This is a translation of 임종이 임박한 자본주의 세계체제 : 통화 무한살포, 인플레이션, 노동계급. After AI’s translation, we proofread it. There might be errors. All comments are welcome.
Capitalist World System close to death
: Endless Currency Distribution, Inflation and Working class
A graph showing the increase in the monetary volume of the Federal Bank of the United States from 1959 to August 2021
The most famous precedent for the U.S. Federal Bank to spread currency on a formidable scale was the 2008 “financial crisis.” At that time, most economic news began with unfamiliar words such as “quantitative easing” and “bail out.” The 2008 economic crisis, triggered by the “subprime mortgage” crisis and hit the U.S. economy, even led to the acceptance of the “capitalist bankruptcy theory” as if it were a fait accompli. The wave shook the world for years. In particular, the epicenter of the wave, the United States, has been suffering greatly for a while. The Occupy Wall Street Movement was a symbolic event of the body aches.
However, this graph makes the formidable increase in currency over the years since 2008 seem insignificant. Look at the elevation of the right end angle!
The U.S. dollar poured out after the stock price crash in March 2020
Around mid-March 2020, there was a "stock price plunge" in which stock prices fell 1/3 in just a month. Then the unemployment rate soared nearly five times in two months from 3.5% in February to 14.8% in April. Surprised by that, the Federal Bank immediately began pouring a formidable amount of currency into the market. This graph shows how much money has been poured into the market since then. (See 2020년 12월 한국과 미국 주식 역대 최고가 경신 의미에 대하여 the meaning of breaking the highest price in the history of Korean and US stocks in December 2020)
Looking at the graph, the line at the edge of 4,000 (unit=$1 billion) in March 2020 rises vertically. Thus, only two months later, in May 2020, it quadrupled to 16,000. Since then, the currency distribution has continued, reaching nearly 20,000 (×1 billion = 20 trillion dollars) in August 2021, the statistical point.
The reason why vertical inflation did not occur immediately in the United States
The overuse of the currency inevitably leads to a decline in the ‘value’ of the currency. In other words, “inflation occurs, the ‘price’ of real assets rises, and the purchasing power of currency decreases.” However, although there was inflation, it has been not vertical inflation of a huge scale like that graph. In particular, the United States, the main player in currency distribution, did not. So even nonsense is prevalent, saying, “Just because the currency increases, inflation may not necessarily occur.”
If the soaring U.S. dollar stays only in the U.S. economy, the inflation effect will immediately emerge, with an almost one-on-one response to the increase in currency volume and the depreciation of the currency. However, the United States is the top predator at the peak of world capitalism. The U.S. dollar is a compulsory means of exchange imposed on global market participants with its military power, so-called “key currency.” (See 비트코인 단상 2018년 1월 6일 On the Bitcoin podium). That’s why the soaring U.S. dollar does not stay in the U.S. alone. Through the political and military domination established by the United States, it quickly escapes to the world where its stable collection is secured. Mainly in the hands of financial capitalists, US dollars are exchanged for real assets in those countries. In other words, due to low interest rates and explosive currency growth, the value falls day by day and inevitably throws in the U.S. dollar to buy the local real goods at a bargain price. As a result, inflation does not remain only in the United States. It is exported and becomes a global phenomenon.
In other words, even if heavy rain suddenly falls, high areas do not immediately suffer floods. This is because the water first flows to a low area and raises the water level there first. On the other hand, in low areas, even if there was no heavy rain, flood damage first.
Inflation that encroaches on the global economy
If there is a cause, the corresponding result is inevitable. However, there is only a difference between ‘direct or indirect, right now or later, one result or many things.’ The vertical surge in currencies inevitably results in government bankruptcy and vertical inflation.
Despite the serious contraction in economic activity due to COVID-19, the sharp rise in real estate and stock prices is the resulting inflation effect. Now, not only that, but also the ‘price’ of crude oil and raw materials is soaring extraordinarily (the trend of global commodity prices). As a result, living prices are also soaring. The water is slowly rising beyond the chest to the chin. There is a bizarre news that “the U.S. government’s treasury has been exhausted, and it is about to declare default.”
Capitalism in “Life-sustaining Treatment”
World rulling elites are aware of this. However, the problem is that the disease of capitalism has reached a point where there is nothing to do with it. Capitalist elites do not have a remedy to settle this condition. The infinite distribution of currency is a confession of limitation and incompetence. Capitalism is now barely continuing its life only through extreme measures of unlimited money distribution.
The infinite spread of currency has extreme consequences of government bankruptcy and vertical inflation. However, if you try to stop spraying or even collect currency sprayed on the market, the global economy may collapse immediately with more violent seizures, such as a surge in unemployment. The ruling elites must be feeling the real fear.
In other words, the current global capitalist system resembles a diabetic patient who has dramatically increased insulin administration. If insulin is not administered to diabetic patients, various diseases appear. As the condition intensifies, the dose of insulin is gradually increased. Then, at some point, the patient has a fatal seizure. Insulin doses exploded to calm the seizure symptoms and hold lives. However, the explosive insulin again fatalizes the patient. However, that does not reduce insulin administration. Then the next may be an uncontrollable end.
A showdown and working class
Capitalism will now have to issue obituaries instead of currencies. This is because there is no way to survive anymore. Only zombies can survive. In that case, the working class will be bitten first. Starting with the weakest. The working class must firmly execute the funeral to avoid a terrifying future. In the face of an extraordinary time on the verge of death, the world’s working class must prepare for a showdown.