Is the Deep State Fracturing into Disunity?

I recently discussed the Deep State and “throwing Wall Street under the bus” with my friend and colleague Jim Kunstler.

When we speak of The Powers That Be or the Deep State, this ruling Elite is generally assumed to be monolithic: of one mind, so to speak, unified in worldview, strategy and goals.


In my view, this is an over-simplification of a constantly shifting battleground of paradigms and political power between a number of factions and alliances within the Deep State. Disagreements are not publicized, of course, but they become apparent years or decades after the conflict was resolved, usually by one faction winning the hearts and minds of decision-makers or consolidating the Deep State’s group-think around their worldview and strategy.

History suggests that this low-intensity conflict within the ruling Elite is generally a healthy characteristic of leadership in good times. As times grow more troubled, however, the unity of the ruling Elite fractures into irreconcilable political disunity, which becomes a proximate cause of the dissolution of the Empire if it continues.

I recently proposed the idea that Wall Street now poses a strategic threat to national security and thus to the Deep State itself: Who Gets Thrown Under the Bus in the Next Financial Crisis? (March 3, 2014)

Many consider it “impossible” that Wall Street could possibly lose its political grip on the nation’s throat, but I suggest that Wall Street has over-reached, and is now teetering at the top of the S-Curve, i.e. it has reached Peak Wall Street.

Consider what the extremes of Wall Street/Federal Reserve predation, parasitism, avarice and power have done to the nation, and then ask if other factions within the Deep State are blind to the destructive consequences:

How The Fed Has Failed America, Part 2 (March 12, 2014)

The Fed Has Failed (and Will Continue to Fail), Part 1 (March 11, 2014)

Can anyone not in Wall Street or the Fed look at this chart and not see profound political disunity on the horizon?


source: Poll Shows Why QE Has Been Ineffective (STA Wealth Mgmt)

I recently discussed the Deep State and “throwing Wall Street under the bus” with my friend and colleague Jim Kunstler: here’s the resulting podcast, which you can download or listen to on whatever device you are using at the moment: KunstlerCast 250 — Chatting with Charles Hugh Smith

Jim’s trademark wit and clarity guide the discussion, and he kindly lets me blather on about the Deep State. I think you’ll find the discussion of interest; you certainly won’t hear this topic being aired elsewhere.

I have covered the Deep State and profound political disunity for many years:

Going to War with the Political Elite You Have (May 14, 2007)

The Shape of Things To Come (July 8, 2011)

The Master Narrative Nobody Dares Admit: Centralization Has Failed (June 21, 2012)

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  • mmckinl

    It seems there is more than one rift in the “deep state” … There is more than one “special interest” getting thrown under the bus. Israel and the KSA are seeing the underside of the foreign relations bus and the recent “amazing” speech by Senator Feinstein shows that if not the NSA at least the CIA may be in for some “roughing up”.

    All these differences coincidentally coincide with the rapid onset of “peak oil” shortages and the fact that while there is plenty of oil it can not be developed at a price that enables neoliberal financial capitalism to survive … It is now the “special interests” that are in an existential struggle in what will have to be an entirely new economic model fraught with unimaginable developments and consequences.

    • “the only implementable strategy going forward.

      And, while surgical skills would be called for to gently implant a brand spanking new, artificial black heart into this neoliberal corpse, their only tool being the hammer, and all that… Except this time is not that time, and the reality they are creating no longer requires studying – it’s a rehash of the old and tired crap, and well understood by most.

  • johnmerryman

    The irony here, with the current situation in the Ukraine, is that with the Russian response of drawing down their dollar reserves and other seeming collapse of economic relations, that it is imperial over-reach popping the dollar bubble. So Wall St, in all its egomaniacal greed is threatening the economic foundation of the security deep state and this security deep state, in its equally mindless ambition, could be the catalyst to actually pop the bubble. Delicious.