by Tanada » Sat 19 Jan 2013, 15:35:25
$this->bbcode_second_pass_quote('Plantagenet', '
')Yes. Economic disruption and depressions or political incompetence or war or plague or terrorism or any number of things can disrupt the operation of complex modern societies. But that risk has always been there---.
I also quibble with the idea that complex societies are somehow fragile because they are so complex. In fact, the complexity in many cases provides redundancies, reserves, and resiliance because it is very hard to simultaneoulsy take down all parts of very large complex modern societies----we get a hurricane Sandy and the rest of the USA rushes to pour money into the devastated areas---we get a bankrupt Greece and the rest of the EU ponies up to help, and so on.
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For these reasons, I just don't see the "rapid collapse" scenario happening.

Collapse is always a risk in any society but people are very resilient in the general sense of the word. When the Black Death killed 20% of the population of western Europe the society didn't collapse. However the Norse settlements in Greenland did collapse, as did Easter Island, as did the Western Roman Empire in the late 400's as did the Maya civilization in the Yucatan.. Each of them went through a collapse that had lots of warning signs suddenly.
Sometimes a stress like the Black Death causes a society to reshape itself into a different meme that thrives under the new conditions. I used to think our global culture would do just that, I was actually pretty optimistic about it. Now I look around and I see the people in charge just propping things up to hang onto their power just a little bit longer. The EU propping up Greece is a perfect example, nothing has fundamentally been changed to rebuild the Greek economy in a way that it can sustain itself, all that has happened is money has been dumped into the economy keeping it from complete collapse and ultimately only delaying the inevitable while damaging the more sound members of the EU. Instead of demanding that the government of Greece make real reforms and helping to create a sound future they have rewarded a failed system with more resources.
Hurricane Sandy really only severely impacted about 1% of the US population, it is easy to help 3 million people when you have 300 million sharing the load. If a real nation wide disaster happens who is going to come rushing in to help restore the USA? The EU is already majorly stressed propping up tiny little Greece, do you think they have the resources to assist the USA? China has the theoretical capacity, but could they help us without damaging their internal political stability?
Those scenario's are just the disaster type, I am far more concerned about the monetary system/ banking system having a breakdown than I am a physical disaster. Fiat money only has value because people trust the issuer to stand behind the currency. Full faith and credit and all that. People around here are a lot less trusting in the government than they used to be, we have been promised for a very long time that the economy is going to start zooming again any day now and things will be 'back to business as usual'. Except it hasn't happened and it shows no sign of happening. Most people expect politicians to lie to them, it has become the accepted norm, but now they are coming to think the banks are lying to them. If we lose trust in the banks and the system can collapse in a day, unfortunately the Federal Reserve isn't doing anything to prove themselves trustworthy. Bernanke swore that they would never monetize the debt, but they started doing that three years ago and keep doing it at an increasing rate every year. The Federal Reserve was nominally created to be the clearing house for transactions between local banks in different states and to stabilize the currency. They function very well as a clearing house, but at managing the currency they stink on ice. If a fiat currency is not respected by its creators and those that are needing to use it you get Argentina, Zimbabwe, Weimer Germany, hyperinflation to uselessness. Saying It Can't Happen Here is nice and everything, but in reality it can happen anywhere there is a fiat currency and the currency is not respected by those who issue it.