thanks for the overly verbose monologue, although my anal-retentive nerd gene is forcing me to make some corrections:

socialism: a theory or system of social organization that advocates the vesting of the ownership and control of the means of production and distribution, of capital, land, etc., in the community as a whole.

capitalism: an economic system in which investment in and ownership of the means of production, distribution, and exchange of wealth is made and maintained chiefly by private individuals or corporations, esp. as contrasted to cooperatively or state-owned means of wealth.

these are what you call "professional definitions," because they were inscribed into our most holiest of texts (not the f-ing bible, that collection of lies!), the dictionary. "Popular definitions" are what occur after a professional definition has been hashed out, and then the media and the masses get on it, and twist it in their typical ignorant ways. So "capitalism" and "socialism" are not broad terms at all, they're very specific, but common understanding of them is very flawed. The Nazi party was technically socialist, and the Soviet Union was technically communist, but neither party lived up to the professional definitions of their trade.

In the world of communication, there are several stages of added distortion or skewing between sender and recipient. It is here that the "broadening" of definitions occur. Know that any person choosing to define themselves as one of the intelligensia of our society MUST never use popular definitions, here is where breakdown in communication innevitably occurs.

Now that i've laid down a couple caveats, i can move on.

Socialism does not lead to facism, and the United States of America is not a capitalist society. Fascism comes when the government body can systematically remove the civil liberties of it's citizens without a revolution. This is what is slowly occuring in the U.S. right now, right in front of the stunned faces of 300 million people. By utilizing tactics of fear and impoverishment, a government can break the will of the people and turn them into crying little babies reaching blindly for a teet to nourish them. The impoverishment comment leads nicely into my next point here.

Inflation is the relationship of liquid capital (dollar bills) to wealth (material stuff). The economic system of the U.S. is based on a flawed theory of infinite growth, it got there due to interest, specifically compound interest. If i loan you a dolloar, and you have to pay me back $1.15, you have to aquire that extra $.15 somewhere else, most likely from working, which when you look all the way up the line, you find that your boss borrowed money for the business, and your government borrowed money to implement it's policies. So what i'm failing to illuminate here is the fact that it's all borrowed money, and there is interest on all loaned money, meaning that the money owed to the bank will always be greater than the amount of money available! With the inception of compound interest the difference between "debt - (liquid + wealth)" is growing at an alarming rate.

Now for the control in the experiment: this is something that financial experts have known for about 80 years now. The paper bill that has fictional value, known as your currency, is throttled like any commodity reacting to supply and demand. A society's economic value is determined by the sum of it's assets + exports, minus it's debt load. At any time, this can be calculated by people who've never seen the genitalia of the opposite sex in person, but for now we'll just call that value "x."
So if a society has a value of x, represented by 20 billion in little dollar bills, what happens when they print more currency? It simply devalues existing dollar bills, because "x" hasn't changed, only the number of bills representing it. Private banks can throttle the production of currency with very predictable effects, and yet they consistently opt with the production of more dollar bills. This fact, in conjuction with the fact that banks are always owed more money than they loan out, makes inflation a guarantee in our world.

Ready for the real kick in the knackers? When someone borrows money from a bank, said bank has no obligation to reserve the loan amount out of it's liquid until the loan is paid back. What does this mean? It's fictional money! You've been duped!