Traditionalism can be a useful tool but there are several misconceptions about it. I believe a few of them are inherent in your reasoning.
Guenon only discusses cyclical history because of his studies into Vedic philosophy. It is a concept that is discussed widely across Traditionalist philosophers.
The Kali Yuga means we live in an age of spiritual degradation and that through spiritual transformation, we may return to the Satya Yuga (golden age).
Governments in an of themselves are profane. I'm not sure where you're seeing out and out theocracy being advocated for outside of the idea of the Philosopher-King or King being God's vicar on earth.
Fair
Modernity has crushed man's ability to to tap into and utilize the metaphysical aspects of his being. For better or worse, humans have had spiritual systems in place since their beginning. In the post-Enlightenment west, we see rationalism, science, and politics supplanting religion, tradition, and ritual.
Traditionalists believe in a balanced, normative relationship between the sexes, with each one dependent upon the other. Social structures can only exist cohesively with the appropriate amount of feminine and masculine principles.
Now, with those points addressed, I will discuss some of my issues with the Traditionalist school that you may not be aware of.
Traditionalists aren't always traditional and a traditional man doesn't have to be a Traditionalist. This is a problem of semantics and you will find there are many Traditionalists who are quite progressive in their views on things. There are far-right strands (see Julius Evola) but they, surprisingly, are the outliers. There is something fundamentally wrong with a European man who dons a kufi, grows a beard, and moves to Egypt (Guenon). Schuon was also an abject degenerate.
The Traditionalists believed that you had to have a "tradition" and their litmus test for the validity of a religious or spiritual path is often times quite restrictive. Guenon, Schuon, Lings, and Burkhardt all converted to Islam because of this. Why? Because Islam is a still living tradition that has not been tainted by modernism, your sheik maintains a lineage presumably back to Mohammad, and, finally, it provides initiatory experiences by means of Sufism. You will find that conversion to Islam is by and large the norm amongst Western Traditionalists based off the precedent set by most of these thinkers. I have also seen Hinduism and Buddhism practiced and, less commonly, Judaism. Least of all is Christianity but Catholicism and Orthodoxy tend to attract people a Traditionalist bent. The need for the tradition to be living excludes European pagan belief and most speculative esoteric thinking. There also should be an initiatory or esoteric function that allows for penetrating, deeper spiritual truths than the exoteric, everyday religious functions (which are required as well).
Traditionalism is good at getting men to think deeper about their soul or the nature of the world. It provide criticisms against modernity that are quite good. But it doesn't have the force or ability to move entire populations to action. It, often times, ends up being filled with lonely, isolated type individuals who cannot handle the bleakness of the modern world and so instead of fighting retreat into spiritual navel-gazing which makes them feel better than actually revolting.
OP, if you are interested in Traditionalism, start reading and leaning more heavily on Julius Evola. Julius Evola was able to take the criticisms of modernity and apply them to a radical right-wing train of thought that is more in line with European thinking. It is missing several of the aspects of the thought of Guenon or Schuon. His esoteric thinking is rooted around various different school and his thought is much more fluid and applicable across a wide spectrum of ideas. He provides ample study on Western European spiritual belief and on how we can "become gold from lead". Many Traditionalists are loathe to include him in their field because he was quite critical of some aspects of the Traditionalist school (i.e. dressing up and pretending to be Mohammedans) Don't get locked into the "big T" school or thinking that it is going to save the West. It's not.
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