Low intensity conflicts are happening all around us, and with it, some say, the possibility of a third world war breaking out. Countries, especially those members of APEC, are discussing right now because they know that the capitalist system is now encountering a serious crisis of over production. It has manifested with China calibrating its monetary system just to curb the acceleration of surplus which is simply affecting profits. Over accumulation is presenting a new problem--that of falling profits and surplus labor. More and more workers are losing their jobs and with it, their capacities to consume what has been produced. This contradiction is sure to break out very soon and is sure to manifest itself thru conflicts.
The problem of capitalism as a mode of production is it is inherently destructive by nature. Because the capitalist created a massive army of laborers, transforming producers into wage earners, the system wittingly or unwittingly tied millions of families to poverty. Millions of families now depend on factories to get their wages in the form of currencies which they exchange for essentials. For wage earners to keep on getting their salaries, factories has to keep on producing, and firms do produce until they reach over accumulation. What this leads to is what we call surplus value.
Meaning, firms do not produce only on what the market needs---it over produces because the capitalist needs to pay the monthly salaries of his workers. Realizing this, modern capitalists tried to correct the situation thru contra actualisation. What this means is that massive armies of laborers are kept as a reserve army only called upon when they are needed. This massive number is now lumped together as poverty statistics of government. And it keeps on rising.
With dwindling resources, and falling profits, and lack of land, there is no way out for these individuals. Government tries to encourage them to revert into producers, assuming the role of "entrepreneurs" either small or medium-size. However, what observers notice is the fact that the rise of entrepreneurs does not necessarily correlate with the fall of the number of impoverished families because those who were convinced to enter the market as small capitalists, encounter difficulties such as small markets. With small markets come small profits, and with profits unable to finance monthly living standards, families enter a state of perpetual poverty.
The underdevelopment of infrastructure does not help deter this crisis. The solution really is for these reserve army to revert into producers, yet because the system of governance does not practice centralised planning, the system does not know how many are relegated to the wayside.
The solution really is simple--change the mode of production. Yet, this requires a heightening of tensions, of these contradictions leading to low intensity conflicts. However, the small number of Oligarchs who control the means of production--surely--they will not, no never, give up their condition and instead will resort to wealth protection by mobilising their political allies and their armed security agencies.
This explains why those who are running right now for the Chief Executive posts are all being backed by Big Business. These candidates are there to protect the wealth of the Oligarchs.