Re: whose infinite capacity
It is all about one country (I am inferring Brazil) and everything in that quote described that same country in a way that is not very flattering.
If it has an "infinite capacity" it means it can do something forever (in this case, says the author, be wasteful). Its wastefulness was as well known as its football teams and carnivals.
I'm not a teacher, but I write for a living. Please don't ask me about 2nd conditionals, but I'm a safe bet for what reads well in (American) English.