The Deep State’s Catch-22

Catch-22 (from the 1961 novel set in World War II Catch-22) has several shades of meaning (bureaucratic absurdity, for example), but at heart it is a self-referential paradox: you must be insane to be excused from flying your mission, but requesting to be excused by reason of insanity proves you’re sane.

The Deep State in virtually every major nation-state is facing a form of Catch-22: the Deep State needs the nation-state to feed on and support its power, and the nation-state requires stability above all else to survive the vagaries of history.

The only possible output of extreme wealth inequality is social and economic instability.

The financial elites of the Deep State (and of the nation-state that the Deep State rules) generate wealth inequality and thus instability by their very existence, i.e. the very concentration of wealth and power that defines the elite.

So the only way to insure stability is to dissipate the concentrated wealth and power of the financial Deep State. This is the Deep State’s Catch-22.

What happens when extremes of wealth/power inequality have been reached? Depressions, revolutions, wars and the dissolution of empires. Extremes of wealth/power inequality generate political, social and economic instability which then destabilize the regime.

Ironically, elites try to solve this dilemma by becoming more autocratic and repressing whatever factions they see as the source of instability.

The irony is they themselves are the source of instability. The crowds of enraged citizens are merely manifestations of an unstable, brittle system that is cracking under the strains of extreme wealth/power inequality.

Can anyone not in Wall Street, the corporate media, Washington D.C., K Street or the Fed look at this chart and not see profound political disunity on the horizon?

Many consider it “impossible” that Wall Street could possibly lose its political grip on the nation’s throat, but I have suggested 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.

Is the Deep State Fracturing into Disunity? (March 14, 2014)

What happens if the Deep State pursues the usual pathological path of increasing repression? The system it feeds on decays and collapses. I discussed this in Surplus Repression and the Self-Defeating Deep State (May 26, 2015)

We can anticipate the Deep State fracturing over the illusory efficacy of repression: those who believe there is no upper limit on the effectiveness of repression, and those who understand that at some point, unlimited policing and financial repression will unleash a destabilizing tsunami that will threaten the integrity of the Empire and the Deep State itself.

Here is an excerpt from an insightful interview, The American Deep State: An Interview with Peter Dale Scott

Peter Phillips: We’re really happy to have you here. I’ve just finished reading your book, The American Deep State: Wall Street, Big Oil, and the Attack on U.S. Democracy In your new book you talk about the egalitarian mindset culture of America. We believe in the Constitution, the Bill of Rights, open government, transparency. And then you say also that there’s a dark side, or a deep side inside America that’s repressive, that is looking to be able to detain people without warrants, warrantless wire tapping and all of that – there’s a repressive side. Can you tell us a little bit more about how you frame this understanding of this culture of repression?

Peter Dale Scott: Actually, I think there’s always been a deep state in America and there have been times when it has been very repressive. We’re in a period of, you might say, surplus repression – repression that doesn’t serve anyone’s interests, not even the interests of the ruling class. (emphasis by CHS)

Preserving ever-expanding wealth/power inequality via ever-expanding repression is not a successful strategy. As the Internet has speeded up commerce and the distribution of ideas and information, the utility of repression as a way of preserving a crumbling status quo has decayed. A repressive regime that lasted seventy years in the 20th century might last seven years in the 21st century once the rising scarcities of paid work, energy, food and social mobility start drawing blood.

Debt has been the temporary savior of Deep States everywhere. Borrowing money from future earnings and future taxpayers has worked for seven long years, but it’s unlikely to last another seven.

You can borrow money for a time to fund super-welfare for all (elites and debt-serfs alike) but you can’t make energy or food cheap again or regenerate social mobility or dissipate rising wealth/power inequality.

My new book is #5 on Kindle short reads -> politics and social science: Why Our Status Quo Failed and Is Beyond Reform ($3.95 Kindle ebook, $8.95 print edition)For more, please visit the book’s website.

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  • ICFubar

    I agree with everything C.H. Smith has written here but would add that I believe the Apex Elites have a good grasp on this “catch” and will use the situation they have created to further their control of everything. They have done this in the past after every major and some minor chaotic episodes in history, wars, economic depressions and the like, to usher in their solutions, like the Federal Reserve System, which increase their control. These elites know this is a time of danger for them but roll the dice figuring they can manage the chaos with readied solution at the time of greatest tumult, having successfully navigated like situations in the past. The exception to this was the Great Depression in which an organized population managed to secure some concessions in the alleviation of their plight from these elites. Two corollaries point to this as stated by elite members. One, “Own nothing, control everything’ D Rockefeller, through Trusts and Foundations that hatch all manner of operations to this end. Secondly, the vast array of international agreements from such as the WTO, NAFTA, TPP, TIPP and coming TISA (Trade Investment Services Agreement) encapsulated by “Control oil [energies] and you control the nation. Control food and you control the people. Control money and you control the world” H. Kissinger. The goal as Rosa Koire explained is “to inventory and control all finances. land, water, minerals, plants, animals, means of production, construction, energies, education, information, human habitation and all humans on the planet…. Have I left anything out?” The International Apex Elites are working on many fronts and levels simultaneously to achieve this agenda.

    • Zap


      I see no fracturing within the US and EU “deep state” aka the CFR, Tri Lateral Commission, Bilderberg Group. Look at Soros, he is as deep state as Rockefeller made man Henry Kissinger and it is completely obvious everything he is engaging in has the approval of the deep state in the US and EU indicating these characters have complete control and face no opposition within the deep state or without. No government opposition, no academic opposition, no media opposition, nothing, they now control it all. They have complete control and they are deliberately busting the west out and moving their “interests” to Asia. Mass immigration of unassimilable Islam and economically draining 3rd world people to the west, complete surveillance state against the middle class, instigating race riots and race wars, totalitarian control over free speech dutifully promoted by their sock puppets in academia and media…..Their plan seems to be to create extreme chaos and civil war throughout the west and then crush their opposition, which is the educated middle class, when those civil wars erupt. Why else would governments be willing to accept the modern ages most depraved war criminals back into their countries? The analogy for what governments are now doing is the restaurant scene in the film Goodfella’s where the mob takes over the restaurant runs up the restaurant’s debt while selling everything out the back door and then burns the place down. CHS is way too optimistic.

      Note the CFR’s influence in the below articles.

      • ICFubar

        Good comment that goes into greater detail on the “fronts and levels’ the Apex Elites are working on this very day. I’ll add AGWarming through the U.N. IPCC and Agenda 21, and the U.N. in general as one primary scenes of operation. as per U.N. Resolution 69/292 (?). Thanks for the links.

        • Zap

          Agree, and all these economic treaties that are gutting the west economically as they have been designed to do that you mentioned further prove our point.

          Who is behind AGW and who would profit from a carbon cap/carbon trading scheme?

          Big Oil, Big Finance and Big Government……and the Rockefeller’s are all 3 so any AGW mitigation schemes would be win win win for them. Also it fits neatly into their plans of deconstructing the west.

          It is amazing but I have seen the term Big Oil 1000’s of times in the debate over AGW yet I have never seen any pundit, commentator, media or academic ever ask…..”well, who exactly is this Big Oil?”……the answer is of course obvious….the Rockefeller’s owned close to 50% of the 30+ oil companies that emerged from the JD Rockefeller engineered break up of Standard Oil and there is no reason to believe they ever gave up a single share of those holdings which was the entire purpose of the Rockefeller planned anti trust legislation.

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