We know they are lying,
They know they are lying,
They know we know they are lying,
We know they know we know they are lying,
But they are still lying.

Actually this paradigm of falling from within is quite predictable.
We see it happen throughout history. Polybius wrote of it centuries ago.

When a commonwealth, after warding off many great dangers, has arrived at a high pitch of prosperity and undisputed power, it is evident that, by the lengthened continuance of great wealth within it, the manner of life of its citizens will become more extravagant, and that the rivalry for office, and in other spheres of activity, will become fiercer than it ought to be. And as this state of things goes on more and more, the desire of office and the shame of losing reputation, as well as the ostentation and extravagance of living, will prove the beginning of a deterioration.

And of this change the people will be credited with being the authors, when they become convinced that they are being cheated by some from avarice, and are puffed up with flattery by others from love of office. For when that comes about, in anger, they will refuse to obey any longer, or to be content with having equal powers with their leaders, but will demand to have all or far the greatest themselves.

And when that comes to pass the constitution will receive a new name, which sounds better than any other in the world, liberty or democracy, but in fact, it will become that worst of all governments, mob-rule.