Forced Capitalization

Frédéric Lordon bashes the current pension reform in France in the right direction (not the age of retirement): the reform is about draining the necessity of the public towards financialization — just in the midst of a financial crisis. The details in “Le point de fusion des retraites” (La Pompe à Phynance, October 23 2010). A little, translated quote:

“Here is a pension system that everybody is going to love. One cannot emphasize enough the epochal fit of the French reform. It is about organizing a purposeful attrition of the contributory pension scheme (whereas pretending to save it) in order to better redirect payers towards private capitalization pension schemes. In order words, it is about creating artificially the problem (of the public sector) in order to better demonstrate the turn-key solution (of the private sector), and introduce all kinds of incentives for a silent, perfect, long term substitution which will lead surely to a substantial increase of pension financing through the markets — precisely when market finance has demonstrated, with great fanfare, how far it can go in the destruction of value. This shows enough of the depth of the ideological blindness of the government or, perhaps, of its level of submission to the financial services industry.” (Frédéric Lordon, “Le point de fusion des retraites”, La Pompe à Phynance, October 23 2010.)

And for a hint on the promising business of Sarkozy’s close friends in the pension business, see “Guillaume Sarkozy, futur bénéficiaire de la réforme des retraites?”, Nouvel Obs, October 14 2010). Who said that the anthropology of kinship was useless for the study of global finance?


  1. Mirabo

    “France doesn’t need any reforms : il needs a revolution” (G. Mordillat)




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