Recent dynamics of capitalism

Recent dynamics of capitalism

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  How we cameto the Debt Crisis or the RECENT DYNAMICS OF CAPITALISM Analytical Skeleton In 4 pages and 20 paragraphs A brief report by an observer from another planet [email protected]
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  Recent Dynamics ofCapitalism 1. The System needs to grow and acummulate… Acummulate and grow... 2. The «engine» and «carrot» of the System => search for PROFIT ... 3. The accelerator + break + gear box => the RATE of profit ... It just so happens that there is no driver and, with the evolution of time the RATE of profit does go up, stagnates and declines... 4. Meanwhile … the AMOUNT of profit is split between: RENTS, payable to «landlords» INTERESTS, payable to «banks» TAXES, payable to «sovereigns» 5. When the RATE of profit stagnates and begins to fall… the system needs to find outlets for potential surpluses, originating its conversion into financial surpluses Guilherme da Fonseca-Statter
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  Recent Dynamics ofCapitalism 6. When the RATE of profit begins to fall, and in order to keep the AMOUNT of profits unscathed, owners of Capital seek to reduce transfers to «landlords», «banks» and «sovereigns» ( the State ) 7. As owners of Capital mingle easily with «landlords» and «banks», the «costs» of that «reduction» fall upon the « Res Publica» 8. From that resulted a demand for lower corporate and income taxes applicable to owners and agents of Capital, with the resulting fiscal competition amongst State-nations. 9. Meanwhile… the agents of capital seek and achieve an adequate «updating» of international accounting and audting norms, namely Guilherme da Fonseca-Statter
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  Recent Dynamics ofCapitalism 10. Flexibility in the norms and legal framework of auditing 11. Liberalizaion of financial capital movements (the «Bigger Bang» and the «Euromarkets» originating in the City of London). 12. Meanwhile… From gains in productivity results «compression of wages» and «systemic unemployment»... hence, reduction in purchasing power ... 13. With a system reduction in the purchasing power comes the need for a system wide facilitation of access to CREDIT 14. Double BIFURCATION in the Rates of Interest By Entities Central Banks By Destination of Credit Commercial Banks Investment Consumption Guilherme da Fonseca-Statter
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  Recent Dynamics ofCapitalism 15. Abolition of Usury Laws (no limits to interest rates...) 16. Exponential growth of consumer credit and private debt 17. Reduction in corporate tax rates = > growth of public debt 18. Inoperability of reduction in interest rates with a view to non-financial investments «You can not push a cart with a rope» 19. In the Eurozone commercial banks take advantage of extremely low interest rates from ECB, in order to «finance» public debts ... 20. From all these the normal outcome would be «recessive spiral and propensity to instability, chaos and war»... Guilherme da Fonseca-Statter