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Failed State?

Summary:
Is the American Empire going to go the way of all empires of the past? Will the Western liberal order collapse like the USSR? Is America engaged in a civil war? There are good reasons to suspect some or all of the above are taking place.  My view is that is not only a good thing but also a necessary one. America will be strengthened by the dialectic now occurring among different constituencies. America can come out with its moral leadership restored, which would allow it to regain its soft power. But this may take a trial by fire — a trip back to the forge, so to speak. As I see it, a range possible scenarios runs from systemic collapse to totalitarian takeover by a domineering elite. The middle ground can be divided into reform and overhaul. I am on record as saying that a

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Is the American Empire going to go the way of all empires of the past? Will the Western liberal order collapse like the USSR? Is America engaged in a civil war?

There are good reasons to suspect some or all of the above are taking place. 

My view is that is not only a good thing but also a necessary one. America will be strengthened by the dialectic now occurring among different constituencies. America can come out with its moral leadership restored, which would allow it to regain its soft power. But this may take a trial by fire — a trip back to the forge, so to speak.

As I see it, a range possible scenarios runs from systemic collapse to totalitarian takeover by a domineering elite. The middle ground can be divided into reform and overhaul.

I am on record as saying that a complete overhaul is needed. The problems lie in the design of the system and the institutions and culture that follow from it.

I am confident that Americans will rise to the occasion, as I believe that the West in general will. This is only the wind down of the imperialist, colonialist period that favored the West for at least half millennium. Western dominance was solidified by its technological superiority.

This wave has crested and is falling. The next wave is a multilateral wave that will continue the process of globalizing but not before a period of turmoil followed by consolidation. The outlines are only visible hazily at the horizon.

I believe a process of national introspection and reflection has begun in America. This will most likely be a messy process and different interest groups assert themselves and other opposing groups defend their turf. 


I don't think that the Great Experiment has failed. Rather, it is just going through a process of re-enlivening that is giving "woke" new and deeper meaning. This will be process that involves raising the level of collective consciousness and a real overhaul cannot take place in the absence of this.

I would call this a period of spiritual awakening. I would further say that America is great not because of material progress alone or primarily. Rather, the greatness of America is "spiritual," that is, its value system based on 1) freedom under the rule of law, 2) equality before the law and absence of legal privilege, 3) the recognition that freedom entails corresponding responsibility, and 4) that one is free only if all are free in the sense that all have the same human rights.

I would say that #s 1 and 2 have been vitiated by a double standard of "justice." #3 has been vitiated by lack of accountability.  #4 has been vitiated by individual and cultural biases.

The result is that the values and ideal on which America is based have been corrupted. That can be addressed and repaired, but it will require making adjustments that bring the country up to date with reality.

This could take place rather quickly, or it could stretch out over a considerable period. I don't think that this iteration will become clear enough to see until the analog-raised people are gone and the digitally raised people take the reins as the world transitions from the Industrial Age to the Digital Age.

The pandemic is hastening this transition.

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Mike Norman
Mike Norman is an economist and veteran trader whose career has spanned over 30 years on Wall Street. He is a former member and trader on the CME, NYMEX, COMEX and NYFE and he managed money for one of the largest hedge funds and ran a prop trading desk for Credit Suisse.

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