But if we return back another hundred years, we notice that the 18th Century ends in 1815 with the final defeat of Napoleon, that final project of the Enlightenment and of the French Revolution.  With the Congress of Vienna in 1814-1815, we have a new Europe along the lines of Metternich’s plan, and the 19th Century at last is here.

In 1713 and 1714, we have the Treaties of Utrecht, Baden, and Rastatt, bringing an end to the era of Spain as a major power, and the rise of the Habsburgs.  Louis XIV dies in 1715, after reigning for 72 years.  The Baroque period is over, and we are now firmly in the 18th Century.

We still live in the 20th Century.  Nothing much significant has changed in our lives in the past twenty years.  Symptoms of a deeper rot are appearing here and there, foreshadowing a larger crisis, but the crisis itself has not arrived yet.  We still live in an era of Pax Americana, the old republic very much a strained and tired Empire now, with the U.S. Dollar as the world’s reserve currency.

That is going to change.

The next task for History is to dismantle the untenable structures and institutions put in place by late Modernity, which have been extended now as far as they can go.  Our debt-based monetary system will collapse, our unbacked fiats will be worthless.  The debts and unmeetable obligations will all default.

There are ironies and great contradictions as the former home and hope of Liberty becomes viciously unfree and increasingly despotic.  Our leaders no longer govern, but try instead to rule us — they are less legitimate with each passing day, their laws corrupt or worse.  They are nearly finished, and will be swept away with the tide.

Just as in 1914, the internationalist system will break down, dashing the hopes of the would-be first-world nations.  We will probably have a pretty good war as well, or many local ones worldwide.  These transitions tend to involve war.

Deflation first — it clears the way for the complete loss of faith and hyperinflation that will follow.  The next big wave down in the financial markets is the battering ram.  The U.S. national debt is about faith, so is quantitative easing, and so is the very idea of magical coins that could ever be “worth” a trillion dollars.  When this is faith breaks, in concert with loss of faith in perpetual growth and unlimited cheap energy, then things will move very, very quickly.

There is nothing any of us can do at this point, except navigate the rapids as well as possible, and to stay out of the way of a dying empire, which is still very dangerous in its death throes.  We are actually very privileged to be alive and witnessing this next transition, to what we do not know just yet.  But what an honor to live at this time, not in ignorance but with an existential resolve to come out of it alive and much the wiser.

17 Comments on "Why I Stopped Worrying And Learned To Love The Currency Collapse"

steveo on Fri, 18th Oct 2013 12:46 pm 



“We will probably have a pretty good war as well, or many local ones worldwide. These transitions tend to involve war.”

Love the way you trivialize that one. Everyone sing along “Don’t worry, be happy”.

Read on Fri, 18th Oct 2013 12:53 pm 



Stevie,
Miss the irony did we?

dassa0069 on Fri, 18th Oct 2013 12:53 pm 



GOLD IS MONEY YOU CAN TRUST.

mo on Fri, 18th Oct 2013 1:15 pm 



Love that last picture. Sure have grown lazy and fat

Arthur on Fri, 18th Oct 2013 1:56 pm 



The picture is probably pretty accurate. There are certainly going to be moments we will dearly miss Pax Americana, that is the couch, the telly, the zapper, the Olympics, the six-packs and “tear down that wall, mr Gobatchev!” and Great Thinkers like mr Fukuyama announcing ‘the end of history’, no less. Those times when the only problem we had was overweight.

And now all of a sudden history is back and old questions return like who is going to dance with who?

“Granddaddy, is it really true that people can fly?”

Dave Thompson on Fri, 18th Oct 2013 3:20 pm 



Live with less is my strategy as we move into the next “thing they will come up with” that will save us all from our fear and greed.

Greg Knepp on Fri, 18th Oct 2013 4:37 pm 



I read this site daily but almost never comment. However, this article is a real gem!

That’s my comment.

GregT on Fri, 18th Oct 2013 4:46 pm 



“The picture is probably pretty accurate.”

Accurate for sure, pretty, not so much.

J-Gav on Fri, 18th Oct 2013 5:17 pm 



The article’s ‘turn-of-the-century + 15 years’ hypothesis is interesting, and many of its observations are relevant.

I don’t see why living today should be considered any more of an “honor” than any other time in history though. Living has always been an honor, barring the exceptional cases like massive birth defects or being born into a family carrying the Black Plague …

Alexander on Fri, 18th Oct 2013 9:01 pm 



I read this article with great interest because it falls in line with an observation I’ve personally made. It appeared to me that every decade has a measure of the previous one until the 2nd or 3rd year(ie. there’s a bit of the 50’s until 1962 or 1963 and so on).

Getting back to the article: we’re all in need of a change. With each passing day I’m growing more weary of hearing about the growing U.S. debt, the U.S. dollar losing its reserve status, drone strikes, unrest in the Middle East, the contention with Iran and its nuclear program etc.

The article’s use of the word ‘honor’ to describe our being alive at this moment may be a bit dramatic. Perhaps using ‘privileged’ is more down-to-earth and realistic(for me). We’re ‘privileged’ because not only are we going through the problems of past generations but we’ll also see the start to a much better world very soon.

BillT on Sat, 19th Oct 2013 1:59 am 



“… we’ll also see the start to a much better world very soon. …”

Really? A destroyed planet with little life is ‘better’? The ‘very soon’ is probably correct. We are getting into the last days of homo sapiens and I do not mean the religious definition, I mean the end of humans.

Roman on Sat, 19th Oct 2013 3:05 am 



It will be an honor to witness the extinction of Homo Ignoramus and Amerikanus Gluteus Maximus.

simonr on Sat, 19th Oct 2013 7:11 pm 



if you think fat assed people are only american, you havent been to the UK or Canada. I cant answer for australia, but pretty sure if I googled fat australians you would be … enlightened

GregT on Sat, 19th Oct 2013 8:03 pm 



While I can’ t speak for all of Canada, I can speak for the west coast. The vast majority of people here are not overweight. A half hour drive across the border into the US, however, the picture is enormously different.

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