I interpret it as a dummy "it", needed for grammatical reasons and referring to "the state of affairs". Compare "It's not safe, this bridge", where "it" is anticipatory.
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rizzy if it did refer to a state of affairsThere's a difference between "the state of affairs" and "a state of affairs."
rizzyI'm sorry if I've brought this discussion into areas in which it didn't belong!How else are we to answer the OP's question?