World elites partied last week in Switzerland.

The Davos resort-sited forum convened within days of the World Bank announcement sharply slashing its global economic growth forecasts to 2.5 percent for 2012 and 3.1 percent in 2013. Those forecasts are markedly “lower than previous estimates of 3.6 percent for both years.”

That’s not good news. But, in our view, what follows is more noteworthy and — attitudinally — worse. Specifically, that is what the founder and host of the annual World Economic Forum, Klaus Schwab, had to say about what he will ask assembled political leaders to do. That is, “… urgently find ways to reform a capitalist system,” which he described as “Outdated and crumbling.”

Continuing, Schwab says, “… solving problems in the context of outdated and crumbling models … will only dig us deeper into the hole.”

Transitioning, Schwab adds, “We are in an era of profound change that urgently requires new ways of thinking instead of more business-as-usual.”

Then, and this likely reflects the belief of other elites, Schwab discloses his own intent and objective, “Capitalism in its current form has no place in the world around us.”

Oh, really? Mr. Schwab is wrong - as in wrong-headed. But, another attendee, John Quelch seems clear-headed.

Quelch, dean of the China-European International Business School, bluntly stated, “The main conversation will be about a deficit of leadership in Europe as a prime problem.”

Hmm. Which got me to thinking. We have resorts here in the U.S. We have hosted economic summits in the past. We could hold one here in the future. Better schedule it now. Hold it in weeks, not months, possibly site it along the beautiful Gulf Coast.

We could invite Mr. Quelch. And, we could ask him, “What is the prime problem here in the U.S.?”

I will paraphrase here what the likely response might be from Mr. Quelch: The main conversation will be about a deficit of leadership in the United States.

Let’s reflect. Better yet  compare regarding the European situation Quelch described, namely the deficit of leadership as a prime problem.

In our view of the U.S. situation, the deficit of leadership is the prime problem. Of course, complicating the situation here is Campaign 2012.

Increasingly, some candidates seem to be trying out the idea of defending Capitalism. That’s good in general. Not so good is the likelihood of being saddled with the political label of Crony Capitalist.

That said, here’s a truth. The real causal problem in all of this is Crony Politics. And, more specifically, those who practice it: Crony Politicians.

After all, it is the Crony Politicians who seek out the Crony Capitalists for donations as well as those Crony Capitalists who, rather than compete in free markets, seek regulatory favor and advantage through the Crony Politicians. 

Here’s another Truth. Capitalism is not the problem, the Sibling Cronies are the problem.

Get the Sibling Cronies out of politics and out of business, and freedom and free markets will flourish. Of course, that would result in a bigger problem for Klaus Schwab and elites around the world.

Schwab and others are on a mission. How did Schwab put it? “Capitalism in its current form has no place in the world around us.”

Au Contraire, Mr. Schwab. Socialism of any style has no place in the United States.

Rather, the United States needs to reinvigorate the principles of the American Founding including limited central government, respect for property as well as life and liberty in the courts of law and legislative halls.

Richard Olivastro is president of Olivastro Communications. Contact him at: RichOlivastro@gmail.com or by phone at 1-877-RichSpeaks.