The idea that people can live without some form of policing is ricidulous once you've seen some of the darker parts of humanity. Visit Haiti, Somalia, slums just about anywhere on the planet.
You sound like some 22 year old with a couple years of higher education, and now you think you have all the answers.
He's not crazy, he's a cold, calculating sociopath.
He wants people to think he's crazy when it comes to nukes because that makes his empty threats seem scary.