A very short presentation on the recent dynamics of capitalism... As if reported to another planet...

1. How we came to 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
guilherme.statter@gmail.com

2. Recent Dynamics of Capitalism
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

3. Recent Dynamics of Capitalism
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

4. Recent Dynamics of Capitalism
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

5. Recent Dynamics of Capitalism
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