Capitalism Is Broke

[DemocratSinceBirth]

Marx was right. Maybe this is the Cliff Notes version but Marx wrote that capitalism was characterized by a series of booms and busts with each bust worse than the one that preceded it. This is the worst economy in eighty years. I would not be surprised if unemployment goes back over ten percent.

I don't blame President Obama. I don't even blame the Republicants. It's the nature of capitalism.

Joseph Schumpeter called this series of booms and busts "creative destruction". He opined that old industries and technologies would be destroyed and replaced by more efficient , read profitable, industries and technologies. I see a lot of destruction of people's jobs homes, and lives but I don't see them being replaced.

It's just sad...

[dbonds]

1. Capitalism is not viable long term.

If there isn't a heavy regulation force, it will always end up with one small group holding all the funds - just like the game monopoly.

[fivepennies]

2. We had one shot at fixing it.

President Kennedy's Executive Order (E.O.) 11110 modified the pre-existing Executive Order 10289 issued by U.S. President Harry S. Truman in 1951,<1> and stated the following<2>:

"The Secretary of the Treasury is hereby designated and empowered to perform the following-described functions of the President without the approval, ratification, or other action of the President..."
The order then lists tasks (a) through (h) which the Secretary may now do without instruction from the President. None of the powers assigned to the Treasury in E.O. 10289 relate to money or to monetary policy. Kennedy's E.O. 11110 then instructs that:

SECTION 1. Executive Order No. 10289 of September 9, 1951, as amended, is hereby further amended (a) By adding at the end of paragraph 1 thereof the following subparagraph (j):
'(j) The authority vested in the President by paragraph (b) of section 43 of the Act of May 12, 1933, as amended (31 U.S.C. 821(b)), to issue silver certificates against any silver bullion, silver, or standard silver dollars in the Treasury not then held for redemption of an outstanding silver certificates, to prescribe the denominations of such silver certificates, and to coin standard silver dollars and subsidiary silver currency for their redemption,' and (b) By revoking subparagraphs (b) and (c) of paragraph 2 thereof.

SECTION 2. The amendments made by this Order shall not affect any act done, or any right accruing or accrued or any suit or proceeding had or commenced in any civil or criminal cause prior to the date of this Order but all such liabilities shall continue and may be enforced as if said amendments had not been made.

John F. Kennedy, THE WHITE HOUSE, June 4, 1963.

RevocationE.O. 11110 was never reversed by President Lyndon B. Johnson and remained on the books until President Ronald Reagan issued Executive Order 12608 on September 9, 1987 as part of a general clean-up of executive orders. E.O. 12608 specifically revoked the sections added by E.O. 11110 which effectively revoked the entire Order. By this time, however, the remaining legislative authority behind E.O. 11110 had been repealed by Congress when Pub.L. 97-258 was passed in 1982.

In March 1964, Secretary of the Treasury C. Douglas Dillon halted redemption of silver certificates for silver dollars. In the 1970s, large numbers of the remaining silver dollars in the mint vaults were sold to the collecting public for collector value. All redemption in silver ceased on June 24, 1968.

[SOS]

3. State monopoly capitalism is the final stage of this system

It is unsustainable.
The next collapse will be awesome in it's scope and fury.