Posted on 05/15/2009 9:13:09 AM PDT by TigerLikesRooster
Dr. Doom: Capitalism Could Fail Like Communism
Economy (Global)By: CNBC.com | 15 May 2009 | 08:33 AM ET
A sustainable recovery will occur only when the corporate system will be cleaned of losses and capitalism risks collapsing if this does not happen, Marc Faber, the author of "The Gloom, Boom & Doom Report," told CNBC Friday.
The central banks will continue to print money at full speed, but long-term this strategy will lead to a fall in purchasing power and living standards, especially in developed countries, Faber said.
>> Watch Faber's full interview here <<
The years 2006 and 2007 were "the peak of prosperity" and the world economy is not likely to return soon to that level, he added.
"I think the final low in markets will occur when the system is cleaned out," Faber said.
Unless the system is cleaned out of losses, "the way communism collapsed, capitalism will collapse," according to Faber. "The best way to deal with any economic problem is to let the market work it through."
US Will Go Bust
The Federal Reserve's policy of printing money is destabilizing the markets and creating "enormous volatility" said Faber, who in his latest "Gloom, Boom & Doom Report" wrote that it was money printing that had pushed stock prices up.
(Excerpt) Read more at cnbc.com ...
I predict that another of Dr. Doom’s predictions will fail.
Since we're propping failed businesses up, it ain't capitalism. Obamanism will certainly fail though.
What we have today would in no way be considered capitalism, it is becoming more akin to fascism where the gov’t allows private enterprise but tells the companies what to produce.
We are going from crony capitalism where the ‘connected’ get the benefit of gov’t largess, to envirofascism, where the ‘green’ crowd dictates winners through cap and trade, enriching the Al Gore’s of the world at the expense of the taxpayer and common man.
Mr. Obama is certainly doing his best to contribute to this possibility.
What capitalism? What’s failing is some sort of hybrid socialist-facist system.
Looks like the New World Order plan is working pretty well.
Bush and Obama make a great team.
Basil Exposition: Austin, the Cold War is over!
Austin Powers: Finally those capitalist pigs will pay for their crimes, eh? Eh comrades? Eh?
Basil Exposition: Austin... we won.
Austin Powers: Oh, smashing, groovy, yay capitalism!
The people/institutions receiving the freshly printed dollars are not capitalists. The proper term would be “debtists” or “creditists”.
There is a good article by Murray Rothbard on the von Mises site pointing out that the capitalist system and the debtist system grew up side by side. One has been enormously beneficial, and the other had done enormous harm.
The “business cycle” is really a banking/credit phenomenon. Business and capitalism don’t cause such things, but are often blamed for them. The present case is crystal clear: the problems come from the debt system, and are overflowing into the capitalist system.
Since the debtist system contols currency, it can grow in magnitude to the point where it dwarfs the capitalist/wealth based system. Periodically debtism is deflated (as presently), and it returns to its proper size. When that happens, the capitalist system (although wounded) is larger than the debtist system.
John
We are going from crony capitalism where the ‘connected’ get the benefit of gov’t largess, to envirofascism, where the ‘green’ crowd dictates winners through cap and trade, enriching the Al Gore’s of the world at the expense of the taxpayer and common man.
This needs to be repeated, and repeated, and repeated again. We are not living in a capitalist economy. At best, it's a "mixed" economy. With extremely rare exceptions, the problems we are experiencing have their origin in governmental intervention into private commerce, not the "depredations" of "irresponsible businessmen" or whatever.
The transition from a mixed economy to an overtly fascist one is not a cliff, it's a gradual slope, one that we are now rolling downward with significant momentum now.
(I'd also mildly point out that if the leftists/statists want to make corporations the "bad guys" of this piece, they should probably note that corporations are creations of GOVERNMENT.
The main purpose of the corporation is to use governmental power to shield the individual owners from the otherwise unlimited liability (read: responsibility) for their actions as a company. This is not entirely a bad thing, but like all governmental actions, can be easily abused.)
It’s just a different group of connected people who gobble up the wealth. But we all agree teh connected should be the ones who benefit, so there you go.
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