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The Five Stages of Collapse
Energy Bulletin ^ | November 11, 2008 | Dmitry Orlov

Posted on 11/14/2008 12:05:38 PM PST by Dubya-M-DeesWent2SyriaStupid!

Hello, everyone! The talk you are about to hear is the result of a lengthy process on my part. My specialty is in thinking about and, unfortunately, predicting collapse. My method is based on comparison: I watched the Soviet Union collapse, and, since I am also familiar with the details of the situation in the United States, I can make comparisons between these two failed superpowers.

I was born and grew up in Russia, and I traveled back to Russia repeatedly between the late 80s and mid-90s. This allowed me to gain a solid understanding of the dynamics of the collapse process as it unfolded there. By the mid-90s it was quite clear to me that the US was headed in the same general direction. But I couldn't yet tell how long the process would take, so I sat back and watched.

I am an engineer, and so I naturally tended to look for physical explanations for this process, as opposed to economic, political, or cultural ones. It turns out that one could come up with a very good explanation for the Soviet collapse by following energy flows.

What happened in the late 80s is that Russian oil production hit an all-time peak. This coincided with new oil provinces coming on stream in the West - the North Sea in the UK and Norway, and Prudhoe Bay in Alaska - and this suddenly made oil very cheap on the world markets. Soviet revenues plummeted, but their appetite for imported goods remained unchanged, and so they sank deeper and deeper into debt. What doomed them in the end was not even so much the level of debt, but their inability to take on further debt even faster. Once international lenders balked at making further loans, it was game over.

What is happening to the United States now is broadly similar, with certain polarities reversed. The US is an oil importer, burning up 25% of the world's production, and importing over two-thirds of that. Back in mid-90s, when I first started trying to guess the timing of the US collapse, the arrival of the global peak in oil production was scheduled for around the turn of the century.

SNIP...ARTICLE IS VERY LONG

Financial collapse seems to be particularly painful if you happen to have a lot of money. On the other hand, I run across people all the time, who feel that "Nothing's happened yet." These are mostly younger, relatively successful people, who have little or no savings, and still have good paying jobs, or unemployment insurance that hasn't run out yet. Their daily lives aren't much affected by the turmoil on the financial markets, and they don't believe that anything different is happening beyond the usual economic ups and downs.

Commercial collapse is much more obvious, and observing it doesn't entail opening envelopes and examining columns of figures. It is painful to most people, and life-threatening to some. When store shelves are stripped bare of necessities and remain that way for weeks at a time, panic sets in. In most places, this requires some sort of emergency response, to make sure that people are not deprived of food, shelter, medicine, and that some measure of security and public order is maintained. People who know what's coming can prepare to sit out the worst of it.

Political collapse is more painful yet, because it is directly life-threatening to many people. The breakdown of public order would be particularly dangerous in the US, because of the large number of social problems that have been swept under the carpet over the years. Americans, more than most other people, need to be defended from each other at all times. I think that I would prefer martial law over complete and utter mayhem and lawlessness, though I admit that both are very poor choices.

Social and cultural collapse seem to have already occurred in many parts of the country to a large extent. What social activity remains seems to be anchored to transitory activities like work, shopping, and sports. Religion is perhaps the largest exception, and many communities are organized around churches. But in places where society and culture remain intact, I believe that social and cultural collapse is avoidable, and that this is where we must really dig in our heels.

Also, I think it is very important that we learn to see our surroundings for what they have become. In many places, it feels as if there just isn't that much left that's worth trying to save. If all the culture we see is commercial culture, and all the society we see is consumer society, then the best we can do is walk away from it, and look for other people who are ready to do the same.

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TOPICS: Business/Economy; Constitution/Conservatism; Crime/Corruption; Front Page News
KEYWORDS: civilwar2; collapse; financialcrisis; survival
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To: steve0

Done. Under inflation, I win.

Under deflation, I go broke.


41 posted on 11/14/2008 12:56:46 PM PST by patton (Caligula Gaius Julius Caesar Augustus Germanicus; Incitatus is my President.)
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To: NoObamaFightForConservatives

Total BS on many levels....

The little russian doesn’t understand americans very well.....

Remember the solidarity after 9/11?

Unlike other nations, we still pull together regardless of our differences.....

Look at the transition to Obama.....very peaceful...yeah we’re complaining on our side but no-one is rioting in the streets......

We had financial colapse in 1929....the country survived....

Back then, I remember when FDR got on the television and addressed the nation.....wait a tick...that’s a Plug’s line....


42 posted on 11/14/2008 12:58:34 PM PST by nevergore ("It could be that the purpose of my life is simply to serve as a warning to others.")
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To: NoObamaFightForConservatives

Perhaps anarchy is leavening to the proces...


43 posted on 11/14/2008 1:01:49 PM PST by Old Professer (The critic writes with rapier pen, dips it twice, then writes again.)
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To: MrB; aWolverine
I concur with your reversal of order of collapse in America.

As do I - and I think that the cultural collapse lead to the others. Of course, this thing is VERY complex. Why the cultural collapse? Was it a lack of religion? People too busy working to give their kids a moral education? The lack of grandparents living with the kids & g'kids, resulting in a loss of historical and moral memory? Many, many causes are involved. Someday, someone will do a 30-part miniseries on it.

In the meantime, the conclusion that our fiat currency will become worthless is probably not wrong (i.e. it is correct). Buying the physical commodities that one needs to live (extra food of the non-perishable or long-lived type, key spare parts, etc.) or to preserve value (precious metals, tools, appliances, etc.) will be the smart thing to do.

44 posted on 11/14/2008 1:06:32 PM PST by Ancesthntr (An ex-citizen of the Frederation dedicated to stopping the Obamination from becoming President)
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To: austinaero

“Luckily, we are an armed citizenry in Texas. However, that has its limits. Any thoughts?”

BLOAT. :>)


45 posted on 11/14/2008 1:08:28 PM PST by Ancesthntr (An ex-citizen of the Frederation dedicated to stopping the Obamination from becoming President)
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To: NoObamaFightForConservatives

self ping


46 posted on 11/14/2008 1:11:55 PM PST by chrisser (The Two Americas: Those that want to be coddled, Those that want to be left the hell alone.)
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To: NoObamaFightForConservatives
The Bailout will only prop up GM and Ford for a few weeks.
Europe has already cut the supplier's credit protection for both.

With the G20 hullabaloo this weekend and talk of an alternate currency or devaluation of the USD.. how would that probably be performed..??

turn in your Dollars for new Glottany??

or if the USD is devalued by 50% ,then the price of everything doubles ??

this is some scary s**t

47 posted on 11/14/2008 1:13:28 PM PST by Eagle50AE (Pray for our Armed Forces.)
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To: Ancesthntr

I’d say it was the prosperity of the nation that caused us to turn from God.

God’s ways, His laws, if followed, lead to good, prosperous lives. They just MAKE SENSE.

Our culture got too prosperous, and decided we didn’t need those laws. Consequences started to occur, naturally, and people called on institutions of man to alleviate those consequences.

This spiralled/accelerated the cultural and societal collapse and eventually led to the economic collapse.


48 posted on 11/14/2008 1:17:32 PM PST by MrB (The 0bamanation: Marxism, Infanticide, Appeasement, Depression, and Thuggery)
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To: yefragetuwrabrumuy
So once again, the US got the better part of the deal.

Reminds me of the 1980s: Japanese sold us great cars, lost their dollars paying top dollar for our real estate.
49 posted on 11/14/2008 1:22:00 PM PST by kenavi
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To: woollyone

>extra sugar in the coffee please

Probably better to start weaning yourself off of it before the rationing begins.

Seriously, I’m thinking it probably wouldn’t hurt to stock up on some non-perishables now, just in case. If we don’t need them, great. But if something DOES happen, we won’t regret not taking such a simple step when we could.

I agree about the post-9/11 spirit of community, but I do worry about potentially dangerous/hungry/frightened people leaving the cities and raiding the suburbs for food and supplies. We don’t have a gun - yet.


50 posted on 11/14/2008 1:24:41 PM PST by Savagemom (Educational Maverick (at least while homeschooling is still legal))
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marking my spot


51 posted on 11/14/2008 1:47:58 PM PST by meanie monster
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To: The_Media_never_lie

My thoughts exactly.


52 posted on 11/14/2008 1:50:23 PM PST by Haddon
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To: NoObamaFightForConservatives

bump


53 posted on 11/14/2008 1:53:15 PM PST by diamond6 (Is SIDS preventable? www.Stopsidsnow.com)
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To: evets

Reduce your thyroid size to hybernate. Fatten up and hydrate.


54 posted on 11/14/2008 1:55:00 PM PST by JudgemAll (control freaks, their world & their problem with my gun and my protecting my private party)
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To: NoObamaFightForConservatives

Communism thrives on fear of the unknown, the masses becoming destitute and without resources for a basic way of life always look to government for salvation. They become slaves to it in order to live.

If the ‘president’ of the our country is a Marxist/Communist it will not be in his nature for the masses to regain their independence but that they become more subservient to his will.


55 posted on 11/14/2008 1:58:29 PM PST by RetSignman (DEMSM: "If you tell a big enough lie, frequently enough, it becomes the truth")
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To: Savagemom

good thinking mom.

This weekend, costco for cans non-perishable.
and walmart for other stuff.

For Christmas I’ve asked santa to avoid vanity buying. Instead, fishing gear for future supper gathering.

After-Christmas sales will include sturdy boots, jeans, socks, undies etc and odd toiletry stuff.

Lord willing and the democrats don’t loot, the pantry will be quietly be building supply.

A few friends and I have been talking through this and we have squirrel and ant mentality going.

If all holds up well, no problem, we’ll help stock the homeless pantry when it all blows over and we’ll look back and laugh at our paranoia.
...like we did after y2k *blush*

Hope for the best, prepare for the wurst.
...or something like that


56 posted on 11/14/2008 2:04:17 PM PST by woollyone ("When the tide is low, even a shrimp has its own puddle." - Vance Havner)
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Comment #57 Removed by Moderator

To: Ancesthntr

The country just voted for martial law. Bambi’s Brown Shirts will help keep “order.”


58 posted on 11/14/2008 2:16:04 PM PST by appeal2 (Brilliance is typically the act of an individual, but great stupidity is reserved for the Gov't)
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To: kenavi

Americans have a long and honored tradition of ripping off foreigners who hope to make a fast buck here.

One of note was when wealthy Scots decided to invest in Texas cattle being driven to Kansas City. They even sent accountants to ride with the cowboys and follow their investment.

While a huge heard of cattle would leave Texas, by the time the cowboys rode into Kansas City, not a cow could be seen, the perplexed accountants returning home empty handed.


59 posted on 11/14/2008 2:16:53 PM PST by yefragetuwrabrumuy
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To: nevergore
Remember the solidarity after 9/11?

It was gone after March 19, 2003.

60 posted on 11/14/2008 2:17:26 PM PST by buccaneer81 (Bob Taft has soiled the family name for the next century.)
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