The sociocapitalism

The Sociocapitalism
For a Better World

Paulo José F. Valente
@pjvalente
2009

"Who understands love, and who
understands works for a world better ".

Francisco Candido Xavier

Dedication

"I dedicate this book to all workers who
one way or another working for a
better world”.

The book The Sociocapitalism for a Better World - is a independent
work. This book was translated from the original Portuguese into
English automatically, with the help of Google translator. Therefore, it is natural
that differences of interpretation occur and thus translation. If that hinder the
understanding of the reader, I am available for any clarifications that may be
necessary.

Paulo José F. Valente
@ pjvalante
email: www.estadao.com.b

2

INDEX

Presentation 4

Chapter. I – The Natural Evolution of Capitalism 12

Chapter. II – Convergence: Capitalism & Socialism 27

Chapter. III – The sociocapitalism 43

Chapter. IV – Sociocapitalism & Better World 76

Chapter. V – Conclusion 107

Annex I – Pyramid of Power 112

Annex II – Sociocapitalism:
The ultimate convergence of the do Capitalism & Socialism 113

Annex III – Commandments of Citizen Globalized 116

Annex IV – Key questions about the Fund's Capital Worker – FCW 117

Glossary 120

Biographical references 125

Bibliographies 128

3

Presentation

The origin of this book

After the 70's, the world had clear signs of improvement in its troubled political
and social framework. U.S. president Jimmy Carter who ruled from 1977 to
1981, had signed the SALT-2 treaty with the former Soviet Union and that
was an important event because addresses the reduction of nuclear
weapons between the two superpowers. The treaty was not the best of all worlds,
because even nuclear weapons still exist, but the chance of the world turn to
dust overnight considerably reduced.

Carter, against the previous Republican administrations, also
worked extensively in support of democratic openness in Latin America.
So much so that in 1977, met with General Geisel, then president of Brazil, to
discuss the democratic opening in Brazil.

Later, President Geisel conservative opposition to the summit
military, General Figueiredo was able to impose his successor as the President of
the Republic.

Figueiredo was the military style of the time that the media loved to mock. A
General untimely had come to say that he preferred the smell of the horse "Smell
of the people." After all, Figueiredo was really determined to make the transition to
democracy in Brazil and did so, although I do not
bet a penny on it, because this was a difficult and time
unclear where the soldiers lay down and rolled, promoting disappearance of
People, censoring the press, abridging the freedom of expression and
inhibiting economic initiatives.

However this scenario black and intolerable, it was not characteristic only of
Brazil and in many other countries, especially in Latin America, the situation was
same or worse. The Latin American dictators on duty chased communists and
their enemies "abominable" ideology as the cat
chases the mouse, without truce and without mercy. This absurd persecution
killed thousands of innocent people who paid with their lives, not to mention
of so many more orphaned or traumatized.

In contrast to the "left" bellicose who fought for an ideal some what
obscure, fought back practicing more terrorist attacks, kidnappings and guerrilla
warfare intensified. How to throw fuel on the fire. And this picture of exaggeration
4

And intolerance on both sides resulted in so-called "dirty wars". An "anything goes"
of trying to bomb, torture, betrayal and death of innocents. Dirt that the
parties engaged and hid.

In fact the "dirty wars" were chess pieces of the strategic global game of "cold
war". Somewhat ironic expression used to describe the contest waged
by nervous military hegemony between the former Soviet Union and the United
States; superpowers who were always willing to start a preventive nuclear war,
which could reduce the world to a ash heap.

In the fall of the U.S. arms insane, who considers himself "the pillar of world
democracy," supported friendly dictators with weapons, money and information. On
the other hand, the Union Soviet, which controlled and persecuted its citizens with
"iron fists", did the same supporting dictatorships and socialist infiltrated dissident
groups in capitalist countries. And as a social cancer of the damned
“Dirty war" spread to the world. It was like that in Brazil, Argentina, Chile
and elsewhere in the world.

Well, it was foggy at the time of our history that I joined the faculty of economics
and, like all idealistic young man tried to read books that addressed the issue
of social justice. After all, what was at stake on the planet at that time, was the
struggle for supremacy between the two economic systems: capitalism and
communism, led by U.S. and USSR respectively and I wonder what would be
better.

The confrontation x capitalism communism was masked by several
other conflicts of interest, eg, the North against the South, the rich against
the poor, the developed countries against developing countries, or even
between nuclear powers and non-nuclear countries. However the polarity in world
affairs capitalism and communism was always involved.

I remember that time that students took a radical stance on the subject. Or were
pro-capitalist or purple were pro-communist staunch. There was no middle
ground. Fortunately I tried to analyze things in a more free as possible, because,
for any prospect that the world was observed, it was possible to note from ills of
capitalism or communism in politics, economics and other social aspects. So it was
always possible to blame the enemy side by troubles in the world.

5

I remember that time that students took a radical stance on the subject. Or were
pro-capitalist or purple were pro-communist staunch. There was no middle
ground. Fortunately I tried to analyze things in a more free as possible, because,
for any prospect that the world was observed, it was possible to note from ills of
capitalism or communism in politics, economics and other social aspects. So it was
always possible to blame the enemy side by troubles in the world.

To do so just check the history of time: the invasion of Czechoslovakia by the
Soviet Union, the Americans committed atrocities in Vietnam and the performance
of dictatorships sponsored by the powersleaders.
The story also reported the sad massacre of the people in which Cambodian
communist dictator Pol Pot killed more than a million people between 1975
and 1979.

The massacre of civilians occurred in the Heavenly Square in Beijing,
committed by the communist regime in 1989, was another fact that also stained
red the history of mankind. And also what about the Cuban dictatorship that
holds people captive and oppressed today? As if
notices in these cases is impossible to separate politics from
economics and political economy.

In Brazil, for example, was easy and convenient to blame the United States and
International Monetary Fund by our monstrous foreign debt and for our
tardiness. However the biggest culprits were our politicians
corrupt, which unfortunately are still in the bowels of power today.

Far from the passions by either radical economic system I studied some of the
world's leading economists: Keynes, Marx, Hengel, Samuelson, Milton Friedman,
Joseph Stiglitz, Paul Krugman, Adam Smith, Malthus, Ricardo, Amartya Sen,
among others. I studied also the father of modern management, Peter Drucker.
Mostly his work - "The Post-Capitalist Society," written in 1993, which served as
reference for writing this book.

In fact, the idea of writing the book germinated in my mind in the first year of
college, more precisely on the day I participated in an event where two big shots of
the Brazilian economy were talking about the giant Brazilian foreign debtand on
the external account imbalances the country, which by then had dismal economic
performance. Those "big shots" were renowned masters of Brazilian schools and
had different approaches of economics.

6

The big shot was the first teacher and a doctorate in
economics João Sayad, University of Sao Paulo - USP, in the eyes
of school students excel in "cold economy" of numbers and their results. The
other was the big teacher and also a doctorate in economics Luciano Coutinho, the
University of Campinas - Unicamp, an institution that takes into account the human
beings behind the numbers on the economy. That was the big difference in our
eyes. What is the economy beings humans are considered a bunch of
numbers and figures? And what about social justice?

After a barrage of numbers, diagnoses and prognoses of the Brazilian economy,
opened the session of questions to students. And, intuitively sought understanding
between the two antagonistic economic systems treading the "middle way" did the
following question to the panelists respond:

- You diagnosed, essential and predicted numbers cited about the Brazilian
economy, but Brazil is considered Belindia; a mixed country of Belgium developed
and underdeveloped India. And I say that the government enter sand leaves the
government, economic policy remains the same and always serving the interests of
part of "Belgian" in the country. I ask: what should be done to develop the part
of "India" of our country?

The dour Sayad understood my question as a criticism of him and refused
to answer it, saying that the issue was notraised topic of the lecture and gave the
floor to another student. However the teacher Luciano Coutinho intervened, saying
that my question was very important. He also said that in his opinion, the
government was not doing much to develop the late part of Brazil. To
Coutinho government does not do enough to address the issue of poverty in
which millions of Brazilians live up to.

I was happy with the words of Professor Luciano Coutinho, yet not
getting an adequate response to what the "political-economic system
ideal "to contemplate a fair social and economic development sustainable:
capitalism or communism? This was the crucial issue for me.

On second thought maybe the teacher could not answer Coutinho what
interested me. For the military regime of coercion and censorship still prevailed at
the time and many people were arrested just for saying in public things
that displeased the government. In any case, it was from that day I endeavored
to discover the answers he sought.
7

The global transformations

After I graduated from college in economics in 1984, much water has passed under
the bridge. The world changed and changed quickly. I considered the following
year as a positive landmark in Brazilian history and world. In our country the
military returned to barracks and civilians took on the presidency through
democratic elections. Out side the Iron Curtain, was named as the former USSR by
his enemies, economic reform initiated by newly appointed Mikael Gorbachev,
signaling better times come.

Horever in 1987 was the fall of the Stock Exchange of New York,
almost surpassing the 1929 crash, a fact indicating that shook the world something
was wrong with American capitalism, considered the vanguard of world capitalism.

The crisis of 1987 also showed how global capitalism was interdependent and it
was so vulnerable, because a sneezein a powerful country could turn
into pneumonia in a country underdeveloped. It also reveals the supremacy of
capitalism and volatile financial over productive capital, and how
dangerous this was speculative financial supremacy. These facts have
motivated many
economists seeking formulas to regulate international financial transactions in
order to reduce risks and avoid cascading breakers, the so-called domino effect.

However not everything was bad in That year of 1987,
considering that the U.S. and the USSR signed a treaty Providing for
the Reduction of Their nuclear arsenals. Although the treaty was not ideal as it best
that would end once with all nuclear weapons, but it was a
good start and humanity had this perception.

Further, precisely in 1991, Gorbachev resigned from power in a crisis and
this important fact marked the dissolution of the USSR, for worldly
happiness. Henceforth there would be only one hegemonic superpower: the United
States of America. And that was not good for humanity, because the imbalance of
power, as history shows, always whets greed and war. And that was clearly
demonstrated later with the wars in Iraq and Afghanistan, which are still in
progress.

8

The fall of the Soviet empire and the supremacy un
challenged U.S. caused an excitement in the capitalist world. It was at that
time so that the magician of modern management Peter Drucker launched
the book - "The Post-Capitalist Society" where mentioned as pension funds were
revolutionizing America. Drucker aptly wrote that capitalism was in the process of
"metamorphosis" and that "capitalism of the few "transformed into
the "capitalism for everyone."

Across the planet, Communist China who wisely made some important
economic reforms in 1978, transforming its rigid "centrally planned economy,"
in an "open economy and market-oriented" in order to leverage his then-stagnant
economy. At that time was beginning to reap the fruits of success, to grow
with impressive annual growth rates around 10% per year, causing envy in many
countries.

In fact, the bold transfusion of "capitalist blood" into the socialist system has
enabled China to return to a giant of the world economy, we all respect and
admire.

Ironically, when Communist China powers the economy, converging to
the "prescription" capitalist, implementing the "market socialism", the United
States converged on the so-called "socialization market "mentioned
by Drucker, indicating that there was a convergence between these economic
systems. Whats truck me with new questions in mind, imagining the future of
"post-capitalist society" mentioned by him, which divide the capital among
the workers would be commonplace and very lucrative.

At the same time also imagined the profile of the "post-socialism" in Russia,
China and other "communist countries", where rich became glorious.
In this context I tried to study the transformations occurring in the world after the
great cyclical financial crises, due to the globalized world; imagine
the consequences that would have on the convergence of economic systems.

However lacked a theoretical model that would serve as a benchmark to
analyze these changes and explain where convergence would come. And
the worst, I could not find any books in bookstores that dealt with
the matter. So this prompted me to develop it.

9

Then, from the issues mentioned above, I started to work intensively on
the development of the model, from the ultimate convergence between
socialism and capitalism, substantiate the "post-socialism" and "post-capitalism,"
as a political-economic system only one of the 21st century.

To name the new political-economic system that emerges embraced the
term "sociocapitalism." Not the poor "fund socialism pension, "by
Peter Drucker mentioned fallacious. But the "real sociocapitalism," which mixes the
best practices correctly of capitalism and socialism.

Book Contents
To display the "sociocapitalism" that appears in the world to transform our lives
and contribute to a better world, tried to write this book in a clear, simple
and without many economic numbers, that we could reach a different audience:
students, housewives, workers, teachers, retirees, businessmen and
others. So divide the contents of the book into five chapters

In the first chapter - "The Natural History of Capitalism" approach
the development of capitalism, as a result of natural evolution of other economic
systems that took place throughout the history of humanity.

Lightning also deals with the emergence of socialism that emerged in
opposition to the injustices of the capitalist system. Citing the tension
caused between these two antagonistic economic systems, e specially during
the "cold war" and the dire consequences that resulted to the world.

In the second chapter: - "The Convergence: Capitalism &Socialism" point
out the conceptual and practical changes that occur in
capitalism and socialism, indicating that both converge quickly to a new
political and economic system called sociocapitalism. Especially after the end
of American empire in 2007, which, In turn, enabled
consensus among nations that "global problems require global solutions"
adopted by the UN. For all these reasons
sociocapitalism certainly prevail in the 21st century global society, supported
by a United Nations New, powerful, active and fair.

10

In the third chapter: - "The Sociocapitalism" mention the facts that indicate that
the true sociocapitalism emerges in the world and it will bring prosperity and social
justice for all. Also present sociocapitalism fundamentals, which will no doubt
revolutionize the 21st century global society.

In the fourth chapter: - "Sociocapitalism & Better World" aboard the positive
contribution that this system has to offer to humanity. Especially in terms of
prosperity, social justice and global sustainable development.
In this chapter we also mention the crucial role that this system will for the
emergence of a "new UN", more just, representative and active.

Finally, the fifth and final chapter, I present the “Conclusion"
on sociocapitalism and its important contribution to building the New United
Nations, in search of a better world for everyone in the the planet.

11

Chapter I
The Natural Evolution of Capitalism

Capitalism was not born overnight, it is the result of long evolution of other
economic systems that preceded it over the history of mankind. Therefore, the
roots of capitalism today are steeped in the early days, when early humans still
lived in the darkness of ignorance and ceased to be nomads. At that time our
ancestors produced obscure in their own lands all they
needed. However, over time, this was not always possible, because they
produced the goods were scarce, but human needs have no limits. Perhaps for this
reason that envy, quoted a cardinal sin in the Bible, is a powerful source of
dissatisfaction and unhappiness that has plagued man today.

Given the limited productive mentioned, humans sought to change
the seniority of their surplus production, for desired goods that belonged to
his neighbors. This is how it came the mode of production Mankind's oldest,
called barter.

Those were difficult times of "barter", because the currency did not exist and
this fact severely hinder trade, generating long and
tiresome disputes with respect to the values of commodities exchanged. Imagine
for example, the difficulty of exchanging grain for sheep?

So to facilitate the exchange of products and commodities, the ancients
had a brilliant idea and invented the coin, which at that time meant money,
because paper money was only invented in China thousands of years
after the appearance of it.

In reality, the coin was a brilliant idea was, as well as facilitating trade,
it allowed to hoard wealth for future use. Before the appearance of them
was impossible for a producer of perishable fruit or fish, for example, store it as a
store of value for a very long time, inevitably rot because these products.
As the currency is not practical and that can be stored for an indefinite time, its
use became widespread.

Note that money, wealth and property, which are common tools in
the present capitalist system, are not creations of this. Anyway, trade and
currency were important for the development of ancient cities
like Babylon, Thebes, Jerusalem, Carthage, Athens and Rome, which
flourished and prospered, propelling the arts, sciences and civilization.

12

Those first cities that emerged and prospered in the land, resulted
in nations that used agriculture and animal husbandry as basis of their
economy. So that the fields were so important to the development of
cities, a fact summed up the popular saying:

"If cities are destroyed and their fields preserved cities tore build. However, if
cities are preserved and destroyed their fields, they will not survive. "

Despite the great importance of agriculture and animal husbandry at the time, in
the cities the craftsmen were producing a wide variety of utensils and tools used in
domestic, military, medical, among others. What happens is that these tools
demanded products manufactured mineral or organic that sometimes were
not found in the country and had to be imported from other nations, and this greatly
boost international trade and also the wars. To the extent that the exchange of
commodities caused sharp conflicts of interest.

Modern archeology has revealed that in ancient Egypt and Babylon,
many centuries before the birth of Jesus Christ, there were veritable factories of
mass production, especially of military artifacts. And workers also received
payments for services performed. Just do not know for sure if there was then the
"division of labor." A important part that make up the board of capitalism today.
However, it is very likely that at that time there was also a "division of labor"
as a craftsman always left the less important tasks for their learners and tiresome.

The type of economy that prevailed in the early civilizations of the Earth
was called "Asian mode of production." A
system that was used biblical pharaohs, emperors and kings, who represented
the power of God to the people on earth; supported by powerful armies. It was
thus in the Middle East, India, China, Africa, Europe, and even
in pre-Columbian America, especially those empires: Mayan, Aztec and Inca.

That glorious time when the gods ruled the skies and powerful "protected" the
emperors who ruled the earth, there were the poor peasants, retained ownership
of the lands of representatives, on a "collective servitude" that allowed them taken
off the land and their livelihood of his family. However, excess production was
"taxed" by the nobility. So, so divine nothingness of social relationship, the hard
work of the people in the field supported the life of luxury and good
priests and nobles who lived in cities.

13

To worsen the situation of the poor peasants, they also needed to sustain the
military, and they were numerous, as the more famous was the
city, raise the most greedy invaders and adventurers
spoils or sought to dominate the government and people, in order to receive taxes.

Hence the need for wealthy nations possess powerful armies to defend
themselves. The dark side of this issue military practice is its high
cost, and people need to work hard to pay it. This fact is due to a difficult
problem, the government strategists must consider. An
army is an underestimated danger to the survival of the nation, an army on the
other hand is an overrated waste that must be avoided, because someone
always pays the bill and this one is the people, which ultimately may rebel at the
situation and overthrow the government. So the solution to this complex problem is
to find the "size" of the military ideal in terms of cost, technique and efficiency,
and the maintenance does not displease the people.

The fact is that the "Asian mode of production", with its many agricultural
communities, supported the development of big cities in the past. And that made
possible the emergence of the first class societies, and the consequent tension
between them, as the social relationship involved exploiters and exploited,
with different and conflicting interests
at stake. Centuries later the conflict between the classes of exploiters and
exploited, oppressors and oppressed, was dealt with brilliantly by Karl Marx.

After the Asian mode of production arose in Greece another system whose
name says it all: slavery. And interestingly, there also we find another
deep roots of capitalism, perhaps its strongest pillar: democracy.

Ironically, at the political-economic system "suis generis", "democracy"
and "slavery" lived side by side. To get an idea of this aberration that history tells
us, 20,000 free citizens, those who were entitled to vote in the "democracy"
dominated 400 000 slaves who had no voting rights, as well as the wives of free
citizens.

Yet Greece's famous generals strategists knew very well use the power of its
"democracy", joining it to the slave labor and its
powerful army. So once dominated a large part of the ancient world and
can spread their culture, which is currently one of the main pillars of Western
civilization.

14

The story also tells us that empires do not last forever, and the Greek rule was
no exception. He was overwhelmed by the Roman Empire and this occurred in two
stages. Rome conquered the first step in the domain of the Western
Mediterranean, Carthage won, then a prosperous Phoenician city in North
Africa. This occurred in the third Punic War (150-146 BC). In the second step,
Rome conquered the eastern Mediterranean, won successively, Macedonia,
Greece, Syria, Asia Minor, Palestine and finally Egypt in 30 BC.

There around the fifth century AD did another interesting production
system called feudalism. What contributed to its emergence was the destruction of
the Western Roman Empire: the numerous barbarian invasions and bad economic
policies implemented by the Roman emperors.

As a result of the fall the Western Roman Empire, Europe began to
experience low population density and little urban development;
arising from deaths caused by wars, disease and public insecurity in the
regions weakened by poverty. Because of these factors the
noble Romans withdrew from the cities, for fear of being enslaved or robbed. On
the trail led them to places far from their servants and goods, thus contributing
to the birth of the feudal economy of the West, based on a self-sufficient economy,
predominantly agriculture and low circulating coins.

The backbone of that feudal agrarian society was composed of three social
groups: the nobility, clergy and peasants. The nobility was composed of feudal
lords, their families and relatives, and they had considerable political power over
the other classes. For the king gave them land, considering the wealth of the time,
and they in turn, in exchange, military swore loyalty to him. So the feudal
lords were regarded as "vassals" of the king.

The clergy exercised a considerable political power because of the religiosity of
the people. So in the name of God and the popular faith, he negotiated its support
for the feudal lords, to discourage revolts against them, who in turn rewarded in
many ways.

History shows that when the powerful confabulate; is always the people
who suffer and pay the bill. So the poor peasants,
considered the "serfs" in the condition of virtual slavery, had to work hard to sustain
the social oppressive feudalism that required it.

15

The oppressive feudal scheme worked as follows. In exchange for permission to
use the land and military protection, the servants were obliged to pay various
taxes. If nothing else, they were also required to provide a service to the nobility for
a few days during the year.

In the feudal lords of the lands were divided into three parts. The
gentle master, for the exclusive use of the feudal lord; the meek servant -
the land leased to the servants, and finally the gentle communal, that the
Commons were the nobles and peasants - the pastures, woods and forests.

It really was not an easy life for the people at that time because the number
of servants needed to fulfill obligations that they cost a lot of sweat and when
not, the nose. To get an idea of the size of the holding that the servants were
subjected mention some obligations that they must meet:

- Compulsory labor in the land of the feudal lord some days
week.
- Paying for use of property of the manor as mills, kilns, barns and bridges.
- Each member of the family of peasants should pay a tax to the feudal lord.
- The servant should pay 10% of its production (tithe).
- Free people, the so-called "villains" who lived in villages, should pay a
tribute called "census."
- Serfs and villains should pay to the feudal lords to be tried in the courts of the
nobles.
- When a noble or a relative was getting married, every servant was obliged to
pay a fee to help with the wedding.
- The servant was obliged to host the feudal lord and his family if necessary.

With so many fees, taxes and duties, the help they received from the
noble clergy to keep the people "lamb" was understandable and useful. But even
so there was always a latent social tension between the nobles and serfs exploited.

Over time, many European cities of the Middle Ages have become free from the
yoke of the nobility. These cities were called "boroughs" and its inhabitants were
called "bourgeois." Over time, the bourgeoisie began to count on the support of the
king, and so they came into conflict of interest with the nobles. Later in
history these rich bourgeoisie and began to explore large-scale labor-wage
labor. While the nobility, in turn, went into decline,

16

which is not to say that many current capitalist not descended from those noble, for
the rich and powerful always adapt to the cyclical situations at any time in history. It
must be also consider that the "nobility" is still a reality in many countries in the
world today, especially in Europe, where it has very great wealth and social
prestige.

Mercantilism slave allowed to accumulate wealth to Europe from the colonies in
the Americas, especially gold and silver, which boosted European prosperity and
enabled emergence of capitalism due to the industrial revolution in England
second half of the eighteenth century.

With the English industrial revolution serving as a powerful leaven,
bourgeoisie gained the top of the economic chain. And capitalism can
flourish so overwhelming, promoting material progress and
technology unprecedented in human history.

Capitalism can be analyzed in different optics; capitalism commercial, industrial
capitalism and financial capitalism. In any , the search for maximum profit is
present in any of these stores. However, the boom in stock markets seen in
the world, especially after the second world war, promoted an excessive
concentration of wealth in the hands of financial capitalism, dominated by large
Banks. And this factor led to serious distortions in trade and production
world. The proof is in this current global financial crisis, which has
"merit" unprecedented shake up both the capitalist countries as the
countries considered "socialist." And this financial chaos was only possible
result of the globalized world interdependence. Making very current
the statement that "we are all in the same boat."

The Crisis of Capitalism

It's important to say that the economic crisis and its disorders are part of human
history. No economic system became immune to them, because their causes are
due to various factors such as revolutions, wars, social instability, religious riots,
among others, that come with human development since time immemorial.

In ancient Rome, for example, there was a great revolt against slavery, led
by origin a Thracian gladiator named Spartacus (120 BC to 70 BC), which became
known as "war of the slaves." And this war was for real, because Spartacus was

17

able to lead a strong army consists of more than 100,000 ex-slaves, and this was
not all, see what the writer Plutarch mentioned about him:

"Spartacus was a man intelligent and cultured, more Hellenistic than barbaric."

However, despite the unparalleled courage and great
intelligence strategist, Spartacus was defeated by the Roman imperial army and
slavery continued for many centuries more.

In terms of instability and crises, capitalism also does not escape rule. Fact is
that in 1873 there was the first great capitalist crisis
also called the "long depression" due to the fact that it last until the year
1896. Well, this crisis occurred with the collapse of the rail industry;
until then grew at a breakneck pace and provided good profits. However, when the
railroad industry has consolidated, there was a break
sharp in business that brought down prices and profits, which has led many
companies into bankruptcy. The crash in the railway sector induced an
cascade that has infected other sectors of the economy, causing bankruptcies
generalized and mass unemployment.

The tragedy of the "long depression" was great. of the 364 existing
railway companies in the U.S., 84 of them failed. And the crisis is not
was restricted to American soil, the economies of England, Germany and Italy
were severely affected. How disastrous consequences
of international bankruptcy, in addition to mass unemployment and
numerous bankruptcies of companies arose that monopoly capitalism
tried at all costs to control to the detriment of competition consumers.

Another great capitalist crisis occurred on October 24, 1929 – the called "Black
Thursday" when the New York Stock Exchange crashed,
causing a monstrous mess.

In that fateful month the New York Stock Exchange fell40%, causing a
cascading bankruptcies, where thousands of companies were ruined and
1 / 3 of the American population has lost their job in the following year.

Later the U.S. crisis has infected Germany as they emerged from the first world
war, with American money. France in turn, he received the German
war reparation, also accused the U.S. thud.

18

The "Black Thursday" also made great havoc in Brazil, for the U.S. were
big buyers of our coffee. With the U.S. market in crisis the amount of
coffee exported fell and downed the price of this product. The perverse
combination of the reduction in the amount of coffee exported with the price
drop significantly affected the Brazilian economy.

To combat the crisis the U.S. government of that country implemented the
"New Deal", a mega economic project that sought to increase public spending to
create jobs and solve the crisis.

On the Brazilian side the government sought to buy large stocks of coffee to
recover the price. So after the 1929 crisis the Brazilian state became more
interventionist, with a strong direct presence in economy, especially after
the creation of the National Steel Industry and Petrobras. It is worth
mentioning that at that time, forced by economic circumstances, government
intervention in the economy has become a worldwide phenomenon.

Later in the timeline occurred in 1973 the famous "oil shock" when the price of
the product shot on the international market,
affecting almost all economies, since our civilization is extremely dependent on
this product. Making perverse effects side affect powerful economies like the
U.S., Europe and Japan for inflation that triggered, significantly affecting trade
international level.

As a positive development of the oil crisis in Brazil, the Brazilian
government sought alternative sources of energy and ended up creating the
pro-alcohol, which drove the Brazilian automotive industry to produce more fuel.

Japan, which also relies heavily on imported oil, decided to invest in the
electronics industry, to produce high value products aggregate intended for
export, the intention to carry out foreign trade surpluses and thus
promote prosperity for its people.

In 1987 came another major financial crisis in capitalism, when the
Dow Jones of the New York Stock Exchange recorded the largest drop in its
history. In a single day the Dow Jones, which is very important to the global
financial market, tumbled 22.6%. But what caused this traumatic slump?

19

In fact there was a combination of three factors potentially dangerous: a slowing
economy, the weak dollar and fears of default on bank loans. these factors
combined caused panic in the U.S. market and polluted Europe and Japan As a
result of widespread panic, Brazil broke and so was forced to suspend foreign debt
payments.

So to combat this massive financial crisis, the central banks of
world quickly lowered their interest rates for businesses back to normal, which
ended up happening. No one before we leave great lesson, because
it demonstrated the potential of rapid spread in globalized financial
markets, hitherto neglected.

A decade later, more precisely in 1997, was the Asian crisis. And it all started
with a rapid process of capital flight, combined with a devaluation, which occurred
between the so-called Asian tigers: Thailand, South Korea, Hong Kong, Indonesia,
and Philippines. Then again entered the world market in a panic, because that
market was considered solid and reliable, causing the overthrow of stock
exchanges around the world. However, Brazil was able to leave this crisis relatively
unscathed.

Reflecting the Asian crisis, commodity prices collapsed in the
world. What profoundly affected Russia in 1998, as she was very dependent on
exports of commodities such as gas oil and natural. So the Russian
government had been severely affected by falling international prices, it
gave defaulting on its foreign debt Private short term. This drastic
measure spooked investors international and they are avoiding emerging markets .

After spending the Asian crisis without having felt its effects, Brazil was affected
in the quake filled with Russian, and had to face a serious crisis of U.S. dollar
drain. But the Brazilian government acted quickly to avoid the worst, raising the
interest rate to a stratospheric level of 45% per year, in early 1999. A "remedy"
bitter that the Brazilian people is feeling the side effects today. How evil never
comes alone, the monetary authorities of the time were forced to weaken the
currency, which until then had parity with the dollar, thus a measure traumatic for
the Brazilian public accounts.

Continuing on the timeline of capitalist crises, in March 2000 broke the "Internet
bubble". The history of this crisis is simple. The high-tech companies grew rapidly
since 1995 and so were the prices of their shares overvalued.

20

Until one day the price of these shares have plummeted and caused a big crash. It
was a mess
quite large. For the end of 2000 the company had lost $ 1.7 trillion in market value
of their shares. And included in the package of the many companies that failed due
to the bursting of that "bubble" was WorldCom, the largest bankruptcy in U.S.
history until then.

The year 2001 was a milestone for world history, because of the terrorist attack
on the twin towers of the World Trade Center and other strategic centers of the
U.S.. In fact this reprehensible terrorist attack could undermine U.S. credibility in
the eyes of the world.

As a direct result of this attack, sequinte week there was a decrease in the rate
of violent actions of the New York Stock Exchange. Thus investors lost lots of
money. Some where around $ 8 trillion, or 10% of the total stock market.

In 2007 came the "housing crisis in America," also called "credit crunch or
liquidity." And she quickly crossed the borders of the country, and became the
monster now, which is the "global financial crisis." Most have occurred after the
"great depression of 1929."

It is known that big fires start from small sparks, so that one component of this
crisis was the abundant credit policy implemented by President Bush (the son), to
reheat the economy traumatized by the attacks of Osama Bin Laden to the United
States. What happened thereafter was a rush of Americans to borrow cheap and
buy real estate based on mortgages. And as U.S. banks have been very generous
in lending, they turn a blind eye to the risks of default by customers. However this
procedure wrong was costly to the U.S. and the world.

Back in the real estate loans, U.S. law is rigid and if the borrower does not pay
the mortgage, he will lose the property. And it was precisely what occurred in that
year black mass of 2007 when real estate prices plummeted, forcing thousands of
to give Americans default on loans to banks.

The wave of defaults caused widespread heavy losses on U.S. banks,
culminating in the collapse of Lehman Brothers, one of the largest
that country. Thereafter, the crash of American companies soon spread in the
world market thus consolidating a crisis of "lack of confidence "in the international
financial system. This catastrophic results soon appeared, when the sound bank
sand fearful, wiped away the money market, pushing the serious problem of
liquidity to other sectors of the economy. This fact demanded urgent government
intervention, so that the international financial system were not for the bottom.

21

Government interventions in the U.S. and much of the developed capitalist
countries have formed a unique wave of nationalization in the history of modern
capitalism. To get a glimpse of this wave statist, the U.S. government owns 60% of
the share capital of the auto company General Motors, already at Bank of America
he has Citigrooup 50% and 36%.

By now you've probably noticed that this global crisis is quite different
from previous crises, and that capitalism is changing the "plain sight". Then you
can even question the claim of former minister
brazilian Delfin Neto mentioned that:

"The emerging markets better and more efficient every crisis."

Of course the statement of former Minister Delfin Neto is not completely true nor
completely false and, considering the magnitude of transforming the current global
crisis is providing, to use the nationalization of strategic and trade regulations,
economic and financial measures to alter the profile of capitalism forever.

Anyway, despite the sad disorders caused by the capitalist financial crisis, it
certainly will improve the market because it is irreplaceable. However, going
forward it will no longer "the Almighty".

The truth about the Stock Exchanges
With the global crisis on the agenda of the day there are few people who
criticize the role of stock exchanges, branding it a great villain's
cruel game speculative capitalism, in which
millions of investors lost fortunes overnight. And this is true, but only partly true,
because the stock markets have a much more important and beyond
the alleged casino, which is to promote efficiency of markets, whether they
are productive, financial or economic. It is an essential role in the generation,
accumulation, distribution and control of wealth, from which everyone benefits:
Investors, borrowers, government and people.

In today's world stock markets are the major sources of resources that promote
the overall socio-economic progress. Therefore, it is hard to imagine a world
without them, so much so that China is using the innovative "market socialism" to
promote its progress.

22

The reasons that made the stock markets in the major sources of funds that
promote material progress are simple: first by the fact that for the borrower of
funds the cost of capital is much lower compared to banks. Second, for the
lender of financial resources (the investor) is always possible that it
performs tempting profits that attractive "market game" that provide grants. Thus,
these mechanisms confer attractiveness to them a special dynamic that certainly
contributes to boost the productive and social progress of those countries that have
it.

It is worth noting that the "market game" is for experienced professionals, this
does not mean that an investor with limited resources layman and can
not participate in it, because the Internet enables access to millions of small
investors to the stock market. In any case they should be assisted by
experienced financial people, not to lose money. That's all.

The Birth of Socialism
The industrial revolution and capitalism became the most efficient and
effective means of generating wealth and promoting prosperity in the history of
humanity. Wherever you look, you can see inventions arising from the successful
partnership that was the industrial revolution and capitalism: computers, light bulbs,
refrigerators, television, movies, cars, planes, trains and everything. However,
you know quote some important invention arising out of the socialist system,
unless the satellite Sputnik?

Not quite heaven and not so much land, so that the birth of capitalism,
despite its material successes, it was not as glorious as you might imagine. We
must consider the fact hat workers in the early days of capitalism were
also exploited as much as workers in other economic systems earlier. For
working all day and gained little, their rights were limited and could not go on
strike. In plants, many of them unhealthy, even children worked, and so on.

It was in this tough environment for the working classes that Karl Marx wrote in
1867 a book entitled "The Capital", where he made a harsh critic of the capitalist
system. In the book Marx makes a correct diagnosis of the problems of
capitalism, focusing on the exploitation of working class (the workers) by the
bourgeoisie (capitalists).And he was brilliant when he said that "all wealth comes
from labor." One could refute this assertion, without God in their use argument? So
that, according to him, capitalist exploitation is through the appropriation of
surplus value generated by the work

23

in relation to the amount paid to workers in the form of wages. In this
surplus value, Marx called "surplus value" - the capitalist's profit, which the workers
are unfairly excluded until today, despite advances
in working conditions and labor laws. And that obviously needs to be changed.

Socialism in practice
The practice began in the socialist experiment in Russia through a bloody
revolution, which took power in 1917 of Tsar Nicholas II, still in the midst of the
first World War. In fact the armies of the Czar did not were
working satisfactorily and that the war has generated a great popular
discontent against his government, contributing to the socialists to take power.

The victorious socialist revolution in Russia in 1917 Ied Lenin, Stalin
and Trostsky to power, ushering in a "one-party dictatorship" and culminated
with the formation of the Union of Soviet Socialist Republics - the USSR.
Certainly a dark period of socialist history, especially after the death of Lenin,
when Stalin took power. For his rule was marked by corruption,
persecution, political enemies to death, besides the citizens banned from leaving
the country. Trotsky himself had to escape this insane scheme to Mexico and
there was murdered, probably by Stalin's secret agents. It is estimated that
millions of Soviet people died black under the regime of Stalin. Because of all
that the USSR was nicknamed "Iron Curtain".

The communist revolutionaries wanted to apply in practice what
he preached Marx and other socialists in theory, namely that the means of
production should belong to the state. Thus the relationship between exploiters and
exploited, the so-called "class struggle" would be extinguished. However, the
ills that were occurring in the USSR and other socialist countries indicated
that something was not right, as the saying goes: "the theory in practice is
another."But what had gone wrong?

Causes of Failure of Socialism
Between theory and practice there is a gap to be bridged, because the reality is
not always what we imagine. So that the sciences need evidence and logical
explanations. So capitalism has emerged as a natural evolution of other
systems that preceded it in time, so he passed the test of practical experience, that
only the time allow us to verify and improve. Unlike socialism emerged
as an ideology that is opposed to capitalism, which began with the English
industrial revolution, where the rich capitalists took advantage of the laboring
classes, taking the surplus wealth produced by wage labor.

24

The revolutionary socialists took power in Russia to change this
reality. So forcibly confiscated private property, taking advantage of one-party
dictatorship, endowed with a powerful framework repressive government,
with "right" to concentration campsin Siberia, persecution
and summary executions of government opponents.

The glorious socialist revolution that had begun to defend the rights of the
people had turned against him brutally, demonstrating that in practice
the socialist government discourse was very different, which
caused deep dissatisfaction.

After the year 1917 the Soviet dictatorship was consolidated, with the farms and
factories moving to control government, which obviously caused resistance from
the former owners. Of so that in later years that "resistance" caused the death of
millions, and thousands were arrested and sent to Siberia
as well Solzenizin portrayed in his book "The Gulag Archipelago."

Not only the violent political persecution Communists turned against
religion. Then began to persecute religious at all the country as the devil
persecutes the poor souls. At the time retrograde and obscure, many
churches were closed or destroyed. Only the people Soviet who is very religious,
never relinquished his faith, and worship continued to be conducted in secret, as
were the early days of Christianity.

With the widespread nationalization the Soviet state took over all production of
goods and services. And from there the socialist system began to show in practice
its serious defects. mainly by fact that the "overall planning" done by the dictatorial
government emphasized the production of weapons, rather than the products that
the population really needed, such as foods, medicines, appliances and other
items. So in this period was a general shortage of goods, forcing the population
to face long queues to buy something, especially if it was bread and meat.

Alongside the hardships that the Soviet people lived on account
of deviations productive, the nomenklatura disproportionately enriched. To make
matters worse, that class did not see an inch beyond his nose that were not their
own interests. Thus the nomenklatura pathetic accomplished the feat of replacing
with "inefficiency astonishing "the odious bourgeois class. As the saying
goes: "there is nothing bad that can not get worse," so that
the nomenklatura accomplished the feat of being worse for the Soviet people than
the actual capitalist bourgeoisie of the Czarist regime. And this was the central
point which subsequently led to approach socialism from capitalism.

25

Overall the main negative results obtained with the nationalization of the means
of production in the former USSR and other socialist countries were as follows:

- Inefficiency of production;
- Scarcity and poor quality of products and services;
- Termination of entrepreneurial dynamism;
- Low production technology and scientific;
- Low competitiveness in production and trade, and
- Obsolescence of the industrial park.

Certainly we can summarize the causes of failure have three socialist:

1 - The dictatorship of a single party, which never correspond to the popular
mood. Communism may have been relatively useful to take the socialist
countries of the delay of the past, but will not be useful to place them in the future
progress.

2 - The widespread nationalization was inadequate and failed to raise the
standard of living. Because of this there as subsequently a selective privatization in
many communist countries.

3 - The socialist system did not resolve the conflict of classes, just changed
its type. The bourgeois class that exploited workers was replaced by the worst so
nomenkatura. So this kind of exploration is still in socialist countries such as China,
despite its impressive "success" is finding the global political and economic
scenario.

Because of these failures mentioned, socialist economies have
adopted some capitalistic practices, such as stock exchanges, the private property
and market economy. These issues will e adequately addressed in the next
chapter.

26

Chapter II
Convergence: Capitalism and Socialism
After the Second World War the United States of America emerged with the
greatest military and economic power on the planet. Of course, Europe
was devastated by the war Hitler's insane. Japan was destroyed and its people
feeling the catastrophic effects that the two atomic bombs made in the cities
of Hiroshima and Nakasaki. A barbarity consider a holocaust of the Japanese
people and for which the U.S. needs to apologize. Russia also had its
cities destroyed and his people mourned their twenty million killed during the war.

On the other hand in America had not dropped a single bomb. The American
people felt the effects of the cruelties of war, when an enemy
external destroy whole cities and kill women, children and old people as
happened in Russia, or when day and night bomb cities, such as occurred in
London, or even in Dresden - Germany, where the Allied firebombing did more
than one hundred thousand civilian casualties in less than a week.

Due to the preservation of its territory and its people, the U.S. became a haven
for world capitals. And it was not only the money that flowed there. Important
people and scientists, like Einstein, were also attracted, further boosting the vibrant
U.S. economy.

In the dirty game of war there is always a beneficiary country, and the
second world war has clearly benefited the United States. He left her rich, strong,
and as the greatest defender of the free world. For who dared openly defy the
United States, after Hiroshima and Nagasaki?
With a peaceful and prosperous built environment, U.S. companies could spread to
the four corners of the planet. The same occurred with its military
bases, power symbols of American economic maximum.

In this context militarized after the war, the military radicals who move with ease in
American power, devised a complex and ingenious strategic plan, aimed
at provoking an arms race with the USSR. The central idea of the plan was
simple. As the U.S. economically stronger, he could develop weapons

Strategic powerful and expensive. Of course the USSR would not want to fall
behind in this race, and also seek to develop other equally powerful weapons and
expensive. Until at some point, the weak economy of the USSR collapse,
and further sacrifice his suffering people. Then he rose up and overthrew the
communists from power. This was the result of planned and expected by
Americans.

27

The plan went ahead because it had the support of billionaire capitalist military
industry, who headed a powerful political lobby in Congress. And as expected the
Soviet Union had taken the bait, because he U.S. leaders considered dangerous
because they had used pumps atomic Japan killing thousands of women, old
people, children and everything else. Barbarities that are responsible
for the distrust that world has about the U.S. today.

Over time, the U.S. plan to use the arms race under President Ronald Reagan,
if proved effective and it paid off. The Soviet economy already crippled, lost
breath in the government of Mikael Gorbachev. Then in1987 he
wisely started some economic reforms to save the integrity of the USSR.
But even so, things are still bad. Until the year 1991, Gorbachev resigned
from power. And this year was a very important landmark world, it marked the
demise of the USSR and the emergence of a hegemonic superpower, the United
States of America.

Despite the great American economic and military progress the world worked in
silence. The Japanese economy has recovered rapidly in post-war and became
the second economy in the world. In turn, Europe has also recovered and joined to
form the "economic community European "entitled to a single currency called the
Euro and a common passport for their citizens. Few believed that the European
community to succeed, because of the enormous differences cultural, but it
really did.

So, with the recovery of Europe and Japan, there was an
intensification of the "international trade war." Fact that caused the miracle of
uniting even most Europeans against the economic might of the U.S.
and Japan, especially with the entry of Eastern European countries for the
community European economic.

Market Socialism
Across the world, Communist China had prudently started major economic
reforms in 1978, deploying "socialism market ", thus making a major
shift in philosophical socialist ideology, which later proved correct. For as Deng
Xiaoping said, "no matter the color of the cat, as long as it catches the mouse";
meaning that China is converging to some successful practices adopted
by capitalism, as the inclusion of the Stock Exchanges for investment and
business broker. She also began to accept foreign investment risk and to
remit profits to the abroad. Recognized the importance of private property
and other provisions capitalists.

28

It is certain that these economic reforms have worked, and China began
to develop rapidly, with growth rates around 10% per year, something unique in
the world.
The success that China has achieved in the economy and politics, coupled with its
large internal market consists of1.3 billion people, made it
the most important pole of attraction business world. Which no capitalist intends
to stay out of sight, because the progress there is so amazing,
that the economic projections indicate that China will be the first economic power in
2030.

Vulnerabilities of socialist China
Every giant has its "Achilles heel", the Chinese juggernaut is no
exception. China is a giant vulnerable because it has no democracy. So you
can offend at any moment and cause major disruptions to damage his own
people and the international community.

Dictatorial regimes like the Chinese is a heavy burden for the people, that
a day may get tired of this situation and rebel, a fact that causes concern to the
world. After all dictators never have good intentions, not to his own people and not
with its neighbors. History proves this.

Thinking about these issues 300 Chinese intellectuals launched the
"Charter 08" on the internet, then won over 8,000 signatures. In fact it
is an important manifesto as it proposes fundamental changes in Chinese policy.

In practice, if these suggestions are adopted, would certainly result in the
end the tyranny of the Communist Party of that country. For among the changes
proposals are direct elections, political pluralism, separation of powers
and freedom of religion, expression, association and expression.

The "Charter 08" presents the picture faithfully the "Achilles heel" of
China. And needless to say that its signatories were
cruelly persecuted, mainly Gao Zhisheng, the lawyer who gained
fame defending members of the religious sect Falun Gong and Christians. Despite
being persecuted by the Chinese authorities, is tipped to Zhisheng
win a Nobel Peace Prize because of his correct political action.

If nothing else the tyranny that the Chinese government submits its people,
he does the same with the Tibetan people. For Tibet, which is a highly religious
country and that is embedded in the Himalayan Mountains, which
has immense natural resources, fundamental reason for China

29

to occupy the force in 1954. The occupation of Tibet by the "forces of materialistic
Chinese" was so brutal that it caused the destruction of many Buddhist
temples and persecution of thousands of priests. Forcing the country's top
leader, the Dalai Lama fled to India, where he lives today with his court. In
the recent words of the Dalai:

"Tibet lives hell on earth under the control of Beijing."

Eastern Corporate Success

A pleasant surprise occurred after the Second World War, precisely
between the 1960 and 1990, was the emergence of so-called "Asian tigers": South
Korea, Taiwan, Hong Kong and Singapore.

The word reminds Tiger "grab and aggression" and the idea is the same, since
these countries love an aggressive stance in the industrialization and international
trade. To achieve its goals the Asian tigers have adopted a simple strategy aimed
at leveraging their economies: cheap labor and disciplined, strong incentives to
attract foreign venture capital, tax exemptions and finally, the low cost companies
to install. And it should be noted that this strategy was followed to the letter by the
government and entrepreneurs. This resulted in a mega success planetarium.

Part of the success of the "tiger" is also explained by the Japanese
economy, booming and that was crucial to create a unique dynamic Asia. The
success of Japan as well as leveraged as an example the development of the
"Asian tigers". For Japan signed an agreement for commercial and business
partnerships that block.

Of the countries that make up the tigers, the most striking success is what
happened with South Korea, which in the 1960s was a relatively
poor. Currently South Korea is an economic giant that owns the famous economic
conglomerates such as Samsung, LG and Kia, which are present around the
globe.

The fact is that Japan, mainland China and the "Asian
tigers" in Asia became important center of industrial production in a planetary
scale. It has attracted lots of money in venture capital from the rest of the
world, significantly altering the flow and composition of international
trade. However, this success is that all will in fact benefit the workers as proposed
by Marx? In fact is not and will comment further on the cause.

30

Turning our attention to the "Asian success", there are other factors that also
explain the current boom in the region. The first is the existence of Centralized
states and sometimes dictatorial, which make investments in infrastructure and
education, to attract foreign venture capital.
Another important factor to be considered in the Asian success refers to
distribution of income in these countries, which is more balanced in relation to
others, and therefore attractive to international investors. It is important to note that
Asian workers have little social protection, reduced holidays, reviled and salaries
are excessive workday. Factors that make up the shortage of raw materials from
those countries, and need to be imported on a large scale.

The remuneration of debased Asian workers is a clear example exploitation of
workers by capitalists, in spite of the fact that these Industrial countries are making
progress enviable.

Continuing the analysis of the "Asian success," these countries guided their
economies to the outside world, practicing "competitive prices" for their goods;
demeaning wages of their workers, something what the French call "social
dumping".

Certainly the "social dumping" and "protectionism", contain the agenda of
World Trade Organization - WTO with a view to the regulation and standards of
luxury international trade in the near future.
Considering that it is difficult to stem the financial crisis that the world
interdependent through if countries step up "and protectionism social dumping,
"which neutralized a significant competition in international trade. So much so that
the wise words of the leader Mahatma Gandhi summed up this spiritual question:

I hate privilege and monopoly. For me, everything that can not be shared with the
masses is taboo. "

The humble people is certainly the Biggest Loser in the occurrence social
dumping and protectionism in the international market. That is why the issues
involved will be fully addressed in a future UN the next. Therefore, a better world is
inconceivable to prevail protectionism and social dumping.

Another important factor to explain the "Asian success" comes from the ethical
steeped in Confucian East, crucial for the establishment of a model high
socioeconomic social balance centered in the hierarchy, discipline and nationalism.
In which large corporations are seen as large families, orderly, productive and
indispensable.

He also noted that Asian countries have made efforts to raise awareness
companies and governments of the U.S. and Japan, to conduct business with

31

them. And this effort paid off, because the U.S. needed strengthen the region
based on capitalism, to turn it into a important barrier against socialism. Especially
against socialism China, which since 1978 had begun to gain "muscle" and that
economic very concerned about American intelligence, as soon as China soon
become a giant and would affect their interests in the region. Above all related to
Japan, South Korea, Thailand, Indonesia and Taiwan.

On the other hand, Japan had a different view on China. there are times
Japan dating to the huge Chinese market, willing to do that a country supplement
their economy. And with this intention invested there billion, as did other promising
regions of Asia.

In fact Japan and the U.S., competing fiercely for economic and political spaces
in the Asian region since 1950, when the Japanese economy began its economic
miracle, betting that the Asian region would be dynamic, prosperous and profitable
within a few decades. And the bet was correct.

The Japanese Economic Miracle

The so-called economic miracle of Japan was an event globally important and
therefore deserves to be analyzed. For he was shortly after World War II, when
that country began to receive pulpy injections of U.S. capital in search of cheap
labor and educated. This fact has initiated the recovery of the industrial
Japanese destroyed in the war. So the American money was crucial
to recover the family business conglomerates – the Zaibatsus. On the other hand,
Japan had a large merchant fleet that facilitate imports and exports of goods.

The Japanese government's industrial policy instituted in 1950 was consistent
and was based on markets overseas, particularly North American.
As the Japanese people and hard-working and disciplined, the result did not take
long to appear. In 1980 Japan became a economic giant and reached second
place in the capitalist world, is only surpassed by his "sponsor", the United States
of America.

Today Japan produces almost everything, establishing itself as one of the
leaders
world in the field of science, technology, production of light machinery and heavy
equipment, medicine and many other industrial products.
It should also highlight the important contributions in Japanese high-tech areas
such as electronics, industrial robotics, optics, semiconductors and
nanotechnology.

Japan is the single leader of industrial robots, because their companies use
more than half of the robots in the world. Fact that gives the country a high
productivity, and allows companies to raise workers' wages without causing
inflation.
32

Another crucial factor that helped a lot in making the "miracle Japanese ", was
the large investments made in people's education, without the accelerated
industrial progress which the country would not be possible.
Wisely, Japan managed to educate and instruct his people, based freedom and
creativity in order to face the competitive world of today. Without that the country
would not have gained the leadership technology. In fact, the Japanese, as well as
instructed, also values much work. So the country is so rich, though not many have
natural wealth.

Japan is a collective and practical confirmation of the maxim of Karl Marx
that "all wealth comes from labor." The people and their Government know they
need to work and study hard to produce products with high added value, which will
generate foreign exchange to import goods needing like oil, for example.
They also know that economic development policy demand high investments in
education and strive in that direction. making the education and work great
competitive advantage of the Japanese people, that so greatly increases the
national wealth.

The other side of the miracle
Industrial automation can intensify the class struggle
The wages in Japan are relatively higher when compared with other regions of
the world. However, Japanese workers are also exploited by the capitalists. For in
that country there is also the class struggle. And if nothing is done in the near
future, this struggle between exploited and exploiters tend to intensify, due to
increasing
Automation of the Japanese economy. For automation in their heyday affect the
circular flow of Japanese domestic economy. In other words, affect the 'ring money
"among economic agents. Not is difficult to understand how this could occur.

Didactically there are three economic agents participate in the flow circular
internal economic country: government, business and workers. And such a
maelstrom of money works as follows: the workers receive wages or working for
companies to government and their salaries they consume goods and services
produced by companies. The companies in turn pay taxes to the government and
salaries for its employees. In the end they realize profits, with which they make
new investments and remunerate its executives and investors, which in turn also
will demand of goods and services companies and also pay their taxes to the
government.

It is observed that in all economic agents involved in the flow circular economy,
there is something in common. All they need to win money to meet their needs,
spending it on goods or services they need. In other words, earn and spend money
to each other, and any changes that these agents were to suffer, for example, due

33

to changes in the level of jobs and salaries affected by Automation certainly cause
imbalances in the circular sieve money.

That said it is then ask an extreme example of automation business in society,
"companies will sell to whom and who”? Using this same reasoning, as workers
and government will receive your money to spend on your needs?

For this reason, the sociocapitalism fruition in the 21st century, considering
it will solve these issues raised about the circular flow domestic economy, from an
excessive and automation scenario widespread, among other important issues.

What happened to the USSR?

After the 1970s, while the Asian economies took off and Brazil held its
world-renowned "Brazilian miracle", the USSR began to show clear signs that its
economy was not going any better. The Soviet people were impoverished, their
factories were obsolete and discouraged their workers. To make matters worse
products Soviets were of low quality and therefore neglected in the market
international level. What most irritated the Soviet consumers were long lines they
had to face when they wanted to buy something. And the reason for these queues
is always missing on the shelves of products markets and shops. A chaotic picture
that Marx never assumed that occurred in communist countries.

The desperate situation of the Soviet people in the government reached its peak
Gorbachev, and he had to act fast to avoid a major popular revolt against the
communist government of his country. So he defended brilliantly before the Soviet
Communist Party, which was necessary reshape the Soviet Union (USSR),
targeting it to thrive effectiveness and efficiency and would be respected by the
world community. Of course, Gorbachev followed, with a hint of envy, Chinese
success with its "market socialism" started in 1978.

To the authorities of the Soviet government of Mikhail Gorbachev, the reality was
evident. The USSR was falling behind in the military and economical, and it
affected their global influence. In fact, the USSR began to falter in the early 70's,
when economic indicators clearly showed a sharp drop in worker productivity and
life expectancy of the population. Finally, the Chernobyl nuclear accident, which
occurred in 1986, demonstrated to the world and confirmed the Soviets
themselves, how much USSR was obsolete and poor. Something must be done
quickly. It was so then that Gorbachev, with the endorsement of the Soviet
Communist Party, went into action with its strategic plan for restructuring based on
two pillars: perestroika and glasnost.

The Perestroika consisted of a series of economic reforms to boost the socialist
economy, including that contained the decrease the military budget of the USSR.
This resulted in drastic cuts in spending on armaments and culminated in the

34

evacuation of Soviet troops from Afghanistan, who then waged war useless and
silly, that it should not
have begun, for the story that no foreign power managed to dominate that country.
And the Soviet Union was no exception, it lost the war and his troops were
expelled from the country so humiliating.

The disarmament policy of Gorbachev was a positive example for the world.
Unfortunately the U.S. went in the opposite direction, finding to overwhelm the enemy of
the Soviet time. However the growing U.S. weapons have raised the suspicion of the world
relation to the purposes and aspirations of the American government, considering that only
one superpower clearly affect the global balance.
Distrust this compounded by the memory of the atomic bombs released in Japan by the
United States, a fact which is reflected in the consciousness of humanity today. From that
point of view would be better for everyone and also for the recovery of the American
image, if nuclear weapons were eliminated from the planet. It makes some sense the
United States continue expanding their arsenals, considering that it is by far the
most powerful country militarily? Did they want to intimidate or cause the
world?

Continuing the analysis of the USSR, glasnost was the government's plan B
Gorbachev, to give freedom of expression for the Soviet press and provide greater
transparency of government actions to the population. So the strong censure the
government imposed the press was withdrawal.

The new situation of freedom in the USSR allowed the slowdown in she sponsored
dictatorship to other communist countries. And the result most obvious was the correct
policy of weakening of the pact Warsaw.

The wise policy of Gorbachev made the East and West to seek ways
peaceful understanding to resolve their disputes. However, as the saying goes -
"What is good, lasts a long while.", then when the Bush family seized the White
House, the militarists in the government on duty gained greater power and
projection, and thus began a new period black
American and world history.

The international community was quite apprehensive about the return of Republicans in
American power, that somehow she awaited the unfortunate results that insane militaristic
policies that damn Hawks bring. And they were not slow to appear. Rivers of money were
roasted uselessly with weapons and the U.S. engaged in two wars misleading, contrary to
international public opinion. And as direct consequence of these dubious "wars to fight
terror," which even managed to capture Bin Laden, the militaristic hawks have to intimidate
foreign countries like North Korea, Syria and Iran For a new war would certainly be
profitable for these military belligerent, and further to their associates of the powerful
billionaires U.S. defense industry.

35

Alongside those situations belligerent, the U.S. economy walked to the bottom and his
people did not even realize, that dominated by the corporate media is corrupt.
Currently the U.S. go through a devastating economic crisis in reason of those misguided
policies, especially those who encouraged the exacerbated arms race. Now Americans
pay a heavy account so their costs and share with the world.

The root of the current crisis in the U.S. - the arms race

The bitter medicine of the arms race that the U.S. planned and imposed on the
former USSR, also caused a "side effect" unwanted, and it is behind the current
American crisis, although the corporate media hide the fact.

So watch out for the "half-truth" aired in the media regarding the mortgage crisis
that began in 2007 in the U.S., and soon spread to the world. Basically the same
as already mentioned, the U.S. crisis is direct result of misguided policies and
permissive for the U.S. military-industrial complex, after the Second World War
world. So the root of the current crisis is the growing deficit U.S. Treasury, because
of uncontrolled military spending, which will excessively accumulated over the
years. For this reason the U.S. have an enormous debt, something around U.S.
$ 10.9 trillion, appointed on March 9, 2009 by the critic "Clock National Debt.
"Signaling that the American people will still pay a lot dearly for this irresponsible
hole occurred in the U.S. Treasury on behalf the arms race, which even cost him
the loss of empire.

The empire of U.S. bases

The aggressive foreign policy of the cold war involving American and
Russians also suspicious of each other, fueled paranoia American who came to
make the U.S. the "empire of military bases in abroad, "for the happiness of his
billion dollar defense industry.

Somewhere around 1000 bases around the world, and that account for 95% of
the total bases of all countries on the planet. Only in Germany are more than 227
U.S. military bases. And all this military bases consume a mountain of money
corresponding to $ 100 billion annually. Allied to this, it is known that the arms race
American spending has exacerbated huge, something around U.S. $ 500
billion a year. However the U.S. is not as safe as can be
imagine.

History shows us that with the fall of the USSR things seemed well to the U.S.,
so the only hyper power in the world. But things are not always what they seem.
Until the day September 11, 2001 the terrorist attack occurred in Al-Qaeda to the
U.S., led by Osama Bin Laden, a bastard son of the cold war and cruel and policies
misleading the world into regions sharing their influences, prepared by the

36

superpowers. So the bastard Bin Laden led surprising and devastating attacks on
the U.S., the world can watch live on television. After all who can forget the
moment the twin towers imploded, killing thousands in a few seconds?

Those Islamists did what any country able to Then, bomb the soil of America.
Worse, the bombing occurred means of airliners full of passengers.
These attacks were the pretext that ambitious radical ideal Americans would use
later to further increase spending military "defense". Taking advantage of the
strong popular emotion fear generalized further attacks.

Then the infamous "hawks" promoted "preventive wars security "against
terrorism by attacking Iraq and Afghanistan. In Truly the "military government" and
"lobbying arms" worked behind the scenes in Congress, aiming to sell weapons
and hold of the riches of those countries, especially Iraq's oil. After all the interest
of the U.S. military-industrial complex is not intimately connected with the interests
of powerful oil industry by chance. It is a perfect marriage, which boosted the
blatant "Blood for oil war" in Iraq. But that was waiting for international community,
considering that top Bush administration was committed to the neck with the oil
industry.

When President George W. Bush started those wars, he ignored considerations
contrary to it the UN itself, which demanded that the U.S. present evidence that
Iraq had weapons of mass destruction, to give its approval. However, the U.S.
ignored the UN and began wars, tentatively supported by some allied
governments, as England and Spain.

Truth be told, the Iraq war was a huge fiasco, and the weapons of mass
destruction that the Hawks co-opted by industry alleged arms exist, were never
found. It was clear that the wrong war against the Muslims only benefited the
capitalist military industrial and oil, to the detriment of working poor Americans. For
the budget of any country is as a short blanket if covers the foot finds the head and
vice versa. Of so that the money that is being roasted in those wars wrong, now it
is missing for the Americans, considering that the country's economy is in financial
collapse, with millions of the unemployed.

Things got so black to the U.S., everyone understood that that country alone
could not recover from the crisis, requiring emergency with "global solutions and
coordinated," on account of the whole community international law, including even
the "socialist" countries. Otherwise the U.S. would go to the bottom and drag the
whole world with you.

37

It is this shared way of global economic power that is experiencing the twilight of
American empire, already without the economic means and financial resources to
continue supporting its military exacerbated called by many the "imperialism of
military bases." But one thing is certain, that weight that Americans are highly
patriotic, they will have to accept the fact that the irreversible decay of his country.
You can not stay forever at the top of the power and history proves it.

Therefore the government of President Obama must work wisely in to negotiate
the contribution of the still important role U.S. for the construction of a new UN
fairer and active. For only so world does not descend into a black future scenario of
regional wars and can promote social progress and fair to all the inhabitants of
the planet.

Radiography of the American Collapse

The collapse of the U.S., the country stronger and richer world, exposes the
fragility its economic model based on neo-liberal capitalism arms; that transformed
the country, then the world's largest creditor after the second war, the world's
largest debtor.

By an irony of history, the largest creditor is the current U.S. socialist China,
an opponent's weight, which has in its possession $ 1 trillion in U.S. Treasury
securities issued.

Without the continued funding of this "adversary", the U.S. economy once would
have gone into the hole. It is for this reason that the Secretary of U.S. State Hilary
Clinton is redoubling diplomatic efforts with the Chinese government, for it to
continue financing the huge deficit U.S. Treasury, estimated at U.S. $ 1.75 trillion,
representing 12.3% U.S. GDP, the highest since World War II.

A potentially dangerous situation for both countries; mainly because the U.S.
was too dependent on capital Chinese, considering that they are your major
opponentspolicy in East Asia.

In turn, China runs a serious risk of a default by the government to take American and
lose your money invested. Also, China depends much of its exports to the U.S. currency
as it must receive the abroad to pay its rapid economic growth. Hence occurs a very
interesting mutual dependence, in which the giant capitalist captive giant socialist and vice
versa.

Interestingly, countries like China, Japan, Britain, Brazil and other Bulk buying
U.S. Treasury bonds, "finance" the misguided American policy arms colossal
deficits, for years followed. Thus extending the decline of American empire
possessed the uncomfortable and threatening military bases throughout the world.

38

The American crisis made it clear that the potential of misguided policies put in
place by the Republicans of the Reagan and Bush eras, if sold out. No longer
works for the government to continue on the path of excessive indebtedness to
finance the deficits of the treasure, great of them due to the heightened arms race,
which only benefited some companies in the oil industry, military and banking.

The same policy that served American arms to disintegrate USSR in 1991, with
time also made the U.S. into a giant with "feet of clay," mired in debt astronomical,
although the people U.S. has not fully aware of this fact. However, certainly the
account will pay the price resulting from this mistake.

Once America was considered a safe haven for global capital contribute and
prosper. So, at that time could be found easy financing for the deficit of U.S.
treasuries, used to sustain the massive U.S. war machine. But things changed and
even Communist China by Wen Jiabao indicated that diversify their applications
from the outside, in other words to say it will dramatically reduce the purchase of
U.S. Treasury Bonds, for fear of future default. This means that the "binge" U.S.
military suffer a severe blow.

Fortunately for the world U.S. President Barak Obama, as mentioned, said
substantially cut military spending to save money. A wise decision and that will
force a restructuring U.S. strategy, which will certainly have to give up its unilateral
military to deal with a globalized world interdependent. This fact would greatly help
in the recovery of global confidence in the country. In this case, to further increase
trust and respect world an apology for Japan detonated atomic bombs in Hiroshima
and Nagasaki, would be a good start for the Obama administration. For as the
saying goes: "before late than never".

But things will not be easy for the U.S., the UN itself because studies a way to
diminish the importance of the dollar in international trade. His idea is that some
hard currencies serve as a reference and not just the dollar. A very interesting
proposal, but that is not new. in the past Keynes had already proposed in the past
the launch of a global currency whose value would be based on the average of the
values of a basket of currencies strong international.

China itself concerned with the melting of the mountain of U.S. dollars which
has proposed the creation of an international currency, disconnected from a given
national currency, which is able to remain stable over time. No doubt the launch of
a new currency with acceptance universal in the international market is very
complex because it involves many interests. However it is inevitable that this
occurs in the near future. But one thing is certain. The proposals of the UN and
China demonstrate the as the vanished American power. But that's not bad for the
U.S. and or to the world, quite the contrary. The time will confirm.

39

The wise example of Gorbachev and the End of Empires

If the U.S. had followed the wise example of Gorbachev that promoted
disarmament, would certainly be better off than today, both in terms of economic or
military. Should also be better insurance against terrorism and must have had
greater confidence world.

It requires only give greater political autonomy, military and economic for the
UN. And in parallel, discouraging the race arms of the national armies. With the
right attitude and practice, much money would be left in the world in order to apply
it in combat poverty, hunger, ignorance and corruption, which both delay promoting
real progress based on global sustainability, peace and social justice.

In this context, the election of Obama had a special significance for curbing the
arms race, not only for Americans, but also for the international community,
considering that a world better, peaceful and everyone's expectations.
Obama's messages are clear in this regard:

"The long-term deficit and debt we are unsustainable. Not we can continue
lending (money) from China or other countries. "

And he continued:

"This means we are mortgaging our children's future with more and more debt”.

Finally, Obama made a statement that sums up his view of importance of
collaboration America to have a better world:

"I assume so convinced the U.S. commitment to peace and security in a world
without nuclear weapons".

President Obama has a clear vision and objective of the arms race exacerbated
their country is sucking blood work and money from the American people. Because
of this he gave way in a plan to reduce military spending, including providing for the
closure of many U.S. bases abroad.

These measures taken by the U.S. government correctly portray faithfully
collapse of American Empire occurred in 2007, the year the U.S. financial crisis
sweeping the world and showed Americans themselves, the huge hole in the U.S.
Treasury is unsustainable. Therefore, cuts in government budgets will be next
to be made, especially those with useless spending and military weapons.

40

The collapse of American has a historical importance odd because it suggests
that the era of empires is over. In today's world the "global solutions" need to be
shared with all countries. From now on no longer there will be more space for
hegemonic powers, dictate their will to force of arms. In this sense, the U.S. was
the last empire humanity. The list below notes the precipitous drop in time
duration of hegemonic powers, the imperial is terminated:

Empires Timeline length / year
Chinese 2000 BC to 1911 A.D. 3911
Egyptian 3150 BC to 30 BC 3120
Roman 753 BC to 476 A.D. 1229
Ottoman 1281 A.D. to 1918 A.D. 637
Portuguese 1495 A.D. to 1975 A.D. 480
Spanish 1519 A.D. to 1898 A.D. 379
British 1600 A.D. to 1945 A.D. 345
Soviet 1922 A.D. to 1991 A.D. 69
American 1945 A.D. to 2007 A.D. 62

In the current global context, the decline of American empire is especially
important for the strengthening of the New UN. So that from now on prevail on the
consensus of countries rather than the will of a particular empire. Accordingly, no
war can be declared unilaterally, because otherwise represent an insult to the other
UN countries, and certainly the aggressor country will receive heavy retaliation
the international community.

I believe that U.S. President Barak Obama is aware order that the strategic
arms race necessarily result strengthening of the New United Nations, with a
consequent reduction of forces national armed. And it will help a lot in promoting
sustainable and equitable global prosperity. I also believe that the president
Obama and other presidents who succeed, will spare no efforts to New help in the
consolidation of the UN. And so they help you write most important pages of
contemporary history.

The Transforming Power of Emerging Countries in the 21st Century

While U.S. power is declining considerably, with country mired in a severe
economic crisis and two wars and faces cruel; other countries stand out in the
international arena. Are "Emerging" that belong to the G-20: China, Russia, India
and Brazil – the new powers of the 21st century. These countries which together
with South Africa South, Saudi Arabia, Argentina, Australia, Canada, South Korea,
France, Indonesia, Italy, Japan, Mexico, Turkey and the United States makes up
entire G-20. A group that has an economic, political and considerable cultural, it
represents 90% of world GDP, 80% of international trade and two thirds of the
world population. a power enough to influence other countries in the rest of the
globe and New redesign the UN.
41

The Transforming Power of Emerging Countries in the 21st Century

While U.S. power is Declining considerably, with country mired in a severe
Economic crisis and two wars and faces cruel; Other countries stand out in the
international arena. Are "Emerging" that belong to the G-20: China, Russia, India
and Brazil – the new powers of the 21st century. Which Countries These together
with South Africa South, Saudi Arabia, Argentina, Australia, Canada, South Korea,
France, Indonesia, Italy, Japan, Mexico, Turkey and the United States makes up
Entire G-20. That the group has an Economic, political and Considerable cultural, it
Represents 90% of world GDP, 80% of international trade and two Thirds of the
world population. the power Enough to Influence Other countries in the rest of the
globe and New redesign UN. the other countries of the globe and New redesign
the UN.

The Convergence of Capitalism & Socialism

Convergence between the socialist and capitalist systems is understood easily, as
"things that work in a given system, so they are exploited by another. "This is not
currently observed permeability new in history, for the acts of copying
improvements, concepts and inventions have always existed in mankind. It has
been so since the discovery of fire, metallurgy, armaments and manufacturing
processes.
History attests to the good, beautiful and functional is quickly copied by
other. Strange as it may seem, this process of "copy, improve and create "is
necessary for the development of things and makes part of human ingenuity. So
that the actual facts show that socialism and capitalism are also going through the
process of "Creative copy" because of the adoption of "market socialism" and
nationalizing banks or other strategic companies, which have necessary, especially
now with the world in crisis.

The facts show that government intervention in the economy, the countries
affected by international crisis was a blessing. no doubt some of these
interventions avoided the "rock bottom" for them. Hence for front, not many years
after the crisis passes, socialism and capitalism, now in the process of
convergence, have formed a single system political-economic sociocapitalism
called. And it will still take place this century. But no one sociocapitalism fallacious
"fund pension "mentioned by Drucker in his book -" Post-Capitalist Society",
published in 1993. But a single political-economic system resulting from ultimate
convergence mentioned above.

42

Chapter III
The Sociocapitalism
The expression sociocapitalism appeared in the book by Peter Drucker
"Company Post-Capitalist "published in 1993, to designate the" capitalism of many
members' pension funds to provide.

For Drucker sociocapitalism occurs through the capital markets use these funds
to make their applications. in the words it in his book:

Pension funds are a curious phenomenon and doubtless paradoxical. They are the
investors who control the capital and its investment. But not even the managers who run
their owners are 'capitalists'. The pension fund capitalism is the capitalism without
capitalists. "

Drucker later adds:

"Pension funds are 'owners' but only legally. In First they are healers. The
owners, future pensioners, are the ultimate owners. "

Indeed, Drucker's statement that "the pension funds is a capitalism without capitalists
"is a fallacy. For the pension funds are pension of civil societies and non-profit; constituted
from corporate sponsors for their employees can reap the benefit of pension paid
complementary. Drucker himself mentioned this fact:

"Pension funds are being suspended wages
accumulated to provide the equivalent of wage income people
that no longer work".

In fact, the retirement plans offered by funds pension plans are reducing
salaries, which are intended to finance retirement and economic security to the
worker when he unable to work. Of course this plan is to reduce wages beneficial
to the sponsoring companies as mentioned below.

In general the sponsors come in with 50% of capital funds Pension, which are
usually tied to a given percentage of the leaf salary of its employees. The
remaining 50% out of pocket employees receive the funds. How are the sponsors
that are pension funds, they reserve for themselves the best part of executive
power, which in theory is divided "half-a-way" with employees participants. So the
nominees sponsored occupy the Boards more strategic pension fund, for example:
the Presidency, the Board of Directors and Equity Investments.

43

The sociocapitalism

Empfohlen

Empfohlen

Weitere ähnliche Inhalte

Was ist angesagt?

Was ist angesagt? (19)

Mehr von Paulo José Valente

Mehr von Paulo José Valente (16)

Kürzlich hochgeladen

Kürzlich hochgeladen (9)

The sociocapitalism