The Five Stages of Collapse, 2019 Update

By Dmitry Orlov

Source: Club Orlov

Collapse, at each stage, is a historical process that takes time to run its course as the system adapts to changing circumstances, compensates for its weaknesses and finds ways to continue functioning at some level. But what changes rather suddenly is faith or, to put it in more businesslike terms, sentiment. A large segment of the population or an entire political class within a country or the entire world can function based on a certain set of assumptions for much longer than the situation warrants but then over a very short period of time switch to a different set of assumptions. All that sustains the status quo beyond that point is institutional inertia. It imposes limits on how fast systems can change without collapsing entirely. Beyond that point, people will tolerate the older practices only until replacements for them can be found.

Stage 1: Financial collapse. Faith in “business as usual” is lost.

Internationally, the major change in sentiment in the world has to do with the role of the US dollar (and, to a lesser extent, the Euro and the Yen—the other two reserve currencies of the three-legged globalist central banker stool). The world is transitioning to the use of local currencies, currency swaps and commodities markets backed by gold. The catalyst for this change of sentiment was provided by the US administration itself which sawed through its own perch by its use of unilateral sanctions. By using its control over dollar-based transactions to block international transactions it doesn’t happen to like it forced other countries to start looking for alternatives. Now a growing list of countries sees throwing off the shackles of the US dollar as a strategic goal. Russia and China use the ruble and the yuan for their expanding trade; Iran sells oil to India for rupees. Saudi Arabia has started to accept the yuan for its oil.

This change has many knock-on effects. If the dollar is no longer needed to conduct international trade, other nations no longer have hold large quantities of it in reserve. Consequently, there is no longer a need to buy up large quantities of US Treasury notes. Therefore, it becomes unnecessary to run large trade surpluses with the US, essentially conducting trade at a loss. Further, the attractiveness of the US as an export market drops and the cost of imports to the US rises, thereby driving up cost inflation. A vicious spiral ensues in which the ability of the US government to borrow internationally to finance the gaping chasm of its various deficits becomes impaired. Sovereign default of the US government and national bankruptcy then follow.

The US may still look mighty, but its dire fiscal predicament coupled with its denial of the inevitability of bankruptcy, makes it into something of a Blanche DuBois from the Tennessee Williams play “A Streetcar Named Desire.” She was “always dependent on the kindness of strangers” but was tragically unable to tell the difference between kindness and desire. In this case, the desire is for national advantage and security, and to minimize risk by getting rid of an unreliable trading partner.

How quickly or slowly this comes to pass is difficult to guess at and impossible to calculate. It is possible to think of the financial system in terms of a physical analogue, with masses of funds traveling at some velocity having a certain inertia (p = mv) and with forces acting on that mass to accelerate it along a different trajectory (F = ma). It is also possible to think of it in terms of hordes of stampeding animals who can change course abruptly when panicked. The recent abrupt moves in the financial markets, where trillions of dollars of notional, purely speculative value have been wiped out within weeks, are more in line with the latter model.

Stage 2: Commercial collapse. Faith that “the market shall provide” is lost.

Within the US there is really no other alternative than the market. There are a few rustic enclaves, mostly religious communities, that can feed themselves, but that’s a rarity. For everyone else there is no choice but to be a consumer. Consumers who are broke are called “bums,” but they are still consumers. To the extent that the US has a culture, it is a commercial culture in which the goodness of a person is based on the goodly sums of money in their possession. Such a culture can die by becoming irrelevant (when everyone is dead broke) but by then most of the carriers of this culture are likely to be dead too. Alternatively, it can be replaced by a more humane culture that isn’t entirely based on the cult of Mammon—perhaps, dare I think, through a return to a pre-Protestant, pre-Catholic Christian ethic that values people’s souls above objects of value?

Stage 3: Political collapse. Faith that “the government will take care of you” is lost.

All is very murky at the moment, but I would venture to guess that most people in the US are too distracted, too stressed and too preoccupied with their own vices and obsessions to pay much attention to the political realm. Of the ones they do pay attention, a fair number of them seem clued in to the fact that the US is not a democracy at all but an elites-only sandbox in which transnational corporate and oligarchic interests build and knock down each others’ sandcastles.

The extreme political polarization, where two virtually identical pro-capitalist, pro-war parties pretend to wage battle by virtue-signaling may be a symptom of the extremely decrepit state of the entire political arrangement: people are made to watch the billowing smoke and to listen to the deafening noise in the hopes that they won’t notice that the wheels are no longer turning.

The fact that what amounts to palace intrigue—the fracas between the White House, the two houses of Congress and a ghoulish grand inquisitor named Mueller—has taken center stage is uncannily reminiscent of various earlier political collapses, such as the disintegration of the Ottoman Empire or of the fall and the consequent beheading of Louis XVI. The fact that Trump, like the Ottoman worthies, stocks his harem with East European women, lends an eerie touch. That said, most people in the US seem blind to the nature of their overlords in a way that the French, with their Gilets Jaunes movement (just as an example) are definitely not.

Stage 4: Social collapse. Faith that “your people will take care of you” is lost.

I have been saying for some years now that within the US social collapse has largely run its course, although whether people actually believe that is an entire matter entirely. Defining “your people” is rather difficult. The symbols are still there—the flag, the Statue of Liberty and a predilection for iced drinks and heaping plates of greasy fried foods—but the melting pot seems to have suffered a meltdown and melted all the way to China. At present half the households within the US speak a language other than English at home, and a fair share of the rest speak dialects of English that are not mutually intelligible with the standard North American English dialect of broadcast television and university lecturers.

Throughout its history as a British colony and as a nation the US has been dominated by the Anglo ethnos. The designation “ethnos” is not an ethnic label. It is not strictly based on genealogy, language, culture, habitat, form of government or any other single factor or group of factors. These may all be important to one extent or another, but the viability of an ethnos is based solely on its cohesion and the mutual inclusivity and common purpose of its members. The Anglo ethnos reached its zenith in the wake of World War II, during which many social groups were intermixed in the military and their more intelligent members were allowed to become educated and to advance socially by the GI Bill.

Fantastic potential was unleashed when privilege—the curse of the Anglo ethnos since its inception—was temporarily replaced with merit and the more talented demobilized men, of whatever extraction, were given a chance at education and social advancement by the GI Bill. Speaking a new sort of American English based on the Ohio dialect as a Lingua Franca, these Yanks—male, racist, sexist and chauvinistic and, at least in their own minds, victorious—were ready to remake the entire world in their own image.

They proceeded to flood the entire world with oil (US oil production was in full flush then) and with machines that burned it. Such passionate acts of ethnogenesis are rare but not unusual: the Romans who conquered the entire Mediterranean basin, the barbarians who then sacked Rome, the Mongols who later conquered most of Eurasia and the Germans who for a very brief moment possessed an outsized Lebensraum are other examples.

And now it is time to ask: what remains of this proud conquering Anglo ethnos today? We hear shrill feminist cries about “toxic masculinity” and minorities of every stripe railing against “whitesplaining” and in response we hear a few whimpers but mostly silence. Those proud, conquering, virile Yanks who met and fraternized with the Red Army at the River Elbe on April 25, 1945—where are they? Haven’t they devolved into a sad little subethnos of effeminate, porn-addicted overgrown boys who shave their pubic hair and need written permission to have sex without fear of being charged with rape?

Will the Anglo ethnos persist as a relict, similar to how the English have managed to hold onto their royals (who are technically no longer even aristocrats since they now practice exogamy with commoners)? Or will it get wiped out in a wave of depression, mental illness and opiate abuse, its glorious history of rapine, plunder and genocide erased and the statues of its war heroes/criminals knocked down? Only time will tell.

Stage 5: Cultural collapse. Faith in “the goodness of humanity” is lost.

The term “culture” means many things to many people, but it is more productive to observe cultures than to argue about them. Cultures are expressed through people’s stereotypical behaviors that are readily observable in public. These are not the negative stereotypes often used to identify and reject outsiders but the positive stereotypes—cultural standards of behavior, really—that serve as requirements for social adequacy and inclusion. We can readily assess the viability of a culture by observing the stereotypical behaviors of its members.

• Do people exist as a single continuous, inclusive sovereign realm or as a set of exclusive, potentially warring enclaves segregated by income, ethnicity, education level, political affiliation and so on? Do you see a lot of walls, gates, checkpoints, security cameras and “no trespassing” signs? Is the law of the land enforced uniformly or are there good neighborhoods, bad neighborhoods and no-go zones where even the police fear to tread?

• Do random people thrown together in public spontaneously enter into conversation with each other and are comfortable with being crowded together, or are they aloof and fearful, and prefer to hide their face in the little glowing rectangle of their smartphone, jealously guarding their personal space and ready to regard any encroachment on it as an assault?

• Do people remain good-natured and tolerant toward each other even when hard-pressed or do they hide behind a façade of tense, superficial politeness and fly into a rage at the slightest provocation? Is conversation soft in tone, gracious and respectful or is it loud, shrill, rude and polluted with foul language? Do people dress well out of respect for each other, or to show off, or are they all just déclassé slobs—even the ones with money?

• Observe how their children behave: are they fearful of strangers and trapped in a tiny world of their own or are they open to the world and ready to treat any stranger as a surrogate brother or sister, aunt or uncle, grandmother or grandfather without requiring any special introduction? Do the adults studiously ignore each others’ children or do they spontaneously act as a single family?

• If there is a wreck on the road, do they spontaneously rush to each others’ rescue and pull people out before the wreck explodes, or do they, in the immortal words of Frank Zappa, “get on the phone and call up some flakes” who “rush on over and wreck it some more”?

• If there is a flood or a fire, do the neighbors take in the people who are rendered homeless, or do they allow them to wait for the authorities to show up and bus them to some makeshift government shelter?

It is possible to quote statistics or to provide anecdotal evidence to assess the state and the viability of a culture, but your own eyes and other senses can provide all the evidence you need to make that determination for yourself and to decide how much faith to put in “the goodness of humanity” that is evident in the people around you.

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This entry was posted in Authoritarianism, conditioning, culture, Dystopia, Economics, elites, Financial Crisis, Geopolitics, History, Recession, Social Control, Social Engineering, society, Sociology and tagged , , , , , , , , , , , , . Bookmark the permalink.

1 Response to The Five Stages of Collapse, 2019 Update

  1. amaezed says:

    Pure supposition. The world is changing into the realm of “we don’t know what we don’t know”. Forces inside of what we can’t know are playing out. The world’s stock exchanges are essentially a gambling casino which is manipulated by guess who! They invented it and use to it to their benefit. Free money. Those puppets immediately below are both promoting and benefiting from this ruse; the media, big business (medical fraternity included), not to mention politicians and the war machine. No one is exempt from scrutiny. Cheers 🙂

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