Deep State [Shadow Government] & The Credit System  
Condensed by Walter Sorochan

Posted May 05, 2017 Updated November 14, 2021


Shadow government and deep state are two different terms and are difficult to understand because there are many definitions of what these are or may be. The Deep State is the big story of our time! In real time, deep state is government workers working behind the scenes of the Trump presidency, as it has been when all presidents were in office.  Deep State  throws roadblocks to to a president's promises, as with President Trump's election promises. 

Below is a display of how the USA government is organized:


There are three terms that describe the government of the United States:

    1. The US constitution and the visible government as we interpret it today.
    2. The Deep State government that is visible and behind the scenes that is made up of those working in different departments of the government and the corporate industry that supports it. This is the hidden government in Washington that runs the show.
    3. Shadow Government is silent, invisible and controls 100% of the money strings and loans for all international governments. It has been the real silent group of super rich who have for the past 100 years have run the world governments and is wired to Deep State.

banking cartelOne version of deep state is confusing it with

Shadow government is superior to deep state. Shadow Government is really the world banking cartel [ illustration on the right] that is a hidden and secret group of eight initial family members that began about 1811 when the Bank of United States was founded, with the Rothschilds as main owners.  Henderson: Fed Res cartel Since this early beginning, the Cartel has run the central banks of all countries. The original secret members that originally formed the cartel [J.P. Morgan, Rothschild Rockefeller and others] have passed on the cartel legacy to their children and grandchildren. The cartel decides which countries get funding and indeed, control the government of all countries.  Sorochan: Money cartel 2016

It is this author's [Walter Sorochan] viewpoint that those describing deep state do not distinguish between Deep State and Shadow Government and this causes confusion. The two terms are used inter-changeably as both are hidden states. But both terms are basically from the same cloth, so to speak, and both reflect the hardwiring of industrial military complex and corporations to the skeleton of constitutional government.

This report is about Deep State, which President Trump phrased as "draining the swap" [swamp referring to deep state which there are thousands of appointed federal workers in the FBI, CIA, international agencies, diplomatic offices and so on]. You won’t read about it in the news because deep state controls the news. Politicians won’t talk about it publicly. That would be like a mobster discussing murder and robbery on the 6 o’clock news. You could say the work of Deep State is hidden, but it’s only hidden in plain sight.

Deep State started with President Eisenhower 's warning about the dangers from within the industrial-military complex in 1961.

The military–industrial complex (MIC) is an informal alliance between a nation's military and the arms industry which supplies it, seen together as a vested interest which influences public policy. A driving factor behind this relationship between the government and defense-minded corporations is that both sides benefit—one side from obtaining war weapons, and the other from being paid to supply them.  It is also related to a term "War for profit". Wiki: Industrial military complex

At the time Eisenhower reflected on the industrial military complex of behind the scenes, no one really understood his warning and the complex, as referred to as the Deep State and is still a hidden mystery.  Eisenhower also revealed American power…a shadow government or banking cartel that was behind the Deep State.  But most main street persons are not aware of all this cloak and dagger stuff!

Just three days after Ike’s farewell speech, John Fitzgerald Kennedy was inaugurated as the 35th President of the United States. Kennedy took Eisenhower’s farewell warning seriously, and took on this unelected cabal of powerful insiders.  Soon after, JFK was assassinated. There are many controversies around JFK’s murder. Who did it? Why? All we know for sure is that, since that dark day in Dallas, no other recent president has dared challenge that group of unelected insiders. 

Donaldson explains how the deep state became bigger and more powerful:

"The origin of the Deep State itself in United States can be traced to two events. Firstly, there was the Manhattan Project – the massive effort by the United States to develop the atomic bomb before the Axis Powers. It was the largest industrial project the United States had ever undertaken up to that point, and was the first example of what would become the hallmarks of the Deep State: a penchant for intense secrecy, coordination of the military and major industrial corporations (Kellex and DuPont were vital in developing the required methods for uranium and plutonium extraction, respectively), the close yet subordinate contributions of American allies like Canada and the United Kingdom, and a virtually limitless budget outlay.

The second event was the passage of a single piece of legislation, the National Security Act of 1947. This act would unify the Departments of the Army, Navy, and newly created Air Force into a single structure that would eventually (in 1949) become the Department of Defense. It also created the Central Intelligence Agency, which would become the preeminent institution in the growing American intelligence structure, as well as the National Security Council, the primary instrument by which the White House would coordinate the arms of the newly-developed permanent national security state. 

Yet the institutions that would be created in the years following WWII would not be limited to internal reorganizations of the United States government. These years would see the creation of such organizations as; the Bretton Woods system of international monetary coordination, as well as the World Bank (both formed in July 1944 as a result of the Bretton Woods conference), the United Nations (formed in June 1945), the International Monetary Fund (formed in December 1945), the General Agreement on Tariffs and Trade (formed in October 1947, which would later become the World Trade Organization in January 1995), and NATO (formed in April 1949). Each of these institutions operated in a separate sphere of economic, military, or diplomatic influence, but all with a common goal – to administer and stabilize a global military and economic order that placed the United States, and thus the ruling American political class, as the permanent primus inter pares of a system designed to ensure permanent American hegemony.

Firstly, and most importantly, that Globalism is the bipartisan governing ideology of the United States."  Donaldson: Deep State operation 2007

A new ABC News/Washington Post poll from 2017 showed that nearly half of Americans believe there is a "deep state" operating within the federal government. Struyk: Deep State 2017

So what is the Deep State and does it exist? Deep State is a body of people, typically influential members of government agencies or the military, believed to be involved in the secret manipulation or control of government policy. That is, government workers run the government according to the constitution and not as a sitting president wants. The idea that a "deep state" exists inside the federal government has risen to prominence during the first 100 days of President Donald Trump's administration.  Does it actually exist?

Trump himself alluded to the deep state when he made campaign promises to "drain the swamp".  President Trump's chief strategist, Steve Bannon when he was still in Trump's cabinette, was the most ardent believer in the White House that a deep state exists, telling conservatives earlier in 2016 that the "deconstruction of the administrative state" was important to the new White House. "Deep state" is the term used to refer to the idea that there's a cadre of career employees inside a government working together to secretly manipulate government policy and undermine elected leaders or political appointees. Deep State is comprised of every branch of government and the sub-divisions within it: Departments of State, Homeland Security, Justice, Treasury, NSA, CIA, FBI and all agencies supervised by the executive Branch, among others.  Article by Sisson: deep state vs constitution is no longer active. In addition, both Houses of Congress and recently the Supreme Court must be considered part of the Deep State. The deep state is made up of government workers in Washington influenced by vested interests outside government. 

Deep State, since President Trump took office, has become a hot silent issue!  With the turmoil of the 2016 election, it is interesting to observe that belief in a "deep state" comes evenly from both parties. Forty-five percent of Democrats say there's a deep state and 46 percent of Republicans say the same. Fifty-one percent of independents believe the same. Still, there's an age gap in belief in the deep state. Six in 10 people under 30 say they believe in the deep state, versus only 37 percent of seniors. Struyk: Deep State 2017

All the permanent institutions of government, once augmented but now in most cases captured [or at least powerfully influenced] by private, for-profit corporations, from defense to intelligence to science. 

Both money and power regularly corrupt human beings, and often do so “absolutely” as Washington, John Quincy Adams, Jefferson, Madison and Monroe – all presidents – made statements descrying political parties and faction [desire for money and power], even calling for political party elimination.  Article by Sisson: deep state vs constitution is no longer active. The drama taking place in Washington during President Trump's 100 days in office reflects the tug of war with deep state and the constitution.

But today the deep state government has brought us to the verge of a historic crisis. Not a military crisis. Not a government crisis. But a financial crisis… even worse than the meltdown of 2008.  Although these powerful insiders could control the military, the bureaucracy, Congress, and the banks…there was one thing they couldn’t understand or control. And now it could be on the verge of a major blow-up.

The banking system has changed, from money to credit evolved and the beginning of a money crisis:

Deep State & entanglements

Shadow government has corrupted not just politics, but also the entire economy. Shadow government, often confused withThe 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.  It doesn't matter which political party is in power, someone behind the scenes is pulling the strings of government.

All the evidence points that today, the global parent shadow government [world banking cartel] controls deep state and, in turn, almost everything: the military and intelligence services, homeland security and the TSA, social security, medical care, the federal income tax system, the U.S. dollar, the banks and the entire financial system itself.

In a single, sudden move – on August 15, 1971 – they took control Wall Street and America’s money. And nobody even noticed. This forever changed the world’s financial system.

Shadow Deep State government – and its leaders – exists right out in the open.

It’s an open secret that explains why so many of us feel like something “isn’t quite right” in the world.  Many suspect that there is something wrong with the government in Washington but can't put their finger on it!

Once you know the secret behind this powerful group, you’ll understand:

  • Why your vote rarely matters…  And why there will be little difference between a Democrat or Republican president, despite what they claim in their campaigns.

  • Why most everyday Americans feel like it’s impossible to get ahead, despite all of our so-called “progress” over the past 40 years. (The average American hasn’t gotten a raise in decades, earning no more than he did in the 1970s… )

  • The reason why, since 1979, the top bracket has experienced seven times more income growth than the middle class.

  • America keeps waging aggressive and endless wars that are to be lost, at great human cost (and cost to the taxpayer.)

  • Why your hold-in-your-hand cash, your privacy, and your core financial freedoms are quickly disappearing in America.

  • And how the feds pulled off the biggest legal money grab in modern history. They stole $8 trillion from savers and retirees – and transferred it to Wall Street and their crony friends.

The illustration on the right contrasts the USA government to deep state and Shadow government with the iceberg illustration on the right side:Bonner iceberg1

Only 10% of the tip of the iceberg [representing the U.S. government] appears above the water while the remaining 90% remains unseen, below the surface.

The remaining 90%, which controls the real money and power, is unelected and hidden from view.  The tip of the iceberg – the part that you can see, sitting above the waterline -- is the elected, visible government. It’s both houses of Congress, the President, your state and local governments, the judicial branch…

But the part you can’t see represents the real power.

It’s called the Deep State: The Deep State [government workers] doesn’t face elections and isn’t limited by term limits or the public voice. It answers to no one but itself.

It consists of the careerist bureaucrats, the silent intelligence and surveillance apparatus, the Pentagon paper pushers [but not the real soldiers[, the lobbyists backed by billions of untracked dollars, Wall Street, crony contractors, the Federal Reserve and the vast military industrial complex.

But that’s not the end of the story. It is only the beginning .… Research has uncovered a weak link in the entire chain of the Deep State’s power and influence…a “fatal flaw” that threatens the whole system at once.

It has to do with America’s money, and how this shadow government works.

Predicted money crisis: The money crisis has a bubble that is about to explode, just as the 2008 bubble; only no one knows when this will happen. The coming crisis promises to be even worse than the financial meltdown of 2008 -- because since then, the debt problem has doubled in size, and so has the threat it poses.

deep state loan_creditcardFast forward:  The emergence of the credit system:

 What most people don’t realize is that in the 1950s, prodded by elements in the Deep State, the United States began switching over to an entirely new kind of economic system. Although the graph below displays this trend for the United Kingdom, this trend was also identical to that of United States. As people began using credit cards [red] to buy goods on credit, their use of cash or real money [green] dwindled. Credit cards created more national money and in turn, more debt. 


Deep state M4-Base-Money-Graph Uk

By the 1970s, President Nixon made it official…and nobody noticed it.

This new system was – on the surface – a great success. It has allowed us to amass more wealth on paper than any other nation in history:

  • Despite the collapse of our industrial sector in the ’70s...
  • Despite our manufacturing base moving  overseas, resulting in lost jobs and broken towns all over America
  • Despite two major market crashes in just the past 15 years… this new system made our economy what it is.
  • It’s what keeps our lights on… our grocery store shelves stocked… our gas stations fueled… our Social Security checks in the mail… and our investments producing gains.

If you’ve ever wondered how we manage to keep going despite every sign pointing to a coming collapse…this is it .... by using credit instead of cash or real money.  Credit cards have displaced real money.

Fast forward:

The credit Problem:

Here's the obvious and immediate problem: there's not enough real money in the system. There’s no official record of this, but economists estimate that somewhere between $958 billion to $1.5 trillion changes hands in the U.S. every month.

But here's the thing: there's only $1.2 trillion worth of actual dollars – physical money – in the entire world. So how can the financial system keep on working?

All in all, there might be as little as 250 billion circulating here in the United States.  And while that might seem like a lot of money, consider that a single U.S. company – Walmart – takes in nearly twice that amount in annual revenue, and our government spends 14 times that amount in just a year.

So if there are only 250 billion physical U.S. dollars in this country, where are all those trillions of dollars coming from, and what would happen if they suddenly disappeared?

So people are spending something else .... like using credit instead of cash or money.

It's our credit system.

As you can see from the chart below, our current U.S. credit system [blue graph] started around 1950. In the late '70s, with traditional American industries – such as cars, steel, televisions, radios, even computers – moved overseas. Credit came in and replaced traditional wage increases as a way to prop up our economy. That's what triggered the massive growth phase. It entered in the early 1970's. time.  The graph below shows the credit consumption by consumers from 1952 to 2016.

Bonner Am credit

In the 1970s we had a near miss with a very similar kind of crisis. Our steel and auto industries began to fail; gas prices soared; riots broke out in major cities, like Philadelphia, Boston, and Chicago.

Credit, not real money, is what people spend. Since 1971, the real money has been taken out of the system. Credit is what we have now.

And every credit dollar has a dark side to it -- debt. Both the individuals and the federal government are generating debt. The chart on the bottom left illustrates the rise in debt and especially in 2016.

The debt continueddebt credit US to rise each year, as the government continued to print paper money and borrow more and more money though it had a “surplus". The federal government accounting office plays book keeping games to hide the surplus to make it look like it just disappeared.  And it has no trace of it and no questions asked!  This messy book-keeping by the federal government becomes more complicated when one realizes that the federal government keeps printing money without any collateral to back it up. This printed money is somehow injected into the credit system.

To put that in context, $10.2 trillion vanished during the financial meltdown of 2008.

But here's the truth: Our national credit system is insolvent. And when it fails, which it surely will do one day, it could wipe out more wealth than any other crisis in history.

How the credit system works in America

Here is how the credit cycle works in modern America:  long, complex chains of production and distribution put food on your table and gas in your car.

  • "Eight out of ten people live in cities or suburbs. Almost no one, not even the farmers themselves, can survive off of food they grow themselves. Instead, they all depend on credit. First, the farmer gets a loan from the bank to buy his farm.
  • Then he uses credit to buy supplies, fuels, fertilizer, seed – everything.
  • After the crops are sown, the wholesaler, who got a loan to build his warehouse and processing center, uses credit to buy the raw food from the farmer so he can process it and package it.
  • Then a trucker, who got an auto loan to buy his truck, uses credit to buy fuel so he can haul the food to a retailer.
  • The retailer needs credit to keep the lights on and the shelves stocked and the stores open.
  • Each part of this chain can afford to take on that debt because they know that eventually the consumer will buy that food, mostly likely using a credit card."

The credit problem:

If any one crucial piece of that chain stops working… businesses can't run. Paychecks don't go out.

When the credit system starts to implode, it not only destroys the mechanism that runs our economy, it shuts down our access to our own money.

You go to your ATM; you ask for cash, but there isn't any cash left. Suppose you have a $10,000 line of credit on your card.

If the credit system doesn’t work, you might as well be flat broke.

Dollars become ultra scarce. Prices skyrocket. Banks go under.

In fact, it would only take about three hours for our entire country to shut down.

People believe that our credit economy can just keep going forever, that we can keep borrowing and spending money that really isn't there.

In short: there's not enough real money, real cash – real wealth -- to support the standard of living that we're used to.

Summary: The economic crisis in USA today is not so much a money cash crisis as it is a credit - debt crisis. Since 1973, we have adopted credit for cash as media of currency and payment. Credit has pushed us into horrendous debt as individuals and as a country or state. Government borrowing incessantly without any or little collateral puts everyone in debt. We play with credit cards as a transfer of debt and with no cash exchanging hands. With every transaction, the total debt increases with no light at the end of the tunnel to be able to clear the debt.

Credit cards, as part of the Deep State, already control just about every aspect of American life... from health care to education, from the food on our tables to the never-ending war on terror.

Excessive money printing by the U.S. Federal Reserve and by other major central banks around the world is causing a silent money -debt bubble. The Federal Reserve and other central banks around the world create money out of thin air. They pump that electronic money as debt into the banking system.


Bezroukov Nikolai, "Deep State," Casino capitalism, March 20, 2019.  Bezroukov: Deep state 2019

Bryan Bob, "Here's how much debt the US government added under President Obama," Business Insider, January 20, 2017.  Bryan: Obama debt 2017

Donaldson, Michael, "How the deep state operates," Return of Kings, March 2, 2017.  Donaldson: Deep State operation 2007

We can identify the core institutions of the Security Deep State as the following: 1. The National Security Council, as the bureaucratic co-ordinator of the Deep State 2. The Department of Defence 3. The Department of State 4. The Department of Homeland Security 5. The agencies that make up the US Intelligence Community, within which the two most important agencies are: —The Central Intelligence Agency, responsible for foreign HUMINT and paramilitary operations, and —The National Security Agency, responsible for cryptanalysis, signals intelligence, and (increasingly) cyberwarfare. 6. The Department of Justice, including the Federal Bureau of Investigation 7. Certain federal courts tasked with handling sensitive cases involving national security, including —The Southern District of New York, —The Eastern District of Virginia, —And the Foreign Intelligence Surveillance Court; 8. Large defence contractors, including companies like Boeing and Lockheed-Martin, as well as intelligence contractors such as Booz Allen Hamilton (the company that employed NSA leaker Edward Snowden) 9. A kind of mini-Congress, consisting of —The Speaker of the House of Representatives and the President pro tempore of the Senate, —The Majority and Minority Leaders of the House and Senate, —And the Chairman and Ranking Members of the House and Senate Armed Services and Intelligence Committees.

Greenspan Alan, "Gold and Economic Freedom,", April 28, 2017.  Greenspan: Gold & freedom 2017

Henderson Dean, "The federal reserve cartel: The Rothchold, Rockerfekker and Morgan families, Humans Are free."  Henderson: Fed Res cartel

Lofgren Mike, "Essay: Anatomy of the Deep State," February 21, 2014.  Article by Lofgren: Deep State is no longer active.

Lofgren Mike, The Deep State, Penguin Books, 2016.  Lofgren:The Deep State 2016

Sisson Dan and Thom Hartmann, "Our Constitution Vs. the Deep State Run by Intelligence Agencies and the Pentagon — Only One Will Survive," AlterNet, May 1, 2017.  Article by Sisson: deep state vs constitution is no longer active.

Sorochan Walrer, "Currency market, the money cartel and world economy,", July 30, 2016.  Sorochan: Money cartel 2016

Struyk Ryan, "What you need to know about the 'deep state'," ABC News, April 29, 2017.  Struyk: Deep State 2017

The Deep State.  Deep State

Wikipedia, "Industrial Military Complex."  Wiki: Industrial military complex

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