The Dead Giveaways Of Imperial Decline

Tyler Durden's picture

Authored by Charles Hugh Smith via OfTwoMinds blog,

Nothing is as permanent as we imagine--especially super-complex, super-costly, super-asymmetric and super-debt-dependent state/financial systems.

Identifying the tell-tale signs of Imperial decay and decline is a bit of a parlor game. The hubris of an increasingly incestuous and out-of-touch leadership, dismaying extremes of wealth inequality, self-serving, avaricious Elites, rising dependency of the lower classes on free Bread and Circuses provided by a government careening toward insolvency due to stagnating tax revenues and vast over-reach--these are par for the course of self-reinforcing Imperial decay.

Sir John Glubb listed a few others in his seminal essay on the end of empires The Fate of Empires, what might be called the dynamics of decadence:

(a) A growing love of money as an end in itself.

(b) A lengthy period of wealth and ease, which makes people complacent. They lose their edge; they forget the traits (confidence, energy, hard work) that built their civilization.

(c) Selfishness and self-absorption.

(d) Loss of any sense of duty to the common good.

Glubb included the following in his list of the characteristics of decadence:

-- an increase in frivolity, hedonism, materialism and the worship of unproductive celebrity (paging any Kardashians in the venue...)

-- a loss of social cohesion

-- willingness of an increasing number to live at the expense of a bloated bureaucratic state

Historian Peter Turchin, whom I have often excerpted here, listed three disintegrative forces that gnaw away the fibers of an Imperial economy and social order:

1. Stagnating real wages due to oversupply of labor

2. overproduction of parasitic Elites

3. Deterioration of central state finances

War and Peace and War: The Rise and Fall of Empires

To these lists I would add a few more that are especially visible in the current Global Empire of Debt that encircles the globe and encompasses nations of all sizes and political/cultural persuasions:

1. An absurdly heightened sense of refinement as the wealth of the top 5% has risen so mightily as a direct result of financialization and globalization that the top .1% has been forced to seek ever more extreme refinements to differentiate the Elite class (financial-political royalty) from financial nobility (top .5% or so), the technocrat class (top 5%), the aspirant class (next 15%) and everyone below (the bottom 80%).

 

Now that just about any technocrat/ member of the lower reaches of the financial nobility can afford a low-interest loan on a luxury auto, wealthy aspirants must own super-cars costing $250,000 and up.

 

A mere yacht no longer differentiates financial royalty from lower-caste financial Nobles, so super-yachts are de riguer, along with extremes such as private islands, private jets in the $80 million-each range, and so on.

 

Even mere technocrat aspirants routinely spend $150 per plate for refined dining out and take extreme vacations to ever more remote locales to advance their social status.

 

Examples abound of this hyper-inflation of refinement as the wealth of the top 5% has skyrocketed.

 

2. The belief in the permanence of the status quo has reached quasi-religious levels of faith. The possibility that the entire financialized, politicized circus of extremes might actually be nothing more than a sand castle that's dissolving in the rising tides of history is not just heresy--it doesn't enter the minds of those reveling in refinement or those demanding more Bread and Circuses (Universal Basic Income, etc.)

 

3. Luxury, not service, defines the financial-political Elites. As Turchin pointed out in his book on the decline of empires, in the expansionist, integrative eras of empires, Elites based their status on service to the Common Good and the defense (or expansion) of the Empire.

 

While there are still a few shreds of noblesse oblige in the tattered banners of the financial elites, the vast majority of the Elites classes are focused on scooping up as much wealth and power as they can in the shortest possible time, with the goal being not to serve society or the Common Good but to enter the status competition game with enough wealth to afford the refined dining, luxury travel to remote locales, second and third homes in exotic but safe hideaways, and so on.

 

4. An unquestioned faith in the unlimited power of the state and central bank. The idea that the mightiest governments and central banks might not be able to print their way of our harm's way, that is, create as much money and credit as is needed to paper over any spot of bother, is unthinkable for the vast majority of the populace, Elites and debt-serfs alike.

That all this newly issued currency and credit is nothing but claims on future production of goods and services and rising productivity never enters the minds of the believers in unlimited state/bank powers. We have been inculcated with the financial equivalent of the Divine Powers of the Emperor: the government and central bank possess essentially divine powers to overcome any problem, any crisis and any conflict simply by creating more money, in whatever quantities are deemed necessary.

If $1 trillion in fresh currency will do the trick--no problem! $10 trillion? No problem! $100 trillion? No problem! there is no upper limit on how much new currency/credit the government and central bank can create.

That there might be limits on the efficacy of this money-creation never enters the minds of the faithful. That pushing currency-credit creation above the limits of efficacy might actually trigger the unraveling of the state-central bank's vaunted powers never occurs to believers in the unlimited reach of central states/banks.

The possibility that the central state/bank's powers are actually quite limited is blasphemy in an era in which the majority of the Elites and commoners alike depend on the "free money" machinery of the central state/bank for their wealth and livelihoods.

It is instructive to ponder the excesses of private wealth and political dysfunction of the late Roman Empire with the present-day excesses of private wealth and political dysfunction. As Turchin and others have documented, where the average wealth of a Roman patrician in the Republic (the empire's expansionist, integrative phase) was perhaps 10-20 times the free-citizen commoner's wealth, by the disintegrative, decadent phase of imperial decay, the Elites held wealth on the scale of 10,000 times the wealth of the typical commoner. Elite villas were more like small villages centered around the excesses of luxury than mere homes for the wealthy and their household servants. Here is a commentary drawn from Turchin's work:

"An average Roman noble of senatorial class had property valued in the neighborhood of 20,000 Roman pounds of gold. There was no 'middle class' comparable to the small landholders of the third century B.C.; the huge majority of the population was made up of landless peasants working land that belonged to nobles. These peasants had hardly any property at all, but if we estimate it (very generously) at one tenth of a pound of gold, the wealth differential would be 200,000! Inequality grew both as a result of the rich getting richer (late imperial senators were 100 times wealthier than their Republican predecessors) and those of the middling wealth becoming poor."

 

Following in Ancient Rome's Footsteps: Moral Decay, Rising Wealth Inequality (September 30, 2015)

We can be quite confident that these powerful elites reckoned the Empire was permanent and its power to secure their wealth and power was effectively unlimited. But alas, their fantastic wealth vanished along with the rest of the centralized, over-extended, complex and costly Imperial structures.

There is a peculiarly widespread belief that Elites are so smart and powerful that they always manage to evade the collapse of the empires that created and protected their wealth. But there is essentially no evidence for this belief when eras truly change.

Yes, Elites have proven to be adept at shifting with the political winds; thus the guestbooks of French chateaux were filled with the names of Nazi dignitaries during the German occupation of France, and with the names of Allied bigwigs after the war ended the 1,000-year Reich.

But the complete collapse of the financial system and centralized power is not a war or financial crisis--these are storm waters which the Elites have the wherewithal to survive. But when a tsunami disintegrates the entire structure and carries it out to a nameless sea as flotsam and jetsam, there is no transfer of wealth from the Old to the New.

The Roman Elites did not become Barbarian elites who just so happened to own the same villas and vast estates they did when they wore togas and dined on super-refined delicacies. They were pushed aside along with everything that supported their wealth and power.

Nothing is quite as permanent as we imagine--especially super-complex, super-costly, super-asymmetric and super-debt-dependent state/financial systems.

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Croesus's picture

I can't wait for the soon-coming "Shoot Banksters and Politicians" Meme.

bamawatson's picture

like a  double cross messenger in the twilight zone https://vimeo.com/221443635

Ghost of Porky's picture

Yachts and jets are so last century. The new must-have luxury item is pizza and hot dogs.

Alt RightGirl's picture

4. Invasion of nomad hordes:  CHECK.

It applies to EUCCP also.

Seems that the East is the way to go now.

Eastern Europe Safe From Terror, But Takes No Migrants


 

Art Van Delay's picture

Better to burn it down first, with the joo+liberals inside, then rebuild from scratch.

That might do the trick.

 

Sy Kloine Bee's picture

I'm ready for the end.
Let it burn.

Stuck on Zero's picture

It's a unique experience to walk among the ruins in Greece, Egypt, Peru, Yucatan etc. and wonder what was going through the minds of the inhabitants at the peak of the civilization. No doubt they aspired to be rich and famous.

Shift For Brains's picture

You're a person after my own heart. Even as a child, I had a fascination with those recurring moments in time when the Dream met the Reality. The first breaching of the walls of Rome, the fall of Constantinople; one of my favs was Berlin in April 1945. Take a peek at photographs of Berlin in 1940 and what it looked like five years later. Can you imagine how psychologically disorieting that must have been? And they weren't even snowflakes.

I am not one of those people who can't wait to see it all fold, not because I think it deserves to remain but because the madness will be crushing. Those who survive will never, ever be the same person until the end of their days. I for one, don't look forward to living in a world gone mad...just call me an ol' romantic.,

YukonJake's picture

Love the name.  You're right, while eager to not have overlords scheistering their way out of more of my dollars, it is a fantasy to glamorize what the fall will be like.  It will be madness, neighbor shooting neighbor, roving gangs, rape and violence on a dizzying scale until a large enough military comes through to "establish order" which will undoubtedly mean the killing of anyone who isn't on bended knee in fealty.  America's snowflakes will be the first to go and the last to realize their role in the fall.  Tytler wrote 300 years ago, methinks correctly, Democracy cannot exist as a permanent form of government.  It only exists until the public realizes they can vote themselves largesse from the public treasury, and then it's a slow crumbling that ALWAYS ends in a dictatorship over loose fiscal policy.  

From Bondage to Spiritual Faith, from Spritual Faith to Great Courage, from Courage to Liberty, from Liberty to Abundance, from Abundance to Selfishness, from Selfishness to Apathy, and from Apathy right back into bondage.  

I wrote to a friend the other day, who was proclaiming a little too late in my opinion, that we must act now or the US is going to plunge over a cliff.  The folly is in thinking we can stop the train before it steams over the precipice.  We, all of us, have long since made the plunge, but what (I think) people don't realize is how very high the mountain of prosperity was built, and the institutions that raised it.  We've been falling for so long, most people are getting used to the weightlessness of it all.

I don't believe PM's are going to matter much when that domino, or black swan, or whatever it is, finally happens.  If that idea puts a glint in your eye, you watch too many movies. 

Antifaschistische's picture

As long as my income is in US Dollars....I'm not sure I could ever truly be ready.

Regarding the end....it is impossible, to stack fiat indefinitely, and think that it is equivalent to actual wealth.    It's like IOUs from your buddy for lunch.  It's okay if you have two in your drawer....if you have 2,000....you have a problem.  And we, have a problem.

I'm not even an anti-fiat guy.  fiat is awesome for facilitating transactions.  it doesn't work when everyone becomes convinced that the fiat itself, is the thing of value.

open calender's picture

I'm making over $7k a month working part time. I kept hearing other people tell me how much money they can make online so I decided to look into it. Well, it was all true and has totally changed my life. This is what I do... http://bit.ly/2jdTzrM

land_of_the_few's picture

Well in that case since you are flush you can head to Costco,

stock up keep a few cans of beans ready and get a portable shovel in case you need to dig your own grave.

 

chunga's picture

5. Pathetic dailywestern spam accounts - check.

(don't click the malware warning - hello)

kiwidor's picture

use kerosene so it burns slower

CRM114's picture

swap "But takes no migrants" for "because takes no migrants"

ThanksIwillHaveAnother's picture

TJ's 100% Grass-Fed Dogs if simmered in water are very good with Kraut.

doctor10's picture

look at what pre-occupies Congress today...chasing non-sense

They've spent more time trying to "get" Trump for nothing than in indicting Hillary Clinton..for oh about 100 things easily-including capital offenses.

Stuck on Zero's picture

That's what pre-occupies Congress in the news. Outside of the news most Congress critters are pre-occupied with pizzas, selling favors, & blowing coke.

DonGenaro's picture

if it wears a suit, a uniform, or plays golf, . . .

CRM114's picture

Golfers!

First on my list!

Common_Law's picture

You can even use their own "clubs"  so convenient!

Batman11's picture

You can only load up an economy up with debt once.

The US has done it twice and it took them along time to forget the Great Depression before they did it again.

https://cdn.opendemocracy.net/neweconomics/wp-content/uploads/sites/5/2017/04/Screen-Shot-2017-04-21-at-13.52.41.png

The US economy is going nowhere with these levels of debt.

 

Batman11's picture

Let's remove those 1930s regulations.

Shit it happened again.

 

Rainman's picture

4. Rampant unchecked Corruption :   check.

jamesmmu's picture
Shattered: Hillary Clinton’s Presidential Run Was Doomed From the Start

http://investmentwatchblog.com/shattered-hillary-clintons-presidential-r...

ThanksIwillHaveAnother's picture

At some point?  Its been here for at least 10 years.

TheGardener's picture

CHS rocks, I finally have to admit. Long time long deep thinking gets all them worthy and formerly left thinkers our way.

Will paste this his brilliant piece to ready people still somehow listening to MSM and get to see where they stand

SidSays's picture

Ahhh...

the demise of empire...

It's not if but when...

...and...

how bad?

Tick...tock...

GoldRulesPaperDrools's picture

THE DEPOPULATION IS COMING BITCHEZ, AND IT WILL BE GLORIOUS!!! ;)

1033eruth's picture

Stupid twat - The global population has done nothing but soar despite, famine, disease, catastrophe, constant war and OBESITY.

So stupid twat, we better see something we've never seen before.  Only then will any depopulation occur and only in localized areas.  

Nexus789's picture

The very increase in population and complexity within finite system (the earth) builds cumulative catastrophe and now makes a new and never seen event more likely at some point. 

TheReplacement's picture

Supposedly during the last ice age humanity was down to 300 breeding couples.  What makes you think that none of this has been seen before?  Perhaps it was just so bad that there just weren't enough people left to talk about it much.

SmallerGovNow2's picture

already happening in the US and Europe and Japan...

dirty fingernails's picture

It is coming but it'll be horrific. Unless you ride out the chaos in a secret bunker, it'll likely include the prepared as well as the unprepared. Luck is a fickle bitch. Keep your humanity about you

Deep Snorkeler's picture

After millions of years of evolution,

humans have have become

obese, unread, distracted,

self-undulgent consumerists.

Is self-fertilization an evolutionary dead end? 

CRM114's picture

"We shall know soon enough"

DrData02's picture

The key point is: "That there might be limits on the efficacy of this money-creation never enters the minds of the faithful."
What are these limits? Is someone going to turn down their EBT card? Is someone going to be at the grocery store and, looking at their fiat, say "Oh, it's worthless!" and NOT use it to buy food when the cashier would willingly take it? The rich LIKE the fiat. They are not going to kill the system.
That's the question which needs to be answered.

SidSays's picture

“Paper money eventually returns to its intrinsic value – zero.” - Voltaire

Slowly at first...

..then all at once..

Doppelganger71's picture

How much she hath glorified herself, and lived deliciously, so much torment and sorrow give her: for she saith in her heart, I sit a queen, and am no widow, and shall see no sorrow. - Revelation 18:7

ElTerco's picture

There were no high powered rifles in Roman times. In modern times, it's in the best interest of the elites not to be dicks about it.

gregga777's picture

Poor residents of Rome actually opened the city gates to the barbarian hordes resulting in the sacking of Rome.  The barbarians went on a rampage throughout the city killing the elites and looting their property.  It's not that the elites wealth didn't carry over, into post-collapse Roman Empire, it's that the elites were no longer even alive to enjoy anything.

 

 

Nexus789's picture

Much like modern Europe ferrying over useless people from Africa and the middle east. 

CRM114's picture

This is what the elites seem to be completely ignorant of. In a complete collapse, they always get slaughtered. All of them.

Village-idiot's picture

Now you know why they have large underground bunkers.

They figure they can wait out the slaughter and then emerge to take over and rule whoever is left.

What the idiots don't understand is that they'll be caught like rats in a trap and will be easy pickings.

CRM114's picture

Very easy pickings.

They will in fact be killed by their own guards.

Who needs a tech CEO in a post-apocalyptic world?

venturen's picture

what no mention of building your own rocket ship...everyone has a yacht, island, etc