The Five Stages of Collapse
22 Feb 2008 | Dmitry Orlov | Club Orlov
This book is based on the identically titled article I published on this blog in February of 2008, just as financial collapse was starting to gather steam. Since then, this article has been read nearly 100,000 times on this blog alone (it has been reposted on many other web sites) and it is its enduring popularity that has convinced me to write a book-length treatment.
In this article, I proposed a taxonomy of collapse, splitting it out into five stages—financial, commercial, political, social and cultural—and tied each of the five collapse stages to the breaching of a specific level of trust, or faith, in the status quo. Although each stage causes physical, observable changes in the environment, these can be gradual, while the mental flip is generally quite swift, because it is something of a cultural universal that nobody (but a real fool) wants to be the last fool to believe in a lie.
Stage 1: Financial collapse. Faith in “business as usual” is lost.
Stage 2: Commercial collapse. Faith that “the market shall provide” is lost.
Stage 3: Political collapse. Faith that “the government will take care of you” is lost.
Stage 4: Social collapse. Faith that “your people will take care of you” is lost.
Stage 5: Cultural collapse. Faith in “the goodness of humanity” is lost.