Economic Depressions are a result of Staticity

In one of my recent LinkedIn blog ‘Destruction is a pre-requisite for any New Construction’, I mentioned something about natural macroeconomic cycles – The macroeconomic cycles originate due to systaltic nature of things governed by laws of nature. Anything governed by laws of nature moves in a systaltic fashion and never moves in a straight line. Due to this systaltic motion, internal clash and cohesion take places giving rise of macroeconomic cycles. The ups and downs of socio-economic life in different phases are sure to take place due to this systaltic principle.

The downfall of both crony capitalism and communism were inevitable due to their inherent staticity. Both crony capitalism and communism are most likely on the verge of extinction from this world. In the external sphere of Communism- there appeared to be ordinary acceleration, and in the internal sphere there was staticity. The result of the two being negative dynamicity. That is why Soviet Communism collapsed in 1989 due to inherent defects in Communism.

If you make use of mathematical algorithms and formulae for systemic modeling of the dynamicity of the theory of Communism, you will notice that the theory of Communism is just like a comet moving on a parabolic path – it is not of hyperbolic order. Therefore, Communism could only bring society to an omni-static state; that is, the state of nihilism or cynicism – a sort of negation. Hence, Humanity should be fortunate about collapse of this un-psychological theory of Communism.

The external and internal spheres of Crony capitalism have ordinary acceleration, but there is a contradiction between its internal and external spheres. The contradictions in crony capitalism are due to the self-centered psychology and the accumulation of wealth by a few, leading to less circulation of currency and hence low employment in economy; rather than productive utilization of wealth, leading to increased circulation of currency in economy resulting in a creation of employment for many. Hence, Crony capitalism is not congenial to the integrated growth of human progress. In my previously published blogs on LinkedIn mentioned below,

1. Negative interest rates of central banks could burst debt bubble like a fire cracker?

2. Negative Interest Rates of Banks – Part 2

I have already explained why Crony Capitalism could collapse due to bursting of the unsustainable debt bubble like a firecracker.

When the period of pause is long, society goes through a phase of extended staticity, and it may lose all its dynamic movement or even cease to exist. If there is lack of dynamic force in the phase of pause, then the stage of dynamicity may not come in the subsequent phase. Hence, It is essential to usher in free market reforms based on the theory of Mass Capitalism for the dynamic force to make a comeback to economy and act as a panacea for integrated progress of human society.

Mass Capitalism aims to bring about equilibrium and equipoise in all aspects of socio-economic life through totally restructuring economics. The theory of Mass Capitalism is free from the inherent and exherent staticity. In Crony Capitalism there is exherent and inherent staticity. In Communism there is extensive and intensive innate staticity. People across the world suffer from the ailments of staticity and hence the coming ‘Great Crash of 2015′ is the most opportune moment for creating an all-round economic revolution for benefitting mankind. It would usher in a Golden Age around the global economy based on free market economic reforms.

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