Which ‘New World Order’?

Who is planning a ‘New World Order’ (NWO),  in what form, and what progress is apparent so far?

Scan down to read the latest articles.  Links to more articles are at the end of this post.

Opting out of a new world order helmed by an EU-China alliance

Opting out of a new world order helmed by an EU-China alliance  By Jennifer Oriel, The Australian, 5 June 2017

In late April, the European Union declared its alliance with China. EU foreign affairs chief Federica Mogherini identified China as a key ally in “guarantee[ing] the world order”. Never before has the European world order shared a common destiny with the values enshrined in communist statehood. Mogherini laid out the agreements underpinning the shared EU-China world order: the Paris climate accord and UN’s Sustainable Development goals.

The US withdrawal from the Paris Agreement is an affirmation of freedom and the values that ­distinguish the West from the rest. The socialist-green EU bloc has surrendered Europe to a different destiny.

As the doomsday clock struck midnight and the world kept turning, the liberal media denied the rising sun. It was doom and gloom as the grim weepers of the populist left lamented the US withdrawal from the watermelon world order. It is hard to pick a favourite from the weeper reel, but the prize must go to Channel 9 for leading with “Climate change fury” featuring a grab from Arnold Schwarz­eneg­ger followed by jihad poster girl Kathy Griffin crying victim after apparently glorifying the ­decap­itation of the US President. The PC left’s rage against liberty knows no bounds and as leader of the free world, the US remains the primary target of the illiberal world order.

According to President Trump, the US stood to lose up to 2.7 million jobs by 2025 under the Paris Agreement, including 440,000 fewer manufacturing jobs. Once, the left might have defended the working class. Today it represents the bureaucratic elite of a sclerotic world order led by careerists.

Socialist and communist leaders vented fury at the US President for upholding his promise to the American people. On the day the US announced its exit from the Paris Agreement, Chinese Premier Li Keqiang stood with EU leaders to declare a global consensus on climate change and an international responsibility to address it. Such trivial matters as a president honouring the sovereign will of his citizens apparently pale in comparison to the lofty political goals contained in global agreements on sustainable development and ­environmentalism.

One such goal — “global sovereignty” — was ­announced in the G77 (plus China) declaration, “For a new world order for living well”, which typifies the ideology underlying agreements on climate change. In it, the G77 delivered the United Nations a 242-point vision of the new world order. High­lighted values include sustainable development and environmentalism as well as the worship of a pagan queen called “Mother Earth”. Through the lens of ­realism, the declaration looks like a massive push for wealth redistribution from the West to the rest dressed up in postcolonial rhetoric. After laying collective guilt on the developed world (aka the West), the G77 states that ­advanced nations should transfer their money and intellectual property to developing nations while strengthening the UN as “as an emblem of global sovereignty”.

The Paris Agreement reflects the belief that Western countries are to blame for what ails the world, including climate change. As such, they should pay for the sin of advanced development. The West should pay by pledging to comparatively high energy restrictions while doling out taxpayer funds to supranational bureaucrats and illiberal states through the Green Climate Fund.

The Green Climate Fund puts the politics of the Paris Agreement in plain sight. Among the 43 countries committing funds, only nine are developing nations. China isn’t on the donor list. Qatar, the world’s wealthiest country, isn’t a donor. Saudi Arabia isn’t a donor. Despite their soaring debt levels, it is Western countries funnelling billions into the fund.

The recipients of green ­finance include highly corrupt states. Like foreign aid funding, much green ­finance is transferred from hardworking Western taxpayers into the pockets of corrupt regimes. The biggest donor to the fund is the US. It signed off on a $1 billion transfer of wealth despite having a $20 trillion debt. The Australian government has committed more than $200 million to the green fund from 2015-18 despite our ­nation being $490bn in debt. In a December statement on Australia’s leadership of the Green Climate Fund board, Foreign Minister Julie Bishop welcomed incoming co-chair Saudi Arabia.

While Trump clarified the poor economic conditions that the climate accord offered America, he declared the exit a reassertion of America’s sovereignty, saying: “Foreign leaders in Europe, Asia and across the world should not have more to say with respect to the US economy than our own citizens and their elected representatives … our withdrawal from the agreement represents a reassertion of America’s sovereignty.”

The political response to the US withdrawal from the Paris Agreement indicates Trump had cause for concern. The EU framed the exit as a “unilateral decision by the Trump administration”. That is pure disinformation. It is a neat rhetorical trick that enables the EU to isolate Trump for attack while portraying the assertion of American sovereignty as unilateral. In reality, the US exit from the Paris Agreement honours a key campaign promise and 61 million Americans signed off on it when they voted Trump into office.

The assertion of US sovereignty is invaluable to the West at a time when the EU is tilting to totalitarian states under communist and Islamist rule. It is notable the European politicians leading the charge against Trump are key porous border backers. ­Mogherini not only celebrates the EU-China world order but has ­declared “political Islam” part of Europe’s future. The sooner Australia joins the US in defending the West from the rest, the safer our future as a free world nation will be.


“The End Of Truth” – Hayek Saw It All Coming Over 70 Years Ago

The End Of Truth – Hayek Saw It All Coming Over 70 Years Ago  From Zerohedge, 30 March 2017

The Road To Serfdom (authored by F.A. Hayek, first publ;ished in 1944)

Excerpts from Chapter 11 – The End of Truth

Annotated via Crossroad.to/heaven,

“The most effective way of making everybody serve the single system of ends toward which the social plan is directed is to make everybody believe in those ends. To make a totalitarian system function efficiently, it is not enough that everybody should be forced to work for the same ends. It is essential that the people should come to regard them as their own ends.”[p.171]

Berit’s comment: Ponder that statement. It helps explain the significance of universal service-learning. Like socialist youth in Nazi (National Socialism) and Communist countries, all must embrace the new ideology. Those who don’t — the intolerable dissenters — must be silenced.

The next section elaborates:

“Although the beliefs must be chosen for the people and imposed upon them, they must become their beliefs, a generally accepted creed which makes the individuals as far as possible act spontaneously in the way the planner wants. If the feeling of oppression in totalitarian countries is in general much less acute than most people in liberal countries imagine, this is because the totalitarian governments succeed to a high degree in making people think as they want them to.”[p.171]

The strategies that accomplish this mental change include numerous subtle and obvious forms of propaganda. Schools, the media, children- and youth-service teams, corporations, etc…. every source of propaganda must share the same vision. Though totalitarian, it will be designed to sound noble, compassionate and fair to all. Yet the result with be the exact opposite.

Ponder this warning from Dr. Thomas Sowell’s review of Road to Serfdom:

“At the heart of the socialist vision is the notion that a compassionate society can create more humane living conditions for all through government ‘planning’ and control of the economy…


“The rule of law, on which freedom itself ultimately depends, is inherently incompatible with socialism. People who are free to do as they wish will not do as the economic planners wish. Differences in values and priories are enough to ensure that. These differences must be ironed out by propaganda or power, if socialism is to be socialism. Indoctrination must be part of the program, not because socialist want to be brainwashers, but because socialism requires brainwashing.


Idealist socialist create systems in which idealist are almost certain to lose and be superseded by those whose drive for power, and ruthlessness in achieving it, make them the “fittest” to survive under a system where government power is the ultimate prize…. The issue is not what anyone intends but what consequences are in fact likely to follow.”

In his article, aptly titled “A Road to Hell Paved with Good Intentions,” Sowell points out that “Marxism as an ideal continues to flourish on American college campuses, as perhaps nowhere else in the world.” Collectivist visions appeal to academic idealists and others who ignore the lessons of history.

“….all propaganda serves the same goal—that all the instruments of propaganda are coordinated to influence the individuals in the same direction…. The skillful propagandist then has power to mold their minds in any direction he chooses, and even the most intelligent and independent people cannot entirely escape that influence if they are long isolated from all other sources of information. [p.171-172]

President Obama took control of this change process by transferring workers from the private sector (corporations, private enterprise…) to the government service sector. With the controlled media on his side, the masses are not exposed to contrary facts.

“…even the striving for equality by means of a directed economy can result only in an officially enforced inequality—an authoritarian determination of the status of each individual in the new hierarchical order—and that most of the humanitarian elements of our morals, the respect for human life, for the weak, and for the individual generally, will disappear….


“The moral consequences of totalitarian propaganda which we must now consider are, however, of an even more profound kind. They are destructive of all morals because they undermine one of the foundations of all morals: the sense of and the respect for truth.


“…in order to induce people to accept the official values, these must be justified, or shown to be connected with the values already held by the people, which usually will involve assertions about causal connections between means and ends.  …people must be brought to agree not only with the ultimate aims but also with the views about the facts and possibilities on which the particular measures are based.[p.172]

Al Gore’s battle against a mythical man-made global warming crisis illustrates this point. Globalist change agents agree that a worldwide crisis is needed to persuade humanity to embrace all the costly restrictions and regulations of government controlled “sustainable development.” So they are willing to ignore facts and embrace myths and pseudo-science in order to reach their goal.

“We have seen that agreement on that complete ethical code, that all-comprehensive system of values which is implicit in an economic plan, does not exist in a free society but would have to be created….


“And while the planning authority will constantly have to decide issues on merits about which there exist no definite moral rules [apart from the Bible], it will have to justify its decisions to the people—or, at least, have somehow to make the people believe that they are the right decisions….


“This process of creating a ‘myth’ to justify his action need not be conscious. …  So [the totalitarian leader] will readily embrace theories which seem to provide a rational justification for the prejudices which he shares with many of his fellows. Thus a pseudoscientific theory becomes part of the official creed which to a greater or lesser degree directs everybody’s action. [p.173]


“The need for such official doctrines… has been clearly foreseen by the various theoreticians of the totalitarian system…. They are all necessarily based on particular views about facts which are then elaborated into scientific theories in order to justify a preconceived opinion.


“The most effective way of making people accept the validity of the values they are to serve is to persuade them that they are really the same as those which they… have always held, but which were not properly understood or recognized…. The people are made to transfer their allegiance from the old gods to the new under the pretense that the new gods really are what their sound instinct had always told them but what before they had only dimly seen. And the most efficient technique to this end is to use the old words but change their meaning. Few traits of totalitarian regimes are … so characteristic of the whole intellectual climate as the complete perversion of language….


“The worst sufferer in this respect is, of course, the word ‘liberty.’ It is a word used as freely in totalitarian states as elsewhere…. Dr. Karl Mannheim… warns us that ‘a conception of freedom modeled on the preceding age is an obstacle to any real understanding of the problem. But his use of the word freedom is as misleading it is in the mouth of totalitarian politicians. Like their freedom, the ‘collective freedom’ he offers us is not the freedom of the members of society but the unlimited freedom of the planner to do with society what he pleases….[pps.174-175]


“In this particular case the perversion of the meaning of the word has, of course, been well prepared …. by many of the theoreticians of socialism. But ‘freedom’ or ‘liberty’ are by no means the only words whose meaning has been changed into their opposites to make them serve as instruments of totalitarian propaganda. We have already seen how the same happens to ‘justice’ and “law,’ ‘right’ and ‘equality.’ The list could be extended until it includes almost all moral and political terms in general use.


“… the confusion becomes worse because this change of meaning of the words describing political ideals is not a single event but a continuous process, a technique employed consciously or unconsciously to direct the people….


“It is not difficult to deprive the great majority of independent thought. But the minority who will retain an inclination to criticize must also be silenced. … Since many parts of this code will never be explicitly stated… every act of the government, must become sacrosanct and exempt from criticism. If the people are to support the common effort without hesitation, they must be convinced that not only the end aimed at but also the means chosen are the right ones.”[p.175]


“Facts and theories must thus become no less the object of an official doctrine than views about values. And the whole apparatus for spreading knowledge—the schools and the press, radio and motion picture—will be used exclusively of to spread those views which, whether true or false, will strengthen the belief in the rightness of the decisions taken by the authority; and all information that might cause doubt or hesitation will be withheld.”[p.176]

Stanford University Professor Steven Schneider illustrates it well. He said,

On the one hand, as scientists, we are ethically bound to the scientific method, in effect promising to tell the truth, the whole truth, and nothing but–which means that we must include all the doubts, the caveats, the ifs, ands, and buts. On the other hand, we are not just scientists but human beings as well. And like most people, we’d like to see the world a better place, which in this context translates into our working to reduce the risk of potentially disastrous climatic change.


“To do that, we need to get some broad based support, to capture the public’s imagination. That, of course, entails getting loads of media coverage. So we have to offer up scary scenarios, make simplified, dramatic statements and make little mention of any doubts we might have… Each of us has to decide what the right balance is between being effective and being honest.”

This applies even to fields apparently most remote from any political interests and particularly to all the sciences, even the most abstract.

That in the disciplines dealing directly with human affairs and therefore most immediately affecting political views, such as history, law or economics, the disinterested search for truth cannot be allowed…. These disciplines have, indeed, in all totalitarian countries become the most fertile factories of the official myths which the rulers use to guide the minds and wills of their subjects….” [p.176]

In “Government religion in the United States,” Erica Carle wrote:

“The separation of church and state argument for removing all traces of Biblical teaching from public life and public land is a gigantic fraud. Why? Because there is no separation of church and state. Government religion is a fact in the United States. What is wanted by the government religion adherents is not separation of church and state, but exclusive rights for their religion.


“What is the government religion? Auguste Comte (1798-1857), its French founder, called it the Religion of Humanity. The doctrines of the Positive Religion are now taught in the schools as a science which Comte called sociology. Sociology was to be the ruler science over all the other sciences and also the science of managing the world…. In a country that is supposed to be free,

  • its citizens are being subjected to sociological management,
  • its scientists and elected officials to sociological control, and
  • its youth to sociological education.

Hayek went on…

“…we must yet be on our a guard not to dismiss .[these aberrations] as mere accidental by-products which have nothing to do with the essential character of a planned or totalitarian system….They are a direct result of that same desire to see everything directed by a ‘unitary conception of the whole.’…


“Once science has to serve, not truth, but the interests of a class, a community or a state…. As the Nazi minister of justice has explained, the question which every new scientific theory must ask itself is: ‘Do I serve National Socialism for the greatest benefit of all?’


The word ‘truth’ itself ceases to have its old meaning.  …it becomes something to be laid down by authority, something which has to be believed in the interest of the unity of the organized effort and which may have to be altered as the exigencies of this organized effort require it.


“The general intellectual climate which this produces, the spirit of complete cynicism as regards truth which it engenders, the loss of the sense of even the meaning of truth, the disappearance of the spirit of independent inquiry…. Perhaps the most alarming fact is that contempt for intellectual liberty is not a thing which arises only once the totalitarian system is established but one which can be found everywhere among intellectuals who have embraced a collectivist faith and who are acclaimed as intellectual leaders even in countries still under a liberal regime.


“Not only is even the worst oppression condoned if it is committed in the name of socialism, and the creation of a totalitarian system openly advocated by people who pretend to speak for the scientists of liberal countries; intolerance, too, is openly extolled….” [p.178]


“This view is, of course, practically indistinguishable from the views which led the Nazis to the persecution of men of science, the burning of scientific books, and the systematic eradication of the intelligentsia of the subjected people.


“The desire to force upon the people a creed which is regarded as salutary for them is, of course, not a thing that is new or peculiar to our time. New, however, is the argument by which many of our intellectuals try to justify such attempts.” [p.179]


The tragedy of collectivist thought is that, while it starts out to make reason supreme, it ends by destroying reason….”[p.180]

And as a reminder, this was writen in 1944!


A New Phase in the Evolution of the “Deep State”

A New Phase in the Evolution of the “Deep State”  Bill Bonner interviews Mike Lofgren, Inner Circle, 3 February 2017

The “Deep State” is metastasizing… In the face of insurgencies from the left (Bernie Sanders) and the right (Donald Trump), it is evolving… adapting… and gaining ever more power over America’s body politic. If you think President Trump will easily win his war with the Deep State – or as he puts it, “drain the swamp” – you may wind up being disappointed. And if you think you – and your wallet – won’t get caught in the crossfire… think again.

We had a stellar lineup at our recent closed-door Inner Circle roundtable meeting in Baltimore. Agora founder Bill Bonner headed up the session. He was joined by our chief strategists from Britain, France, Argentina, Brazil, Australia, India, and China. Also there were three-term congressman and President Reagan’s budget chief David Stockman… author and fiat money specialist Richard Duncan… Asianomics founder and Inner Circle regular Jim Walker… and Alan Greenspan, who was Fed chairman from 1987 to 2006. You’ll be hearing more about what these folks had to say about the big trends to watch for in 2017 over the coming weeks. This week… we’re focusing on what we learned from another special guest at our roundtable meeting, Washington insider turned Deep State “whistleblower” Mike Lofgren.

Because Mike dropped the biggest bombshell of our two-day meeting… one that could have huge implications for the direction the U.S. takes during President Trump’s next four years in office. Story of Our Time Of all the “big picture” themes we track for you at Inner Circle, the rise of the Deep State is the most important.

As Bill has been warning, the Deep State has corrupted not just politics, but also the entire economy. From his opening address to the group in Baltimore: Markets never stop working. But as political force enters into them – especially the unelected kind – they work differently because they take that into account. They price in all of the manipulation, the meddling, the intervention, the activism, and you end up with something different. Not that markets aren’t working… they’re just working with the world as it is.

If you’re unfamiliar with the term, the Deep State describes the shadowy network of powerful people that really runs the country no matter who sits in the Oval Office or which party controls Congress.

Bill again: When people think of the Deep State, they are generally referring to the permanent government run as a collusion between the elite of Corporate America and the national security industry. They think of the “military-industrial complex” President Eisenhower warned we “must guard against” in his farewell address of 1961. The Deep State doesn’t care what you want or who you voted for. It doesn’t care how absurd its economic program turns out to be. It doesn’t give a damn about the Bill of Rights or the Rights of Man, blue states, red states, or red caps. It is a law unto itself… an unbalanced power, an unbridled force… out of order and out of control. It is no stranger to conspiracies… secrets… assassinations… manipulating public opinion… blackmail… or double dealing. It is bolder and more powerful every year. And it has the will and the way to control public policy… and the public purse.

The Deep State is the story of our time. It connects the dots between the War on Terror… the War on Cash… the phony-money system President Nixon ushered in back in 1971… and the global credit bubble that now threatens your wealth. It’s why we invited Mike – the ultimate Deep State “whistleblower” – up from his home in Virginia to our roundtable strategy session in Baltimore. And it’s why we’re kicking off our 2017 Inner Circle Roundtable series with what we learned from him about how the Deep State operates… the new phase it’s entered as it evolves to deal with Team Trump… and what it all means for your money. Insider’s Perspective If anyone knows about the inner workings of the Deep State, it’s Mike

As a national security specialist on Capitol Hill with top secret security clearance, he worked on the fringes of the Deep State for almost three decades. Mike spent a total of 28 years working in Congress… the last 16 as a senior analyst on the House and Senate budget committees. This gave him an insider’s perspective of the Deep State’s War on Terror, its Wall Street bailouts and boondoggles following the 2008 crash, and how it’s kept funds flowing to America’s ballooning military-industrial complex. Then, after he retired in 2011, he literally wrote the book on the Deep State – a powerful exposé of America’s “anti-democracy” that inspired Bill to begin his own investigations into this little-understood nexus of power and money.

As you’ll learn from my Q&A with Mike below, we must be ever watchful of the Deep State because it does not stand still. It’s always moving… always adapting… and always assimilating potential centers of opposition. And right now, its biggest challenge is how to deal with Donald J. Trump. Q&A With Mike Lofgren Chris Lowe (CL): What drove you to finally “blow the whistle” on the Deep State? Mike Lofgren (ML): For my entire career I was a congressional budget analyst for national security in Washington. I hadn’t written a word for publication. Writing about your opinions is not a good way to succeed as a staffer on Capitol Hill. But after I retired, I gained perspective on the deeper nature of our culture in a way that was impossible when I was caught up in a career. And I wrote a book about Congress, The Party’s Over: How Republicans Went Crazy, Democrats Became Useless, and the Middle Class Got Shafted. I claim a modest amount of credit for launching the now thriving cottage industry of political commentators noticing the new strangeness of the party of Lincoln. That said, I was hardly ready to launch myself into the arms of Hillary Clinton’s party – or Hillary Clinton, for that matter. That crowd had big problems, too. Like the Bourbon kings, the Democrats had forgotten everything and learned nothing.

But after finishing the book, I had this nagging feeling that I had described the symptoms, rather than the underlying cause, of our crisis in governance. This led me to write my next book, The Deep State: The Fall of the Constitution and the Rise of a Shadow Government.

CL: You spent a long time in the belly of the Washington beast. What did you learn about Beltway politics over that time?

ML: I began as a mainstream Republican during President Reagan’s first term. By the end of my time in Washington, I was resolutely non-partisan. I now view ALL political ideologies as mental and emotional crutches. They’re helpful only to politicians who use them to manipulate our attitudes and behaviors.

CL: You and Bill believe that the rise of this “shadow government” is the big story of our time. Why?

ML: The Deep State is the red thread that runs through the war on terrorism and our militarized foreign policy. It also runs through the financialization and deindustrialization of the U.S. economy… and the most unequal society, in terms of income distribution, in almost a century.

CL: For folks who may have a hard time picturing what exactly the Deep State is, and who it’s made up of, how would you describe it?

ML: The Deep State is an informal association of key elements of the government, along with top-level players in finance and industry, that rules the country with only limited heed to the consent of the governed and the formal political process. It is the other government behind the one visible on Pennsylvania Avenue. It is linked to, but only intermittently controlled by, the visible state whose leaders we think we choose through elections. The Deep State is not the entire government. And it is not just the military-industrial complex President Eisenhower warned us about. It is a hybrid of national security, law enforcement, corporate America… plus key parts of other government branches. CL: Can you be even more specific?

ML: The agencies involved in national security are all core components of the Deep State. So is the Department of the Treasury because of its power over financial flows, its enforcement of international sanctions, and its symbiosis with Wall Street. The Federal Reserve is also part of this structure – it provides the necessary funding for the Deep State’s activities. So are parts of the judiciary. For example, the Foreign Intelligence Surveillance Act – or FISA – Court, whose actions are mysterious even to most congressmen. And key trial courts, such as the Eastern District Court of Virginia and the Southern District Court of Manhattan, where sensitive national security cases are tried. The final government component of the Deep State is a rump of Congress made up of the leadership and some, but not all, of the members of the defense and intelligence committees. The rest of Congress, normally fractious and partisan, is only intermittently aware of the Deep State. But when required, it usually submits to a few well-chosen words from its emissaries. Then you have the three key nodes of corporate America: the military-industrial complex, Wall Street, and Silicon Valley. I’ve already touched on the military-industrial complex. Wall Street is crucial because it supplies the cash to keep the political machine operating. And should our politicians forget their lines, it’s Wall Street that floods Washington with cash and lawyers to help them remember their own best interests. In fact, Wall Street may be the ultimate owner of the Deep State – for no other reason than it has the money to reward government operatives with a second career well beyond the dreams of a government salary man.

CL: You also mentioned Silicon Valley. What role does it play?

ML: As one former NSA insider told me, the Deep State’s spy agencies are utterly dependent on Silicon Valley’s technology – data from social networks, email accounts, cellphones, and so on – and cooperation to perform their missions. I want to stress that this is the furthest thing from a conspiracy theory. What’s important to understand about the Deep State is its sheer everyday-ness. It is the vector sum of all the petty bureaucratic agendas of agencies, major corporations, and think tanks – all marching like a colony of driver ants to maximize their advantage.

CL: Can you give me some concrete examples of the Deep State at work?

ML: Conventional wisdom says “partisan gridlock” is the new normal. Despite this, President Obama, like his immediate predecessor, was able to kill American citizens without due process, detain prisoners without charge, and conduct dragnet surveillance on Americans without a warrant. At home, the Deep State’s power is expressed through massive displays of force by militarized police – federal, state, and local. These are not isolated contradictions. They are so pervasive, they tend to be disregarded as background noise. But the Deep State is most visible in its conduct of foreign policy – specifically America’s state of constant war, executive branch overreach, and congressional inaction in the face of this overreach. The vast majority of voters do not care about foreign policy. So it is left to the foreign policy elites. Also, when domestic tensions become too severe, or polarization between groups too intractable, the temptation exists to resolve these tensions through bogus national unity to be achieved on some foreign field of conflict. A foreign scapegoat transforms the population’s domestic frustrations into fear and hatred of terrorists… or of the Hitler du jour.

CL: As Bill has been writing about, the Deep State is also an economic actor. Can you tell me a bit more about that?

ML: The economic policies the Deep State pursues masquerade as a kind of neo-liberalism. But they are nothing more than crony capitalism. They include the outsourcing and downsizing of labor, a de-emphasis of manufacturing in favor of financialization, and the privatization of government through lucrative contracts. The objectives are to transform human labor into a commodity subject to global arbitrage and to facilitate the capture of the state by corporate interests. This kind of crony capitalism is often called “globalization” – which helps explain why globalization is so unpopular right now. It’s important to remember that the Deep State is not just a U.S. phenomenon. The European Union bureaucracy, based in Brussels, runs on a formula the Beltway mandarins would instantly recognize – opaque decision making, little accountability, bailouts for banks, austerity for the people.

CL: What insights can you share with Inner Circle members about the Deep State in 2017… particularly given Donald Trump’s recent surprise win over its preferred candidate Hillary Clinton?

ML: First, the Deep State is remarkably well entrenched. Its ability to co-opt centers of opposition with endless streams of cash – through campaign donations and the revolving door between government and the private sector – have proven effective time and again. For instance, despite the 2008 global financial crisis – the greatest global economic meltdown since the 1929 crash – bank CEOs are still in their corner offices. And most of the same Wall Street players are still in the saddle. In fact, Wall Street has grown more powerful in the wake of the 2008 meltdown. The five largest banks had assets equal to 43% of U.S. GDP before the crash. By 2012, it was up to 56%. Second, there is a discontent with the Deep State today that was not visible before the 2008 crisis. Ordinary Americans, who typically have little accurate information about how their government really works, have started to intuitively sense something is wrong. Slogans about the “one percent” have entered the vernacular. And Edward Snowden’s revelations about the extent of domestic NSA spying genuinely shocked many people. And although the Tea Party movement that rose in the wake of President Obama’s election win in 2008 was often incoherent, it began to throw sand in the gears of the Deep State apparatus. For example, in 2013, a right-left coalition in the House nearly passed an amendment to defund the NSA’s unconstitutional surveillance programs. This was a major challenge for the Deep State, which thrives on the appearance of normality. As long as appropriation bills get passed, secret intelligence budgets get rubber stamped, tax subsidies for corporations are approved – and as long as too many awkward questions are not asked – the gears of the hybrid state mesh noiselessly. But when insurgencies arise, it works to sideline the insurgents… or assimilate them and render them harmless.

CL: If people are finally becoming aware of the Deep State and the extent of its control over their daily lives, what does that mean for its survival?

ML: Just as the failed attempt to reconstruct the pre-World War I political order in Europe after 1918 led to the far worse phenomenon of totalitarianism, the Deep State’s economic order – its need to be involved in endless small wars and its discouragement of real citizen participation – has led to a strong, but directionless, popular yearning for change and a profound distrust of elites. This populist insurgency is a new phase in the evolution of the Deep State. On the left, Bernie Sanders – like him or not – offered an alternative to the reigning orthodoxy. He promised to sharply reduce income inequality and curtail corporate welfare and to shift priorities away from the military-industrial complex. This was a mortal challenge to the status quo. And Hillary Clinton, the status quo candidate par excellence, overcame the Sanders insurgency with a large organization and oceans of big-donor money. In the Republican primaries, Donald Trump succeeded where Sanders fell short. Facing a divided set of opponents and a weak party establishment, Trump won what seemed like a surprisingly easy victory. The Republican Party was fractured between its wealthy donors – most notably the Koch brothers – and its increasingly working-class voter base. This opened up a path for a brazen populist to conquer the party of Lincoln.

CL: Now, the $64,000 question: How does the Deep State handle President Trump?

ML: Clearly, Trump does not appeal to the senior operatives of the Deep State. Their posse has always been made up of cool, unemotional technocrats offering rational, well-considered advice. Trump’s emotional, histrionic – even vulgar – style embarrasses them. Although the operatives of the Deep State have lied repeatedly, they camouflage these lies with technocratic jargon and careful hedging. Trump’s brazen, repeated, unapologetic lying, on the other hand, flusters the elites. At the same time, it comes across as so bold that many voters believe he is engaged in truth telling. For example, the foreign policy elites have frightened the population for decades about shadowy terrorist cells in the Middle East. At the same time, they piously mouth platitudes that we are not at war with Islam. This ambiguity is not easily digestible at the popular level. Trump sliced through this complexity by saying he would “bomb the hell” out of ISIS, take its oil, ban Muslims from entering the U.S., and kill families of terrorists. To Americans conditioned by threat-mongering into a state of constant fear, this sounded like refreshing wisdom. Second, Trump not only took the Deep State’s technique of displacing domestic tensions onto foreign scapegoats and intensified it. He went a step further. He reimported this technique and applied it at home. Minorities, immigrants – even liberated women – were scapegoated as the causes of voters’ problems.

CL: Will Trump go to war with the Deep State or, as he puts it, “drain the swamp”? Or will he end up playing nice?

ML: Trump’s brand of populism is not a meaningful alternative to the Deep State, as was clearly demonstrated by the first weeks after his election win. Defense stocks rose in the belief that Trump would rebuild America’s so-called depleted defenses – a myth, as we’re spending more on the Pentagon in constant dollars than we did during the Cold War. I would also note that Trump nominated two generals to cabinet positions and a third to be national security adviser. And bank stocks rallied in the belief that Trump would repeal Dodd-Frank Wall Street regulations. How could they not with so many Goldman Sachs alumni in top posts in the new administration? You have Steve Mnuchin of Goldman Sachs at Treasury… and Gary Cohn of Goldman Sachs as Trump’s chief economic adviser. Even the great populist Stephen K. Bannon is a Goldman Sachs alum. It’s definitely curious. And Trump’s cabinet has enough billionaires to make George W. Bush’s cabinet look like a Bolshevik workers’ council. It certainly seems to me as though the Deep State assimilated Donald Trump on the core issues of military funding, using the tax code to entrench wealth, and cutting the Social Security net. But of course, it’s always possible that they always agreed. Who knows? Trump’s often-vulgar populism, which at first seemed like a defect, may have been a brilliant tactic to save the Deep State’s agenda by masking it as something else.

CL: If the Deep State is so entrenched and so powerful… and if Hillary Clinton was its spiritual queen… how did she lose the presidential election?

ML: You can’t say that everything in the world is preordained. Sometimes, people make bad decisions. The Deep State made a bad decision invading Iraq in 2003 – anyone with an IQ above room temperature is perfectly willing to admit that now. They screwed up. And they screwed up putting their money on Clinton. She had been in the national spotlight for a quarter century. Her shelf life had expired. Regardless of how much enthusiasm Democratic Party operatives tried to whip up, there was none. But if my suspicion is correct, Trump was the Deep State’s “hedge.” If all these Goldman Sachs personnel are descending on the Beltway, it didn’t lose either way.


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About Peter Senior

I'm a very experienced and pragmatic management consultant. I've reviewed and led the restructuring of many organisations - large and small corporations and Government Departments, much of the time as President of the New Zealand Institute of Management Consultants. Before that I was General Manager of a major NZ newspaper; earlier, an analyst for IBM UK. I gained an honours degree in engineering at London University, and studied management at Cambridge University. This wide range of experience has left me frustrated: I continue to see too many examples of really bad management. Sometimes small easily fixed issues; sometimes fundamental faults; and sometimes really tricky problems. Mostly these issues can be fixed using a mixture of common sense, 'management 101' and applying lessons from years of management experience. Unfortunately, all too often, politics, bureaucracy and daft government regulations get in the way; internal factors such as poor culture and out-of-date strategies are often evident. So what's gone wrong, and why, and most importantly, how to fix 'it'? I hope there are like-minded people 'out there' who will share their thoughts enabling 'us' to improve some significant management failures that affect the general public. If you just accept bad management, you don't have the right to complain! If you'd like to share thoughts on any aspects of management, send me an email to petersenior42@gmail.com .
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