The fundamental contradiction of capitalism is the key to recognize its historical trend. In the modern society, a new change has been brought to the development mechanism of the fundamental contradiction of capitalism. And a new mechanism has come into being, which is characterized by the co-existence of monopoly and competition and the co-existence of countries and markets. Under the impact of these two mechanisms, the development of the fundamental contradiction of capitalism, in one country or worldwide, reenergizes the development of contemporary capitalism and reinforces its vitality to some extent. However, the concealment of capitalistic exploitation, the sharpening polarization of capital and labor, the growing conflict between man and nature, and the new development style of the fundamental contradiction of capitalism worldwide, give birth to forces and factors that block the development of capitalism and eventually lead to its death. The drawbacks revealed in the development of the fundamental contradiction of capitalism indicate such a mode of production and social system is doomed to failure.