A simple proposal - that this form of capitalism is a giant Ponzi scheme and that it is approaching the point where new money creation does not cover old money destruction?
This situation is exacerbated, and perhaps caused, by growing sovereign & private global debt.
The latest example of the breakdown of capitalism is from the very heart of capitalism itself, the USA.
There is a growing 'contagion' of 'non recourse' living, otherwise known as
'strategic defaulters' - where people who take on debts ie home, car etc just stop paying off the loan, but continue using the product for free.
Now while the major US banks are reporting warm & fuzzy profit figures, it grossly hides the fact that they are still taking big hits from deteriorating mortgage lending portfoios. The fact that they show a profit at all is due largely to 'recovery' in equity markets - a self perpetuating, non sustainable path to failure down the track when the real economy fails to partake in the 'recovery'
While the real facts can be glossed over by fraudulent accounting and accomodative central bank liquidity, there is and still we be for several years yet the problem(s) of how to pay down the principle plus interest of debt stimulis incurred while fighting the GFC, as well as sundry accumulated debts incurred beforehand.
Or as some would argue, simply delaying the inevitable day of reckoning from the cumulative excesses of rampant fractional reserve banking, central bank manipulation, corporate fraud and successive government largess at reeckless spending and lax corporate laws?
What is becoming clear but somehow does not get acknowledged, at least publicly by the elected officials, is the impending lowering of living standards by the requirement to concurrently raise tax's and lower government spending in order to pay down debt. Greece is the litmus test of what's in store for the US & the UK, and to an extent Australia depending on when the China bubbles pops?
The only difference between Greece and other debtor nations is that it can't inflate it's way out of debt - it has defaulted and must now pay the price, or rather it's angry citizens must now accept a standard of living below what they have been used to.
It's time to pay the piper for the Old World Capitalists?