GR translation: living its fantasy

[Mike Jing]

V290.36-291.3   “It’s an arrangement,” she tells him. “It’s so unorganized
out here. There have to be arrangements. You’ll find out.” Indeed he
will—he’ll find thousands of arrangements, for warmth, love, food, simple
movement along roads, tracks and canals. Even G-5, living its fantasy of
being the only government in Germany now, is just the arrangement for being
victorious, is all. No more or less real than all these others so private,
silent, and lost to History.

By saying G-5 is living its fantasy of being the only government in
Germany, does it mean that its fantasy has come true, or is it still just
an illusion?