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Updates March 13, 2014) Volume 12 | Issue 10 | Number 5 | Article ID 4090 | Mar 03, 2014 The Asia-Pacific Journal | Japan Focus The State, the Deep State, and the Wall Street Overworld 国と 深層国家と超支者ウォール・ストリート (Updates March 13, 2014) Peter Dale Scott traditional Washington partisan politics: the tip of the iceberg that Updated March 13, 2014. German a public watching C-SPAN sees translation available. daily and which is theoretically controllable via elections. The subsurface part of the iceberg I shall call the Deep State, which In the last decade it has become more and operates according to its own more obvious that we have in America today compass heading regardless of what the journalists Dana Priest and William 3 who is formally in power. Arkin have called At the end of 2013 a New York Times Op-Ed two governments: the one its noted this trend, and even offered a definition citizens were familiar with, of the term that will work for the purposes of operated more or less in the open: this essay: the other a parallel top secret government whose parts had mushroomed in less than a decade DEEP STATE n. A hard-to- into a gigantic, sprawling universe perceive level of government or of its own, visible to only a super-control that exists regardless carefully vetted cadre – and its of elections and that may thwart entirety…visible only to God.1 popular movements or radical change. Some have said that Egypt is being manipulated by its deep And in 2013, particularly after the military state.4 return to power in Egypt, more and more authors referred to this second level as America's "deep state."2 Here for example is The political activities of the deep state are the the Republican analyst Mike Lofgren: chief source and milieu of what I have elsewhere called "deep politics:" "all those political practices and arrangements, There is the visible government deliberate or not, which are usually repressed situated around the Mall in rather than acknowledged."5 Washington, and then there is another, more shadowy, more Others, like Tom Hayden, call the deep state a indefinable government that is not "state within the state," and suggest it may be explained in Civics 101 or responsible for the failure of the Obama observable to tourists at the White administration to follow the policy guidelines of House or the Capitol. The former is the president's speeches: 1 12 | 10 | 5 APJ | JF We have seen evidence of a "state States subsequently competed in a Cold War to within the state" before, going fill the gap. It was not however predetermined back as far as the CIA's operations that the Cold War would be as thuggish and against Cuba. In Obama's time, the covertly violent as for decades it continued to president correctly named the be. For that we should look to more contingent 2009 coup in Honduras a "coup", causes on both sides of the Iron Curtain – and then seemed powerless to starting with the character of Stalin and his prevent it.6 party but also including the partly responsive development of the American deep state. This development of a two-level or dual state The Deep State, The Shadow Government has been paralleled by two other dualities: the and the Wall Street Overworld increasing resolution of American society into two classes – the "one percent" and the "ninety- The "deep state" was defined by the UK nine percent" – and the bifurcation of the U.S. newsletter On Religion as "the embedded anti- economy into two aspects: the domestic, still democratic power structures within a subject to some governmental regulation and government, something very few democracies 10 taxation, and the international, relatively free can claim to be free from." The term from governmental controls.7 All three originated in Turkey in 1996, to refer to U.S.- developments have affected and intensified backed elements, primarily in the intelligence each other – particularly since the Reagan services and military, who had repeatedly used violence to interfere with and realign Turkey's Revolution of 1980, which saw American democratic political process. Sometimes the inequality of wealth cease to diminish and definition is restricted to elements within the begin to increase.8 Thus for example we shall government (or "a state-within-the state"), but see how Wall Street – the incarnation of the more often in Turkey the term is expanded, for "one percent" – played a significant role in historical reasons, to include "members of the increasing the deep state after World War Two, Turkish underworld."11 In this essay I shall use and how three decades later the deep state "deep state" in the larger sense, to include both played a significant role in realigning America the second level of secret government inside for the Reagan Revolution. Washington and those outsiders powerful enough, in either the underworld or overworld, In earlier books I have given versions of this to give it direction. In short I shall equate the America-centered account of America's shift term "deep state" with what in 1993 I termed a into empire and a deep state. But another "deep political system:" " one which habitually factor to be mentioned is the shift of global resorts to decision-making and enforcement history towards an increasingly global society procedures outside as well as inside those dominated by a few emergent superpowers. publicly sanctioned by law and society."12 This trend was accelerated after the Industrial Revolution by new technologies of transport, Like myself, Lofgren suggests an ambiguous from the railroad in the 19th century to the jet symbiosis between two aspects of the American 9 plane and space travel in the 20th. deep state: In the fallout from this rearrangement we must include two world wars, as a result of which 1) the Beltway agencies of the Britain ceased to act as the dominant shadow government, like the CIA superpower it had been since Napoleon. Not and NSA, which have been surprisingly, the Soviet Union and the United instituted by the public state and 2 12 | 10 | 5 APJ | JF now overshadow it, and were able in a highly secret meeting in 1910 to establish the Federal Reserve System – a 2) the much older power of Wall system which in effect reserved oversight of Street, referring to the powerful the nation's currency supply and of all banks and law firms located there. America's banks in the not impartial hands of its largest.15 The political clout of the quasi- governmental Federal Reserve Board (where In his words, the federal Treasury is represented but does not dominate) was clearly demonstrated in It is not too much to say that Wall 2008, when Fed leadership secured instant Street may be the ultimate owner support from the successive administrations of of the Deep State and its a Texan Republican president, followed by a strategies, if for no other reason Midwest Democratic one, for public money to than that it has the money to rescue the reckless management of Wall Street reward government operatives banks: banks Too Big To Fail, and of course far 16 with a second career that is Too Big To Jail, but not Too Big To Bail. lucrative beyond the dreams of avarice - certainly beyond the Wall Street and the Launching of the CIA dreams of a salaried government Top-level Treasury officials, CIA officers, and employee.13 Wall Street bankers and lawyers think alike because of the "revolving door" by which they I shall argue that in the 1950s Wall Street was pass easily from private to public service and a dominating complex. It included not just back. In 1946 General Vandenberg, as Director banks and oil firms but also the oil majors of Central Intelligence (DCI), recruited Allen whose cartel arrangements were successfully Dulles, then a Republican lawyer at Sullivan defended against the U.S. Government by the and Cromwell in New York, "to draft proposals Wall Street law firm Sullivan and Cromwell, for the shape and organization of what was to home to the Dulles brothers. This larger become the Central Intelligence Agency in complex is what I mean by the Wall Street 1947." Dulles promptly formed an advisory overworld. group of six men, all but one of whom were Wall Street investment bankers or lawyers.17 The Long History of the Wall Street Dulles and two of the six (William H. Jackson Overworld and Frank Wisner) later joined the agency, where Dulles proceeded to orchestrate policies, Lofgren's inclusion of Wall Street is in keeping such as the overthrow of the Arbenz regime in with Franklin Roosevelt's observation in 1933 Guatemala, that he had previously discussed in to his friend Col. E.M. House that "The real New York at the Council on Foreign Relations.18 truth … is, as you and I know, that a financial element in the larger centers has owned the There seems to be little difference in Allen Government ever since the days of Andrew Dulles's influence whether he was a Wall Street Jackson."14 lawyer or a CIA director. Although he did not formally join the CIA until November 1950, he FDR's insight is well illustrated by thewas in Berlin before the start of the 1948 Berlin efficiency with which a group of Wall Street Blockade, "supervising the unleashing of anti- bankers (including Nelson Rockefeller'sSoviet propaganda across Europe."19 In the grandfather Nelson Aldrich and Paul Warburg) early summer of 1948 he set up the American 3 12 | 10 | 5 APJ | JF Committee for a United Europe (ACUE), in to shellack striking Communist support of what became by the early 1950s "the dock workers.25 largest CIA operation in Western Europe."20 The Deep State and Funds for CIA Covert An analogous funding source for the CIA Operations developed in the Far East: the so-called Wall Street was also the inspiration for what eventually became the CIA's first covert "M-Fund," a secret fund of money operation: the use of "over $10 million in of enormous size that has existed captured Axis funds to influence the [Italian] in Japan [in 1991] for more than election [of 1948]."21 (The fundraising had forty years.
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