Can Capitalism be "reset"?

By Daniel Campos 5/1/21 Published in International SOCIALISMO Magazine 3

The Forum World Economic Davos in Switzerland, proposed a plan called "The Great Reset", to exit the tremendous economic, social, political crisis and environmental plaguing to humanity. According to this plan, when the COVID-19 pandemic ends, the world must "reset" or "restart", and restart based on a series of measures.

"The Great Reset" was presented by the Prince of Wales, Carlos, eldest son of Queen Elizabeth II of Great Britain, in 2020 together with magnates such as Bill Gates, and important political leaders such as the President of France Emmanuel Macron, the German President Angela Merkel, Chinese President Xi Jinping, or WHO Director Tedros Adhanom Ghebreyesus, among others. Is it true that the "Great Reset" took humanity out of the crisis? Is it possible to "reset" capitalism?

Prince Charles presents "The Great Reset" at the World Economic Forum in Davos

All the financial and political elite of the capitalist world attended the second official presentation meeting on January 25, 2021 of "The Great Reset". The major publications specialized in world economics and politics such as "Time" magazine have published this proposal on the cover presented by Klauss Schwab, founder and president of the World Economic Forum.

Schwab argues that capitalism can come out of the depression with his plan based on three points: 1) apply reforms to lead to social equality 2) policies to solve climate change 3) take advantage of technological innovations in information technology, biotechnology, and telecommunications to solve the global health crisis

Can capitalism be "reset" ?

The elite gathered in Davos intends to show a strong, solid capitalism, which has had a small "incident" with the Coronavirus pandemic. But pressing a button and giving "restart" will go ahead, and bring global "happiness" . However, the reality of capitalism is not what they claim to present in the eyes of the peoples of the world.

 The prestigious magazine "Time" presents the "Great Reset" on its cover

Capitalism is not strong, nor solid, on the contrary, it is in collapse. Capitalism has existed for 14 years thanks to an artificial respirator called bailouts, which allows it to survive while going through a stage of complete decay and decomposition. In fact, the serious social, economic, environmental, political crisis, and the current global pandemic of the Coronavirus, are the expression of the current collapse that capitalism is experiencing.

The bailuts are a massive injection of money that the central banks of the main countries of the world, deliver to the owners of the Corporations that dominate and control the world economy. Some of these Corporations are JP Morgan Chase, Goldman Sachs, Bank of America, Barclays, Deutsche Bank, BNP Paribas, Credit Suisse, Wells Fargo, etc, among others.

On the other hand, despite what the elite gathered in Davos affirms, capitalism cannot be "restarted". Capitalism is not a machine that is turned off or on like a computer, or any other technical tool. Capitalism is rather the opposite of a machine, it is a social system, a living organism that has a history, and an evolution.

Increasing and accelerating bailouts

The Salvages are the greatest expression of the collapse of capitalism. It is a completely unknown phenomenon by the overwhelming majority of the population: 99% of the world population knows about the Coronavirus, but does not know about the bailouts. And the bailouts are a thousand times more dangerous than the Coronavirus, they kill more people than the pandemic. This is hidden from the peoples by the capitalist governments, their political parties, the social and union leaders that support capitalism.

The reason why the bailouts are hidden is because the people should not know that while they are demanding adjustments, plans for hunger and misery, the capitalist governments give millions of dollars to the aristocracy of the 1% that dominates the world. In addition, they are hidden because the people must not know the real dimension of the depth of the crisis that capitalism is going through.

It is hidden from the peoples of the world that the Corporations went bankrupt en masse between the years 2007/2008. And that from then until the beginning of the pandemic in 2019 they received a total of 30 billion dollars, during 14 years. The majority of the world's population does not know this. And he does not know that capitalism lives with an artificial respirator because capitalism could not survive a minute if the bailouts were suspended.

The title of the painting says: "The greatest salvages in history." You can see the magnitude of the salvages in the last 50 years. You can see the Savings and Loan between 1980 and 1990 and the "effects" or LTCM, in the 90's. The Salvages that begin in 2008 (QE1, QE2 and QE3) were so far the largest in history. 2020 QE4 is equal to all previous salvages put together. Source: Deutsche Bank, and IMF

Bailouts are an irrational immorality, because it means giving millions of dollars to people who live in mansions, have private islands, and travel by private jet. If only part of that money had gone to the villages, hunger would have disappeared, the Coronavirus pandemic would never have occurred, and we would not live under the threat of climate change.

But the delivery of "cheap" and "easy" money to the global aristocracy is not only a tremendous injustice that aggravates social inequalities minute by minute, but has also become a permanent, accelerated, vertiginous maneuver that shows that capitalism is in the midst of a serious collapse

In 14 months more Bailouts than in 14 years

In the last 14 months, the capitalist governments of the world have injected more bailouts than in the last 14 years. This speaks to the clear of the vertiginous convulsive, and accelerated dimension that the world crisis of capitalism is reaching. The Central Bank of the United States, called the Federal Reserve (Fed) injected for 14 years between 2007 and 2019, a total of 4.5 trillion dollars.

But since the pandemic broke out in December 2019 until today, the Fed injected three bailouts: One in March 2020 under Donald Trump of 2.1 trillion, another of 0.9 trillion when Joe Biden won the elections in December 2020, and a third of 1.9 billion in March 2021, already with Biden assumed president of the United States.

For the purposes of a better political understanding of the phenomenon, we call this entire set of Bailouts operations produced between 2019 to today, QE4, (1) which adds up to 4.9 billion dollars, which is a figure higher than what was injected in the previous 14 years. If we add the 4.9 trillion of QE4, to the 4.5 trillion injected since the years 2007/2008, it all adds up to the immense sum of 9 trillion dollars.

And if we add to all this what was injected by the central banks of England, Japan, Canada, the European Central Bank, China, Switzerland, etc., which follow in the footsteps of the Fed, the joint action of the main central banks of the world it is bringing the total money injected since the acute peak of the crisis in 2007/2008 to around $ 60 trillion.

Some economists, political and social leaders claim that capitalism had a crisis in 2007/2008 when Lehman Brothers went bankrupt.

Then he recovered and 14 years later he "relapsed" again due to the outbreak of the Coronavirus pandemic. This is false. The crisis of 2007/2008 and the current one are the same crisis. Capitalism never emerged from this crisis. The best expression that the crisis of the years 200/2008 and that of today are the same, is the fact that the Salvages have not stopped developing in these 14 years.

The capitalist governments of the world unite to sustain capitalism

All capitalist governments contribute to the bailouts to the Corporations and to the support of capitalism. No government is outside of these plans, even if they want us to believe otherwise. Along with the governments of the United States, France, Germany, Japan, and Canada, there are also the governments of China or Russia, which carry out bailouts, participating in the daily rescue of capitalism.

For those who believe that the US is facing China or Russia, or the latter against world imperialism, the reality of the bailouts, and the daily rescue of capitalism, shows that this is false. In fact Xi-Jinping, China's top leader, who is supposedly at "war" with the United States, was part of the launch of the "Great Reset" in Davos.

Putin's governments in Russia, or Iran also contribute to the maintenance of capitalism when they pay external debts to the IMF like all capitalist governments in the world. Even those capitalist governments that present themselves as "left" or "progressive" such as those of López Obrador and Morena in Mexico, Fernández in Argentina, Maduro in Venezuela, or Díaz Canel in Cuba, contribute to the rescue of the Corporations.

They do so by promoting the investments of multinationals in their countries, or by contributing dollars when they pay external debts to the IMF. This agreement of all the capitalist governments of the world to support capitalism is what explains the silence about the Salvages and the hiding of them from the masses, from all the governments and leaders of the political and social leaders of the world.

Klauss Schwab founder of the Davos Economic Forum and Xi Jinping, top leader of the Communist Party of China jointly expose the "Great Reset"

Only Marxists denounce the bailouts. How much money are we talking about when we talk about $ 60 trillion? The first thing is to understand that it is one thing to speak of millions and another of billions. An ordinary citizen can barely understand what millions are because we hear it constantly when, for example, we talk about the transfer of athletes or soccer players, or when we talk about debts of countries.

But billions is an impossible amount to understand by our everyday standards. Just $ 1 trillion equates to a football stadium completely covered in 2-meter-high by 2-meter-wide boxes filled with dollars.

We not only denounce that capitalism needs this permanent injection of money to survive. We denounce that it is an immorality that such amounts of money go to the pockets of the richest, while millions die of hunger, which demonstrates the irrational nature of capitalism. But in addition, the Salvages far from solving the crisis, is aggravating it.

That is why the 60 billion dollars injected into bailouts, cannot avoid these bankruptcies, in fact Chinese technology companies fell, pushing the Archeos Capital fund into the crisis and hitting large corporations such as Goldman Sachs, (USA), Morgan Stanley (USA), Credit Suisse (Switzerland) and Nomura (Japan).

Xi Jinping top leader of China, Charles Michel president of the European Council, Angela Merkel top leader of Germany, Emmanuel Macron top leader of France, and Ursula von der Leyen, president of the European Commission presenting "The Great Reset" in Davos

Wall Street is bankrupt. All the multinationals, corporations and companies that dominate the world economy are bankrupt. All capitalist countries are bankrupt. And all the banks in the world are bankrupt. It never happened that all global capitalism in unison is bankrupt. It is a unique show in history. We are experiencing a true collapse of capitalism.

The lies of the "Reset"

According to Schwab, some of the measures to end inequality is to tax wealth, and create new metrics to measure economic development. That is, abandon the old parameters such as GDP and replace them with "well-being metrics", or the "happy planet index".

Do the "reset" theorists want us to believe that we can have a "happy planet" by taxing Wall Street, and that in this way they can "humanize" capitalism?

Will the "Big Reset" be right when he proposes the 2030 Agenda to solve the environmental crisis? Will multinationals stop cutting down trees, poisoning rivers and seas, and sending pollution into the atmosphere from the "Big Reset"? All over the world the rich take over vaccines, beds and medical care, while for millions there are no resources, no supplies, and no vaccines. Is it true that the "Great Reset" will solve this using technological innovation?

As if it were a joke in bad taste, billionaire Bill Gates announced at the Davos World Forum that he is going to change the way he travels: "Air travel is going to be cut by more than half in the next few years. Airplanes pollute a lot". We must be infinitely grateful to Bill Gates. He will sacrifice his private jet travel in pursuit of the global environment. How much generosity of the millionaires who rule the world!

Capitalism must not be "reset" but abolished

Could it be that the English monarchy, the great North American corporations, and the great magnates of the world will give us a just and equitable capitalism? We cannot trust a word of what these people say. These "Reset" issues are all quackery that cannot fool anyone. How can we believe the sayings of these millionaires who gather on the ski slopes of Davos in Switzerland, and promise us "a happy planet" through a tax, or when they stop traveling by plane? They sound like a perverse joke, in the midst of the appalling, global tragedy that billions of human beings suffer under capitalism.

The "reset" approach is designed to lie to the peoples of the world and make us believe that at the touch of a button it makes a happy new beginning for the world, the poorest and the environment. But it is not about "resetting" capitalism, but about abolishing it. There are no reformist ways out of a dying social system.

The crisis we are experiencing is historical, epochal, civilizing, and the solution will not come from summits of millionaires in exclusive places that only the elite have access to. The solution comes from the hand of the millions who are mobilizing against capitalism, the poorest and most oppressed, workers, peasants, women, indigenous peoples, who are fighting against capitalism, all over the world.

Marxists propose to put an end to capitalism once and for all, relying on the immense workers and popular mobilization that is sweeping the world. Grouping the revolutionaries of the world who want to end capitalism. This is how we can move forward by uniting the revolutions that have put capitalism in collapse, in order to put an end to it.

This is the only serious way out, in the face of so much chatter from the "reseters" of the Davos Economic Forum. This elite desperately watches as the system that fills them with privileges, collapses without remedy. Millions no longer believe them, nor are they willing to tolerate their privileges. Equality and equity is only possible by imposing Global Socialism, ending once with the monarchies, the military, and the capitalist magnates.


(1) To read "QE4 will not bring capitalism out of collapse" click on "Read"  

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