Economic forecast - the end of Capitalism?

The budget deficit of Japan's economy was more than twice the country's GDP (as of June 2010) before the current tsunami/nuclear crisis.

Most of the major European economies are struggling with massive debt.

The United States, UK, Europe, Japan...and so it goes...announcing that things can only get worse if austerity measures aren't introduced right away.

What conclusions can be drawn from what has been widespread and collective economic mismanagement? Could this be the end of Capitalism or is that Doomsday talk?

Economics experts predict conflicting views, but then most 'experts' disagree with each other anyway. However, austerity measures being pursued throughout the world will surely have a recessionary effect.

Less spending power in people's pockets = less to spend on goods and services = businesses and business turnover will suffer = tax revenues will fall and unemployment payments rise.

Japanese governments have been borrowing heavily since their economic bubble burst 20 years ago. Ongoing deficits have been shored up by issuing long-term government bonds which are now unsustainable. It is the same for the United States, UK, Europe etc.

So many countries in financial turmoil...why?
The problem seems to be not a failure of Capitalism as a philosophy, but more a failure of the reporting mechanisms that support governments with their collection and interpretation of economic data. That and poor decisions...buy now, pay later.

The impact of the economic news coming out of Japan, the UK and EU are a threat to economic and political stability. So far, we've seen very few civil protests by disaffected workers forced to accept cuts in their incomes. So far that is.

It may be that the airplane called Capitalism has been flying off course for so long that the collision no-one thought possible...running out of fuel and ditching in failure.

US Civil War and Moammar Gadhafi's Libyan military forces vs rebels in the east. The principle of free choice?

On one hand

On the other hand

Moammar Gadhafi's military forces pushed into the rebel stronghold of Benghazi on Saturday. Artillery rounds landed inside the city, and pro-Gadhafi tanks rolled into the town firing rounds, witnesses said. U.S., European and Arab leaders met Saturday at a last-minute Paris meeting on Libya. "There is minute-by-minute consultation between the United States and the militaries of other countries that are considering their support of action" under a U.N. resolution authorizing the use of force, a senior State Department official told reporters.

In the United States of America in 1860, a war of northern aggression was caused by the north deciding that it wanted to impose their laws and morals on the southern states instead of allowing the southern states to chart their own course. This war was transformed, in the words of Abraham Lincoln, into a war for a "new birth of freedom." The 60,000 death casualties of a Civil War was the worst in American history. Rebels from the south fought against government forces of the north.

Suppose in 1860 USA, after observing the Confederate rebels being attacked by federal government forces, foreign nations decided to intervene?

On 21 February 2011, the state television HQ in the Libyan capital Tripoli was breached by anti-government demonstrators and a government building was set ablaze as protests continued.

On October 16, 1859, John Brown, [a northerner who hated slavery and had previously raided pro-slavery strongholds in New York, Kansas and here in Virginia] and twenty-one men attacked the armory at Harpers Ferry and rounded up sixty men from the area as hostages. Brown and his compatriots planned to take the federal arsenal and armory there and use the weapons to arm slaves in a rebellion they hoped would spread throughout the South. Government forces, headed by Colonel Robert E. Lee, attacked the armory, killing ten men--two of whom were Browns sons. Brown survived the attack but was wounded. He was charged with murder and treason and was hanged on December 2, 1859. Following Brown's hanging, the southern militia was formed into a viable fighting force. This was the beginning of the Confederate Army.

How do illegal immigrants actually harm?

Our society maintains an infrastructure of support to its citizens, paid by its citizens, earned by its citizens and defined by them. Whenever a non-citizen makes use of the infrastructure resources, it reduces the availability to those who rightfully deserve it.
Roads, water supply, sewers, power grids, telecommunications, social services, markets etc. are examples.
Your family is limited in its resources...how would an uninvited stranger living in your home, eating your food, using your electricity etc. affect your life? There is some degree of degradation to you in every aspect of your family's life by the presence of that stranger.
The degree of degradation of infrastructure resources, and the increased cost of the infrastructure, is significant in direct proportion to the number of illegal immigrants. 11-12 million illegals living within the 300 million persons in the United States may only be 3-4 percent nationally, but in some border areas that percentage is much much higher. Additionally the great majority of these require above average infrastructure support and contribute below average support for the infrastructure...medical care for example...making the effect more like 8-10 percent.

So take a 10% cut in your income and consider the impact.