Best of the Week
Most Popular
1.UK House Prices BrExit Crash NOT Likely Despite London Property Market Weakness - Nadeem_Walayat
2.BrExit Morning - New Dawn for Britain, Independence Day! - Nadeem_Walayat
3.LEAVE Wins EU Referendum - Sterling and FTSE Hit Hard, Pollsters, Bookies and Markets All WRONG! - Nadeem_Walayat
4.BrExit Implications for UK Stock Market, Sterling GBP, House Prices and UK Politics... - Nadeem_Walayat
5.Trading BrExit - Stocks, Bonds, Sterling, Opinion Polls, Bookmaker Odds and My Forecast - Nadeem_Walayat
6.FTSE and Sterling Brexit Trading, Deconstruction of the EU Referendum Result - Nadeem_Walayat
7.UK Interest Rate Cut to 0.25% Imminent and More QE Money Printing - Nadeem_Walayat
8.Trading BrExit - British Pound Plunges, FTSE Stock Futures Slump on LEAVE Shock Referendum Win - Nadeem_Walayat
9.The Stock Market is Reading it Wrong! - Chris_Vermeulen
10.Breakouts Galore in Gold and Silver - Jordan_Roy_Byrne
Free Silver
Last 7 days
Asset Bubbles Tend to Crash with a Vengeance - 29th July 16
Retirees Are Risking Their Life Savings on Junk Bonds - 29th July 16
The Next Recession is Coming - Expect Around 0% Returns for the Next 7 Years - 29th July 16
SPX is Shaking and Rolling - 29th July 16
Stock Market Insiders Are Secretly Selling, Cycle Top Next Month - 28th July 16
FOMC Interest Rates and Their Impact on the US Economy - 28th July 16
The State Of The Economy - 28th July 16
Elliott Wave Crash Course - 3 Ways the Elliott Wave Principle Enhances Your Trading - 28th July 16
Japan's "Helicopter Money" Play: Road to Hyperinflation or Cure Debt Deflation? - 27th July 16
Monetary Zika - The Insidious Nature of Credit Expansion - 27th July 16
Gold and Pork Bellies - 27th July 16
Silver Is Insurance Against The Worst Part Of This Depression - 27th July 16
Don’t Buy The SPX Hope Stock Market Rally! - 27th July 16
Bitcoin $650 Still in Play - 26th July 16
Deutche Bank Stock Price Crash - The EU Has Problems Far Beyond the Brexit - 26th July 16
The Forex Markets Are Getting Exciting! - 26th July 16
Underpriced Silver Is the “Rip Van Winkle” Metal - 25th July 16
Declines in Multiple Market Indexes - 25th July 16
Retailers Are Doomed as Most Americans Are Too Poor to Shop - 25th July 16
Here’s One Currency That Could Go to Zero - 25th July 16
Stock Market Top is Expanding - 25th July 16
Silver Manipulation – Because They Needed the Eggs - 25th July 16
Silver Market COT Stuns: What's Going On Here? - 24th July 16
Gold Demand Remains Stable During Sector Weakness - 24th July 16
Sernova, Diabetes and Haemophilia - 24th July 16
Russia: Tensions, Turmoil, and Western Hubris - 24th July 16
Soybean Commodity Price to Soar Again - 23rd July 16
SPX Stock Market Uptrend Continues - 23rd July 16
Gold And Silver – Debt Addiction Will Carry Precious Metals Higher, Guaranteed - 23rd July 16
Pokemon Go - How to Play, First Use, Balls, Stops, Catching Pokemon's... Great Excercise! - 23rd July 16
7 Signs That the Gold Market Remains Resilient - 23rd July 16
Basic Income in The Time of Crisis - 23rd July 16
Silver Bull Faces Correction - 22nd July 16
The Serious Warning No One’s Talking About - 22nd July 16
Stock Market Insight from Greed, Volatility, and Put/Call Ratio - 22nd July 16
What Will Happen To the Stock Market When Interest Rates Rise? - 22nd July 16
How to Escape the World’s Biggest Ponzi Scheme - 22nd July 16
Addicted to Debt - We Can’t Borrow from the Future Anymore - 21st July 16
Not Everything Is Bullish for Gold - 21st July 16
Don’t Get Sucked Back Into the Stock Market - The Big Picture Hasn’t Changed - 21st July 16
Silver – Caught Inside - 21st July 16
Forex: "The Markets Are Getting Exciting!" - 20th July 16
China Economic Troubles - Is Kyle Bass Finally Getting His Revenge? - 20th July 16
Why Lithium Will See Another Price Spike This Fall - 20th July 16

Free Instant Analysis

Free Instant Technical Analysis


Market Oracle FREE Newsletter

The Power of the Wave Principle

The Lull Before the Civil Unrest Storm

Politics / Social Issues Nov 07, 2012 - 03:49 AM GMT

By: Jack_D_Douglas

Politics

Best Financial Markets Analysis ArticleVast social revolutions and wars are often preceded by periods of giving up on reforms, despairing withdrawal from public life by the best and brightest, and even peacefulness which seems to have become the normal condition in spite of deep conflicts and growing crises beneath the surfaces of public life. Often, earlier periods of intense conflicts and crises have been overcome and resolved, so it comes to look like that is the normal in life. This lulls most people into assuming their worse fears cannot happen, but this leads them to lowering their guards against growing conflicts and crises, so small ones can more easily cascade down into massive ones. If people expected they could become vast wars or revolutions or implosions, they would take more precautions to prevent that. But when lulled in expecting the worst cannot happen, the worst than they could ever imagine often explodes suddenly.


The cataclysmic French Revolution came after many decades of attempted reforms and conflicts which people had come to think of as unending. It started with new attempts at reforms, then incidents that did not seem so important, then all of it a sudden it exploded. WWI came after so many decades of peace in Europe, in spite of imperial conflicts around the world and an arms race, that most people thought a major war was impossible. Then a single murder in the far away Balkans set in motion an explosive cascade of events that led to a cataclysmic war. The Russian Revolution was preceded by such a long "lull" encouraged by European peace and reforms by the tsar that even Lenin was near despair and was living abroad. After several years of WWI and growing poverty at home, the Russian front imploded and a small event at home triggered a revolution that started small and democratic and then exploded into one of the vastest social revolutions in history. The beginning of WWII on the crucial German-French front was so quiet for so many months after France and Britain had declared war on Germany after it invaded Poland that it was called the "Sitzen Krieg" in Germany, the sit-down war, then it exploded as Germany invaded through the Ardennes. This was repeated near the end of the war as Germany built up its forces secretly for attacking through the Ardennes again.

The American Revolution looked very unlikely until that fateful British march to Concord and Lexington to enforce gun control laws. Then it exploded. The conflicts between the North and South had been so intense for so many decades, off and on, and then resolved again and again by major compromises that the Ante-Bellum period of the 1850's seemed another replay of that scenario. Then all of a sudden there was a small incident near Charleston, moves to secession, calling up the Northern troops and an explosion of war vastly more ghastly than Americans imagined possible. War between Japan and Germany and the U.S. had been put off so many times and so long that Pearl Harbor came as quite a shock to most Americans. The 9/11 attacks on the U.S. were just as shocking all over again.

In the early years of this new century, the U.S. had used soaring paper money and paper-asset inflation to fuel a great Bubble and apparent "prosperity" over twenty years and repeated crises [1980, 1987, 1990, 2000] were ended by pumping out more paper money and inflating assets [both paper and houses after the Nasdaq Crash in 2000] that the Fed and almost all economists and Bankers and speculators declared we had entered an Age of The Great Moderation in which financial crises were impossible, as Bernanke declared with gusto. Then housing and stocks started slowly cascading down, then did so more rapidly, then one Big Bank was hit by a sudden crisis and had to be "saved" from implosion, then others followed, then suddenly one weekend Lehman imploded and the the whole top of the U.S. financial system imploded and had to be taken over by the U.S. to save it from what looked like total implosion. The Great Moderation was suddenly replaced by The Greatest Global Financial Crisis in history. Europe and the rest of the world soon followed the U.S. into growing crisis.

By pouting out vast and soaring trillions and using vast distortions of the System [such as Quantitative Easing by the Fed] to hold the System up, they managed in the past several years to stop the accelerating cascade down and have kept it bumping along the bottom in official statistics like the GDP and unemployment, while the debts and distortions and all the real crises keep growing. The apparent bump up in the official stats on GDP are an illusion, below the real rate of inflation for GDP, while real unemployment and all the other real economic crises keep growing.


We're now in a lull before a vast, revolutionary storm. The U.S. is sinking faster and faster in all the ways vital to the future of our society, from the The Great Global Economic-Financial Crisis which the U.S. produced with insane Big Bank speculations and corruption to educational decline and bureaucratic strangulation to losing imperials wars around the world to political deadlock. I'm sure any intelligent American who is honest with himself can quickly write down a long list of the crucial ways in which the U.S. is declining now. Maybe half of Americans are too ignorant about the world or lack the intelligence to see all of this Big Picture of Crisis and Decline. They are confused and mad and despairing and see no way out, but assume the Republicrat System will go on and on and are trying merely to fit in and keep or get a job with a livable wage for them and their families. Even some knowledgeable and intelligent people see what is happening but see no exit and despair and simply withdraw and hide from it all, implicitly or explicitly assuming The System will just keep getting worse and worse and never end.

But nations, like individuals and groups and companies, cannot simply drift downward faster and faster into worse and worse crises they patch up but cannot escape or reverse. We've been doing that now for decades, as France and Russia did before their vast social Revolutions, as the nations did during long decades of peaceful imperial conflicts before the utterly immense conflicts of the American Civil War, WWI and WWII. There comes a time finally when the accelerating crises and sufferings and rages become too much to bear and something, often a seemingly small event like a murder of a young man in the Balkans, or an attack by "hotheads" on a small fort near Charleston, sets off an explosive cascade of events that quickly leads to a vast social explosion.

The U.S. is now rushing downward along all vital dimensions of social life. If this continues much longer, the U.S. will simply implode and that will lead to vast social revolution or revolutions. But maybe the vast social revolution will come before implosion.

The one thing we can be sure of is that we have sunk so far so long and are now accelerating down so fast that this cannot continue long without producing an implosion or a vast social revolution.

Jack D. Douglas [send him mail] is a retired professor of sociology from the University of California at San Diego. He has published widely on all major aspects of human beings, most notably The Myth of the Welfare State.

http://www.lewrockwell.com

    © 2012 Copyright Jack D. Douglas / LewRockwell.com - 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.


© 2005-2016 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

Catching a Falling Financial Knife