[Home]  [Headlines]  [Latest Articles]  [Latest Comments]  [Post]  [Mail]  [Sign-in]  [Setup]  [Help]  [Register] 

One 2020 Democrat Debate Will Be Solely Focus ed on LGBT Issues (Queers and Baby Killers)

Suspect who mailed pipe bombs to Trump critics pleads guilty

Mueller submits long-awaited Russia probe report to Justice Department; next move up to AG Barr

The Left sees Christianity as an obstacle to the state ... so anything that represents it in a positive light --- must be destroyed

Many Antichrists; One Beastly System - Message by Dr. Chuck Baldwin on Jan. 13, 2019

Ichiro retires after emotional finale in Tokyo (There *is* Crying in Baseball)

Man arrested for keeping TV sent to him by mistake

It's An Emergency You Dumb Communist Bastards!

Bernie Sanders Calls for New Zealand-Style Gun Ban in U.S.

The manipulation of the American mind: Edward Bernays and the birth of public relations

Trump, Graham, Rubio, et. al are about to enact a gun confiscation bill that rivals anything in Nazi Germany or Stalin’s Russia

On The Anniversary Of The Iraq Invasion, Bush Press Secretary Claims Bush Didn’t Lie

Harvard researchers say certain ADHD medications may increase risk of psychosis

NJ Governor Signs “Rain Tax” Bill; Residents Can Now BE TAXED When It Rains On Their Property

The Zoning Code Banned His Tall Fence, but Not the Naked Mannequin Party Behind It

The Texas State House has passed a bill legalizing lemonade stands run by children

New Zealand Prime Minister announces immediate ban on all assault weapons

Fond Memories of Hitching

Are we a soul, or do we hava a soul?

Can the President Legally Break the Law?

Facebook just suspended Natural News for 7 days for posting this rather ho-hum fluoride infographic

Missouri Senate Bans All Federal Gun Control Laws in Proposed Bill

WOW! Just Rewatched Enemy of the State & Guess what I found

The Ex-Model Who Claimed Silvio Berlusconi Hosted Satanic Rituals in His House Died From “Apparent Poisoning”

MLB Going Full-Blown TSA: Teams Prepare To Scan Millions Of Fans’ Faces

Why Does The Mainstream Media Purposely Ignore Mass Killings Of Christians Across The Globe?

U.S. Supreme Court Refuses to Require Police to Render Emergency Aid After Ohio Police Shoot Military Veteran Multiple Times, Let Him Bleed to Death

Don’t Shoot the Dogs: The Growing Epidemic of Cops Shooting Family Dogs

Ron Paul Support Legalizing Heroin

Reputed Gambino crime boss' suspected killer flashes 'MAGA,' other slogans on hand

lMalia, Michelle, Barack and the College Admissions Scandal

Sen. Warren: ‘I Would Support Removing Confederate’ Statues and Monuments

HOW U.S. MEDIA IS HELPING THE NEW ZEALAND TERRORIST ACHIEVE HIS ULTIMATE GOAL There's a reason the media is selectively choosing which facts to report about this killer's purpose

Is Trump Really About to Attack Venezuela?

The Grim Reaper – Frequently A Personified Insignificant Force

Dick Dale, a Great American Original, RIP

Government to Pizzeria: You Can Paint a Mural, Just Not One That Features Pizza

Donna Bazile Hired as FOX News Contributor

Source Claims Fox News Host Secretly Worked to Get Jeanine Pirro Suspended to Curry Favor With Democrats

AP Pushes New Leftwing Conspiracy Theory: "Puzzling" Number of Activists Connected to Ferguson are Dying (Usually by Suicide or Drug Overdose), And That Suggests They're Being Secretly Murdered by an Unidentified But Obviously White Cabal

Man cleaning garage finds burglar crushed by fallen 900-pound floor safe, cops say

US Supreme Court denies hearing Ron Paul 2012 aides' appeal

'Beto' Was A Member Of A Prominent Hacking Group, a Punk-Rock Band And His Name Was 'Psychedelic Warlord,' Report Says

Conservative? Hardly. New Zealand mass shooter is a far-Left “eco-fascist” who praised communist China

Tucker Carlson and Thoughtcrime

New Zealand: The Most Hysterical Reaction to an Event I’ve Seen Since 9/11

CONGRESSWOMAN ILHAN OMAR: TERRORIST

Trump threatens 'Saturday Night Live' with federal investigation and charges comedy show as an 'an advertisement without consequences' for mocking him

Illegal Alien Who Used Fake Fed Doc to Get License Committed No Crime, Obama Judge Rules

Hillsborough sues to declare Flintstone House a ‘public nuisance’


Status: Not Logged In; Sign In

United States News
See other United States News Articles

Title: How States/Empires Collapse in Four Easy Steps
Source: FromThe Trenches/Of Two Minds
URL Source: https://fromthetrenchesworldreport. ... apse-in-four-easy-steps/243186
Published: Mar 13, 2019
Author: Charles Hugh Smith
Post Date: 2019-03-13 09:48:24 by Deckard
Keywords: None
Views: 27
Comments: 1

Of Two Minds – by Charles Hugh Smith

The promises cannot be met, and so society decays into warring elites and competing constituencies.

There is a grand, majestic tragedy in the inevitable collapse of once-thriving states and empires: it all seemed so permanent at its peak, so godlike in its power, and then slowly but surely, too many grandiose, unrealistic promises were made to too many elites and constituencies, and then as growth decays to stagnation, the only way to maintain the status quo is to appear to meet all the promises by creating money out of thin air, i.e. debauching the currency. 

This political expediency works most wonderfully for a time: people don’t realize the silver content of their coinage is being cut to near-zero, or there’s nothing holding up the value of their currency but trickery and vague allusions to past glory.

Trust in the state/empire’s currency suddenly collapses in a phase shift: all seems well until the moment the avalanche sweeps it all away.

It’s a simple progression: during the permanent-growth-is-our-birthright phase of self-reinforcing virtuous cycles, when everything is expanding rapidly–credit, resources, jobs, capital, profits, state tax revenues, etc.–promises are made to elites and constituencies that look easy to meet as the economy is projected to expand rapidly essentially forever.

But virtuous cycles decay to unvirtuous cycles of bureaucratic sclerosis and corruption, systemic friction, declining productivity and resource depletion, and the rise of parasitic elites who contribute nothing but skim plenty saps the surplus available for productive reinvestment.

Every elite under pressure to satisfy the demands of those who were over-promised in the good times reverts to the same two financial fixes: debt and currency debasement. First the state borrows and borrows and borrows, all under the belief that “the government can’t go broke because it issues its own money.”

Any rationalization will do in the phase of stagnation, but the reality is it’s all political expediency: lacking the resources to pay all the promises, the state borrows from the future to maintain the illusion of stability.

Alas, the future arrives, and the interest on the debt begins stripmining tax revenues needed to fund the essential responsibilities of the state/empire. At this point, the ruling elites pursue two equally fatal fixes: they raise taxes on the remaining productive class while the parastic elites pay little or nothing, and they devalue the currency so they can continue to pay the promised sums with less actual wealth.

The productive class either escapes to other climes, goes underground or opts out. As tax revenues fall, the ruling elites turn in desperation to debauching the state currency, in effect issuing 10 units of currency for every 1 unit of actual purchasing power.

This maintains the fiction that the promises are being met, but the purchasing power of the currency erodes so drastically that the parasitic elites and the constituencies eventually catch on and demand a full payment of what was promised back in good times.

This demand cannot be met, and so society decays into warring elites and competing constituencies. The only real solution–to make severe sacrifices in order to live within the modest means available and jettison the parasitic elites–is politically and culturally unpalatable to a citizenry steeped in a belief that good times should be forever and it’s the fault of the ruling party of the moment rather than a failure of the entire system.

Then the “free” distribution of bread and circuses ramps up and the silver shipped to phantom legions defending the borders ends up in the quartermasters’ pockets. The delusional state of the ruling elite infects the general populace, and magical thinking abounds, as do vague claims to future greatness based on the mythologies of previous eras that had earned prosperity with sacrifice and thrift.

The entire global status quo is in the stagnation phase, and the promises that cannot be met are looming large. And so the politically expedient ruling elites turn to debt and financial trickery to stave off the reckoning. This works for a few years but it guarantees the coming collapse.

Expansion, maturation, stagnation and collapse:

Of Two Minds (1 image)

Post Comment   Private Reply   Ignore Thread  


TopPage UpFull ThreadPage DownBottom/Latest

#1. To: Deckard (#0)

The near-term example will be the democRat party.
Maybe that will wake up the normal Americans.

Hank Rearden  posted on  2019-03-13   13:35:47 ET  Reply   Trace   Private Reply  


TopPage UpFull ThreadPage DownBottom/Latest

[Home]  [Headlines]  [Latest Articles]  [Latest Comments]  [Post]  [Mail]  [Sign-in]  [Setup]  [Help]  [Register] 

Please report web page problems, questions and comments to webmaster@libertysflame.com