Bailouts will have to be doubled in 2021 to prevent the outbreak of capitalism

By Daniel Campos. Published in International SOCIALISM Magazine 2 December 2020

For 13 years now, capitalism has lived thanks to an artificial respirator that is the central banks. In June 2007 the bankruptcies of the Multinationals and Corporations of the United States, Europe, Japan and China began, as a sharp peak of a crisis that began in 2000. All the Global Corporations were kept alive thanks to the money injected by the banks. imperialist states, around US $ 30 billion in Salvage operations that were called QE1 (2009), QE2 (2011), and QE3 (2012).

The QE, far from solving the crisis, aggravated it.At the end of 2019, capitalism collapsed, money disappeared and stopped circulating on Wall Street. The Salvages had to expand more aggressively, and another round called QE4 began. But even so, the world capitalist economy headed for depression, while the rates of poverty, misery, unemployment and pandemics skyrocketed. The Salvages made the aristocracy of the 1% that dominates the world richer, and only made inequality grow, because the rest of humanity sinks into poverty.

The capitalist governments of the world lie saying that the crisis is the product of Covid-19. This is false, and in reality, it is exactly the opposite: The pandemic is a symptom and product of the crisis of capitalism. When billions of people suffer poverty and misery, living conditions of brutal marginalization, famine, lack of hygiene and destruction of nature, the most logical thing is that pandemics flourish, as an expression of the crisis. It has always been this way throughout history, and today Covid-19 is a result and shows that the capitalist mode of production is suffering a collapse.

Why do the Savages fail?


During 2020 with QE4, the central banks of the United States, Europe, Japan and China injected almost 10 trillion US $, which is equivalent to 30% of all the Salvages that were made in the previous 12 years. But the prospect of capitalism is bleak: The fall into depression will imply the destruction of millions of jobs, entire branches of production, commerce and finance, millions of unemployed, and an unprecedented worsening of world hunger and poverty. 

Bankers already anticipate that the amount of money needed to prevent the global outbreak of the capitalist system in 2021 will have to be double that injected in 2020. This is what the banker Michael Hartnett of Bank of America (BofA) expressed in his latest report. The prospect of the crisis that capitalism will face in 2021 is so serious that even with all that heap of money that they propose to inject, they will not be able to avoid capitalism's course towards depression. 

Common sense indicates that if the central bank "gifts money" to JP Morgan Chase, Goldman Sachs, Bank of America, and the global corporations that dominate the world capitalist economy, the problem should be solved. Thus reason capitalist economists and vulgar Marxists. However, all these "professors" are permanently wrong, wrong their forecasts, and not once. And the reason is very simple: All these "specialists" believe that the economy floats above social classes and the class struggle.

However, all economic phenomena are part of the class struggle. When central banks bail out Wall Street, they are putting billions of dollars in the hands of a decaying, corrupt social class. The aristocracy of the richest 1% in the world is a herd of parasites, speculators, and professional con artists. What are these white-collar criminals doing with all that mountain of money that are the Wildlings? 

They go out to obtain profits at any cost, and they look for all the weak points of the branches of production, industry, commerce and finance, to achieve it at any cost. If a country is short of reserves, they attack its currency to force devaluations, and thus liquidate the salaries of retirees, teachers and doctors. If a company is weak, they attack it, dismember it and fire hundreds of workers, to take over that branch of production. 

If a government cannot pay its debts, they lend it money at usurious rates, taking every last penny from it, pushing the country into bankruptcy. They attack competing companies and corporations, and speculate with financial maneuvers with the fall of the shares and the fall of the production. They evade taxes, promote tax havens, benefit from criminal activities such as human trafficking, drug trafficking, arms trafficking, smuggling, etc. 

This causes a real disaster in capitalism, which is increasingly becoming a rotten, corrupt and decaying system. This is the explanation why all QEs have failed. The bourgeoisie and the vulgar Marxists fail to understand it, because the capitalists themselves are incapable of understanding into what abyss of decadence the social class to which they belong is sinking. And on the other hand, the proposals of the vulgar Stalinists and Marxists who spread the idea that there is a "progressive entrepreneurship", come face to face with the reality that this does not exist, because the bourgeoisie can no longer fulfill in historical terms any progressive role, which is evident in its moral and political decomposition. 


  On the chart: The monstrous Federal Reserve bubble is now out of control

QE4 will not succeed in bringing capitalism out of collapse 

In Capital, Marx called this social class: " A new financial aristocracy, a new species of parasites, in the form of promoters, speculators ... A whole system of frauds and scams . " This is what the vulgar capitalist and Marxist economists do not understand. Putting these trillions of dollars in the hands of this decadent and parasitic social class is like putting " weapons of mass destruction" in the hands of ISIS: The more money they receive, the more destruction they cause in capitalism.

The over-accumulation in a few hands of 1% of aristocrats of enormous masses of capital, generate all these risky speculative plays that develop the so-called speculative "bubbles" . When the bubbles burst, acute crises are opened from which the weakest, the most humble and the most vulnerable always get hit. Examples of these bursts are the explosion of the "dot.com" bubble in 2000 that started the world crisis of capitalism, and the burst of the "subprime" bubble of 2007, which started the Salvages .

But now, and as a product of the masses of Salvatajes capital injected over 13 years, monstrous speculative bubbles have been created in almost all the assets, branches, and industries of the world. The "mother of all bubbles" is the Chinese bubble, which has reached a magnitude of around US $ 53 trillion, exceeding in quantity all the bailouts implemented in the imperialist countries. Financier Jared Dillian explains it like this: "... In 2000, we had the dot-com bubble. In 2007 we had the housing bubble ... In 2017, we had the everything bubble ..." (Capital Bolsa 6/29/17 ). The danger of a new explosion and outbreak of capitalism grows minute by minute.

With the triumph of Joe Biden in the United States elections, this perspective will not change. On the contrary, the Democratic Party is a faithful ally and friend of Wall Street. When Biden's triumph was confirmed, Wall Street exploded with joy, and all stocks went up in anticipation that more billions and billions will rain into their coffers. The appointment of Janet Yellen as Secretary of the Treasury (Finance Minister) in the Biden Administration is a guarantee of easier money for Wall Street. Yelen was president of the Fed during the Obama Administration, and under his mandate the policy of Salvages was endorsed. His appointment is a clear signal to the aristocrats of the 1% that the imperialist states will continue to favor them, at any cost. All the money that the Biden Administration, the central banks of the US, England, Europe,

But also those Salvages, as they have done so far, will exacerbate the revolutions, uprisings, and insurrections that the peoples of the world have been leading against capitalism. Capitalist economists and vulgar Marxists do not understand that the class struggle is a fundamental economic actor, that these insurrections put a limit on the capitalists' desires for higher profits and increased exploitation. 

We are privileged protagonists of the most important political and social events in history, which will allow us to transform the collapse of capitalism into a global struggle to impose Socialism. A struggle that has already begun, and that the Savages and disasters that the capitalist governments are preparing, will only affirm and strengthen.


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