Global elites are confused, reactive, and sinking into a quagmire of their own making”, says Californian Sociology and Global Studies Professor William I. Robinson in this absolutely brillant, must-read, analysis of the current crisis of capitalism.

Here are a few extracts but please read full article:

Global elites had hoped and expected that the "Great Depression" that began with the mortgage crisis and the collapse of the global financial system in 2008 would be a cyclical downturn that could be resolved through state-sponsored bailouts and stimulus packages. But it has become clear that this is a structural crisis.”

“Global elites cannot manage the explosive contradictions. Is the neo-liberal model of capitalism entering a terminal stage? It is crucial to understand that neo-liberalism is but one model of global capitalism; to say that neo-liberalism may be in terminal crisis is not to say that global capitalism is in terminal crisis. Is it possible that the system will respond to crisis and mass rebellion through a new restructuring that leads to some different model of world capitalism – perhaps a global Keynesianism involving transnational redistribution and transnational regulation of finance capital? Will rebellious forces from below be co-opted into some new reformed capitalist order?

Or are we headed towards a systemic crisis? A systemic crisis is one in which the solution involves the end of the system itself, either through its supersession and the creation of an entirely new system, or more ominously the collapse of the system.”

On why this is a systemic crisis:

The system is fast reaching the ecological limits of its reproduction. We face the real spectre of resource depletion and environmental catastrophes that threaten a system collapse.

– The magnitude of the means of violence and social control is unprecedented. Computerised wars, drones, bunker-buster bombs, star wars, and so forth, have changed the face of warfare. Warfare has become normalised and sanitised for those not directly at the receiving end of armed aggression. Also unprecedented is the concentration of control over the mass media, the production of symbols, images and messages in the hands of transnational capital. We have arrived at the society of panoptical surveillance and Orwellian thought control.

– We are reaching the limits to the extensive expansion of capitalism, in the sense that there are no longer any new territories of significance that can be integrated into world capitalism. De-ruralisation is now well-advanced, and the commodification of the countryside and of pre- and non-capitalist spaces has intensified, that is, converted in hot-house fashion into spaces of capital, so that intensive expansion is reaching depths never before seen. Like riding a bicycle, the capitalist system needs to continuously expand or else it collapses. Where can the system now expand?

– There is the rise of a vast surplus population inhabiting a planet of slums, alienated from the productive economy, thrown into the margins, and subject to sophisticated systems of social control and to crises of survival – to a mortal cycle of dispossession-exploitation-exclusion. This raises in new ways the dangers of a 21st-century fascism and new episodes of genocide to contain the mass of surplus humanity and their real or potential rebellion.

– There is a disjuncture between a globalising economy and a nation-state based system of political authority. Transnational state apparatuses are incipient and have not been able to play the role of what social scientists refer to as a "hegemon", or a leading nation-state that has enough power and authority to organise and stabilise the system. Nation-states cannot control the howling gales of a runaway global economy; states face expanding crises of political legitimacy.”

What comes next:

We are in for a period of major conflicts and great upheavals. As I mentioned above, one danger is a neo-fascist response to contain the crisis. We are facing a war of capital against all. Three sectors of transnational capital in particular stand out as the most aggressive and prone to seek neo-fascist political arrangements to force forward accumulation as this crisis continues: speculative financial capital, the military-industrial-security complex, and the extractive and energy sector.”

What should happen?:

“As global elites regroup and assess the new conjuncture and the threat of mass global revolution, they will – and have already begun to – organise coordinated mass repression, new wars and interventions, and mechanisms and projects of co-optation in their efforts to restore hegemony.

In my view, the only viable solution to the crisis of global capitalism is a massive redistribution of wealth and power downward towards the poor majority of humanity along the lines of a 21st-century democratic socialism in which humanity is no longer at war with itself and with nature.”