The War Racket

We went down to the town of Cafayate last week from the family ranch: a three-hour drive, mostly over unpaved roads. There, old friends Doug Casey and John Mauldin were holding forth. The “deep state,” among other things, was their topic.

 

“The term comes from Turkey,” Doug explained. “People noticed that there was the government – you know the government that they teach you about in school. And there was a deeper, more important and more powerful government. It was not described in any constitution. The newspapers didn’t report on it. To most people it was largely invisible. But it was how the country was really governed.”

 

In a nutshell, Doug – along with many others – believes a “deep state” has taken over the US.

“The War Between the States was the largest and bloodiest war the US has ever had,” Doug continued. “Practically the entire country was mobilized, with a greater proportion of men in uniform than ever before or ever since. But after the war was over the soldiers went home. The army was minuscule. And things went back to normal. Same thing after World War I.

 

“But after World War II things started to change. Gradually, more and more of America’s resources were going to the military on a permanent basis, even though there really wasn’t any war worth talking about.”

 

The Deep State Takes Over

To look at it another way, after World War II the return on investment in the military sector fell. Why?

Because there was no one worth fighting. There were no real challenges to the US… except the Soviet Union, which turned out to be a hollow threat. Then in 1989, the Soviet Union disappeared. But US spending on “security” hardly slowed down at all.

After the 1980s, the US was taken over by “deep state” interests, which used “security” to justify huge transfers of power and money from the public to themselves.

“You know, France had a deep state experience too,” Elizabeth volunteered on our drive home. “During the Revolution, it had secret political committees, a parallel army and a whole apparatus for controlling people. The revolutionaries used terror … including the idea that the country was full of spies … to keep the public alarmed and afraid. It was a bit like what we see in the US with all its secret agencies and Code Red alarms … and the ‘see something, say something’ campaign. They’re all designed to keep the public worried … and keep it lined up behind the state.”

It did not come up in our conversation in Cafayate, but there’s more to the deep state than the military. Informal, largely hidden power arrangements exist in all major industries – particularly health, education and finance. Every detail in these industries is closely regulated to prevent innovation and competition.

We’ve reported on the high percentage of retired generals who take up cushy jobs in the defense industry. But health-care researchers, “educators” and Wall Street’s hot shots routinely pass between government, think tanks and private enterprises… trading information, favors and pay-offs. Witness Tim Geithner. He bailed out Wall Street. (The total cost is now estimated at $10 trillion, including the Fed’s assistance.) Surprise, surprise! Now, he is a partner in one of Wall Street’s private equity firms.

In all these industries, the return on investment approaches zero… or is already negative. Still, the deep state insists that more and more resources go to them.

 

The Great Deformation

David Stockman knows this better than anyone. He was part of the federal apparatus, as President Reagan’s budget director. Then he went to Wall Street… where he, too, was a partner in a private equity firm. He watched as the country was taken over by deep-state institutions… financed with borrowed money and with one major goal: to look out for themselves.

Stockman calls the transformation of US society the “Great Deformation.” It’s what happens when capitalism is corrupted by the government… and is perverted by deep-state institutions.

“The deep state,” Doug elaborated, “includes dozens and dozens of agencies that we’re not supposed to know anything about. It includes a million people with CIA security clearances. There are people at the lowest level who frisk you at airports… and at the highest levels who make millions of dollars by providing contract services to the government.”

Armed with intimate details about everyone’s personal life, the deep state protects itself. What politician will challenge the NSA budget, knowing that the agency could wreck his career? Who is above reproach? And who is so saintly that a devil couldn’t touch him?

“Americans, for the most part, submit willingly,” Doug went on. “That is the most astonishing thing. Americans have become a slave race, ready to go along with anything the deep state asks for.”

 

The above article is from Diary of a Rogue Economist originally written for Bonner & Partners. Bill Bonner founded Agora, Inc in 1978. It has since grown into one of the largest independent newsletter publishing companies in the world. He has also written three New York Times bestselling books, Financial Reckoning Day, Empire of Debt and Mobs, Messiahs and Markets.

 

 
 

 
 

Dear Readers!

You may have noticed that our so-called “semiannual” funding drive, which started sometime in the summer if memory serves, has seamlessly segued into the winter. In fact, the year is almost over! We assure you this is not merely evidence of our chutzpa; rather, it is indicative of the fact that ad income still needs to be supplemented in order to support upkeep of the site. Naturally, the traditional benefits that can be spontaneously triggered by donations to this site remain operative regardless of the season - ranging from a boost to general well-being/happiness (inter alia featuring improved sleep & appetite), children including you in their songs, up to the likely allotment of privileges in the afterlife, etc., etc., but the Christmas season is probably an especially propitious time to cross our palms with silver. A special thank you to all readers who have already chipped in, your generosity is greatly appreciated. Regardless of that, we are honored by everybody's readership and hope we have managed to add a little value to your life.

   

Bitcoin address: 1DRkVzUmkGaz9xAP81us86zzxh5VMEhNke

   
 

5 Responses to “Americans Have Become a “Slave Race””

  • DougM:

    There are parallels in Gibbon’s ‘Decline and Fall’ — he doesn’t use the term “deep state” but he well notes the simulacra of freedom that the autocracy adopted and fostered. Of course it is from the Roman era that we get the choice phrase “bread and circuses” — indeed, though if we were all cats we wouldn’t be so slavishly enamored. Dogs are the better example: loyal, easily trained. Dogs have owners; cats have staff.

    • snowiegeorgie:

      Of course you are right about cats and dogs ! Good counterpoint.

      I was thinking after my post, that (in my example) the ones that provide the food for my cats, are not currently enslaved, as they sell to me voluntarily, and I buy from them voluntarily. Almost capitalism.

      In the real world (back here in the USA) the 47% Mitt Romney identified as being “on the take” have in some very real sense enslaved those who provide for them. The Productive half of our society. The producers, as it were.

      Right now the Producers have no choice but to support those who are “on the take”.

      “I swear by my life and my love of it that I will never live for the sake of another man, nor ask another man to live for mine.” ― Ayn Rand, Atlas Shrugged

      When Atlas finally shrugs, what then ?

      • DougM:

        Yes, those who can produce are taxed for those who can’t, which isn’t charity, as charity is voluntary. Besides, taxation is the enforcement of a currency monopoly among other redistributive schemes. As noted by B. Ruml, taxes for revenue are obsolete (American Affairs, Jan. 1946).

  • Calculus:

    Recently read about how the deep state will hang Wall Street out to dry if/when there’s another tank in the markets due to wall street speculation. The wall streeters will again want to be bailed out but the population will be outraged.

    The deep state will therefore have to chose, wall street and serious riots or dump wall street and the people are somewhat placated. They will no doubt choose the latter which means if you’re a top dog on Wall Street and have made a fortune, time to pack your bags.

    However, wall street will still have a big ace up its sleeve inthat they’re the ones whose job it is to sell the government debt and without debt the government AND the deep state can’t survive.

    Whatever the case things will get very interesting when the markets tank again, and they always do…

  • snowiegeorgie:

    Come on. Too easy. I feed my cats. They get free medical care, and enough entertainment to keep them happy.

    They never leave the house. I constrain their movements, and limit their scope of action. One of them is sitting next to me as I type this post, purring up a hurricane, and content as a creature can be.

    As I said, he is fed, dry, warm, medically cared for, and well entertained. And has no freedom of action beyond the constraints I have set for him. Such a happy cat !

Your comment:

You must be logged in to post a comment.

Most read in the last 20 days:

  • Can Germany Be Made Great Again?
      When Germany Was Great! Ever since the start of the deliberately conceived “migrant crisis,” orchestrated by NWO elites, the news out of Germany has been, to say the least, horrific. Right before the eyes of the world, a country is being demographically destroyed through a coercive plan of mass migration.  The intended consequences of this – financial strain, widespread crime and property destruction, the breakdown of German culture – will continue to worsen if things are not...
  • Yanking the Bank of Japan’s Chain
      Mathematical Certainties Based on the simple reflection that arithmetic is more than just an abstraction, we offer a modest observation.  The social safety nets of industrialized economies, including the United States, have frayed at the edges.  Soon the safety net’s fabric will snap. This recognition is not an opinion.  Rather, it’s a matter of basic arithmetic.  The economy cannot sustain the government obligations that have been piled up upon it over the last 70...
  • Incrementum Advisory Board Meeting, Q3 2017
      Global Monetary Architecture The quarterly Incrementum Advisory Board meeting was held last week (the full transcript is available for download below). Our regulars Dr. Frank Shostak and Jim Rickards were unable to attend this time, but we were joined by special guest Luke Gromen of research house “Forest for the Trees” (FFTT; readers will find free samples of the FFTT newsletter at the site and in case you want to find the link again later, we have recently added it to our blog roll)....
  • Views From the Top of the Skyscraper Index
      Views From the Top of the Skyscraper Index On a warm Friday Los Angeles morning in spring of 2016, we found ourselves standing at the busy corner of Wilshire Boulevard and South Figueroa Street.  We were walking back to our office following a client wire brushing for events beyond our control.  But we had other thoughts on our mind.   Iron workers (the non-distraught variety) atop the 10 ton spire of the Wilshire Grand Center in Lost Angeles. This image is vaguely...
  • Bitcoin, Gold and Silver
      Precious Metals Supply and Demand Report That’s it. It’s the final straw. One of the alternative investing newsletters had a headline that screamed, “Bitcoin Is About to Soar, But You Must Act by August 1 to Get In". It was missing only the call to action “call 1-800-BIT-COIN now! That number again is 800 B.I.T..C.O.I.N.”   Bitcoin, daily. In terms of the gains recorded between the lows of 2009 and the recent highs (from less eight hundredths of a US cent per...
  • Prepare for Another Market Face Pounding
      “Better than Goldilocks” “Markets make opinions,” goes the old Wall Street adage.  Indeed, this sounds like a nifty thing to say.  But what does it really mean?   The bears discover Mrs. Locks in their bed and it seems they are less than happy. [PT]   Perhaps this means that after a long period of rising stocks prices otherwise intelligent people conceive of clever explanations for why the good times will carry on.  Moreover, if the market goes up for...
  • Seasonality: Will Patterns that Worked in the Past Also Work in the Future?
      Historians of the Future Every investor makes trading decisions based on what happened in the past – there is no other way. What really interests us is the future though. After all, what happens in the future ultimately determines investment success.   When in doubt, you can always try to reach the pasture...  In Human Action, Ludwig von Mises described stock market speculators as akin to “historians of the future”. This is without a doubt the most trenchant definition of...
  • Bitcoin Forked – Precious Metals Supply and Demand Report
      A Fork in the Cryptographic Road So bitcoin forked. You did not know this. Well, if you’re saving in gold perhaps not. If you’re betting in the crypto-coin casino, you knew it, bet on it, and now we assume are happily diving into your greater quantity of dollars after the fork.   Bitcoin, daily – adding the current price of BCH (the new type of Bitcoin all holders of BTC can claim at a 1:1 ratio), the gain since the “fork” amounts to roughly $1,000 at the time we...
  • What Went Wrong With the 21st Century?
      Fools and Rascals   And it’s time, time, time And it’s time, time, time It’s time, time, time that you love And it’s time, time, time… - Tom  Waits   Tom Waits rasps about time   POITOU, FRANCE – “So how much did you make last night?” “We made about $15,000,” came the reply from our eldest son, a keen cryptocurrency investor. “Bitcoin briefly pierced the $3,500 mark – an all-time high. The market cap of the...
  • Czar vs. Pope
      Vladimir the Great Sums Up Pope Francis the Fake Vladimir Putin has once again demonstrated why he is the most perceptive, farsighted, and for a politician, the most honest world leader to come around in quite a while.  If it had not been for his patient and wise statesmanship, the world may have already been embroiled in an all-encompassing global conflagration with the possibility of thermonuclear destruction.   Vladimir Putin is sizing up Pope Francis with his “good...
  • Bitcoin Has No Yield, but Gold Does – Precious Metals Supply and Demand Report
      Bitcoin and Credit Transactions Last week, we said:   It is commonly accepted to say the dollar is “printed”, but we can see from this line of thinking it is really borrowed. There is a real borrower on the other side of the transaction, and that borrower has powerful motivations to keep paying to service the debt. Bitcoin has no backing. Bitcoin is created out of thin air, the way people say of the dollar. The quantity of bitcoins created may be strictly limited by...
  • Is Historically Low Volatility About to Expand?
      Suspicion Asleep You have probably noticed it already: stock market volatility has recently all but disappeared. This raises an important question for every investor: Has the market established a permanent plateau of low volatility, or is the current period of low volatility just the calm before the storm?   All quiet on the VIX front... what can possibly happen? [PT] - click to enlarge.   When such questions regarding future market trends arise, it is often...

Support Acting Man

j9TJzzN

Austrian Theory and Investment

Own physical gold and silver outside a bank

Archive

350x200

THE GOLD CARTEL: Government Intervention on Gold, the Mega Bubble in Paper and What This Means for Your Future

Realtime Charts

 

Gold in USD:

[Most Recent Quotes from www.kitco.com]

 


 

Gold in EUR:

[Most Recent Quotes from www.kitco.com]

 


 

Silver in USD:

[Most Recent Quotes from www.kitco.com]

 


 

Platinum in USD:

[Most Recent Quotes from www.kitco.com]

 


 

USD - Index:

[Most Recent USD from www.kitco.com]

 

 
Buy Silver Now!
 
Buy Gold Now!
 

Oilprice.com