Analysts: US capitalism on verge of collapse

The declining state of the US economy has convinced a growing number of American analysts that the US capitalist financial system is doomed to disintegrate.

Citing the works of other leading economists such as Jack Bogle and Marc Faber, Market Watch commentator Paul B. Farrell gives 20 reasons, in a recent article, why the “American capitalism has lost its soul” and will.

Farrell points to Faber’s Doom, Boom and Gloom Report and asserts that the economist is warning of the fall of “the entire system of capitalism.”

“The future will be a total disaster, with a collapse of our capitalistic system as we know it today,” Farrell adds, quoting the report. “Get it? The engine driving the great ‘American Economic Empire‘ for 233 years will collapse, a total disaster, a destiny we created.”

He writes that based on Faber’s predictions, capitalism, which has been the driving engine of America and global economies for over two hundred years, will collapse and, consequently, trigger global “wars, massive government-debt defaults, and the impoverishment of large segments of western society.”

He goes on to explain how the Wall Street has “sacked Washington” by examining Bogle’s writings.

Farrell mentions that in “The Battle for the Soul of Capitalism,” Bogle warns of a growing three-part threat or in other words a “happy conspiracy.”

“The business and ethical standards of corporate America, of investment America, and of mutual fund America have been gravely compromised,” writes Farrell citing Bogle’s book.

“But since his book, ‘Wall Street America’ went over to the dark side, got mega-greedy and took control of ‘Washington America.’ Their spoils of war included bailouts, bankruptcies, stimulus, nationalizations and $23.7 trillion new debt off-loaded to the Treasury, Fed and American people.”

Going back to Faber’s work, Farrell argues that it is a historical imperative for “Every successful society” to grow “out of some kind of challenge.”

“Today, the ‘life cycle’ of capitalism is on the decline,” he reiterates.

Farrell believes that, in short, America has turned into a “grumpy old man with hardening of the arteries.” “Our capitalism,” he writes, “is near the tipping point, unprepared for a catastrophe, set up for collapse and rapid decline.”

Among the reasons he offers to back his claims about the failing US economy are that America’s top 1% own more than 90% of America’s wealth, the average worker’s income has declined while the CEO compensations have exploded over ten times, the federal debt has skyrocketed from $11.2 to $23.7 trillion in two years, and that it is the Wall Street wealth that now calls the shots in the US Congress and the White House.

Farrell finally concludes, “American Capitalism is a ‘Lost Soul’ … we’ve lost our moral compass … the coming collapse is the end of an ‘inevitable’ historical cycle stalking all great empires to their graves. Downsize your lifestyle expectations, trust no one; not even the media.”

One Response

  1. Capitalism as a whole was expected to collapse right from last century. Reasons for this are: 1. Concentration of economic powers in a few hands.2. Monopoly market is sold as ;free market; by economists including Noble Laureates who are mostly influenced by capitalists due to obligations for jobs and financing their research works. Free market and capitalism cannot work together any time. They are enemies of each other. If free market is practiced as defined in any economics textbook, capitalism would vanish lock, stock and barrel. 3.Capitalism considers only a part of the economy ie.wage-employment and capitalists, thereby not considering any body outside these two classes of people ,such as, self-employed people or farmers whose number is huge in any capitalist economy. 4. Stock exchanges are gambling casinos and are the epitomes of capitalism. Everything about human progress is based on these casinos’ welfare. State is also a big player of this gambling game everywhere. 5. All the laws are man-made like patents, trademarks, brands, copyrights, limited liability corporations etc., which are aginst Nature’s laws. Laws against Nature are immoral and as such not immortal, says Marx. How true he was. Unfortunately he himself could not implement in his own economic theory. Marxism had collapsed due to one of such contradictions in his theory. 6. As Marx says, surplus value is created by workers but he is paid only a pittance from the value-added and the rest is pocketed by capitalists. He is right. This system can never sustain in long term. 7. State is under the influence of capitalists and industrialists, as such cannot take any decisions without consulting them on each issue. State loses the sight of common man while dealing with all the general issues for good of the human society. 8. Unempoyment and inflation are the results of capitalism, without which capitalism cannot survive.9. Also poverty is the product of capitalism without which capitalism can never survive. 10. Technology and science create abundance of goods in the market which goes against capitalism. Abundance brings depression and loss of jobs. JM Keynes was aware of this effect of abundance; despite this, he came forward to develop and economic system to protect industrialists and capitalists to get over depression. He was saying that his solutions would not be of permanent nature. Economic crisis was seen coming in future times by him. Capitalism was destined to collapse like Mraxian economics. What is then the solution?
    We need a new alternative economic system ensuring jobs for all, alleviation of poverty, disolving theory of distribution totally, retaining full surplus value with creator himself, elimination of interest and inflation totally, true free competition, omnipotent state to ensure economy is free from coercive forces playing mischiefs in deciding prices and supplies of goods coming in the market, a true free market available to all participants of the economy without any restrictions, A totally decentralized economic system to avoid any concentration of economic powers in few hands or with state.
    Can then be an economic theory taking care of all these factors? Will it create a new civilization?

    Yes, it would be a new economic theory creating a new civilization, which is the need of the day. It would be one hundred percent eco-friendly economy. Is it utopia? Has this been theorised by any one in this world? Yes, by an Indian economist Dr. M G Bokare (former vice-chancellor of an Indian university and an well known economist). He presented this new theory to the world in 1993 for debate among worlds’ economists. He named the new economics as Hindu-economics since the basic foundations of this thesis are based on Hindu ethos and way of living by people almost five thousand years ago. In fact, economics was for the first time in the world invented and also defined in Hindu’s religious books of that period. Second edition of this book is now available from http://www.pothi.com
    Marxism has collapsed and now capitalism is on death bed. We the people of this beautiful plabet have no alternative but to look for a third alternative of economic system to save the mankind as well as this planet from destruction. It was always said that ;capitalists would demolish capitalism!. How true is this prediction? Capitalism is on its way out sooner or later. Why wait till then? Why not hasten the process of its death?

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: