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

Nation Takes Break From Killing Babies To Mourn Death Of Cat

Body Cam Video ‘Missing’ from 17 Cops Who Raided 4yo Boy’s Party, Pointed Guns at Kids, Destroyed Home

City Steals Elderly Man’s Home for Having a Cluttered Yard, Fines Him $60,000

A Texas City Attorney Was Arrested and Detained for Helping Three Young Migrants on the Side of the Road

Texas Poised To Ban All Red Light Cameras

Obama’s AG Eric Holder Attacks Bill Barr: “He’s Not Fit to Lead DOJ”

Mark Cuban: No Body Can Beat Trump In 2020 As of RIGHT NOW

The Growth of the American Police State

FIRE THE NUTCASES LEADING US TO WAR

Times Of Israel: "Stop Mel Gibson's New Anti-Semitic Movie, If Needed by Erecting New Laws"

Truckers Face Years in Prison for Transporting LEGAL Hemp

Punishing baseball fans with a high-priced publicity stunt

Trump may pardon US soldiers accused or convicted of war crimes – report

Trump Doubles Down on Ineffective Tariffs, Further Harming U.S. Farmers and Consumers

Democrat Prez Hopeful Pete Buttigieg: Christianity Has Extremist Factions like Islam

The Democratic Party Is a “Freak Show

Close One: This Baby Was Almost Born Into Poverty But His Mother Killed Him In The Nick Of Time

Study: Compounds in Cannabis Found to Inhibit the Growth of Cancer Cells in the Colon

The White House Says Your Toyota Is a National Security Threat

Insurance Companies Make $1000 For Each Speed Camera Ticket

US Gov’t Now Openly Admits: Pentagon Asks for Money to Directly Fund Terrorists

Newly Released FBI Docs Shed Light on Apparent Mossad Foreknowledge of 9/11 Attacks

Should we Push our Values on the Middle East ? (US Gummint poised to re-cycle this bogus premise in potential war with Iran)

'A Song For Any Struggle': Tom Petty's 'I Won't Back Down' Is An Anthem Of Resolve

Riding Dirty Daydreams

That Time John Bolton Said ItÂ’s Good To Lie About War

Want to know what a murderer looks like.

Man in country illegally charged with 11 murders in Texas

Cash-Strapped Cities Are Turning Citizens Into Ticket Vigilantes

Police FINE pedestrian £90 for disorderly behaviour after he tries to cover his face from facial recognition camera on the streets of London (Coming soon to Police State Amerika)

Cops Break Into Innocent Man’s Home, Hold Him at Gunpoint, Force K-9 to Shred Him

NOT A JOKE: Katy Perry: "HUMAN FLESH Is The BEST MEAT!" (Yes, "Spirit Cooking" of the DC/Hollywood Illuminati is REAL)

Why Even Staunch Conservatives Should Support Marijuana Decriminalization

With the US-Iran War Ball Now Rolling, Could an “Accident” or “False Flag” Serve as Pretext?

Forensics Investigation Finds Cops Shot Each Other, Then Murdered Houston Couple

Family Sues After Video Shows Cop Mow Down Boy with Cruiser for Improper Bicycle Light

If Trump goes to war with Iran, he will lose in 2020

Annual Undie Run continues despite Colorado State University warnings

Trump Celebrates Ramadan With White House Iftar Dinner

America Will Lose The Trade War Because That Is What Globalists Want To Happen

Wikileaks releases unused footage of moon landing showing it was REALLY filmed in Nevada desert...

Biden’s Fading, Beto’s Flailing, and DeBlasio’s Just Wasting Everyone’s Time Today’s Campaign Update, Part II (Because The Campaign Never Ends)

COMEY, BRENNAN PRIMARY DOJ, CIA OFFICIALS PUSHING UNVERIFIED STEELE DOSSIER

Southwest passenger allegedly kicked off flight over joke about vodka

Homemade Air Conditioner DIY - The "5 Gallon Bucket" Air Cooler! DIY- can be solar powered!

Nebraska farmer amputates leg with pocket knife to escape auger

Tucker Carlson criticizes John Bolton and Trump for planning war with Iran

In the Land of the Free, Cops Raid a Journalist’s Home, Kidnap Him After He Refused to Name Source

Trump's Malignant Mercantilism

At Democrats’ Behest, Terrorist-Friendly Imam Gives Prayer In Congress


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: 50
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