Sunday, July 03, 2016

Brexit & The Crisis Of Capitalism
"Brexit is a symptom of the crisis of capitalism. The current global version of Capitalism is characterized by these overlapping dynamics:
1. Replacing stagnant real growth and income with debt.
2. Replacing investment in real-world productivity with speculation.
3. Replacing 'everyone must have skin in the game' free-market capitalism withprotected, privileged Elites crony capitalism in which the few benefit at the expense of the many.
4. Replacing local, decentralized democracy and ownership with central planning.
5. Using 'extend and pretend' financial trickery to mask insolvency, impaired assets/ collateral and non-performing loans rather than address the debt overhang directly via write-downs and liquidations of impaired assets.
If you collapse these extractive, debt-dependent crony-capitalist cartels, you collapse the entire status quo. All the finance, debt-dependent production and consumption, pensions, insurance and tax revenues that the majority depend on for their income implode once you take away the cartel's monopoly pricing. Reforming the system implodes the system. This is why Brexit has limited scope to fix the structural causes of Crisis of Capitalism."
- Charles Hugh Smith*
link here to the essay

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