Capitalism generates vicious circles during its development and decadence that may in turn become sinister spirals.

One of the mainstays of the neoliberal capitalism system is the creation of two poles in humanity and a growing rift between countries and the masses of people within those states. Thus, the richest become richer and the poorest become destitute.

The rift between nations may be regarded as two half oranges, that of the wealthy north and that of the poor south.

On the other hand, in some countries of the capitalist core, poverty grows in pockets that generate new vicious circles. The mean spirals of unemployment and lack of horizons compels workers and professionals to an exodus to other parts of the world.

Nowadays, thousands of young professionals in countries of the capitalist core seek to mitigate their respective crises by migrating to other nations, even in underdeveloped regions.

This phenomenon of the migration of young skilled workforce that we witness today in states of developed Europe has taken place in countries of the South in recent years.

Many analysts of European developed nations have alerted the authorities about this growing phenomenon. They are warning that these countries may be deprived of talents and gray matter for several generations, as in the case of Spain.

Excessive consumption in the countries of the rich North has generated another distinct vicious circle in the current world.

The phenomenon of economic globalization has caused the interrelation of all rational elements of economy, due to the consolidation of oligopolies, technological convergence and corporate tacit agreements. As a result, the ongoing economic crisis is global and binding.

Transnational corporations need to boost their revenues, due to the voracious appetite of shareholders that demand ever-growing profits. They have become dangerously indebted in their quest for gigantism and the increased transfer of assembly plants to emergent countries. They seek to cut down costs there, due to the huge difference of wages and the absence of labor rights in destination countries.

The larceny vicious circle and the resulting mean spiral seeks to keep those weak countries subordinated to the global dominance and exploitation scheme.

There are other vicious circles, like the brutally growing consumption of raw materials and inputs for the assembly plants production in those emergent countries. This leads to another sinister spiral of price rises of raw materials.

Hence, when the economies of the so-called First World fail to reflect the increasing revenues in sale prices, they sustain a substantial loss of competitiveness, stagnation of their exports and deficits in their current accounts.

The above-mentioned situation has caused the foreign debt of those rich nations to grow, which forced them to contract further debts and triggered the crises in Greece, New Zealand, Portugal, Spain, etc.

The recommended solution is just another vicious circle: rising taxes, budgets cuts and new bank loans to pay previously contracted debts.

In a nutshell, more vicious circles that generate sinister spirals. By: Ariel Larramendi.