Best of the Week
Most Popular
1.Stock Market Continues Defying Gravity, Dow New All Time High - Nadeem_Walayat
2.America Superpower 2016 - Ian Bremmer
3.The US Dollar and the Precious Metals Complex - Rambus_Chartology
4.UK Immigration Crisis Could Prompt BREXIT, Propelling Britain Out of EU Despite German Factor - Nadeem_Walayat
5.The “Real Flash Crash” Will Scare You to Death - Shah Gilani
6.Gold Price Trend Forecast - Bob_Louka
7.UK Deflation Warning - Bank of England Economic Propaganda to Print and Inflate Debt - Nadeem_Walayat
8.Gold Lifeboat to Global Economies “Titanic Problem” Warn HSBC - GoldCore
9.Will Interest Rates Ever Rise? - BATR
10.Who’s Killing the Stock Market? - Shah Gilani
Last 5 days
National Holidays London and the Magic of Legoland UK Review - 27th May 15
Imminent Stocks Bear Market Signaled by Dow Theory ... - 27th May 15
Gold Price Has Bottomed – More Evidence - 27th May 15
Three Reasons You Shouldn’t Try to Invest Like Warren Buffett - 27th May 15
Gold Is “100% Guarantee from Legal and Political Risks” States Russian Central Bank - 27th May 15
Don't Drown in the Sea of Global Debt - 27th May 15
Three Reasons Why Carl Icahn Is Wrong About Apple Stock - 27th May 15
Crude Oil Price Stochastic Signals - 26th May 15
Why the Stock Market Will Crash - 26th May 15
GDP, Inflation, Employment Economic Statistics: It’s All a Lie - 26th May 15
Introduction to Peak Food - 26th May 15
Should We Dump the Euro? - 26th May 15
A Geopolitical Net Assessment of Europe - 26th May 15
Stock Market Top in Place? - 26th May 15
Best Cash ISA SBI 2.3% - 2.8 Year Fix, UK Interest Rates 2016 - 26th May 15
China Sets Up Gold Bullion Fund For Central Banks - 25th May 15
Is The Silver Trade Getting Crowded? - 25th May 15
Money Murder Mystery: Who Killed the Stock Market? - 25th May 15
Why Do We Celebrate Rising U.S. House Prices? - 24th May 15
Mario Draghi’s Slippery Downward Slope - 24th May 15
Gold : Truth is Stranger than Fiction - 24th May 15
Facebook Stock Price Forecast - 24th May 15
Make a Killing on the Coming Energy "Debt Bubble" - 24th May 15
Stock Market SPX Uptrend Inflection Point - 23rd May 15
What You Know for Certain - Huge Demand for Gold And Silver - 23rd May 15
Are We in Another Credit Bubble? And Is It Different than Before? - 23rd May 15
The “Real Flash Crash” Will Scare You to Death - 23rd May 15
Venezuela: No Rule of Law, Bad Money - 23rd May 15
Robots That Can Beat the Market by 100% - 23rd May 15
Why Shake Shack Stock Is a Bad Investment - 23rd May 15
Gold Price Primary Driver Bullish - 23rd May 15
Time To Get Real About China - 22nd May 15
Gold Lifeboat to Global Economies “Titanic Problem” Warn HSBC - 22nd May 15
One Investment Could Save Two Generations' Retirements - 22nd May 15
Investing is About Identifying Gifted and Talented Camps - 22nd May 15
One of Europe's Latest Debt Nightmares - 22nd May 15
UK Immigration Crisis Could Prompt BREXIT, Propelling Britain Out of EU Despite German Factor - 22nd May 15

Free Instant Analysis

Free Instant Technical Analysis


Market Oracle FREE Newsletter

Biggest Debt Bomb in History

9/11 – A Fourth Turning Perspective

Politics / US Politics Sep 11, 2010 - 12:40 PM GMT

By: James_Quinn

Politics

Best Financial Markets Analysis ArticleThe four turnings comprise a quaternal social cycle of growth, maturation, entropy, and death (and rebirth).  In a spring like High, a society fortifies and builds and converges in an era of promise.  In a summer like Awakening, it dreams and plays and exults in an era of euphoria.  In an autumnal Unraveling, it harvests and consumes and diverges in an era of anxiety.  In a hibernal Crisis, it focuses and struggles and sacrifices in an era of survival.  When the saeculum is in motion, therefore, no long human lifetime can go by without a society confronting its deepest spiritual and worldly needs. - The Fourth Turning



 
Nine years after the attack on the World Trade Center the mood of the country has transformed dramatically. I watched the horror on a TV in a conference room at work with my colleagues. I remember being in a daze for a few days after the attack. When it became unambiguous that Osama bin Laden masterminded the attacks and was being protected by the Taliban in Afghanistan, I wanted justice. The entire world rallied around the US. There was worldwide support for the United States' right to attack Afghanistan and kill the perpetrators.

In the days immediately following the attacks, there were many memorials and vigils around the world. In addition, pictures were placed all over Ground Zero. A witness described being unable to "get away from faces of innocent victims who were killed. Their pictures are everywhere, on phone booths, street lights, walls of subway stations. Everything reminded me of a huge funeral, people quiet and sad, but also very nice. Before, New York gave me a cold feeling; now people were reaching out to help each other.”

There was a feeling of unity in the country for a brief shining moment. If the year had been 2007, rather than 2001, that unity may have been sustained. Anyone who had read Strauss & Howe's 1997 book The Fourth Turning was likely trying to figure out if the 9/11 attacks were the trigger for the Fourth Turning. But it was too soon. As Strauss & Howe relate in the book, a turning can be sudden or subtle:

"The gateway to a new turning can be obvious and dramatic (like the 1929 Stock Crash) or subtle and gradual (like 1984’s Morning in America).  It usually occurs two to five years after a new generation of children starts being born.  The tight link between turning gateways and generational boundaries enables each archetype to fill an entire phase-of-life just as the mood of an old turning grows stale and feels ripe for replacement with something new."

Unraveling Culture

The Unraveling, which had begun in 1984, had not run its course by September 11, 2001. Turnings generally last for 20 to 25 years. In 2001, we were only 17 years into the Unraveling. The mood of the country had not developed to the point where a consensus could be built to address a national Crisis. We had been attacked, but our very existence as a nation had not been threatened. The 9/11 attacks heightened the feeling of anxiety in the country and put us on the path towards a great Crisis. Strauss & Howe explained the phases of an Unraveling in the book:   

"An UNRAVELING begins as a society-wide embrace of the liberating cultural forces set loose by the Awakening.  People have had their fill of spiritual rebirth, moral protest, and lifestyle experimentation.  Content with what they have become individually, they vigorously assert an ethos of pragmatism, self-reliance, laissez faire, and national (or sectional or ethnic) chauvinism.

While personal satisfaction is high, public trust ebbs amid a fragmenting culture, harsh debates over values, and weakening civic habits.  The sense of guilt (which rewards principle and individuality) reaches its zenith.  As moral debates brew, the big public arguments are over ends, not means.  Decisive public action becomes very difficult, as community problems are deferred.  Wars are fought with moral fervor but without consensus or follow-through.

Eventually, cynical alienation hardens into a brooding pessimism. During a High, obliging individuals serve a purposeful society, and even bad people get harnessed to socially constructive tasks; during an Unraveling, an obliging society serves purposeful individuals, and even good people find it hard to connect with their community.  The approaching specter of public disaster ultimately elicits a mix of paralysis and apathy that would have been unthinkable half a saeculum earlier.  People can now feel, but collectively can no longer do." - The Fourth Turning

The Clinton years were divisive and cynical. You knew the country was adrift, but no one could harness the power of the realm to take on the impending challenges. The nation divided into Blue states and Red States. The Moral Majority raged against the Godlessness of the country. The 2000 Presidential election was an example of a country deeply divided, fragmented and unable to agree on anything. The election was essentially a draw, and a partisan Supreme Court picked the winner. It seemed like the country was divided as never before. But, a student of history would have recognized the same issues, dilemmas and foul mood in the 1760s, 1850s and 1920s. Strauss and Howe documented the prior Unravelings in US history:

"The mood of the current Culture Wars era seems new to nearly every living American but is not new to history.  Around World War I, America steeped in reform and fundamentalism amidst a floodtide of crime, alcohol, immigration, political corruption, and circus trials.  The 1850s likewise simmered with moral righteousness, shortening tempers, and multiplying “mavericks.”  It was a decade, says historian David Donald, in which “the authority of all government in America was at a low point.”  Entering the 1760s, the colonies felt rejuvenated in spirit but reeled from violence, mobs, insurrections, and paranoia over the corruption of official authority." - The Fourth Turning

The country went to war with a moral fervor, which quickly dissipated. There was no follow through, as bin Laden was allowed to escape. The appearance of unity in the country was wiped away with the invasion of Iraq under false pretenses. Americans became more cynical after 9/11. Instead of addressing the visible financial catastrophe set in motion by political promises made decades ago, Americans deluded themselves with visions of faux wealth created by the Federal Reserve inflating the largest bubble in history. President Bush did not demand shared sacrifice after 9/11. He instructed the American people to defeat the terrorists by leasing a Mercedes SUV; buying a 6,000 sq ft McMansion with 10 rooms, granite countertops, Jacuzzis, and a home theater, financed with 0% down; and taking your ultimate dream vacation in the Caribbean paid for with one of your 10 credit cards.

While Americans binged on credit and ignored the disastrous future that awaited them with the approaching Fourth Turning, a brooding pessimism began to blanket the country. A national paralysis overtook the populace regarding vital issues. The popping of the housing bubble from 2006 through 2008 revealed massive fraud on the part of Wall Street bankers; corrupt politicians, bought off by corporations, in Washington DC; inept bungling regulators; millions of morons wanting to be led astray; and a Federal Reserve that provided the cheap credit to fuel the mass delusion. The complete meltdown of the financial system in September 2008 will be viewed as the catalyst for the current Fourth Turning. The transition from Unraveling to Crisis has transpired.

Crisis Deepening

"A CRISIS arises in response to sudden threats that previously would have been ignored or deferred, but which are now perceived as dire.  Great worldly perils boil off the clutter and complexity of life, leaving behind one simple imperative: The society must prevail.  This requires a solid public consensus, aggressive institutions, and personal sacrifice." - The Fourth Turning

The current Crisis is deepening day by day. The ninth anniversary of 9/11 is revealing the dramatic mood change of the country. In the days following 9/11 there was little anger against the religion of Islam. President Bush went to a mosque and declared that Islam was a religion of peace. He said forcefully that anyone who attacked Arab or Muslim Americans in some kind of twisted attempt at revenge for 9/11 would be met with the full force of American law. Most right minded Americans agreed with President Bush. After 9 years of waging wars against Muslims, in which victory is unachievable, Americans are weary, agitated and ready to lash out.

Contrast the reaction of Americans after 9/11 with the recent issue of converting a Burlington Coat factory store into a Muslim community center two blocks from Ground Zero. The mainstream media has been full of vitriol and anger regarding an issue that would have gotten no press in 2002. There have been protests, counter-protests, accusations and lies spread across the airwaves. The anti-Muslim feeling in the country is palpable. A nut-job pastor with a flock of 50 people threatens to burn the Koran and sets off a firestorm across the globe. The reaction to this inconsequential knucklehead would have been non-existent in 2002. The mood of the country has clearly changed. The anger building against the ruling elite on Wall Street and in Washington DC is real. Average Americans feel betrayed by politicians, bankers and corporate America. The Tea party movement is a reflection of that anger. The country certainly hasn't reached a consensus about which direction the country needs to move, but we are still in the early stages of the Fourth Turning. A threat to our very existence will reveal itself in the near future and generate the consensus necessary to meet the threat.

What is beyond a doubt is that the country is facing extreme peril as it tries to maneuver its way through an economic Depression, a looming peak oil crisis, unresolved long-term fiscal obligations, and antagonism from countries throughout the world. The cycles of history do not reveal the exact nature of the Crisis ahead, but previous Crisis periods give us a flavor of what to expect. Based on our previous Crises periods and knowing which national issues have been ignored for decades, the likely threats to confront the nation over the next decade include:

  • Continued reduction in the national wealth of Americans as home prices drop another 20% and the stock market loses another 30% of its value.
  • A National Debt approaching $20 trillion within the next 5 years, potentially resulting in massive interest expense payments and/or a collapse of the USD.
  • The demographic headwinds of a rapidly aging population combined with the gutting of industrial America by corporate chieftains insures that the American economy will be stuck in low gear. The result will be a steady decline in the American standard of living.
  • When the Central Bank experiment in fiat currency fails within the next 5 years, a hyperinflationary depression is likely. 
  • The diminishing supply of cheap, easily accessible oil will fundamentally change American society. The entire suburban sprawl existence of America, with 260 million automobiles and food trucked from 1,500 miles to grocery stores will disappear practically overnight.
  • The wrenching changes which will be required to localize, combined with the loss of wealth, will likely lead to social chaos, possible revolt, and the use of U.S. military forces against citizens of the United States. Geographic fragmentation of the country is a distinct possibility.
  • The desperate need for oil will provoke wars for precious resources. The Middle East is likely to turn into a battlefield. The combatants are unknown at this point, but China and Russia are likely to be involved. With the proliferation of nuclear weapons, an escalation could lead to a catastrophic worldwide conflagration.

Fourth Turnings always sweep away the old order and replace it with a new order. There is no guarantee that the new order will be better. It could be far worse. As we honor those who lost their lives on September 11, 2001 we need to brace ourselves for the storm ahead. The clouds are gathering and the time of great sacrifice is approaching. There are no guarantees from God that the United States will always prevail. We have gone far off course this time. I trust we can rise to the challenge.

“History offers no guarantees. Obviously, things could go horribly wrong – the possibilities ranging from a nuclear exchange to incurable plagues, from terrorist anarchy to high-tech dictatorship. We should not assume that Providence will always exempt our nation from the irreversible tragedies that have overtaken so many others: not just temporary hardship, but debasement and total ruin. Losing in the next Fourth Turning could mean something incomparably worse. It could mean a lasting defeat from which our national innocence – perhaps even our nation – might never recover.”  - The Fourth Turning

Join me at www.TheBurningPlatform.com to discuss truth and the future of our country.

By James Quinn

quinnadvisors@comcast.net

James Quinn is a senior director of strategic planning for a major university. James has held financial positions with a retailer, homebuilder and university in his 22-year career. Those positions included treasurer, controller, and head of strategic planning. He is married with three boys and is writing these articles because he cares about their future. He earned a BS in accounting from Drexel University and an MBA from Villanova University. He is a certified public accountant and a certified cash manager.

These articles reflect the personal views of James Quinn. They do not necessarily represent the views of his employer, and are not sponsored or endorsed by his employer.

© 2010 Copyright James Quinn - All Rights Reserved
Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.

James Quinn Archive

© 2005-2015 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in

Biggest Debt Bomb in History