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Reinventing Collapse: Introduction

INTRODUCTION
Reinventing Collapse
by Dmitry Orlov

I am not an expert or a scholar or an activist. I am more of an eyewitness. I watched the Soviet Union collapse and this has given me the necessary insights to describe what the American collapse will look like. It has been a couple of years since I started writing on the subject of economic collapse as it occurred in the Soviet Union and as it is likely to occur here in the United States. Thus far, I remain reasonably content with my predictions: all the pieces of the collapse scenario I imagined are lining up, slowly but surely.

But for me it all started late in the summer of 1996, when I arrived in the US after an extended stay in Russia. I was just married and my thoughts turned to the future. I had visited Russia many times before, on family visits as well as on business trips, and was able to observe in detail the fall of Communism and the ensuing economic collapse. Unlike the people who had lived there throughout that period, and also unlike those who had visited just once or twice, I was able to notice both the gradual changes and the sudden ones. Because I was born and grew up in Russia, I was not thwarted by any cultural or linguistic barriers. It was just the place where I grew up, in some ways remarkably unchanged after more than a decade of absence, but in other ways it had undergone a remarkable transformation.

By the time my wife and I settled back in the States, I had seen and heard enough to grasp the complete and utter hollowness of bombastic phrases such as "the defeat of Communism" or "Cold War Victory." For a time, there was even talk of the Cold War paying a dividend, but it was soon followed by recriminations over "who lost Russia" had already understood that the Soviet collapse had precious little to do with Communist ideology, and was not hugely influenced by anything Americans said or did. Rather, I could not help but feel that the relative timing of the collapse of the two super power adversaries was a matter of luck. And so I came back to the States expecting that the second superpower shoe would be dropping sometime soon, certainly within my lifetime, and the question for me became: How soon?

Let us imagine that collapsing a modern military-industrial superpower is like making soup: chop up some ingredients, apply heat and stir. The ingredients I like to put in my superpower collapse soup are: a severe and chronic shortfall in the production of crude oil (that magic addictive elixir of industrial economies), a severe and worsening foreign trade deficit, a runaway military budget and ballooning foreign debt. The heat and agitation can be provided most efficaciously by a humiliating military defeat and widespread fear of a looming catastrophe. In the Soviet case, crude oil production peaked a few years before the collapse, foreign trade imbalance had much to do with the Soviets' inability to grow enough food or manufacture enough consumer goods, the military budget was huge to start with and was further swelled by the Soviets' knee-jerk response to a silly thing called "Star Wars," Afghanistan provided the military humiliation and Chernobyl the backdrop of catastrophe.

It took a couple of decades for the United States to catch up, but now all the ingredients are in the pot and starting to simmer. US crude oil production peaked in 1970 and global (conventional) crude oil production appears to have peaked sometime in 2005, with all of the largest oil fields in terminal decline and global oil exports set to start crashing. The trade imbalance is such that the US produces little of the high technology on which it depends, having exported jobs and moved production offshore for over a generation now. Although the US grows enough food to feed itself, it imports the fossil fuels with which to grow it and deliver it at a ratio of roughly ten calories of fossil fuels to one calorie of food. The runaway military budget, which now stands at one trillion dollars a year, has been swelled by something called the "War on Terror." The situation with regard to runaway foreign debt is slightly different: it is denominated in America's own currency, giving the US the option of inflating it away rather than defaulting on its obligations. But the results are the same: a worthless national currency and unhappy international creditors unwilling to extend further credit. Iraq provides the needed military defeat and killer hurricanes that are part of global climate upheaval the fear of a catastrophe.

Let us not even try to imagine that this will all just blow over. Make no mistake about it: this soup will be served, and it will not be tasty! My soup-based method of predicting superpower collapse may not please a scholar or an expert or an activist (as I mentioned, I am none of these) but it is probably rigorous enough to adequately warn and equip an innocent bystander. I am not too interested in constructing rigorous scientific models and producing forecasts. Nor do I wish to set agendas, promote reforms or take part in protests. Try to form a picture in your mind: it is a superpower, it is huge, it is powerful, and it is going to come crashing down. You or me trying to do something about it would have the same effect as you or me wiggling our toes at a tsunami. Nor do I wish to force my opinions on you, so please form your own. But I do want to guide your imagination by providing a lot of real world detail about an actual economic collapse that has recently transpired, along with some honest, apples-to-apples, oranges-to-oranges comparisons between the United States and the Soviet Union, to serve as a foundation for setting some commonsense expectations and making your own plans, separately from the happy toe-wiggling masses.

People generally find it hard to act on knowledge that contradicts their everyday experience. The experience must come first, even if it is second-hand; hence all the support groups for people who want to change their lives or their habits. There are plenty of books on subjects similar to this one, complete with tables of figures, charts, graphs and diagrams, that argue for or against this or that thesis, initiative or proposal. This, I hope you will be happy to find, is not one of them. My goal is to take various important aspects of the Soviet post-collapse experience and to recast them in an American context, allowing you to imagine what will become of your surroundings, your situation and your options. I hope to add a lot of detail to what, I would hazard to guess, is currently something of a white spot on your cognitive map. In the same way that medieval cartographers sometimes drew sea monsters on yet-to-be sections of the ocean, perhaps yours is populated by dreary Mel Gibson clones, or leather-clad extras from the movie "Waterworld,' or those charming little Cannibalistic Humanoid Underground Dwellers from "C.H.U.D.," Douglas Cheek's 1984 film in which grotesquely deformed sewer dwellers terrorize New York.

Beyond giving your imagination something meaty to chew on, I would like you to take some specific steps, but it would be arrogant of me to presume to know what they should be. You will have to work that out for yourself. Here is one starting point: currently, over a third of the working-age population in the United States responds in the negative to the survey question "Will you be able to afford to retire?" Perhaps you are one of them or would consider joining them after giving the question some thought. By the way, the question is splendidly euphemistic, making it seem as if being ready for retirement is like being ready for the big weekend. The actual question is, "Will you be able to survive once you are too old to work?" If not, then what are you planning to do about it? Slave away until destitute old age catches up with you? Here is a bad solution: get drunk a lot. With any luck, you would not live long enough to reach retirement age and you would be too drunk to care even if you did. I don't wish to set any unreasonable expectations, but I do hope that I can help you come up with a better solution than that!

Let's keep in mind that in every age and circumstance, some people have always managed to find enlightenment, fulfillment and freedom: this is the best that can be hoped for. And I hope that by helping you overcome your fear of the future and the old, ingrained habits of thought that promote reliance on what must surely be a transient and unstable present, I will make it easier for you to start your process of adaptation sooner than necessary, instead of too late, and to go on to live a full and happy life, come what may.

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Facile Comparisons and Dangerous Declinism

"honest, apples-to-apples, oranges-to-oranges comparisons between the United States and the Soviet Union"

Isn't that pretty unlikely? Orlov's background and mine are reversed: I was born in 1965 in Los Angeles and raised in the LA suburbs, but then in college minored in Soviet Studies. I spent a year in grad school in Leningrad State University in 1989, when the shops were bare and the Berlin Wall falling. My current office overlooks Tverskaya, where on May 9th the tanks just rolled down to Red Square.

You would have to work pretty hard to find significant parallels between the US and the Soviet Union that would help you to predict the US' future. Notice how facile comparisons of the US with other empires are always about decline? Yes, Rome declined, but only after 500 years as a republic and 500 more as an empire. Some people *want* to see the US decline, but their desires to not change the reality: the US population is growing more rapidly than other developed countries (thanks to both births and immigration), the US economy is growing more rapidly than most (thanks to relatively pro-growth policies), and the powerful US military eats up a relatively small percentage of GDP (something like 3%). Declinism is dangerous because it plays down the risk of *much* greater US wealth and power unrestrained by the traditional Constitutional restraints. After the Iraq debacle the neocons' conscious aspirations to real empire look a bit less likely, but American power will continue to increase, and the Imperial Presidency remains a threat. The US is nowhere near collapse, but that is no reason for complacency.

George Washing Quote

Thanks for the comments and education for without them, we are unable to debate.

"...a primary object should be the education of our youth in the science of government...knowledge is in every country the surest basis of public happiness." - 1790, George Washington

Anointing of the Freedom Tower has been done.

Let's see, I wonder how worldwide the conspiracy is, even in Cuba there are all the signs and symbols, in all South American countries there are signs and symbols pointing to the fall of the dollar, they will be adopting a new Central bank in the near future for the South American block, trade will cease to be only in dollars beginning this summer. Just a matter of time. Welcome to the NWO and return of the Roman Empire. Ha, ha, ha, they actually said it fell.
grant

End with a "bang or a whimper"?

Excellent post!
We DO live in a semi-managed economy so we are ripe for disaster.
The Fed's manipulation and the credit that we have been extended by the Chinese/Arabs (to prevent a global collapse or just to give us more rope to hang ourselves with?) has only guaranteed that the collapse will be more catastrophic and (when the crash becomes so imminent that even the narcotized American public can't miss it) our options will be fewer.

What I find curious is the timing of the collapse. These economic trends/factors are not just happening, they are being orchestrated. True, ecologic catastrophe could spoil the schedule (although I think it will take more than a few hurricanes) but I think the Conspiracy has some type of timetable in mind.

I think they might just want a Republican in the White House during the collapse so as to administer the Coup de grâce to the GOP. It is already on the ropes.

If They can fix the blame for the coming depression on the "Republicans" we would be well on our way to a one party government.

Just a thought.

******************************
The Virtual Conspiracy

The heat of catastrophe may arrive

sometime after June 1. This is when hurricane season officially begins. It isn't hard to imagine the effect one severe Gulf hurricane would do to oil prices after seeing the effect after Katrina. An oil production and refinery crisis would ratchet up the pressure on already suffering families and businesses.

Terrific post drawing the parallels between superpower collapse!

he misses some important points

Fortune Favors the Bold

The US is in better shape then the soviet union because of its economic system. Capitalism and complex markets can adapt better to evolving problems then rigid centrally planned economies. However, as the free market becomes less and less free, and the political tide swings towards centralized planning, the US will become less equipped to deal with its unsustainable developmental course. Another factor that slightly helps the US is the fact that a US collapse would soon become a world collapse. Hence, creditor nations, (like China and Japan) are less likely to "run" the US because they know this would lead to their collapse as well. That said, I think the economic situation will be closer to a deflating balloon then a rapid and sudden collapse (this was proved by the bear stearns meltdown, that would have been the collapse point, but the intervention of the FED, and indeed, central banks around the world, demonstrated that inflation and market distortions will create a slow, steady economic deflation rather then a collapse scenario, which would be in line with the fabian socialist/ new world order strategy)

Of course, severe ecological factors could always change the situation quickly.

Fortune Favors the Bold

John

I am generally in agreement with your comments, but not this time. We are no longer a free market capitalist system, as demonstrated by the Fed's bailout of Bear and other large investment banking firms. I appreciate the information presented in this post. Relating life experience to current and future trends is far more useful than relying on assumptions that may or may not be valid. You should take a more discerning view of the assumptions that your comment is based on, such as the true nature of our economic system, the behavioral tendencies of creditor nation governments that were our open enemies not long ago, and the ability of the Fed and other central banks to maintain "control" of anything in times like this. Fast or slow, we will find the bottom and it will be a difficult transition for many of us.

For those who are dependent

The transition will be difficult for those who are dependent, that is. Seems like our beloved politicians who are always "fighting for us" seem hell-bent on getting us all addicted to socialist welfare even as they grindt the system into the ground!

I do not think a comparison with the Soviet Union is realistic, either. Rome is better, since we adopted so much of their governing principles into our own, such as the senate, and continue to adopt others, such as the Gracchii brothers' comprehensive welfare state, the eliminating of smallholder farming, the rise of the military-industrial complex, and of course, the emperor and his praetorian guard.

Naturally, no realistic comparisons can be made but it is interesting to draw conclusions about what will happen to us after watching what happened to Rome.

About the only use the Soviet Union has for us in considering America's decline is to see what happened AFTER. There was chaos, there was crime, and national disgrace. But the Russian people bounced back somewhat. The decline wasn't permanent.

Today, Russia still has a functioning soviet socialist system. People are better off in some ways, though not in all ways. And their national pride still hurts.

What's America's future? Rome or Russia? Well, neither. But at least Ron Paul and a few other far-sighted folks can see the writing on the wall. We don't need to follow either of them to the path of decline and disgrace. But we do need to reject the selfish politicians who are going to milk us dry just to get elected to high office!

True but...

It all depends on the extent of power and global reach of the Conspiracy.
(See above.)

******************************
The Virtual Conspiracy

good post

Well thought out and good info. I'll lood forward to reading more.

"Doc" Holladay
Nashville, TN

www.reverbnation.com/docholladaymusic

Truth is treason in an empire of lies.

I hear you Doc

I'll like to read this as well.

I liked the 9/11 post you put up as well.

You are working the trolls overtime today. They must be getting time and a half for all the blogging...lol.

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