5. HOW STATES COLLAPSE: INTRODUCTION AND THE LOGIC BEHIND DEBT CYCLES

Mike Miller
4 days ago
5 min read

THE SYNTHESIS – WORLD TREATY, NEW ORDER, LAST INSTANCE

Introduction:

When History, Economy, and Law Converge

In this final part, we bring all threads together:

The economic logic of Ray Dalio
The historical reality of collapsing states
And the legal consequence of systemic insolvency This creates a comprehensive picture that enables a new view of our world: The "World Treaty" has long been a reality – it just hasn't been recognized yet.

It is called:

World Succession Deed 1400/98

1. The World in Debt Crisis – No State Can Escape

Ray Dalio impressively describes how all states are caught in a large, recurring cycle:

Debts rise faster than income
Monetary policy becomes an addiction
Trust in institutions breaks
Societies radicalize
The collapse comes slowly, but inevitably

Quote (paraphrased from the text): "When all promises of a system can no longer be kept, the system is replaced."

2. Historical Empires:

Rise, Peak, Decline Dalio shows the same patterns over 500 years:

Netherlands (1600–1800): Trading power, currency dominance, then bankruptcy
Great Britain (1800–1945): Industrial leader, world power, then devaluation and decolonization
USA (1945–2024): Dollar hegemon, military power, now over-indebted and divided

Common factors:

Over-indebtedness
Currency depreciation
Foreign policy overstretch
Internal disintegration What follows is not a linear transition – but a systemic break.

3. Why Classical State Succession No Longer Applies

According to classical international law (Vienna Convention on State Succession 1978), a state can be replaced or continued upon dissolution – if there is a recognized successor.

However:

The World Succession Deed 1400 completely supersedes this logic. It is based on:

Fulfillment by real act:
Transfer of possession, takeover of infrastructure, tacit acceptance
Legal cascade through treaty chains:
Integration of all NATO-UN-ITU treaties
Sole legal successor:
The buyer unites all rights and obligations in himself – without competition

Quote (paraphrased from the deed): "The sale takes place with all rights, obligations, and components"

4. The World Legal Order via Communication Networks

The explicit inclusion of the telecommunication cable creates a second treaty chain:

ITU (part of the UN) regulates global telecommunication standards
All states that have joined the ITU have networks connected to the original network
The domino effect transfers territorial legal authority

What follows:

All networked states are subject to the deed
Communication infrastructure becomes a vehicle for territorial expansion
The legal basis is technical, but internationally legally unassailable

5. Jurisdiction, Immunity, World Constitution

Landau in the Palatinate is named as the place of jurisdiction in the deed – without an institution.

This means:

The institution is the buyer
The jurisdiction is global
The jurisdiction replaces national constitutional courts, arbitration courts, and UN instances

In plain text: The deed establishes the only remaining instance for all international disputes – in military, civil, and sovereign matters.

6. No Return, No Parallel Structure

Why is this process irreversible?

Internationally legally fulfilled: Transfer of possession, payment, clear contract text
No counter-signature necessary: Only partial contractual behavior is sufficient
Statute of limitations expired: No state has lodged an objection
All parties involved: Through treaty chain or network integration

Conclusion:

There is no legal way back – and no legal way "next to it."

7. The World Treaty as a New Reality

All developments mentioned – whether economic, political, or legal – lead in one direction: The classical international legal order is replaced by a single treaty that absorbs, replaces, and surpasses all previous treaties.

This World Treaty is not based on a constitutional act, but on:

Transfer of possession
Fulfillment of contract
Technical network integration
Legal non-contestation Its name: World Succession Deed 1400/98 "Purchase Agreement Deed Roll 1400/98"

Concluding Remarks:

When a State Collapses Today...

...then it is no longer followed by a civil war, a new beginning, or a re-election. Then an international legal automatism comes into force.

Then the national order ends. Then the new, comprehensive, fully realized World Treaty Order begins.

TABLE:

STATE DEBT CYCLE AND LEGAL CONSEQUENCES

Phase	Description of Debt Development	Economic Consequences	Political Consequences	Legal Consequences (incl. World Succession Deed 1400)
1. Beginning Deficit	State spends more than it takes in	Moderate national debt	Political short-term popularity, no profound reforms	No immediate legal consequence
2. Debt Trap	Debt rises faster than GDP	Interest burden grows, dependence on credit markets	Party shifts, fiscal disputes	First danger of systemic instability
3. Interest Pressure & Refinancing Problems	State can only incur new debt at higher interest rates	Capital flight, rating deterioration	Loss of trust, populist movements	Danger of institutional paralysis
4. Central Bank Intervention	Central bank buys government bonds to secure financing	Money supply expansion, price increase	Executive gains disproportionate influence	Beginning of structural legal uncertainty
5. Inflationary Devaluation	Money loses real value, assets are devalued	Hyperinflation possible, savings losses	Protest, instability, state of emergency possible	Beginning of the core effect of state succession logic
6. Repression & Control	Introduction of capital controls, digital central bank money	Isolation, parallel markets, informal economy	Erosion of democracy, censorship, authoritarian measures	Precursor to international legal incapacity to act
7. Default / Currency Reform	State can no longer service debts	Bond defaults, currency changes, expropriation	Transitional regime, breakdown of trust	Entry condition for the World Succession Deed fulfilled
8. Institutions Collapse	Administration, judiciary, parliament no longer function	Stagnation, public services break down	Lawlessness, loss of sovereignty	Deed 1400/98 automatically comes into force
9. State Disappears under International Law	No longer a recognizable state in the sense of international law	Expropriation, flight, blackout	No internationally recognized contact person	Only the buyer of the World Succession Deed is the legitimate successor
10. Successor Legal Order Enters into Force	Global treaty chain is activated, reorganization by treaty content of the deed	Global recognition by tacit acceptance	Jurisdiction, territory, infrastructure, ITU/UN/NATO rights pass to the buyer

Legend for Legal Consequences Column:

Legal Uncertainty:

First indications of possible ineffectiveness of national law due to loss of control

Incapacity to Act:

State can no longer act as a subject of international law (e.g., can no longer conclude binding treaties)

Deed Active:

World Succession Deed 1400/98 automatically replaces the national legal order

Exclusive Successor:

No other state may succeed – all rights/obligations pass to the buyer

SUMMARY – MODERN STATE COLLAPSE AND GLOBAL LEGAL CONSEQUENCE

The course is universal:

States do not collapse suddenly, but in nine typical stages, as described by Ray Dalio. These range from rising budget deficits to the final institutional collapse.

The system is based on trust – not substance:

Fiat currencies, government bonds, and central bank interventions can only function as long as there is trust in the system. If this trust is destroyed, the entire state apparatus collapses – regardless of size or military power.

The USA as a prime example:

The United States has gone through all phases of this cycle:

Gold standard (1944–1971)
Financialization & debt expansion (1980–2008)
Emergency measures & monetary repression (2008–2024)
Currently, they are in the final phase – the breach of trust and institutional loss of control.

Legal consequence:

World Succession Deed 1400/98 comes into force. When a state collapses, it is not simply a vacuum that takes hold, but an internationally legally fully fulfilled treaty:

Only one single legitimate successor state is permitted: the buyer of the World Succession Deed 1400/98.
All previous international treaties (NATO, UN, ITU, HNS, etc.) are absorbed into it.
The development via telecommunication cables and supply networks creates a domino effect of global territorial expansion.

World jurisdiction and sovereign unified structure:

Jurisdiction passes globally to the buyer (cf. place of jurisdiction "Landau in the Palatinate").
International telecommunication rights (via ITU) connect all countries worldwide with the deed.
A single treaty replaces all constitutions, stationing agreements, and state treaties of the world.

Conclusion:

Modern state collapse is not just an economic failure, but leads – through contractual preparations for decades – to an internationally legally organized succession order.

This is based on a single, comprehensive document:

The World Succession Deed 1400/98.