As I see it, the BIP is a problem of perception as much as anything else. Perception is imperfect, but humans fear chaos and entropy and what that would entail, the dark terrors of Eris, Deimos and Phobos and the Kakodaimones. So with imperfect information, a structure of how the world works is built, a theoretical framework which by its nature of its a prioir assumptions is limiting in the extreme.
However, no matter how smart you are, mistakes will be made and these will be noticed over time. Fear of entropy and chaos returns tenfold. The CoN becomes apparent again, much more so then at the first stage, the fear of change undermining the system. Those at the top become fearful. But a clever observer will realize this is of little consequence so long as the current framework is widely believed.
In that way the Machine comes into existence. The Machine takes the elite of the society it exists in and welds them into a super-class at the very top. Their job is to enforce the worldview that has been decided on, be it neo-liberalism or Islam or Christianity. Because the political elite are part of the machine, they benefit from keeping the status quo in place. Businesses only profit from certain types of disruption, far away from centres of capital, so they bankroll said parties to keep the stability and do them favours. The military turns from national defence to a tool to break open foreign markets and disrupt foreign monopolies.
The System is comprised of academics and journalists within the media, for the most part. Their job is to create a compelling ideological and narrative to explain the actions of the Machine, which if were shown via their own records would lead most people to believe they were simply cynical reactionaries. However, there is much crossover, with academics often informing policy and belonging to the same corporations that bankroll political parties, as well as working within the areas of the shadow government of the Pentagon and intelligence services.
Throughout all the Aneristic Delusion reigns supreme.