This is the 'deep state' at work - The Daily Reckoning
The Daily Reckoning by Bill Bonner
On This Day - 26 March 2015
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This is the 'deep state' at work A  A  A

- By Bill Bonner

Bill Bonner
Gualfin, End of the Road, Argentina

"The tyrant must be always getting up a war... in order that the people may require a leader." - Plato

Dear Diary,

This is the last in our series on how America's money, economy, and government have changed over the last 44 years.

The time period is hardly coincidental. It was on August 15, 1971 that the transformation of the new dollar system was completed. That was not the only reason for the changes we see - there were also the opening of China, the failure of the Soviet Union, the invention of the internet, to name just a few. But the new money was the least obvious change, and in our view, probably the most important.

The credit-based dollar brought about a new economy, which changed the way people thought and the way their government operated. Now, there are 'dark pools' of money that determine which candidates are presented...and a whole new branch of government - the deep state - that is not mentioned in the Constitution and operates above and beyond the visible process of democratic government.

Americans voted for Barack Obama in 2008, because they wanted a change from the Bush era policies. But nothing changed. Why? Because the fix was in. Obama had been a critic of the Iraq war; he had promised to bring the Pentagon under control. Instead, 'security' spending rose to its highest level since WWII. This was the 'deep state' at work.

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There are always some people in a society who are more ready than others to bully, to steal, and to make jackasses of themselves. As we saw in the comment by William Godwin, if a government has any legitimate purpose at all it is to keep those people from doing harm to their neighbors. But over time, they infest the government itself and its related industries. Then, instead of keeping these pests under control, government gives them authority, funding, even a kind of ersatz respectability. Their predations, illusions and vanities become public policy. A Diary reader describes what happens next:

    Children can no longer sell lemonade, one cannot control his/her own puddle in their yard, our communications are being monitored (Internet and phones), our police forces are no longer there to help us but are militarized and react to every situation as if it were a deadly threat. Our gov't is now trying to control every aspect of our lives. The most recent of course is medical-but don't get me started there.
All major industries -- education, health, finance - attract them. But one industry in particular calls to them, like a manure pile to a herd of pigs. Soon, they are rooting and wallowing in the biggest heap of misspent resources in all of history.

Today, they bark at you to take off your belt in airports. You try to dig a pond in your back yard...or let your teenaged boy work on the family farm -- and they want to make a federal case of it. They snoop and spy, looking for secrets they can hold over you. They tax. They regulate. They control. They are out of control...and unstoppable.

At home, the typical American commits 3 felonies a day without realizing it, according to civil rights attorney Harvey Silvergate. Former Senator Jim Webb describes the police state that results:
    We have 5 percent of the world's population; and 25 percent of the world's known prison population. We have an incarceration rate that is five times as high as the average incarceration rate of the rest of the world. We have a system of mass incarceration.

    There are only two possibilities here: either we have the most evil people on Earth, or we are doing something dramatically wrong in terms of how we approach the issue of criminal justice.
What he doesn't mention is that putting other people in jail pays, for some. The gulag industry makes money on every prisoner and lobbies for harsher minimum sentences.

It pays so well that, at home and abroad, the profiteers don't merely "go abroad in search of monsters to slay," as Adams warned against, they create monsters.

The FBI entices, ensnares and enables young men to plan acts of 'terrrorism.' One of them, Sami Osmakac, was the victim of an FBI sting in 2012. Agents regarded him as a 'retarded fool.' He had no money to carry out a terrorist attack, so the FBI gave him a job. He had not the wit to plan or implement it either, so the FBI helped.

In a more recent example the agency arrested three sad-sack men in Brooklyn and charged them with conspiring to travel to Syria to fight for ISIS. None of the men could have done so without FBI help. They were broke. And one was unable to follow through because his mom had taken away his passport. These were the perfect terrorists... created, nurtured and funded by the FBI.

Overseas, the situation is much the same. In the absence of real enemies, the feds have had to create phony ones. Another Diary reader explains:
    The US went to war in Afghanistan to kick out a batch of radical Islamist thugs. Now the whole mideast is fighting a batch of much more radical Islamist thugs, who have the advantage of large quantities of US-supplied arms. The last that I heard the US was still providing arms to the Islamist thugs in Syria and complaining when these arms are used in Iraq. Ron Paul recently wrote that none of the military adventures the US has been involved in in the last 25 years had done any good at all. I do not know why he didn't extend it to 50 or 60 years, or even longer if you include the fact that it was a US Secretary of State, Dean Acheson, who announced that the US had no strategic interests in South Korea, thereby inviting the north to invade. Later he wrote, for publication, that the North Korean invasion of the south was the best thing that could have happened because it showed the US public how aggressive the Communists were. I have never heard what reaction survivors of GIs who were killed or crippled in Korea have to that. There is no question about US military power but there are a lot of very serious questions about its choice of targets. On balance it seems clear that the US does more harm than good in its foreign affairs.
After the dissolution of the Soviet Union, in 1989, what Eisenhower called 'the military industrial complex' faced its biggest threat - it had no plausible enemy. Since then, it has brought the US boot down on a series of pseudo-enemies, all laughably inferior to the Pentagon. Still, with all its firepower...all its superior technology...all its hundreds of billions in spending - few of its 11 wars since 1989 have resulted in anything that could be called a clear or honorable victory. Instead, one fumbled mess leads to another. One enemy becomes an angel; an ally turns into the devil.

You'd think this would bring the public to its senses. Maybe all this spending, blustering and bombing is not really paying off? Maybe it is creating more enemies than it defeats?

But that is just the point. For the plain people, a war is little more than a SuperBowl for mortal stakes. They holler and hoot for the Homeland team; they salute their heroes and hate the enemy, even when they're not sure who the enemy is. Those who do the thinking, on the other hand, have another agenda. They are just as happy with a defeat as a victory. Victory, and the peace that followed WWII, almost put them out of business. It is war that pays, not peace. And it pays well.

All in, the security industry has about $1 trillion a year in spending power. You can buy a lot of votes with that kind of money. And you can build a lot of mansions in the Virginia suburbs.

The 'deep state' is in charge now. The fix is in.

Bill Bonner is the President & Founder of Agora Inc, an international publisher of financial and special interest books and newsletters.

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