The Deep State
By Doug Casey, International Man
This essay explores important elements of the Greater Depression and its implications.
The inevitable became reality in 2008. In the subsequent years, we experienced a brief reprieve, supported by trillions of new currency units filling the coffers. However, as the economic clock ticks forward, we find the same conditions present as in 2007. The looming challenges are not mere inconveniences; they are significant threats, ready to abruptly end the temporary reprieve. Unlike before, these adversities aren’t minor; they are formidable forces on armored steeds, ready to charge.
To clarify, let’s revisit what constitutes a depression.
A depression can be broadly defined as a period during which the standard of living for most individuals significantly declines. According to this definition, the Greater Depression commenced in 2008, though historians might argue its onset dates back to 1971, when real wages began their decline.
It is marked by a phase where economic distortions and capital misallocations are corrected, triggered by the business cycle—primarily caused by currency devaluation, commonly referred to as inflation. This results in adverse outcomes such as high unemployment rates, business failures, unfinished construction projects, bond defaults, and stock market crashes.
Thankfully for those benefitting from the status quo—those associated with the so-called Deep State—the trillions of newly minted currency delayed this necessary correction. Yet, this delay guarantees that when it does occur, it will strike with even greater intensity.
The Deep State is a profoundly influential network that effectively governs almost everything in society. Its influence is rarely reported in mainstream media because it is, in many ways, the architect of the narratives we consume. Politicians avoid discussing it openly, akin to a mobster confessing to violent crimes during a live broadcast. While one might argue that the Deep State is concealed, it remains hidden in plain sight.
This clandestine entity is the underlying cause of every unsettling event currently unfolding around us. To navigate the impending turbulence, understanding its workings is crucial.
The State
What leads to economic turmoil? Aside from natural disasters like fires, floods, and earthquakes, the primary culprits are state-induced factors—wars, taxes, regulations, and inflation.
While it’s acknowledged that this perspective is overly simplistic and that human nature plays a role, it’s essential to focus on the immediate causes of the Greater Depression and the nature of the State as well as the Deep State that has emerged.
A crucial point to grasp is that the concept of the State is fundamentally harmful, destructive, and inherently toxic. Despite the misconception that it is a natural part of societal structure, it is, in fact, a grand deception. Rights, such as free speech or the right to bear arms, are not granted by political documents like the Constitution; they are inherent to being free individuals, independent of government stipulations.
Though the State operates through coercion, many have been conditioned to admire and respect it. Most envision the State through the lens of a childhood civics textbook, mistakenly believing it to function as a representation of “We the People,” with elected leaders akin to virtuous figures. This idealized narrative is misleading, sanitizing an institution rooted in force, as accurately noted by Mao: “political power comes from the barrel of a gun.” We are now entrenched not only in the State but in the Deep State.
The Deep State
The term “Deep State” first emerged in Turkey, and it aptly describes a system entrenched in corruption reminiscent of the Byzantine and Ottoman empires. In a similar fashion, the Deep State has woven its influence into the fabric of what was once America, disseminating its reach throughout civil society—much like a cancer that can no longer be easily eliminated.
I once humorously suggested that cleansing Washington was a matter of detonating 10 megatons on the capital. However, that sentiment is now outdated. Instead, a far more comprehensive approach is required to dismantle what has been built.
Washington learns from ancient Rome, which exemplified the mechanisms of a Deep State. A Victorian thinker, Winwood Reade, encapsulated this notion when he stated that Rome thrived on imports without producing any wealth, returning only refuse, much like our current state of affairs.
The Deep State essentially dictates both the political and economic landscape in the United States. It becomes evident in the indistinguishable divide between the left and right factions within the political system. Republicans may claim to uphold economic freedoms while denying social freedoms, whereas Democrats do the converse.
Who Is Part of the Deep State?
The American Deep State represents an informal yet tangible structure that seeks not only to profit from but also to manage the State.
This entity possesses a life of its own, comprising high-ranking officials from various agencies, including the FBI, CIA, and NSA, top military leaders, veteran lawmakers, and heads of vital regulatory bodies.
However, the Deep State extends far beyond government entities. It encompasses leaders of major corporations that profit from state contracts, including those in Silicon Valley, who, revealingly, often promote the ideology of “Don’t Be Evil.” The Federal Reserve, prominent banking institutions, influential university heads, and media magnates—along with powerful figures in organizations like Bohemian Grove and the Council on Foreign Relations—form the backbone of this system, held together by wealth, influence, and propaganda.
Collectively, the core members of the Deep State likely number in the thousands. One might compare its structure to a pack of dogs, with those at the top holding sway over their followers.
There exists a broader circle of individuals linked to the Deep State—those who depend significantly on it and help maintain its existence. This includes the affluent who owe their wealth to state connections, the 1.5 million individuals with top-secret security clearances, organized crime figures, and mid-level personnel in law enforcement, military, corporations, and NGOs—referred to here as “the running dogs.”
Beyond them lies the vast majority of the populace, over half of whom are net beneficiaries of the State. This includes millions on Social Security, Medicaid, food assistance, numerous other entitlements, and government employees. This demographic could be considered “whipped dogs,” both fearing and adhering to their masters, compelled to comply with the authority of those at the top.
Collectively, these three categories of individuals represent the bulk of American society. As a self-identified Lone Wolf, I hope you align with this perspective as well. However, it’s important to acknowledge that such independence often places one at odds with the majority.
The Deep State, while detrimental to society, flourishes for those within its ranks. Like a living organism, its primary objective is survival, perpetuated by the belief that it serves a vital purpose. However, it functions more as a parasite that promotes the fallacy that society can sustain itself at the expense of its members.
Is there a grand conspiracy at play? It is unlikely. Coordinating a group of self-interested individuals is complex. Yet, the top members do know one another, share educational backgrounds, belong to similar social circles, and share aligned interests, values, and ideologies.
The American Deep State revolves around the Washington Beltway, collecting American wealth as tax revenue, much of which sustains a bureaucratic machine. It then exports ideas and policies reinforcing its existence, including wars and monetary inflation. This system is not sustainable, as it fails to produce anything of genuine value.
Sincerely,
Doug Casey
for Economic Prism
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