No way out for capitalism.
Spain, for example. The financial liabilities of the economy are a whopping US$ 1,300 Billion —11 times the annual GDP— of which nearly US$ 700 Billion lie in banks, in deposits or securities other than shares (bonds, bills), while the drainage of Spanish bank funds overseas goes about US$ 200,000 Million per year, and accelerating. That represents technically the bankrupt of their financial system. But what we’re seeing is not an aberration of capitalism, but the capitalist system in full gear and killing the very same body in which it preys, which is the world. Nothing new —it used to do always the same, but in countries far from our sight, in Africa or South America—. But now the capitalism con is going global.
The real economy of goods and services in the whole world —global GDP— is around US$ 65 Trillion a year, while OTC derivatives values of equities, and currencies are totaling US$ 1,650 Trillion —in a decade!. If those US$ 1,650 Trillion would reclaim a profitability of only 5% that would represent US$ 82.5 Trillion a year. That is, it would take 1.27 times the global GDP to pay interest on the money created through speculation. As that is not possible, capitalism creates new money each year to pay the interest of previously created money. That is what is called a “Ponzi scheme.” And like any Ponzi scheme (Lehmann Brothers, Madoff, Bankia), when it’s discovered, it bankrupts all the holders of speculative securities, which are worthless. Then nobody would accept paper in exchange of interest, and what they would want is the return of their investment. But that money has never existed. It was created from scratch using real properties around the world as collateral, which are themselves real worth US$ 1,650 Trillion.
As we have already discussed above very clear and technically enough —so the minds of the readers could start rolling—, let’s consider the consequences, from now, of this crisis affecting the very foundation of capitalism: The inhuman money created from nothing —remember: US$ 1,650 Trillion— in vain could try to speculate with food because this market represents a small fraction of world GDP, and there is too much money in search of profitability. Neither can be the raw materials. Oil accounts for only 470 billion a year, in total value: extraction and sale at market price. Invented capital can not even buy entire countries to exploit them, because capitalists can’t do anything useful. Just speculate … Perhaps the most famous and world’s wilder speculator is the Chairman and CEO of Goldman Sachs Group, Lloyd Blankfein. That man, able to sink states and mash a great deal of money every day, would be perfectly useless if left alone on a deserted island, or in command of a patrol in a war front, or farming an acre of land to support his family. He can’t do anything else than creating sophisticated instruments of plunder to cheat his customers. And like him, there are hundreds of thousands of speculators who make their fortunes fussing and scamming their peers.
What it all obviously means? As the result of this bustle of usurers, the money they get has no value. For two reasons: because they can not eat it … and because the amount of money fabricated is so huge that —once is known— nobody would want it. I do not mean —let’s be clear— the US$ 1,650 (or its equivalent by any exchange mean) you get as employee, which can be always exchanged for food, shelter, education, medicine or leisure, but the US$ 1,650 Trillion that have nothing to buy, as there is nothing on earth worth that much. That money is only useful to inflate bubbles, to make more paper-money, and to satisfy the ego of sinister short-dick-men as Blankfein. Or Eike Batista —a clear example of above argumentation—. Last year Brazilian mining tycoon and seventh richest man on the planet Eike Batista had a total wealth of US$ 34 billion. But the 56-year-old, who bankrolled the bid to bring the 2016 Olympics to his home country, has gone from top of the pile to number 100 on the Forbes rich list after losing US$ 33 billion over 16 months. Would you think this would be possible with real money?
Derailing – Dugutigui on a fragment by http://acratas.net/