Göksel Aşan: There is a financial volume approximately 3 times the total GDP of all countries in the world

Speaking at the 3rd Future of Finance Summit held in Istanbul, Göksel Aşan stated that the summit's theme, the future of finance, is not an easy subject, and expressed that he is not hopeful or optimistic about the future of finance globally.

Aşan noted that although only 15 years—a very short time in human history—have passed since the 2008 financial crisis, the same problems are back on the agenda, and recalled that the question of "is capitalism ending" was being discussed in foreign media at that time.

Noting that there was no reason for capitalism to end at that time, Aşan said, "The elements in Marxist discourse had not materialized. There was no problem on the production side either. The problem was solely and exclusively on the finance side. The reasons for this were different, but a problem originating only from the finance side turned the whole system upside down. It even led to the entire system being debated as to whether it would 'collapse or end'."

Expressing that finance is in a position to direct the actual source called production one way or another, and even to shatter all those production channels along with itself when it is in danger, he added:

"When we consider global developments in general, finance, or what you call money, is essentially something that should accumulate where there is a surplus. Now, if there is a surplus somewhere, finance accumulates there, money accumulates there. By surplus, I mean, of course, the story whose essence is production. If, after a while, more finance or money starts to accumulate in a place than the surplus, this now means the following: that accumulated finance has begun to have the ability to grow itself, independent of the source from which it came. Now, this results in that story we call finance covering the entire system in such a way that it makes nothing, absolutely nothing, under it visible in the new environment we have reached. This is the story we have arrived at today. Today, there is a financial volume approximately 3 times the total GDP of all countries in the world. We are talking about a financial volume that is three times the total of everything that billions of people in all countries have worked and toiled to produce over a year. I will say it again with conviction: this is not sustainable."

"A divergence has emerged between those who produce and those who hold the finance"

Göksel Aşan stated that another threat of finance covering everything is global developments, and said that regional wars are an indicator of this.

Expressing that the world has reached a point where a divergence has emerged between those who produce and those who hold the finance, Aşan stated that this divergence also leads to a conflict within itself.

Pointing out that this divergence is at the core of the tension between the USA and China, Aşan said, "Because America has all the rights to regulate everything related to finance and to determine its standards. Even if Europe is within the system, it is the USA that established the system. On the other side, there is another country that provides the source for the system that the USA regulates, does the accumulation, and accumulates the surplus. This is a very serious element of tension. One of the biggest threats to the world system in the coming period is this."

Aşan stated that there is no such thing as international law, and that international law did not prevent the death of thousands of children in Gaza, adding, "There is not even an international conscience. This situation is actually about the whole system. There is a structure that holds the power in the financial system. This structure is not powerful because it has accumulated more finance. This structure is powerful because it sets the standards. In today's world, this structure openly declares that it does not recognize what is called international law. How can this be sustainable?" he assessed.

Stating that the third major threat is the debt threat, Aşan noted that although there has been a decrease in global debt in the last year, global debt is still high.

"Financial technologies can open a window in terms of solutions to financial threats"

Presidential Finance Office Head Aşan said that as the public sector, they are making regulations and investments that will contribute to and pave the way for the financial sector.

Expressing that the Istanbul Finance Center is a very large project in this sense, Aşan said, "Settlements in the finance center have begun. I think the project will add great value. I have been very hopeful about this project from the beginning, and I have always said this in my speeches. I also said this: 'In 5 years, we will most likely be looking for another place, we won't fit here'."

Aşan stated that he attaches great importance to the field of financial technologies and concluded his words as follows:

"I can say that financial technologies can open a window in terms of solutions to financial threats. Because if the field of financial technologies develops sufficiently, it is a serious threat to the element I mentioned, the one that sets the standards, holds the power, and so on. When financial technologies develop, it will be able to bypass the establishment system and many other channels will begin to emerge. The system may perhaps begin to develop again through a small example elsewhere, outside of that existing large structure. Whether this happens or not, I don't know, but it is a possibility. When this possibility emerges in some way, the system tries to stifle everything it sees as a threat to itself in some way."

News Source: 12punto