Davos: Capitalism must 'reform or die'

[Starry Messenger]

http://mg.co.za/article/2012-01-26-davos-capitalism-must-reform-or-die/?utm_medium=twitter&utm_campaign=DTN+South+Africa:&utm_source=twitterfeed

The fall of capitalism

During talks, leaders of the global business elite were confronted with the fear that the Western model of capitalism had failed and was about to be shoved aside by emerging powers.

Over four decades, the annual World Economic Forum (WEF) in the Swiss ski resort of Davos has become an emblem of the triumphant market but this year delegates admitted that state capitalism on the Chinese model is in the ascendant.

Even political leaders, including German Chancellor Angela Merkel, said it was time for a rethink among European policy-makers.

Four days of public debate and private networking kicked off with a stark warning from a panel of experts that the historic motors of the 20th century global economy will have to reform or die.

I vote "die", but it's interesting to see the 1% policy leaders at Davos starting to sound a little worried. I'd like to think the presence of Occupy WEF at their gates had something to do with that.

[Mojorabbit]

1. I wonder exactly what their definition of the chinese model is.

Not liking the sound of this esp after the article about the working conditions of the employees at foxconn I read a few days ago.

[Starry Messenger]

2. That sounded ominous to me too.

I don't think I'd like most of the plans any of these folks have for the rest of us.

[HughBeaumont]

3. I, for one, would love to see OWEF get in a snowball fight with Maria Bartiromo.

When I'm not jet-setting with Citi execs, I make shilling for the 1% sexy.

[socialist_n_TN]

4. Yeah, I vote die too.........

And that "Chinese state capitalist" model is ominous sounding. But that would make sense from a capitalist perspective.

Imagine banker ruled countries who can install Presidents and Prime Ministers at the behest of a small cadre of political rulers while ignoring the democratic will of the citizenry.

Oh wait, see Greece and Italy.

[Starry Messenger]

5. I get the feeling they don't mean socialism by "reform"...

more like "let's see how much more we can squeeze out of the blighters." Reading reports out of Davos is always fascinating. It's like a dipstick into the collective id of the plutocrats. I've been watching twitter feeds with a search on "capitalism" and it's been quite active: https://twitter.com/search/capitalism

Imagine banker ruled countries who can install Presidents and Prime Ministers at the behest of a small cadre of political rulers while ignoring the democratic will of the citizenry.

Oh wait, see Greece and Italy.

+1 to all that

[Blue_Tires]

7. Yeah, that's how I read those comments, too...

[Starry Messenger]

9. They're always pretty chillingly straightforward at Davos.

It's funny, since it is all public and you can read about it in the papers and no one talks about it much. People are always trying to finger- point at the Freemasons and other shadowy conspiratorial sects that they think secretly rule our lives. But here are all the world leaders in Switzerland once a year, discussing our fates.

[Odin2005]

6. Me three!

[JHB]

8. It was already reformed, then those reforms were systematically rolled back...

I'm not an old guy, and even I remember being taught about how the New Deal (and social democracies in Europe) saved capitalism. Its shortcomings, abuses, and inherent paradoxes had been made clear on a global scale during the depression, and there were real, live Bolsheviks in the world to make the elites sweat over what might come next. The New Deal and other "big government" regimens provided a third way (how ironic is that phrase now?).

Yes, it's pretty ominous that the Davos people are looking to China for the new model. Much of the talk in the article seems to be of the "we had it too good" variety (here "we" meaning average workers in developed nations, not the people who actually are present at these shindigs), and David Rubenstein (director of the Carlyle investment fund) is actively pining for the sort of capitalism that made him a billionaire (financial capitalism, not actually making anything), not treating it as the poison that is causing the crisis in the first place.

For people who are supposed to be "elite", how come none of these smart cookies are wondering aloud just how much longer China can keep doing what it has been without serious internal crack-ups? Before a new crop of people want power and are at odds with the existing power structure. Anyone else remember the historic Tiananmen Square protests? The ruling party made a big show of letting them take place... until it was deemed that they'd gone too far so they rolled in the tanks. Does China reform, or does it do that again on a vastly larger scale?

How many ghost cities can China build before something cracks in a big way?
http://www.businessinsider.com/china-ghost-cities-2011-11

[Starry Messenger]

10. I always wonder that too:

For people who are supposed to be "elite", how come none of these smart cookies are wondering aloud just how much longer China can keep doing what it has been without serious internal crack-ups?

We can see it, why can't they? I guess it's similar to the way royalty never seemed to see things brewing until they were deposed, back in the days of the aristocracy. It's just out of their range of concerns, not a task of their class to worry what the people want/think/feel. Their plans use us, but don't take us into serious account. Until we make their lives difficult...