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In general, the word can be used to describe any situation which has maximized liberty to the point of jeopardizing order. Whether you enjoy the party or not, you could describe it as a saturnalia. Let us say, for example, that you attend your crazy cousin Kathy's wedding, and after the ceremony the whole thing rapidly devolves into an out of control orgy filled with all sorts of celebratory but uncouth behavior. Of course, if you should encounter the need, you can still use Saturnalia as a proper noun to refer to the historical Roman festival, but you can also use saturnalia (non-capitalized) to refer to any period of partying that defies or ignores social norms. Given all of this, it is probably pretty easy to see how the word has gained its contemporary meaning. And overseeing all of this madness and celebration was the Saturnalicius princeps, a citizen appointed by casting lots, to rule over the festival with absolute authority, who could issue inane orders for people to dance around naked or eat strange foods. In addition, the festival included gift-giving, costume-wearing, and animal-sacrificing. However, according to several sources, this reversal also meant that masters would serve their slaves a meal, while the slaves were permitted to dress as freemen and mock their masters. Unrestrained by convention, many Romans would engage in all manner of dissipation. For a brief period all of society pretended that Saturn was still reigning, and along with that pretended, temporary reversal of cosmic authority came a pretended, temporary reversal of all social norms and authority. The Saturnalia commemorated the freedom, the prosperity, and the barbarity of that Golden Age.
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According to Roman mythology, Saturn ruled the world during the Golden Age of Men, before being overthrown by Jupiter. It might seem a bit surprising for a time of wild partying to be compared to a religious ceremony! However, the ancient Romans had some pretty wild religious festivals, and the Saturnalia was probably the wildest of them all.