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.”