Why is capitalism in crisis? C’est la question du jour! Various reasons are given, and in my opinion, all nonsensical. We are led to believe it is the fault of the oligarchs, politicians, governments, opposing ideologies, etc. but capitalism itself is almost flawless. Just obey the laws of capitalism, whatever they may be, and everything will be great. But it is not so simple.

It is very unlikely that capitalism would have developed without the discovery of the New World and the Age of Discovery. One could say and claim that Queen Isabella and King Ferdinand of Spain were the originators of capitalism because they sponsored the Voyage of Christopher Columbus to find sea passage to India. Immense wealth potential was at the disposal of Spain and subsequently other European states, such as Portugal, France, Britain, Holland, Belgium, and much later, Germany, Italy, Japan, and the USA.Many of these countries, if not all, fought amongst themselves for the wealth and spoils of the world.They were called imperialist wars.

With the conquest of most of the world,all the conditions of capitalism were there- immense continents with limitless natural resources of all kinds,easily subjugated populations,cheap labour, slavery, huge monopoly markets for imperial countries’ goods, and a monopoly of money in gold and silver. Most important of all,strong militaries to impose its will, culture ,domination, plunder, and exploitation of its possessions.The colonial countries became very rich.Technologically advanced to enhance exploitation and plunder of the colonies.Capitalism was described as very progressive, dynamic.

The chief modus operandi of capitalism is debt. For the capitalist economy to grow,debt must grow.When US became the strongest country in the world it crowned itself Emperor of the world in 1944 in Bretton Woods,the so called Bretton-Woods Agreement.With it,the dollar became not only the reserve currency of the world,but also official currency of the world.Everything was traded in dollars.Two institutions were created to indebt and enslave the world: the International Monetary Fund and the World Bank.These two agencies indebted the post-colonial world into a new form of slavery.By de-linking the dollar from gold and placing it on oil, the petro dollar,the enticement of the world became more intense. Even the Hungarian “goulash Communism” was based on debt to the IMF and other banks.

Debt cannot grow to the heavens. It has limits.The Universe maybe infinite but the earth is finite.Debt growth is reaching its finite stage.The energy entering the US economic system is decreasing but the energy needed to maintain its internal and external operation is increasing.The US is simply sustaining itself through the reserve status of the dollar.The world is de-dollarizing itself. US economic power is in a precarious position.It is based on three pillars of paper: the dollar,the bond market,and the stock market and all three are based on debt. As debt cannot grow,there cannot be any recovery,despite zero interest,multiple quantitative easing, whether, they be covert or overt. One or all three pillars of paper will buckle and collapse.It will be very interesting…