Although this sounds like a very bleak situation, the irreferential period is even more upsetting. At least with nostalgia, we have historical references, which are real. The problem as Baudrillard sees it is that we are careening into an era without references. Here is a perfect example of two opposites imploding into each other. In Baudrillard's vision, there is no risk of a real war, because we are in an age of simulation and controls.
War only exists in media simulations, and any actual fighting is nothing but a simulacrum.
The force that prevents us from engaging in real war is deterrence, or control. One of the key characteristics of the postmodern world is that everything can be predicted, known, and mapped out. Baudrillard notes that our control is increasing faster than our actual power.