Mark Carney, Prime Minister of Canada, gave a speech at Davos that was widely hailed as a realistic response to the disintegration of the old world order.

Carney’s speech received a standing ovation from the audience of global leaders, diplomats, and corporate executives. This is a rare occurrence at Davos, where most speeches are received with polite applause.

Richard Haas, former chief executive at the Council on Foreign Relations, said this about Carney’s speech:

The most important speech delivered at the Davos enclave was not that of Trump but rather Canadian Prime Minister Mark Carney.

Reportedly written by Carney himself, the speech was steeped in realism, both as to the state of world order and how small and medium powers, such as Canada, must adapt. Early on he made his basic point, one that provides the title for this week’s newsletter: “We are in the midst of a rupture, not a transition…Canadians know that our old comfortable assumptions that our geography and alliance memberships automatically conferred prosperity and security – that assumption is no longer valid…Nostalgia is not a strategy.”

Carney was no less direct as to what Canada needed to do: “When the rules no longer protect you, you must protect yourself. Allies will diversify to hedge against uncertainty. And we are no longer just relying on the strength of our values, but also the value of our strength…To help solve global problems, we’re pursuing variable geometry, in other words, different coalitions for different issues based on common values and interests. This is not naive multilateralism, nor is it relying on their institutions. It’s building coalitions that work – issues by issue, with partners who share enough common ground to act together. The middle powers must act together, because if we’re not at the table, we’re on the menu.”

There is much talk of regime change within countries such as Venezuela, Iran, and Cuba, but the most fundamental form of regime change taking place is at the international level. A post-American world is fast emerging, one brought about in large part by the United States taking the lead in dismantling the international order that this country built and underwrote and that served this country and the world well for eight decades. It is being carried out in a manner reminiscent of two characters in F. Scott Fitzgerald’s The Great Gatsby: “They were careless people, Tom and Daisy — they smashed up things and creatures and then retreated back into their money or their vast carelessness or whatever it was that held them together, and let other people clean up the mess they had made…” All of which, I am sad to say, applies to this president and his administration—and to their many enablers in the Republican-controlled Congress, the Supreme Court, and throughout American society.