Is The Deep State Fracturing Into Disunity?

Tyler Durden's picture


Submitted by Charles Hugh-Smith of OfTwoMinds blog,

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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Fri, 03/14/2014 - 13:22 | 4548636 Dollarmedes
Dollarmedes's picture

Wall Street is symbiotic with government. If Wall Street has become a threat to the deep state, then so has government.

Fri, 03/14/2014 - 13:24 | 4548645 takeaction
takeaction's picture

This girl is HOT...Look.  Tylers..this would be a great article to share.

Fri, 03/14/2014 - 13:35 | 4548688 McMolotov
McMolotov's picture

Lots of former Obama supporters are now realizing you can't polish a turd.

Fri, 03/14/2014 - 13:40 | 4548707 redpill
redpill's picture

Ogolfer and his perpetual two term vacation is in lock step with Wall Street in lifestyle, the only way it could fracture is if someone got elected who had the balls to upset the apple cart.  Of course whomever that was would probably get shot* long before they were allowed to do much.


*tragic suicide with pneumatic nail gun

Fri, 03/14/2014 - 13:45 | 4548728 0b1knob
0b1knob's picture

The parasite is killing the host.   Time for the gigantic blood engorged tick of the deep state to drop off.

Fri, 03/14/2014 - 16:11 | 4549471 CH1
CH1's picture

Time for the gigantic blood engorged tick of the deep state to drop off.

As long as everyone obeys them, why should they give up their game?

The tick anology notwithstanding, we're talking about humans here. As long as the suckers keep handing over their treasure, why should they ever let go?


Fri, 03/14/2014 - 17:09 | 4549763 Poor Grogman
Poor Grogman's picture

"why should they ever let go" You rightly ask?

As long as the PTB can keep at least the illusion of the dream alive in the sheeples mind, the cleptocratic parasite of fascist corporatism will remain firmly attached, to the body of the people.

The sheeple must remain convinced that there is still a chance for them to improve their position, and pocket a greater share of the booty. Hence the government promises and handouts get more and more outrageous, and the welfare state bribes flow ever more freely.

Only when the state cannot hand out any more "free shit" will the sheeple wake up and realise that they have been picked clean.

This may happen in a currency crisis situation, where future promises go up in smoke, and purchasing power collapses, or currency's suddenly suffer a loss of faith. (Audit of FED gold anyone)

Then the real fun begins.

Prepare accordingly..

Fri, 03/14/2014 - 13:49 | 4548755 Bastiat
Bastiat's picture

Re:  Polishing a turd--word out from very close to the source that Carney is quitting.

Fri, 03/14/2014 - 13:55 | 4548782 TheFourthStooge-ing
TheFourthStooge-ing's picture


Re:  Polishing a turd--word out from very close to the source that Carney is quitting.

Maybe he wants to work in a more respectable field, like organ harvesting or human trafficking.

The smart money says, "he wants to spend more time with his family."

Fri, 03/14/2014 - 17:14 | 4549776 Lost Word
Lost Word's picture

Maybe he has gotten tired of ruining his reputation

everytime he opens his mouth

defending Obama.

Fri, 03/14/2014 - 14:04 | 4548825 sleigher
sleigher's picture

Well if she can start to wake up then there might be hope yet.  Someone please explain to her the left right paradigm and how it doesn't matter who is in charge.

Fri, 03/14/2014 - 14:40 | 4548958 James_Cole
James_Cole's picture

This is why the internet needs to be policed, people spend a little bit of time looking things up and they realize most everything they've been told by corporate state / corporate education / corporate advertising is bullshit propaganda.

Yep, not the onion. Folks who know knew all along. 

Fri, 03/14/2014 - 20:22 | 4550415 putaipan
putaipan's picture

will someone please explain to this guy that the "deep state" are not "rah-rah go usa" style nationalists. sheesh. what part of quigley does this guy not understand? for a little better informed writer on the deep doodoo- mr.scott ...

Fri, 03/14/2014 - 14:45 | 4549015 Dark Space
Dark Space's picture

She's kind of cute, but her voice is annoying. Why does she stop taking her clothes off? It doesn't make sense when it's muted - any video worth its salt makes sense even without the audio.

Fri, 03/14/2014 - 15:35 | 4549263 Herd Redirectio...
Herd Redirection Committee's picture

LOL.  I got the gist after listening for 45 seconds.  But she is mega-cute!

Fri, 03/14/2014 - 13:22 | 4548640 DaddyO
DaddyO's picture

I'd say it fractured decades ago, we just now starting to feel the consequences...


Fri, 03/14/2014 - 13:31 | 4548676 Dollarmedes
Dollarmedes's picture

I can name the decade: the 1990's. Specifically, the Clinton years.

Wall Street always had influence (as big money always does) with government, but Clinton's changes to the law and affirmative policies enabled the metastasis of Wall Street into what it is now.

Why did he do it? Maybe he thought he could import the same petty corruptions from Arkansas onto the national stage.

Fri, 03/14/2014 - 13:40 | 4548708 RaceToTheBottom
RaceToTheBottom's picture

With the MIC, it was lots earlier

Fri, 03/14/2014 - 13:54 | 4548778 Bay of Pigs
Bay of Pigs's picture

It all started in 1913 when the FED was created, and the last 50 years have been a total clown show (deficit spending and massive debt accumulation).

And yes, the Gramm/Leach/Bliley Act was the final blow from holding those fuckers back in 1999. The Banksters are clearly running the country now, not the bozo's in DC.

Fri, 03/14/2014 - 14:44 | 4549008 Rakshas
Rakshas's picture

1913 was the begining of the current campaign but the war has been raging since before the war of independence ....... honest money is the worlds only means to freedom; although this will never be possible without dispatching the private central banks to the pits of hell..... just a thought.

Fri, 03/14/2014 - 15:58 | 4549414 mumbo_jumbo
mumbo_jumbo's picture

i guess you missed this part of the equation.

and let me say I'm no fan of the fat narrator but the look on Regan's Face pretty sums up who's in matter which party is in office.

AND on a final note, my business has ALWAYS done better with a dumbocrate in the white house.

Fri, 03/14/2014 - 19:25 | 4550224 Spanky
Spanky's picture

Why did he do it? -- Dollarmedes

Warren Stephens was Bill's financial angel. At the time Stephens Inc. was the largest off Wall Street brokerage in the US. That and Winthrop's family interests might explain it...

Fri, 03/14/2014 - 13:27 | 4548641 Ignatius
Ignatius's picture

Charles is trying to own the 'deep state' narrative, but he and Kuntsler's misses in these areas are legion (9/11, etc.).

They should stick to what they know.

Fri, 03/14/2014 - 13:30 | 4548669 VD
VD's picture

not limited to their ignorance of 'peak oil' ....

Fri, 03/14/2014 - 13:40 | 4548711 Ignatius
Ignatius's picture

Yeah right, the center of the Earth is a chewey nugget center filled with crude oil.

Peak oil is actually one trend they both understand.

Fri, 03/14/2014 - 15:36 | 4549276 Herd Redirectio...
Herd Redirection Committee's picture

9/11 is the litmus test.  And some people, sadly, fail.

Fri, 03/14/2014 - 17:18 | 4549793 Lost Word
Lost Word's picture

Unfortunately, most people fail,

not counting the readers of the internet alternate news media.

Fri, 03/14/2014 - 16:11 | 4549472 VD
VD's picture

u too can join their peak oil hysterical club; juz rem peak oil is big oil skam on ignoramuses like urself to keep prices sky high - but u prob think oil comes from dinosaurs LOL!

Fri, 03/14/2014 - 14:49 | 4549031 Hohum
Hohum's picture


Peak net energy extraction from oil is already in the rearview mirror.  Look at the oil stats in the Bakken for proof.

I think you're in the stage, VD, where you're happy that your balls are getting bigger but unaware that gangrene is about to set in.


Fri, 03/14/2014 - 20:26 | 4550431 putaipan
Fri, 03/14/2014 - 13:25 | 4548648 Okienomics
Okienomics's picture

"I think you'll find the discussion of interest; you certainly won't hear this topic being aired elsewhere."

Moyers might beg to differ....

Fri, 03/14/2014 - 13:28 | 4548660 Ignatius
Ignatius's picture

Moyers has weighed in, as well as Peter Dale Scott.

Fri, 03/14/2014 - 15:31 | 4549243 MrPoopypants
MrPoopypants's picture

Peter Dale Scott was writing about the petro-dollar since at least 2001, when I first became "educated."  He also touches on JFK's conflict with the deep state, and CIA drug trafficking.  Gore Vidal was writing about the rise of the deep, dark National Security State decades ago.

Fri, 03/14/2014 - 16:54 | 4549673 caustixoid
caustixoid's picture

Too right.  In fact I just read this from Peter Dale Scott, which is a good history.

The State, the Deep State and the Wall Street Overworld

He doesn't address current question though - if they turned on each other who would win?   I say the security state, unless they are still controlled by Wall Street as they were in the early days.   If those connections have been severed, well the security state can ruin you and steal your money too - they'd know your location, listen to your communication and know where your money, set and match. 

Truly Wall Street should remember the German industrialists that supported Hitler - didn't go great for a lot of them.

Fri, 03/14/2014 - 17:22 | 4549805 Lost Word
Lost Word's picture

Peter Dale Scott was excellent in the past,

but unfortunately, he is getting old in years,

torch must be passed to a new generation.

Fri, 03/14/2014 - 14:01 | 4548812 Shad_ow
Shad_ow's picture

While he makes some good points he conveniently omits that Obama has a magic pen and Eirc Holder is as corrupt as any member of the deep State.

Fri, 03/14/2014 - 15:16 | 4549162 rosiescenario
rosiescenario's picture

Excellent article....too bad he did not cite Halliburton's receiving the first spoils of war in Iraq....

Fri, 03/14/2014 - 13:30 | 4548661 ebworthen
ebworthen's picture

If as a society we don't return to shame for sloth and greed with respect for industry and thrift we have reached peak "developed" world.

There needs to be shame and punishment for mammon-lusting, graft, corruption, selfishness.

Our society has devolved into a heap of juvenile narcissism and lustful excess.

Like the individual, for a society this eventually leads to ruin.

Storm the castles and roll the guillotines.

Fri, 03/14/2014 - 15:30 | 4549236 Elliott Eldrich
Elliott Eldrich's picture

Guillotines? How unimaginative...

Fri, 03/14/2014 - 13:35 | 4548663 FilthyHabits
FilthyHabits's picture

The party is over. Go home and get some rest. Don't be the whore who lines herself up in the coat room.

Fri, 03/14/2014 - 13:29 | 4548664 yogibear
yogibear's picture

Plenty of tall buildings in NY for these banksters to use and do the right thing.

Fri, 03/14/2014 - 13:40 | 4548710 Ban KKiller
Ban KKiller's picture

We took up a collection and raised enough money to send out nail guns. With instuctions for best use.

Long 22 LR Bricks.

Fri, 03/14/2014 - 17:26 | 4549822 Lost Word
Lost Word's picture

More likely the Banksters will use tall buildings for the wrong thing,

similar to their 9-11 inside job.

Fri, 03/14/2014 - 13:30 | 4548666 adr
adr's picture

When the parasites no longer have any hosts, they must suck off each other.

That is what is going on now. The rich are eating each other to grow fatter. Eventually there will be too few left to survive. But that last one will be able to live out the rest of his life relatively well from the level of engorgement. Like a 700lb man starving to death.

Fri, 03/14/2014 - 13:32 | 4548677 eclectic syncretist
eclectic syncretist's picture

Fuckin A right, and I'm lovin every minute of it.  And if they refuse a peaceful redistribution of wealth then they'll get just what they asked for, a violent redistribution of wealth.  History teaches us that these are the choices.

Fri, 03/14/2014 - 13:39 | 4548706 FilthyHabits
FilthyHabits's picture

Admittedly, I like the sight of blood; literally.

Fri, 03/14/2014 - 13:31 | 4548671 monad
monad's picture

Left-Right shield. TPTB pretends to be split and do predatory things, the one hand pretending to be indignant and blaming the other hand when really just sweeping it into the memory hole. Circus. If you task your analytical scalpel laterally, you find that WS is the police state and the police state is the muscle for WS.

Fri, 03/14/2014 - 13:30 | 4548672 waterhorse
waterhorse's picture

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? 

I would LOVE to see Jamie Dimon's pompous ass thrown under the bus.  Bring it on!

Fri, 03/14/2014 - 14:19 | 4548899 Seer
Seer's picture

Careful what you wish for!

I'd make sure to add the requirement that Dimon doesn't die instantly, that he provide ample time for people to come to the rescue (though, no rescue actually comes).  Give him some time to, you know, exercise the ability to show some humility...

Fri, 03/14/2014 - 13:31 | 4548674 kito
kito's picture

factions within the deep state? you mean actual factions, or the manufactured ones?

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