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Reinventing Collapse

kent nickell

Well-known member
This an interesting book with some implications also for a high CFR pandemic... I did a short review/synopsis

About the Author
Dmitry Orlov was born in Leningrad and immigrated to the United States at the age of 12. He was an eyewitness to the Soviet collapse over several extended visits to his Russian homeland between the late eighties and mid-nineties. He is an engineer with a BS in Computer Engineering and an MA in Applied Linguistics.

Reinventing Collapse, The Soviet Example and American Prospects by Dmitry Orlov

This book was written in 2008 but already has some wrong predictions.. such as a premise of continuing high oil prices which are now about 25% of what they were. So much for short term predictions. The Soviet Union also experienced hyperinflation as their major problem whereas we appear to be facing deflation. But I think he does make some good comparisons for how an economic collapse could affect the US as compared to how it affected Russia after the collapse of the Soviet Union.

??The ingredients I like to put into my superpower collapse soup are: a severe and chronic shortfall in the production of crude oil (that magic additive elixir of industrial economies), a severe and worsening foreign trade deficit, a runaway military budget and ballooning foreign debt. The heat and agitation can be provided most efficaciously by a humiliating military defeat and widespread fear of a looming catastrophe.??

In the Soviet Union housing was nationalized so people did not lose their house and that helped maintain social cohesion even though the housing was mainly dank apartments. They had much more developed public transportation so they weren?t as affected by the lack of being able to drive private transportation. Services including heat, running water, garbage removal and maintenance were centralized and cheap in terms of labor, materials and energy. Many had ?kitchen gardens to supplement their food supply. They did not have as lavish a lifestyle so were able to adapt to more austere conditions more easily. They often lived with relatives as opposed to having families dispersed over many states which also helped them persevere through difficult times both socially and economically. Soviet businesses were more inefficient which actually seemed to help during a collapse. They were not well enough organized to have a just in time economy so they had larger inventories and were more resourceful in making things work in a less structured way. They didn?t tend to have swift large layoffs but kept companies working at a minimal level where sometimes the most important thing was the cafeteria where workers could depend on a meal and the use of some of the inventory to develop barter oriented black markets.

??Thus all successful adaptations to the new circumstances will have to made at the local level, and will have to rely on existing infrastructure, inventory and locally available talents and skills??

??My conclusion is that the Soviet Union was much better prepared for economic collapse than is the US. It is important to understand that the Soviet Union achieved collapse-preparedness inadvertently, and not because of the success of some crash program??

??In this book, I have said some obvious things and some things that should surprise just about everyone. I have tried to express what most people think but fear to say, and perhaps even a few things that people fear to think. I have worked very hard to write a book on an important but seriously depressing subject that?s nevertheless fun to read; I hope that I have succeeded. All that I ask in return is that you retain the ability to see things clearly, decide for yourself, and keep your sense of humor ? no matter what happens.??

Many interesting things in this book. Often gets very survivalistic based on his experience with very severe conditions in post Soviet Russia?..
 
Re: Reinventing Collapse

hat tip Fla Medic -


Official says Icelandic gov't could fall this wknd

By DAVID STRINGER – 28 minutes ago

REYKJAVIK, Iceland (AP) — Iceland's government could be ousted from power this weekend, becoming Europe's first to fall as a direct result of the global financial crisis, a spokesman for the prime minister said Saturday.


Thousands of people gathered to protest the government's handling of the economy outside the parliament building as Prime Minister Geir Haarde's Independence Party held crisis talks with its coalition partner, the Social Democratic Alliance.


The alliance may seek to oust Haarde and form a minority government with opposition parties until May elections, the prime minister's spokesman, Kristjan Kristjansson, said.


The alliance did not directly comment but a spokeswoman, Kristrum Heimisdottir, said: "There has to be a functioning government in this country, we see it as our primary duty to ensure that ... We are not ruling anything out."


Banging frying pans, cookie tin lids and drums, demonstrators called on the governing coalition to quit immediately and demanded changes in the leadership of the central bank and financial regulators.

Organizers said that the 16th consecutive Saturday demonstration was the largest since the collapse of the North Atlantic island nation's economy. Similar protests were taking place across the nation of 320,000 people.


"People have lost trust, and lost faith, in the political parties and the party system," said Ari Trausti Gudmundsson, a 60-year-old geoscientist.
Haarde proposed an early election on May 9 following daily protests against his government's handling of an economic crisis triggered by the collapse of the country's banks under the weight of huge debts amassed during years of rapid expansion.



Inflation and unemployment have soared, and the krona currency has plummeted.


Haarde's government has nationalized banks and negotiated around $10 billion in loans from the IMF and individual countries. But the country faces a bill likely to run to billions of dollars to repay thousands of Europeans who held accounts with subsidiaries of collapsed Icelandic banks.

He said Friday he won't lead the Independence Party into the new elections because doctors had found a malignant tumor in his throat.
Haarde said Saturday he would travel to The Netherlands soon for treatment. Education minister Thorgerdur Katrin Gunnarsdottir will serve as prime minister in his absence

http://www.google.com/hostednews/ap/article/ALeqM5j40SlN_7l6iQqc28h0N38_iULIZgD95TLNM80
 
Re: Reinventing Collapse

Here is another good video by Taleb from a recent conference in Moscow. He's not that concerned that Russia was downgraded to BBB as he doesn't have a lot of faith in the rating system. He actually sees Russia as being very robust. Robustness is the opposite of fragility and fragile systems are more subject to damaging Black Swans. He sees the US, esp New York and California and Europe esp the UK as being more fragile in this environment than Russia and other BRIC countries...

http://video.aol.com/video-detail/taleb-sees-nationalization-of-bank-utility-functions/286568419
 
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