Debt, Growth and Capitalist Crises

[Workers-Control-Over-Prod]

Since 2008, the capitalist governments have taken on the debt that is necessary to keep up growth, for capitalists to make more money out of money by lending to debtors and demanding interest (rising interest), and are taking on this debt at an amazingly fast pace. $15,738,700,000 is the national debt of the United States, and rising fast with no alternative in sight.

http://www.tradingeconomics.com/chart.png?s=usadebt2gdp&d1=19400101&d2=20120531



It is nearly an inverted map of the GDP growth of the US economy:

http://www.tradingeconomics.com/chart.png?s=gdp%20cqoq&d1=19470101&d2=20120531



There is a noticeable trend of Capitalism: down. The falling growth of the US' Industrial Production, is a definite sign of the validity of the Falling Rate of Profit in the capitalist Production Process as machines replace live exploitable labor, leading to a drastic financialisation of capitalism of the banks that eat away money. It seems that the current crisis situation of the US having a Quarter of its production capability sitting idle, might be a permanent one, depending on if we see a huge destruction of value (large depression) or not, the current crisis situation might become a norm of capitalism. Since ten years the Rate of Profit of the Productionprocess has been below the financial interest, at 2%, making it more profitable for capitalists to invest into banking than into industry, leading to this drastic financialisation of capitalism.

http://www.tradingeconomics.com/chart.png?s=ip%20yoy&d1=19200101&d2=20120531


http://www.tradingeconomics.com/chart.png?s=indu&d1=19280101&d2=20120531

The German car company "Porsche" was called a "Hedgefond with car sale" by the german press, since 90% of its and all corporate profits nowadays are made from financial speculation and banking rather than actual production, since the rate of profit of the production process is so low, far below the financial interest rate.

[Anarcho-Brocialist]

The contradictions of Capital will cause it's own destruction. At some point, Capitalism can destroy itself. You cannot keep on shifting income from labor to Capital without having an excess capacity and a lack of aggregate demand. That's what has happened. We thought that markets worked. They're not working. The firm, to survive, can push labor costs more and more down, but labor costs are someone else's income and consumption. That's why it's a self-destructive process.

[Workers-Control-Over-Prod]

The contradictions of Capital will cause it's own destruction. At some point, Capitalism can destroy itself. You cannot keep on shifting income from labor to Capital without having an excess capacity and a lack of aggregate demand. That's what has happened. We thought that markets worked. They're not working. The firm, to survive, can push labor costs more and more down, but labor costs are someone else's income and consumption. That's why it's a self-destructive process.

Well, certainly this is the case internationally, imperialism has increasingly brought the surplus value of workers of the "southern hemisphere" countries to the northern ones, and this is becoming increasingly global and anarchic. But nationally, failing demand is not "chink in the chain" so to say, in fact, consumption has not gone down in the United States in the last five decades, it has for the mainly working classes, been raising with help of debt. In Europe where austerity is on the forefront, yes, consumption has gone down, but never so much to seriously disrupt the whole process of capital. It is really mainly the increasing falling profitability that capital is not investing into the production process, overproduction is an effect of course of this low rate of profit and stagnating wages. But overall, consumption has not gone done, it has slightly increased even, most likely because of the petty-bourgeois getting a part of the exorbitant profits made since the 70's in the US from stagnating workers real wages. But workers consumption has also not gone down, it has in fact also slightly increased due to slightly better benefits than in the 70's. So underconsumption is not the problem, it's the rate of profit.