financialization)<span style="white-space: pre-wrap;"> </span>

<span style="white-space: pre-wrap;">\[2\] </span>[https://www.forbes.com/councils/forbesfinancecouncil/2020/06/18/information-is-the-new-gold/](https://www.forbes.com/councils/forbesfinancecouncil/2020/06/18/information-is-the-new-gold/)<span style="white-space: pre-wrap;"> </span>

<span style="white-space: pre-wrap;">\[3\] </span>[https://en.wikipedia.org/wiki/Finance\_capitalism](https://en.wikipedia.org/wiki/Finance_capitalism)<span style="white-space: pre-wrap;"> </span>

<span style="white-space: pre-wrap;">\[4\] </span>[https://www.tandfonline.com/doi/full/10.1080/13604813.2013.853865](https://www.tandfonline.com/doi/full/10.1080/13604813.2013.853865)<span style="white-space: pre-wrap;"> </span>

<span style="white-space: pre-wrap;">\[5\] </span>[https://www.investopedia.com/terms/f/financialization.asp](https://www.investopedia.com/terms/f/financialization.asp)<span style="white-space: pre-wrap;"> </span>

<span style="white-space: pre-wrap;">\[6\] </span>[https://en.wikipedia.org/wiki/Financial\_instrument](https://en.wikipedia.org/wiki/Financial_instrument)<span style="white-space: pre-wrap;"> </span>