Is Global Capitalism Headed For A Bust?

By Kumar David -April 27, 2014 

Dr. Kumar David

The short-termists and long-termists profoundly disagree: Is global capitalism headed for a bust?

Advanced nations stuck in the slow lane

This piece is not about my Marxist inclinations; it is about what market watchers and serious bourgeois economists are saying; that is to say it is about divergences within the world of bourgeois stock-market, financial and economic discourse. I will add one remark as a Marxist, as a preface, and move on. I think the pessimists are right, not only for their own reasons but also because the natural evolution of capitalism has brought it to a point of profound instability by virtue of its own natural dynamics. Now back to my role of honest umpire.

What market watchers say is: “Look at equities worldwide, look at house prices (in the US), look at unemployment (moderately flat in the US and not skyrocketing any more in Europe), look at the revival of consumer confidence in the US, and where’s the inflation that the Casandras predicted’.  It’s a fair short-term case; if you simply do straight-line projections of these trends the world looks good; buy stocks, invest in property, shun gold, laugh at rigid New Zealand and trust capitalism; all is well, we live in the best of all possible worlds”.                                                                            Read More