Kleptocracy Rising

As a system fails, a dedicated kleptocrat clade tends to form. In the US, this graph makes it visible. Not the large portion of veterans, largely due to service in WW2. Over time, that percentage is replaced by career politicians and lawyers. Notice how small the proportion of non-bureaucracy jobs decreases. That is how a republic dies: An invasion of lawyers who can't be bothered to obey their own laws.

American Tech Woes

The US tech sector is worried enough due to the death of net neutrality and NSA deliberately compromising their products (to say nothing of making it easier for Chinese or other foreign hackers). There's also the recent death of an anti-patent troll bill. This is what happens when lawyers and kleptocrats outnumber engineers, scientists, and programmers.

Supervillainy in Action

A certain official in Turkey has been making the supervillain rounds as of late for a number of reasons. From trying to block and hijack domains after a recorded phonecall of his own corruption leaked to use of brutal tactics against protesters against him to even talk of false flags, the election season in Turkey is likely to be full of such drama. Given the history of the region, perhaps a military coup or two may even be in the wings. Besides, it's not like the world could use another geopolitical upheaval...

Have-Nots vs. Would-Earns

As John Robb notes, a key issue in Ukraine and elsewhere (including Venezuela, Thailand, and perhaps Turkey again) is the easy which an open source insurgency may be started and continued. If the 20th century and earlier history had the classic dichotomy of haves vs. have-nots, than perhaps the 21st might be the haves vs. the would-earns.

In this case, the underclass is comprised of people simply yearning for an honest day's work, a chance to perform a trade or profession without much interference from the power elites. However, many of the "power elites" are individually not that powerful themselves. The system/organization that employs them restricts their ability to use their individual judgment in certain situations, perhaps compounded by group-think and institutional bias. For example, a corrupt cop shaking down bribes may be given a blind eye (if not encouraged for a cut) by his cash-strapped superiors. However, an individual still effectively set an example that sparked a series of revolts. A fruit vendor burning himself in protest started the Arab Spring.

Even with tools like sock puppet accounts, online censorship/manipulation (even if subtle rather than overt), and plain spinning are deployed (and I believe they were in many such cases), there comes a point where a situation can no longer be contained. In the developed countries, there is less desperation (for now), allowing much of the systems to continue to function. In more desperate circumstances, even a humble fruit salesman or bulldozer operator can help topple a regime. 

Lockdown

"If you want total security, go to prison. There you're fed, clothed, given medical care and so on. The only thing lacking... is freedom." -Ike Eisenhower

It is no secret many places in the US and abroad are starting to resemble the old Soviet Union. Legalized theft is not merely for well-connected firms, nor has been for a while. Warrantless surveillance expands into domestic law enforcement due to 'mission creep' and post hoc justification. Combining this with a predatory prison industrial complex, political momentum can easily lead to an open air gulag that easily surpasses North Korea.

When everyone is an outlaw, the most ruthless tend to dominate. Interestingly, there was a part of the (long dead) US Bill of Rights known as the Tenth Amendment. The 10th Amendment was intended to allow states and individuals rights that were not officially stated under the 'standard' Bill of Rights. Today, some activists have considered using "nullification," against policies they consider illegal. They were employed by civil libertarians, drug legalization activists, gun activists, and so on in various ways.

The fundamental theory, however, is a solid one for a free society. Instead of "Why should we let you," the question was "Why shouldn't we let you?" The idea of WHY NOT instead of WHY would you need something (applied from drugs to weapons to automobiles to other things) appears largely alien to the politics of the 1970s through the present. Perhaps the Boomers were used to bureaucracy, and hoped to create a system to prevent individual suffering. There are cases where it is understandable (particularly dealing with, say, radioactive materials and handling dangerous pathogens), but some where it gets rather arbitrary. Some laws are often drafted in ignorance of the subject matter at hand, but others are not. The problem of a security state where EVERYTHING is banned by default is that anyone can go to jail for spontaneous behavior, and it is not particularly conducive to creativity. It is, of course, a boon for those who wish to make the world into a prison with themselves as the warden. 

Future Shocked

Technology advances at a breakneck pace as corrupted institutions metastasize into Orwellian bureaucracies at a close rate. The signs of rule of law are generally thrown in front of a train as organizations prey on their former customers and clients.

To further add to the confusion is the effects of advancing technology. In military science, technology is not only a force multiplier for armed forces, but also enables new venues of attack previous generations would consider impossible. Imagine explaining cyberattacks to a World War II tank commander. Asymmetric warfare favors the small groups and even individuals, and their powers only increase over time. Today’s cutting edge research is tomorrow’s niche hobby.

With resource depletion, climate change, and economic collapse, the ruling elites are trying their hardest to hold onto power of vestigial structures. However, their desire and desperation to hold onto power are often the things that destroy the institutions they depend on. Corruption means that more disaffected individuals will arise, regardless of how many riots or uprisings are put down. Lots of broad bans on technologies and fields of research mean amateurs are less likely to hold things, but only a few professionals (who may or may not game the system for their own benefits). Surveillance and arrest of dissidents (including those practicing “legal” methods of dissent) means that change within institutions becomes much more unlikely. Expansive domains shrink as the costs of maintaining them exceed wealth extracted.

On the positive side, though, technologies exist for eliminating poverty and alleviating resource depletion (albeit treating symptoms rather than causes). From cheap desalinization to renewable energy to 3D printing to impressive medicaltechnology, we will need everything we can. Living under a dystopian police state out of a cyberpunk novel is bad enough, but as technologies get cheaper and more widespread, we may at least get a postcyberpunk future instead.

Shadow Banks, Shadow Economies

Like it or not, currency systems have long been part of civilization. The types of currency range from gold and silver coins to fiat paper bills to digital, decentralized algorithms. What a proper currency allows an individual to do is have a common method for acquiring the services of goods and services. Barter systems were out-competed by currency in the richest countries, although barter returns after disasters and in the informal economy.

Even the most basic barter system allows one to engage in economic activity. Thus, price discovery, or the ability to accurately determine the cost of a product or service, is a precondition for a vibrant economy. Instead, high frequency trading, short sales, and interest rate rigging reduce the foundation of capitalism to a rigged carnival game. This process has been ongoing for decades, and is unlikely to change, no matter what legislation gets passed (as loopholes can be added). Legal gray areas are often not a bug, but a feature of new laws.

In thriving economies, ecosystems, political, and agricultural systems, diversity is a sign of life. Thriving economies allow for plenty of competition, coexistence of large and small. Although some entities out-compete others, others can arise to fill the void. Thriving ecosystems, such as a forest or jungle, have more types of species than a lawn or parking lot. Thriving democracies have a variety of parties. While some parties may become the most common mainstream ones, it is not impossible for other groups to get elected. An agricultural situation with several types of crops (and multiple species of each) means that a drought or pest is unlikely to destroy all of them.

Instead, we face monoculture in all areas. Markets are rigged to benefit a few big firms. Ecosystems are disrupted at even the microscopic level. Electoral districts are gerrymandered to benefit parties and incumbents. Factory farming has replaced conventional farming as a source of food production. The problem with monoculture is that catastrophic failures become all the larger, as they are inherently brittle.

As these systems fail, others arise outside of the existing legal and political framework. This "black market," informal economic sector is today called System D, as discussed before. As things are banned by increasingly corrupt governments, System D is poised to grow. Furthermore, System D itself is the future of many "legit" firms. The "shadow banking" system comprises the majority of the world's currency reserves, existing in legal limbo in offshore accounts. Somehow, multiple times the planet's GDP in debt was wasted and frittered into this black hole. As something new arises, Ragnarok style, the darkness will turn into the new system.

The Coming Era of Supervillainy

Multiple converging trends indicate that someday, evil overlords and criminal masterminds straight out of popular culture and into the news. There are multiple types of supervillains we can discuss here, often with significant overlap between the categories. Many are as old as society itself, while others wield abilities undreamt of by previous generations. As long as human society exists, there will be crime and malcontents of some sort. There will always be those who use power for their own ends, ignoring the cost to others. Such an environment is neither conduciveto representative government nor human benefit. 

The supervillainy of the era represents the return of a system that is as old as history. This socio-economic model is neither capitalism nor socialism, but instead something much older: feudalism. Parasitic elites at the top use warlords and peasants to support their lifestyles while peasants and serfs toil beneath them. Those outside of the system are outlaws, having no legal representation to the feudal order. 

The fundamental components are already in place, and the momentum is already leading there. I will discuss three categories of potential supervillain that could thrive in such a system: the Corrupt Elite, the Empowered Individual, and the Underworld Entrepreneur. There is significant overlap between these categories in some cases, but I believe these could be the main archetypes that tomorrow’s supervillains may gravitate towards. These are just my takes on how they may arise, what their strategies may be, and how they may deal with threats. 

--The Corrupt Elite: The robber baron, the corrupt politician, and others who abuse power and wealth for their own benefit are among both the most transparent and easiest to loathe. However, as long as even the elite have “skin in the game,” they realize working with others (the positive sum game) is better than just ignoring them. Power and wealth often go together, and history is full of politicians who help wealthy friends loot others’ wealth (via often taxes on lower classes, no-bid contracts, and bailouts for their associates). The term “kleptocrat” is most apt for these individuals, as their primary goal is to use the state apparatus to encourage rent-seeking. 

When there is less difference, financially and ideologically, between the top and bottom of society, there is a greater chance each member realizes they’re “all in it together.” This is why I believe the health of the middle class and related metrics like “median household income” are better indicators of social and economic health than just GDP. As the middle class collapses, stratification, crime, and instability also increase. The elite become increasingly isolated, building their own infrastructure and segregated enclaves while letting everything elsefall apart. Look at the American infrastructure. 

While barely half a century old, it’s already collapsing to below Victorian levels. Overreliance on cars and suburbs, as opposed to logical urban planning and mass transit (public or private), additionally made the USA extra-vulnerable to oil price shocks. There was actually a conspiracy behind this that makes the tinfoil hat crowd seem sane. Oil, tire, and car companies conspired to replace streetcars with buses. By the time the case had made it to court, the damage had already been done. The fact oil and gas companies have such financial and political power is hardly surprising. 

Many Corrupt Elites do not content themselves with merely minding their own business. Many will crackdown on the “peasants” for espousing views they disagree with, turning police forces into their personal illegal spying agencies, and enforcing their personal whims upon others with a “nanny state” approach. While police forces and crackdowns are their preferred tools for now, advances in drones, automation, and surveillance technology will mean the need for “manpower” for running their regime is greatly reduced. So maybe those police and official pensions are ripe for kleptocrat seizure, once drone and robot technology has become sufficiently advanced. Like Dr. Doom, they are “legitimate” overlords of states and territories with no shortage of robot henchmen.  

--The Empowered Individual: As stated before on the blog, new technologies can empower individuals for good or ill. However, unlike comic books, it is extremely rare for a “lone genius” to produce paradigm-shifting technologies wholly by themselves. However, the production costs and increasing ease of fabrication makes many disruptive technologies more available.

This means that while a single mad scientist is unlikely to destroy the world, the potential for disruption increases. Autonomous, decentralized networks are a far more likely incarnation for the deployment of disruptive technologies and techniques. From non-violent activist groups to armed insurgencies (and everything in between), the successful techniques used by one group are likely to be copied en masse by others. By the time a countermeasure has been found, others will likely have moved on to different tactics. Especially savvy groups might combine tactics for maximum effect, a sort of fourth generation warfare (4GW) analog of combined arms theory. 

Empowered Individuals may be motivated by a number of things, but Corrupt Elites are natural targets for them. Activists may seek the removal of a corrupt official, protest the favors given to a crooked businessperson, or seek redress for government misconduct. Not all EIs may have ideological or "moral" reasons for their activities. As people become desperate, there is always the risk of the depraved spree killer. As stated before, Dr. Brin has a great way to deal with them, denying them the infamy they seek. Like the character "V" in Alan Moore's "V for Vendetta," they cause ideologically disruption against centralized power and infrastructure for good or ill. Or like Batman's eternal nemesis, the Joker, engage in destruction for its own sake.

--The Underworld Entrepreneur: Crime of the regular sort has always been part of the economy.

As such, there have been individuals and organizations that out-competed their rivals to dominate their market. In the underworld, this means the most adept at violence and ruthless behavior can dominate their fellows. Whenever something is banned in the regular economy, black and "gray" markets may emerge to fill the demand. 

The effects of Prohibition and the "War on Drugs" have encouraged organized crime to thrive. Not only are drug-related shootings the dominant type of firearms crime, but prisons have been shoved full of non-violent offenders who have little to lose by going deeper into crime. Many street gangs use drugs to fund their own activities, and battle other gangs for control of turf they can use to sell drugs with. Typically, the police target the largest gang, often the "victor" of the gang war. After the police act, there is typically a power vacuum as other gangs or factions within the gang start the cycle over again. 

No matter which gang dominates the streets, the long term winners are the drug cartels that supplied the drugs in the first place. Some groups, like the Mexican drug cartels, have such wealth and power, they have built their own infrastructure. Not only do they possess significant munitions, logistics networks, tunnels, and other methods to smuggle drugs, some even built their own communicationsinfrastructure and armored vehicles. They maintain international smuggling networks to move their product, and are a force to be reckoned with in their home country (and beyond). 

Even outside of "regular" criminal activities (gun-running, drug smuggling, etc.), there is an entire market ecosystem outside of official channels. This is known as System D. The original term comes from a French word, "débrouillards" (meaning "clever"), but I believe an apt English translation is "Devious." Not all parts of System D involve organized crime of the regular sort. System D is a broad category for all "informal" economic activity, from kids selling lemonade to African marketplaces selling fresh food to even services like trash removal. There's even real estate provided by System D.

System D is the world's fastest growing economy outside the USA (and possibly inside it). As more things are banned, regulated, or restricted by increasingly desperate and cash-strapped states, the black and gray economies can only grow as more and more people turn to alternative economies. As 'legit' economies falter, the laws of supply and demand reach new equilibrium independent of existing policies and laws. Even "legit" companies can inadvertently be drawn into System D by proxies and "technically" legit deals.

As discrete method of payments like encrypted cybercurrencies (such as BitCoin) and unofficial exchange/logistics networks (such as the Islamic world's "hawala" practice) combine, a new type of underworld entrepreneur may emerge. The survival criteria for continuing to operate in System D are being sneaky enough to avoid law enforcement and/or having the wealth/political clout to evade accountability. This not only means it is possible an organization like SPECTRE from James Bond may emerge, but statistically probable. 

A real life Blofeld or Moriarty may lord over a distributed network of crime like a spider in a web. They may supply Empowered Individuals with illicit goods, be targets of them, or may compete with Corrupt Elites (or perhaps even make the transition into "legitimacy"). A UE may likewise benefit from automation, as it removes the need for human operatives in crime networks to a significant degree. (Such an idea is the basis of a new novel a friend and I are working on.)

So there you have some of the archetypes I believe may emerge in the future. Of course, if strange vigilantes arise to match real life supervillains, then things may get very interesting real fast. For the rest of us, however, the quality of life is likely to suffer greatly. There are many reasons why places with roving warbands are not pleasant to live in. At the same time, living on the whims of a neofeudal overlord are little better. That is why I believe in living in a resilient community less dependent on an increasingly unhinged world system.

Waiting for Naglfar

We are watching our world die. The world is sleepwalking into an environmental, financial, and political Ragnarok. Like the Norse apocalypse, our own tribulations include rising seas, savage wars, and the death of the old order. The Arctic Ocean may be ice free in a few summers from now, raising sea levels around the world. More alarmingly, this will increase the moisture in the atmosphere, allowing the effects of climate change to snowball exponentially. There is also the possibility that the methane clathrates in the Arctic will burst forth like Lovecraft's Elder Gods, sending Earth's climate into uncharted territory. The methane released could greatly accelerate the greenhouse effect, a Surtur's flaming sword of runaway climate. 

Don't hold your breath for any sort of political solution. The major nations have no interest in curbing emissions, even at a time it would be prudent to kick their fossil fuel addictions. Fossil fuels themselves are becoming harder to retrieve, with a diminishing rate of returns. Some types of gas and unconventional oil, for instance, have a negative rate of returns on energy invested. The processes to recover them are environmentally disruptive, and require increasingly scarce water resources to retrieve. Wilderness, aquifers, and farmland are turned into septic cesspools as a result of the toxic chemicals blasted into the ground. It is only through massive government subsidies to fossil fuel companies and use of eminent domain to seize private property that such activities are possible. It is not unlike a desperate junkie in need of a fix slicing their skin to find traces of their drug. 

Alternatives to fossil fuels likewise cannot sustain the status quo. Fossil fuel companies wish to inhibit competition as long as possible. Big Government-funded "green jobs" are unlikely to do much, as the individuals responsible for the pollution (public and private) have little interest in fixing it. Technical problems with energy storage, including rare earth supplies for batteries, have yet to be fully addressed. Despite some promising developments, deploying the new infrastructure would require money that no longer exists. Even in a newer, low cost infrastructure was developed, governments tend to prefer cozy relationships with centralized oil companies rather than a competitive market of decentralized firms. 

The money that could have been used to fund and develop alternatives has essentially vanished from the real economy. Kleptocratic central banks and political insiders continue to print money to sustain the pyramid scheme of speculation markets. The majority of trades on most stock exchanges are performed by software rather than humans, often used to rig trades to favor an increasingly fat few. Euros, dollars, pounds, and other currencies are being increasingly devalued with rigged and low interest rates, which penalize savers and reward speculators. Like a rigged casino game, the world economy ensures most people who play lose. Financial emergencies (often declared by the same people who started them) are used to seize the remaining assets in the name of debts that cannot be repaid. 

Globalization overcame the feedback mechanisms able to stop it. Crime and black markets have likewise become globalized. One of the fastest growing economies is not a country, but an informal economy known as "System D." While System D includes "conventional" criminal activities (e.g. smuggling and protection rackets), it includes alternative and informal transactions of all sorts. "Technically legal" gray markets, digital currencies (such as BitCoin), and barter agreements all have grown. In areas where the economy has effectively collapsed (such as Greece), barter and informal agreements handle services from protection to waste removal to food production. Revenue-strapped governments eagerly try to reign in such transactions, but to little avail. 

Attempts to ban such transactions will likely raise black market prices and empower criminal syndicates due to the "Prohibition" effect. Militarization of the police force, surveillance technologies, and the loss of rights are the logical side effects of heavy-handed government crackdowns. One need only look at the War on Drugs to see how quasi-military tactics have backfired. Ironically, in areas were state power has weakened, non-state groups from guerrillas to crime syndicates may take the place of states in the role of service providers. Many drug cartels, for instance, maintain logistics networks that could smuggle anything from illegal aliens to weaponry and even their own communications infrastructure. Political disruptions can result in these groups becoming the de-facto government. When the Soviet Union collapsed, the Russian Mafia was already the effective power in control of the streets. When Rome fell, many regions had already began to rely on local feudalism. 

Fear and panic are reported on by media firms and echoed by politicians. The realities of the elite and non-elites increasingly differ, despite (or perhaps due to) the attempts of politicians to hold onto the status quo.  This type of instability could easily be exploited or redirected into domestic opponents or foreign enemies. Resources from fuels to water to arable land become increasingly scarce, desperation reignites potential for conflict. From trade sanctions to shooting wars, "zero sum" foreign policy is seen as increasingly acceptable. From massive crop failures in the USA to glacial melt-water disputes between India and China, food and water become increasingly valuable. The parasitic kleptocrats and corporate socialists loot as much as possible before heading for foreign tax havens and private holdouts. When events similar to this happen in historical cultures, it simply means the former elites are the last ones to starve to death. 

 Those who oppose such policies can easily find themselves the targets of well-honed intelligence and dissident monitoring infrastructure. With drones and a lack of political transparency, targets can be executed from around the world. Even if actual assassination is impractical, character assassination and agents provocateur can easily sabotage attempts to form alternatives. With a dystopia worthy of a science fiction novel, the system ironically destroys any chance it has for genuine reform and survival. The resulting crash simply is delayed and made worse by shooting messengers. 

Alternatives to the highly-centralized consumer state are present. Power, food, water, production, and defense are things which would be more ideal as decentralized networks rather than hyper-professional bureaucracies. However, popular culture remains fixated on trivial politics, escapism, and propagation of the status quo for as long as possible. The solution is not the "doomsday bunker" mentality. Even rationed supplies cannot last forever, and a small family group is easy prey for a large group. Instead, form connections that matter. Replace "zero sum" with "positive sum." Strive for self-sufficiency whenever possible: in food, energy, water, production, and other methods. Aquaponics, desktop manufacturing, and home energy have all become cheaper, and will likely continue to do so. Resilience is a golden ideal, and will help as the world becomes unstable. Do not rely on Big Government or Big Business for employment or salvation from the problems they helped create. Find friends, family, and those you can trust. The reward is a genuine community you care about, rather than a hideously complex system built upon fraud and ignorance. 

We may draw some parallels to Norse mythology. A ship of dead men's nails, Naglfar, manned by the treacherous Loki, would start the final battle. With the endemic unethical behavior in once-trusted institutions, one failure could cause others. The venomous death throes of the old order, like mythic serpent Jormungandr, could destroy much of what we are used to. However, Ragnarok brought an end to a doomed world, so that new one could arise. The fever dream will eventually pass, although the transition will be difficult. It is better to strive and fail than to passively wait for Naglfar. Even the fallen warriors ended up in Valhalla.