I have thus far made two primary arguments that the Westphalian order of states is in serious trouble. I’ll now continue with a large number of small arguments. The order of presentation is somewhat arbitrary, so the first point may not be more important than the last:
- Currency traders prevent currency control: Back in the days when exchange rates were fixed, governments could change them to prevent certain fiscal issues. Now, with currencies being trading world-wide, and in massive amounts, that tool no longer exists. A powerful weapon has been removed from the state’s arsenal.
- The fiat currency game is being understood and exposed: Knowledge is spreading and light is being shined. People who want to know, can know. And worse, fiat currency may have reached its limit. Several articles would be required to explain this properly, but the welfare-fiat system of the past 40 years is failing, and that is very, very significant. Precious metals, digital currencies and other forms of honest money continue to emerge and spread, even though they are viciously attacked by the US government. How this situation will develop is unknown, but is is a significant problem for the nation-state. The day they can no longer deliver on their promises, their spell will break.
- Regulation: Governments and their sub-organizations survive and thrive, not by creation, but by restriction. To get what they want, their one tool is to restrict things. But, the more they use that tool, the more they constrain commerce, their one source of money. This is “strangling the goose that lays the golden eggs” and has myriad effects, most of them small.
- Complexity: Again, much space would be required to explain fully, but complex structures breed more complexity, which feeds back upon itself and strangles itself. Over the past century, and especially over the past 40 years, states have reached a tremendous level of complexity; a level that restricts even simple actions. For example: When everything must be approved by a legal team, not much gets done, and that which is done, is done very slowly.
- The War On…: Be it drugs, terror, or whatever, this phrase points out cracks in the Westphalian structure. Faced with successful criminal strategies, the state reacts in its natural way – by making ‘war.’
- Mass polarization: This is already happening because of multiplied choices via the Internet, but it may get stronger if ‘free’ news begins to disappear and people must buy their own. If so, people will begin to surround themselves with others of their own opinion. In the worst case, many will become deeply polarized, conceivably leading to civil wars. However, the progression of this may be in a different direction. We’ll cover that next time.
- Wikileaks: The new fly in the ointment of legitimacy. The broader Wikileaks strategy is exposing the sins of the state, and it is hard to portray yourself as morally superior when someone keeps exposing your nasty secrets. These guys are committed, motivated and obsessive. They will be very hard to stop.
- Inertia: Huge organizations lack the ability to turn quickly. They are very often incapable of reaction, even in self-preservation. And it is not just the ability to act that is in question, it is also the ability to see. As is said: to the hammer, everything is a nail. Likewise, state agents have come to see themselves in very specific ways, and they have been consistently rewarded for doing so. Their mental filters will not change easily.
- Infiltration: Criminals and interest groups are paying off politicians world-wide to get what they want. This is a massive business, much of it ‘legal,’ and it is working beautifully for those involved. If some person or group is necessary to get you elected to office, it’s not hard to justify favors for them. This is happening continuously in every government. To be fair, I should add that some of the people involved have no evil intentions. Many wealthy people and firms buy politicians, not really to grab other people’s money, but simply to protect themselves.
- Frustration: The average citizen has no real way to change anything. Votes don’t matter for many reasons, but firstly because there are party organizations between themselves and their representatives. The Senator cares about (and obeys) the party more than opinion polls. They know that the party will develop strategies in time for the next election, and will provide them with effective advertising. Many people still hold out hope that their party will eventually grow a spine and do the right thing, but that bias may not hold. If it does not (as we may be seeing already), they will begin to identify with non-state or anti-state organizations and ideologies.
- Nukes: The nuclear bomb created an unbeatable weapon. When fighting an opponent armed with such a weapon, you cannot face him directly; so, you adapt and attack his organizational method instead. The state is designed for face-on attacks, not for systems subversion.
I’ll conclude this series next time by looking at possible outcomes: Westphalia’s End Part 4.