Home Switchboard Unix Administration Red Hat TCP/IP Networks Neoliberalism Toxic Managers
May the source be with you, but remember the KISS principle ;-)

Deep State

News Media-Military-Industrial Complex Recommended Books Recommended Links National Security State / Surveillance State Big Uncle is Watching You  US and British media are servants of security apparatus
 Nation under attack meme Fake News scare and US NeoMcCartyism Trump vs. Deep State Anti Trump Hysteria Anti-Russian hysteria in connection emailgate and DNC leak Neoconservatism New American Militarism
Jingoism of the US neoliberal elite American Exceptionalism Corporatism Neo-fascism Inverted Totalitarism Bureaucracies Bureaucracy as a Political Coalition
Neoliberalism as a New Form of Corporatism  The Pareto Law Amorality of neoliberal elite Casino Capitalism Ayn Rand and Objectivism Cult Pluralism as a myth What's the Matter with Kansas
Neoliberal Brainwashing: Journalism in the Service of the Powerful Few The Guardian Slips Beyond the Reach of Embarrassment The importance of controlling the narrative  Patterns of Propaganda Corruption of Regulators Two Party System as polyarchy Audacioues Oligarchy and Loss of Trust
Hillary "Warmonger" Clinton - unsuccessful deep state candidate for presidency US Presidential Elections of 2016 as a referendum on neoliberal globalization Swiftboating Trump: Khan gambit against Trump at the Democratic Convention Obama: a yet another Neocon Neocon foreign policy is a disaster for the USA Robert Kagan Paul Wolfowitz
Wrecking Crew: Notes on Republican Economic Policy Libertarian Philosophy In Goldman Sachs we trust: classic example of regulatory capture by financial system hackers Groupthink Skeptic Quotations Humor Etc


DEEP STATE n. A hard-to-perceive level of government or super-control that exists regardless of elections and that may thwart popular movements or radical change. Some have said that Egypt is being manipulated by its deep state.

A Wordnado of Words in 2013 - , Dec 21, 2013

"For some time I have been disturbed by the way the CIA has been diverted from its original assignment. It has become an operational and at times a policy-making arm of the government.... I never had any thought that when I set up the CIA that it would be injected into peacetime cloak and dagger operations."

President Harry Truman

"For we are opposed around the world by a monolithic and ruthless conspiracy that relies primarily on covert means for expanding its sphere of influence - on infiltration instead of invasion, on subversion instead of elections, on intimidation instead of free choice, on guerrillas by night instead of armies by day.

It is a system which has conscripted vast human and material resources into the building of a tightly knit, highly efficient machine that combines military, diplomatic, intelligence, economic, scientific and political operations. Its preparations are concealed, not published. Its mistakes are buried not headlined. Its dissenters are silenced, not praised. No expenditure is questioned, no rumor is printed, no secret is revealed."

President John_F._Kennedy, speech on April 27, 1961

In a way the concept of  Corporatism and the concept of  "deep state' are very close, almost synonyms. Corporatism presuppose the merger of government and corporations. It can be done openly as was the case in Mussolini Italy or via back door, "revolving door" mechanism as it was done in the USA. In the latter case part of power of 'surface state" is preserved.

The concept of the  deep state is related to the answer the another fundamental question: Can democracy exists in a state with powerful intelligence agencies like NSA, CIA, FBI (which plays the role of counterintelligence agency in the USA; look at Russiagate) and the State Department (which has functions,  which duplicate those of CIA).

Intelligence agencies  get special status under corporatism. moreover they now constitute the backbone Media-Military-Industrial Complex which is extented to major Wall Street banks (which historically have a very close ties with CIA; CIA was formed by lawyers which served their interests such  as Allen Dulles).   So the financial oligarchy, , now is permanent and important (maybe  the most important) part of this complex (especially Goldman Sachs  and Citibank). Recently Silicon Valley mega corporations also joined it and all of them are closely connected to NSA and CIA (especially Amazon, Google and Facebook). So now this is Medial-Military-Financial-Industrial-SiliconValley complex.

This is new unelected aristocracy with huge financial resources that stands above law and can't be easily demotes from their positions (J. Edgar Hoover  is an excellent example here).  They now are a new incarnation of "royal court", which can, like in old times,  to depose a monarch or even kill him.

So in a way the concept of "deep state"  is the hypertrophied role of three letter agencies and joined at the heap with  them financial oligarchy, MIC and Silicon Valley in national politics. Especially in formulating foreign policy. Influence  of MIC on  the US foreign policy is nothing new.  After all one of the hypotheses of why JFK was killed is that his  policies were directed against intelligences agencies and MIC. But devil is always in details and some features of the USA deep state are unique and different the deep state in other neoliberal countries such as EU, GB or Russia. BTW the term "deep state" originated in Turkey. 

But deep state victory is still incomplete. The "surface state" is still keeping some positions and even try to counterattack deep state in certain areas. Second, the merger of interests of three letter agencies like CIA/NSA and Wall Street can never be absolute as they have different worldviews on both the USA foreign policy priorities and methods of achieving them. They only partially coincide.  Also relations between three letter agencies are far from harmonious at all with CIA ('humint") very concerned about recent rise of status and capabilities of NSA ("sigint").  They lie to each other and try to poach  funds from the other agencies. for example the relations between NSA and CIA are far from harmonious with CIA brass being very concerted about increase  role of NSA in the era on Internet communications  and trying to counterattack. Add to this a special, more independent, status and role of military intelligence which also in now in best relations with both CIA and NSA (as destiny of General Flynn, who served as the director of the Defense Intelligence Agency,  and in 2017 was entrapped by FBI with the help of NSA and CIA can attest). So in certain areas they are more like spiders in the cage with CIA perfectly capable attacking NSA and vise versa. That gives us some hope. 

Two party system invented by elite of Great Britain proved to be perfect for inverted totalitarism type of regimes, including the US neoliberalism.  But there is second trend here which increase the elite control of the county:  this is dramatic transfer of power to institutions of "deep state", which in certain sense now like TBTF are beyond civil  control. As well as a secret alliance between Wall Street and CIA and other three letter agencies.

All those factors essentially make Presidential and Congress election in the USA truly optional, serving mostly ceremonial, decorative function. Yes elections still continue to exist and sometime provide good theater, within the strict rules of an emasculated "two parties, winner takes all" system, ehich if you think about it is not that different from one party elections in the USSR.

They still have a role in legitimizing the current rulers, although actual rules are not the same as those who were elected. This is especially true about the two recent US Presidents: George W Bush and Brack Obama.  And that explains why Barack Obama foreign policy is essentially a continuation of policy of George W Bush with minor tweaks.  Just the fact that neocon Victoria Nuland who worked for Cheney was promoted to the key role of the  Assistant Secretary of State for European and Eurasian Affairs  tells that Obama controls very little in foreign policy area and that 'deep state" is functioning autonomously and without control of "surface state".

The USA political system does not have a single government. It actually has two distinct governments. They are called "surface state" or Madisonians and "deep state" or Trumanites (national security establishment in alliance with selected members of financial oligarchy, media owners and technocrats). The latter term emerged because it was Harry Truman who signed National Security Act of 1947  which created major three letter agencies (CIA, DOD, FBI and NSA).

Simplifying the complex relation between those two US governments (sometimes Madisonians fight back and have Trumanites to make a temporary retreat) we can say that:

Conversion of system of governance to "deep state" which happened in the USA almost immediately after 1947 essentially made elections optional, but they still continue to exist as a ceremonial function for the sake of providing the legitimacy in an emasculated "two parties system" form.  While relationship is more complex then simple dominance, in essence "deep state" is the tail that wag the dog. And JFK assassination (Nov 22, 1963)  meant first of all the triumph of "deep state" over "surface state". In this sense 9/11 was just the last nail in the coffin of democracy.

The term “Deep State” was coined in Turkey (and actually Wikipedia discusses only it) but it is widespread modern phenomenon which can also be found in most other states. The term means a shadow alliance of elements of government. security services, selected top-level figures of financial oligarchy, media and industry that is effectively able to govern the United States without reference to the consent of the governed as expressed through the formal political process. As any elite dominance project it is deeply anti-democratic although it uses fig leaf of democracy for foreign expansion via color revolutions and wars. 

Like in Third Reich this dominance is supported by relentless propaganda and brainwashing with mechanisms polished since Reagan to perfection. There is now no problem to create an "enemy of the people" when the elite wants and it does not matter which country or individual is selected as an enemy. The essence of elite politics in this area was best formulated by Hermann Goering, President of the Reichstag, Nazi Party, and Luftwaffe Commander in Chief

Naturally the common people don't want war: Neither in Russia, nor in England, nor for that matter in Germany. That is understood. But, after all, it is the leaders of the country who determine the policy and it is always a simple matter to drag the people along, whether it is a democracy, or a fascist dictatorship, or a parliament, or a communist dictatorship. Voice or no voice, the people can always be brought to the bidding of the leaders. That is easy. All you have to do is tell them they are being attacked, and denounce the peacemakers for lack of patriotism and exposing the country to danger. It works the same in any country.

In other words this is a hidden set of political actors and powerful institutions that are concealed within the wider, “visible” state which, essentially, took over the functions of traditional state, leaving such organization of Executive branch, President, congress and courts mainly ceremonial role. Such transformation is well explained by the The Iron Law of Oligarchy and in various forms happened in Third Reich, the USSR, Turkey, China and many other countries.

Mike Lofgren: the “deep state” is the Washington-Wall-Street-Silicon-Valley Establishment

Here is how The American Conservative covers this topic:

Steve Sailer links to this unsettling essay by former career Congressional staffer Mike Lofgren, who says the “deep state” — the Washington-Wall-Street-Silicon-Valley Establishment — is a far greater threat to liberty than you think. The partisan rancor and gridlock in Washington conceals a more fundamental and pervasive agreement.


These are not isolated instances of a contradiction; they have been so pervasive that they tend to be disregarded as background noise. During the time in 2011 when political warfare over the debt ceiling was beginning to paralyze the business of governance in Washington, the United States government somehow summoned the resources to overthrow Muammar Ghaddafi’s regime in Libya, and, when the instability created by that coup spilled over into Mali, provide overt and covert assistance to French intervention there. At a time when there was heated debate about continuing meat inspections and civilian air traffic control because of the budget crisis, our government was somehow able to commit $115 million to keeping a civil war going in Syria and to pay at least £100m to the United Kingdom’s Government Communications Headquarters to buy influence over and access to that country’s intelligence. Since 2007, two bridges carrying interstate highways have collapsed due to inadequate maintenance of infrastructure, one killing 13 people. During that same period of time, the government spent $1.7 billion constructing a building in Utah that is the size of 17 football fields. This mammoth structure is intended to allow the National Security Agency to store a yottabyte of information, the largest numerical designator computer scientists have coined. A yottabyte is equal to 500 quintillion pages of text. They need that much storage to archive every single trace of your electronic life.

Yes, there is another government concealed behind the one that is visible at either end of Pennsylvania Avenue, a hybrid entity of public and private institutions ruling the country according to consistent patterns in season and out, connected to, but only intermittently controlled by, the visible state whose leaders we choose. My analysis of this phenomenon is not an exposé of a secret, conspiratorial cabal; the state within a state is hiding mostly in plain sight, and its operators mainly act in the light of day. Nor can this other government be accurately termed an “establishment.” All complex societies have an establishment, a social network committed to its own enrichment and perpetuation. In terms of its scope, financial resources and sheer global reach, the American hybrid state, the Deep State, is in a class by itself. That said, it is neither omniscient nor invincible. The institution is not so much sinister (although it has highly sinister aspects) as it is relentlessly well entrenched. Far from being invincible, its failures, such as those in Iraq, Afghanistan and Libya, are routine enough that it is only the Deep State’s protectiveness towards its higher-ranking personnel that allows them to escape the consequences of their frequent ineptitude.


Washington is the most important node of the Deep State that has taken over America, but it is not the only one. Invisible threads of money and ambition connect the town to other nodes. One is Wall Street, which supplies the cash that keeps the political machine quiescent and operating as a diversionary marionette theater. Should the politicians forget their lines and threaten the status quo, Wall Street floods the town with cash and lawyers to help the hired hands remember their own best interests. The executives of the financial giants even have de facto criminal immunity. On March 6, 2013, testifying before the Senate Judiciary Committee, Attorney General Eric Holder stated the following: “I am concerned that the size of some of these institutions becomes so large that it does become difficult for us to prosecute them when we are hit with indications that if you do prosecute, if you do bring a criminal charge, it will have a negative impact on the national economy, perhaps even the world economy.” This, from the chief law enforcement officer of a justice system that has practically abolished the constitutional right to trial for poorer defendants charged with certain crimes. It is not too much to say that Wall Street may be the ultimate owner of the Deep State and its strategies, if for no other reason than that it has the money to reward government operatives with a second career that is lucrative beyond the dreams of avarice — certainly beyond the dreams of a salaried government employee. [3]

The corridor between Manhattan and Washington is a well trodden highway for the personalities we have all gotten to know in the period since the massive deregulation of Wall Street: Robert Rubin, Lawrence Summers, Henry Paulson, Timothy Geithner and many others. Not all the traffic involves persons connected with the purely financial operations of the government: In 2013, General David Petraeus joined KKR (formerly Kohlberg Kravis Roberts) of 9 West 57th Street, New York, a private equity firm with $62.3 billion in assets. KKR specializes in management buyouts and leveraged finance. General Petraeus’ expertise in these areas is unclear. His ability to peddle influence, however, is a known and valued commodity. Unlike Cincinnatus, the military commanders of the Deep State do not take up the plow once they lay down the sword. Petraeus also obtained a sinecure as a non-resident senior fellow at theBelfer Center for Science and International Affairs at Harvard. The Ivy League is, of course, the preferred bleaching tub and charm school of the American oligarchy.

Lofgren goes on to say that Silicon Valley is a node of the Deep State too, and that despite the protestations of its chieftains against NSA spying, it’s a vital part of the Deep State’s apparatus. More:

The Deep State is the big story of our time. It is the red thread that runs through the war on terrorism, the financialization and deindustrialization of the American economy, the rise of a plutocratic social structure and political dysfunction. Washington is the headquarters of the Deep State, and its time in the sun as a rival to Rome, Constantinople or London may be term-limited by its overweening sense of self-importance and its habit, as Winwood Reade said of Rome, to “live upon its principal till ruin stared it in the face.”

Read the whole thing.  Steve Sailer says that the Shallow State is a complement to the Deep State. The Shallow State is, I think, another name for what the Neoreactionaries call “The Cathedral,” defined thus:

The Cathedral — The self-organizing consensus of Progressives and Progressive ideology represented by the universities, the media, and the civil service. A term coined by blogger Mencius Moldbug. The Cathedral has no central administrator, but represents a consensus acting as a coherent group that condemns other ideologies as evil. Community writers have enumerated the platform of Progressivism as women’s suffrage, prohibition, abolition, federal income tax, democratic election of senators, labor laws, desegregation, popularization of drugs, destruction of traditional sexual norms, ethnic studies courses in colleges, decolonization, and gay marriage. A defining feature of Progressivism is that “you believe that morality has been essentially solved, and all that’s left is to work out the details.” Reactionaries see Republicans as Progressives, just lagging 10-20 years behind Democrats in their adoption of Progressive norms.

You don’t have to agree with the Neoreactionaries on what they condemn — women’s suffrage? desegregation? labor laws? really?? — to acknowledge that they’re onto something about the sacred consensus that all Right-Thinking People share. I would love to see a study comparing the press coverage from 9/11 leading up to the Iraq War with press coverage of the gay marriage issue from about 2006 till today. Specifically, I’d be curious to know about how thoroughly the media covered the cases against the policies that the Deep State and the Shallow State decided should prevail. I’m not suggesting a conspiracy here, not at all. I’m only thinking back to how it seemed so obvious to me in 2002 that we should go to war with Iraq, so perfectly clear that the only people who opposed it were fools or villains. The same consensus has emerged around same-sex marriage. I know how overwhelmingly the news media have believed this for some time, such that many American journalists simply cannot conceive that anyone against same-sex marriage is anything other than a fool or a villain. Again, this isn’t a conspiracy; it’s in the nature of the thing. Lofgren:

Cultural assimilation is partly a matter of what psychologist Irving L. Janis called “groupthink,” the chameleon-like ability of people to adopt the views of their superiors and peers. This syndrome is endemic to Washington: The town is characterized by sudden fads, be it negotiating biennial budgeting, making grand bargains or invading countries. Then, after a while, all the town’s cool kids drop those ideas as if they were radioactive. As in the military, everybody has to get on board with the mission, and questioning it is not a career-enhancing move. The universe of people who will critically examine the goings-on at the institutions they work for is always going to be a small one. As Upton Sinclair said, “It is difficult to get a man to understand something when his salary depends upon his not understanding it.”

A more elusive aspect of cultural assimilation is the sheer dead weight of the ordinariness of it all once you have planted yourself in your office chair for the 10,000th time. Government life is typically not some vignette from an Allen Drury novel about intrigue under the Capitol dome. Sitting and staring at the clock on the off-white office wall when it’s 11:00 in the evening and you are vowing never, ever to eat another piece of takeout pizza in your life is not an experience that summons the higher literary instincts of a would-be memoirist. After a while, a functionary of the state begins to hear things that, in another context, would be quite remarkable, or at least noteworthy, and yet that simply bounce off one’s consciousness like pebbles off steel plate: “You mean the number of terrorist groups we are fighting is classified?” No wonder so few people are whistle-blowers, quite apart from the vicious retaliation whistle-blowing often provokes: Unless one is blessed with imagination and a fine sense of irony, growing immune to the curiousness of one’s surroundings is easy. To paraphrase the inimitable Donald Rumsfeld, I didn’t know all that I knew, at least until I had had a couple of years away from the government to reflect upon it.

When all you know is the people who surround you in your professional class bubble and your social circles, you can think the whole world agrees with you, or should. It’s probably not a coincidence that the American media elite live, work, and socialize in New York and Washington, the two cities that were attacked on 9/11, and whose elites — political, military, financial — were so genuinely traumatized by the events.

Anyway, that’s just a small part of it, about how the elite media manufacture consent. Here’s a final quote, one from the Moyers interview with Lofgren:

BILL MOYERS: If, as you write, the ideology of the Deep State is not democrat or republican, not left or right, what is it?

MIKE LOFGREN: It’s an ideology. I just don’t think we’ve named it. It’s a kind of corporatism. Now, the actors in this drama tend to steer clear of social issues. They pretend to be merrily neutral servants of the state, giving the best advice possible on national security or financial matters. But they hold a very deep ideology of the Washington consensus at home, which is deregulation, outsourcing, de-industrialization and financialization. And they believe in American exceptionalism abroad, which is boots on the ground everywhere, it’s our right to meddle everywhere in the world. And the result of that is perpetual war.

This can’t last. We’d better hope it can’t last. And we’d better hope it unwinds peacefully.

I, for one, remain glad that so many of us Americans are armed. When the Deep State collapses — and it will one day — it’s not going to be a happy time.

Questions to the room: Is a Gorbachev for the Deep State conceivable? That is, could you foresee a political leader emerging who could unwind the ideology and apparatus of the Deep State, and not only survive, but succeed? Or is it impossible for the Deep State to allow such a figure to thrive? Or is the Deep State, like the Soviet system Gorbachev failed to reform, too entrenched and too far gone to reform itself? If so, what then?

Professor Michael J. Glennon   book “National Security and Double Government.”

The second important thinker in this area is  Professor Michael J. Glennon who wrote the book  “National Security and Double Government.”. The strong point of his views on the subject is that he assumes that there is an internal struggle between those two forms of government, not just passive submission one to nother, but in most cases deep state prevails. This move led the USA "beyond a mere imperial presidency to a bifurcated system — a structure of double government — in which even the President now exercises little substantive control over the overall direction of U.S. national security policy."

The "deep state" (call by Professor Michael J. Glennon) The Trumanites, exersize their power due to alliance with Wall Street, almost unlimited funding (with many hidden sources belong US budget),  higher efficiency, abuse of secrecy, exaggerated threats, peer pressure to conform, and corruption of  the key decision-makers.

Here is how Amazon reviewer Mal Warwick summarized the book in his review written on December 22, 2014

Who makes national security decisions? Not who you think!

Why does Barack Obama's performance on national security issues in the White House contrast so strongly with his announced intentions as a candidate in 2008? After all, not only has Obama continued most of the Bush policies he decried when he ran for the presidency, he has doubled down on government surveillance, drone strikes, and other critical programs.

Michael J. Glennon set out to answer this question in his unsettling new book, National Security and Double Government. And he clearly dislikes what he found.

The answer, Glennon discovered, is that the US government is divided between the three official branches of the government, on the one hand — the "Madisonian" institutions incorporated into the Constitution — and the several hundred unelected officials who do the real work of a constellation of military and intelligence agencies, on the other hand. These officials, called "Trumanites" in Glennon's parlance for having grown out of the national security infrastructure established under Harry Truman, make the real decisions in the area of national security. (To wage the Cold War, Truman created the Joint Chiefs of Staff, the Department of Defense, the CIA, the NSA, and the National Security Council.) "The United States has, in short," Glennon writes, "moved beyond a mere imperial presidency to a bifurcated system — a structure of double government — in which even the President now exercises little substantive control over the overall direction of U.S. national security policy. . . . The perception of threat, crisis, and emergency has been the seminal phenomenon that has created and nurtures America's double government." If Al Qaeda hadn't existed, the Trumanite network would have had to create it — and, Glennon seems to imply, might well have done so.

The Trumanites wield their power with practiced efficiency, using secrecy, exaggerated threats, peer pressure to conform, and the ability to mask the identity of the key decision-maker as their principal tools.

Michael J. Glennon comes to this task with unexcelled credentials. A professor of international law at Tufts and former legal counsel for the Senate Armed Services Committee, he came face to face on a daily basis with the "Trumanites" he writes about. National Security and Double Government is exhaustively researched and documented: notes constitute two-thirds of this deeply disturbing little book.

The more I learn about how politics and government actually work — and I've learned a fair amount in my 73 years — the more pessimistic I become about the prospects for democracy in America. In some ways, this book is the most worrisome I've read over the years, because it implies that there is no reason whatsoever to think that things can ever get better. In other words, to borrow a phrase from the Borg on Star Trek, "resistance is futile." That's a helluva takeaway, isn't it?

On reflection, what comes most vividly to mind is a comment from the late Chalmers Johnson on a conference call in which I participated several years ago. Johnson, formerly a consultant to the CIA and a professor at two campuses of the University of California (Berkeley and later San Diego), was the author of many books, including three that awakened me to many of the issues Michael Glennon examines: Blowback, The Sorrows of Empire, and Nemesis. Johnson, who was then nearly 80 and in declining health, was asked by a student what he would recommend for young Americans who want to combat the menace of the military-industrial complex. "Move to Vancouver," he said.

Another good summary of the book can be found is review by Bruce Morgan (Shadow Government )

October 28, 2014 | Tufts Now

Elected officials are no longer in charge of our national security—and that is undermining our democracy, says the Fletcher School's Michael Glennon

Michael Glennon in his office

"We are clearly on the path to autocracy," says Michael Glennon. "There's no question that if we continue on that path, [the] Congress, the courts and the presidency will ultimately end up . . . as institutional museum pieces." Photo: Kelvin Ma

Michael Glennon knew of the book, and had cited it in his classes many times, but he had never gotten around to reading the thing from cover to cover. Last year he did, jolted page after page with its illuminating message for our time.

The book was The English Constitution, an analysis by 19th-century journalist Walter Bagehot that laid bare the dual nature of British governance. It suggested that one part of government was for popular consumption, and another more hidden part was for real, consumed with getting things done in the world. As he read, Glennon, a professor of international law at the Fletcher School, where he also teaches constitutional law, saw distinct parallels with the current American political scene.

He decided to explore the similarities in a 30-page paper that he sent around to a number of his friends, asking them to validate or refute his argument. As it happens, Glennon's friends were an extraordinarily well-informed bunch, mostly seasoned operatives in the CIA, the U.S. State Department and the military. "Look," he told them. "I'm thinking of writing a book. Tell me if this is wrong." Every single one responded, "What you have here is exactly right."

Expanded from that original brief paper, Glennon's book National Security and Double Government (Oxford University Press) takes our political system to task, arguing that the people running our government are not our visible elected officials but high-level—and unaccountable—bureaucrats nestled atop government agencies.

Glennon's informed critique of the American political system comes from a place of deep regard. Glennon says he can remember driving into Washington, D.C., in the late spring of 1973, at the time of the Senate Watergate hearings, straight from law school at the University of Minnesota, to take his first job as assistant legislative counsel to the U.S. Senate. Throughout his 20s, he worked in government, culminating in his position as legal counsel to the Senate Foreign Relations Committee under Sen. Frank Church from 1977 to 1980. Since entering academic life in the early 1980s, Glennon has been a frequent consultant to government agencies of all stripes, as well as a regular commentator on media outlets such as NPR's All Things Considered, the Today show and Nightline.

In his new book, an inescapable sadness underlies the narrative. "I feel a great sense of loss," Glennon admits. "I devoted my life to these [democratic] institutions, and it's not easy to see how to throw the current trends into reverse." Tufts Now spoke with Glennon recently to learn more of his perspective.

Tufts Now: You've been both an insider and an outsider with regard to government affairs. What led you to write this book?

Michael Glennon: I was struck by the strange continuity in national security policy between the Bush administration and the Obama administration. Obama, as a candidate, had been eloquent and forceful in criticizing many aspects of the Bush administration's national security policies, from drone strikes to Guantanamo to surveillance by the National Security Agency—the NSA—to covert operations. Yet as president, it turned out that he made very, very few changes in these policies. So I thought it was useful to explain the reason for that.

Were you surprised by the continuity?

I was surprised by the extent of it. I knew fundamentally from my own experience that changing national policies is like trying to change the course of an aircraft carrier. These policies in many ways were set long ago, and the national security bureaucracy tends to favor the status quo. Still, I thought that a president like Obama would, with the political wind in his sails and with so much public and congressional support for what he was criticizing, be more successful in fulfilling his promises.

You use the phrase "double government," coined by Walter Bagehot in the 1860s. What did he mean by that?

Walter Bagehot was one of the founders of the Economist magazine. He developed the theory of "double government," which in a nutshell is this. He said Britain had developed two sets of institutions. First came "dignified" institutions, the monarchy and the House of Lords, which were for show and which the public believed ran the government. But in fact, he suggested, this was an illusion.

These dignified institutions generate legitimacy, but it was a second set of institutions, which he called Britain's "efficient" institutions, that actually ran the government behind the scenes. These institutions were the House of Commons, the Cabinet and the prime minister. This split allowed Britain to move quietly from a monarchy to what Bagehot called a "concealed republic."

The thesis of my book is that the United States has also drifted into a form of double government, and that we have our own set of "dignified" institutions—Congress, the presidency and the courts. But when it comes to national security policy, these entities have become largely for show. National security policy is now formulated primarily by a second group of officials, namely the several hundred individuals who manage the agencies of the military, intelligence and law enforcement bureaucracy responsible for protecting the nation's security.

What are some components of this arrangement?

The NSA, the FBI, the Pentagon and elements of the State Department, certainly; generally speaking, law enforcement, intelligence and the military entities of the government. It's a diverse group, an amorphous group, with no leader and no formal structure, that has come to dominate the formation of American national security policy to the point that Congress, the presidency and the courts all defer to it.

You call this group the "Trumanite network" in your book. What's the link to Harry Truman?

It was in Truman's administration that the National Security Act of 1947 was enacted. This established the CIA and the National Security Council and centralized the command of the U.S. military. It was during the Truman administration as well that the National Security Agency [NSA] was set up, in 1952, although that was a secret and didn't come to light for many years thereafter.

In contrast to the Trumanites you set the "Madisonians." How would you describe them?

The Madisonian institutions are the three constitutionally established branches of the federal government: Congress, the judiciary and the president. They are perceived by the public as the entities responsible for the formulation of national security policy, but that belief is largely mistaken.

The idea is driven by regular exceptions. You can always point to specific instances in which, say, the president personally ordered the killing of Osama bin Laden or Congress enacted the War Powers Resolution. But these are exceptions. The norm is that as a general matter, these three branches defer to the Trumanite network, and that's truer all the time.

So the trend is toward increased power on the Trumanite side of the ledger.


If that's true, why has there not been a greater outcry from the public, the media—all the observers we have?

I think the principal reason is that even sophisticated students of government operate under a very serious misunderstanding. They believe that the political system is self-correcting. They believe the framers set up a system of government setting power against power, and ambition against ambition, and that an equilibrium would be reached, and that any abuse of power would be checked, and arbitrary power would be prevented.

That is correct as far as it goes, but the reality is that's only half the picture. The other half is that Madison and his colleagues believed that for equilibrium to occur, we would have an informed and engaged citizenry. Lacking that, the entire system corrupts, because individuals are elected to office who do not resist encroachments on the power of their branches of government, and the whole equilibrium breaks down.

What role, if any, have the media played?

The media have pretty much been enablers. Although there are a handful of investigative journalists who have done a heroic job of uncovering many of the abuses, they are the exception, for a number of reasons. Number one, the media are a business and have a bottom line. It takes a huge amount of money to fund an investigative journalist who goes about finding sources over a period of years. Very few newspapers or television concerns have those sorts of deep pockets.

Second, access for the press is everything. There is huge incentive to pull punches, and you don't get interviews with top-ranking officials at the NSA or CIA if you're going to offer hard-hitting questions. Look, for example, at the infamous 60 Minutes puff piece on the NSA, a really tragic example of how an otherwise respectable institution can sell its soul and act like an annex of the NSA in order to get some people it wants on the TV screen.

What is the role of terror in this environment?

The whole transfer of power from the Madisonian institutions to the Trumanite network has been fueled by a sense of emergency deriving from crisis, deriving from fear. It's fear of terrorism more than anything else that causes the American people to increasingly be willing to dispense with constitutional safeguards to ensure their safety.

Madison believed that government has two great objects. One object of a constitution is to enable the government to protect the people, specifically from external attacks. The other great object of a constitution is to protect the people from the government. The better able the government is to protect the people from external threats, the greater the threat posed by the government to the people.

You've been involved with the U.S. government for 40 years. How has your view of government changed?

Double government was certainly a factor in the 1970s, but it was challenged for the first time thanks to the activism stemming from the civil rights movement, Vietnam and Watergate. As a result, there were individuals in Congress—Democrats and Republicans like William Fulbright, Frank Church, Jacob Javits, Charles Mathias and many others—who were willing to stand up and insist upon adherence to constitutionally ordained principles. That led to a wave of activism and to the enactment of a number of pieces of reform legislation.

But there is no final victory in Washington. Those reforms have gradually been eaten away and turned aside. I think today we are in many ways right back where we were in the early 1970s. NSA surveillance is an example of that. The Church Committee uncovered something called Operation Shamrock, in which the NSA had assembled a watch list of antiwar and civil rights activists based upon domestic surveillance. Church warned at the time that NSA capabilities were so awesome that if they were ever turned inward on the American people, this nation would cross an abyss from which there is no return. The question is whether we have recently crossed that abyss.

To what degree are we still a functioning democracy? I'm sure you know that President Jimmy Carter told a German reporter last year that he thought we no longer qualified as a democracy because of our domestic surveillance.

We are clearly on the path to autocracy, and you can argue about how far we are down that path. But there's no question that if we continue on that path, America's constitutionally established institutions—Congress, the courts and the presidency—will ultimately end up like Britain's House of Lords and monarchy, namely as institutional museum pieces.

Bruce Morgan can be reached at bruce.morgan@tufts.ed

Here is how Christopher Bellavita in Homeland Security Watch summarize an interesting discussion at Cato think tank which I highly recommend to watch:

Why has American national security policy changed so little from the Bush administration to the Obama

That’s the question Michael J. Glennon asks in his book “National Security and Double Government.”

His answer: national security policy is determined largely by “the several hundred managers of the military, intelligence, diplomatic, and law enforcement agencies who are responsible for protecting the nation and who have come to operate largely immune from constitutional and electoral restraints.” The president, congress and the courts play largely a symbolic role in national security policy, Glennon claims.

You can read a Harvard National Security Journal article that outlines Glennon’s argument at this link:  The paper is not an especially easy read, but I found it to be well researched and – for  me – persuasive.

His book adds more analysis to the argument, using (from Graham Allison’s Essence of Decision) the rational actor model, the government politics model, and the organizational behavior model. Glennon extends that framework by discussing culture, networks, and the myth of alternative competing hypotheses.  The book is richer, in my opinion.  But the core of Glennon’s position is in the paper.

This link takes you to a video of Glennon talking about his book at the Cato Institute: (the talk starts at the 5:20 mark).

From the Cato site:

In National Security and Double Government, Michael Glennon examines the continuity in U.S. national security policy from the Bush administration to the Obama administration. Glennon explains the lack of change by pointing to the enervation of America’s “Madisonian institutions,” namely, the Congress, the presidency, and the courts. In Glennon’s view, these institutions have been supplanted by a “Trumanite network” of bureaucrats who make up the permanent national security state. National security policymaking has been removed from public view and largely insulated from law and politics. Glennon warns that leaving security policy in the hands of the Trumanite network threatens Americans’ liberties and the republican form of government.

Some blurb reviews:

I’ve spoken to three people I consider to be members of the “shadow national security state.”   One person said Glennon’s argument is nothing new.  The second told me he’s got it exactly right.  The third said it’s even worse.

Professor Peter Dale Scott book and articles

If Michael Glennon conseed defeat but still has some hope, here we enter perfect Danter hell picture along the lines "Leave all hopes those who dare to enter"

Professor Peter Dale Scott book and article represent probably the most comprehensive coverage, especially his book. But the article in the Asia-Pacific journal represents fair summary of his views on the subject (The State, the Deep State, and the Wall Street Overworld (Updated March 13, 2014):

In the last decade it has become more and more obvious that we have in America today what the journalists Dana Priest and William Arkin have called

two governments: the one its citizens were familiar with, operated more or less in the open: the other a parallel top secret government whose parts had mushroomed in less than a decade into a gigantic, sprawling universe of its own, visible to only a carefully vetted cadre – and its entirety…visible only to God.1

And in 2013, particularly after the military 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 Republican analyst Mike Lofgren:

There is the visible government situated around the Mall in Washington, and then there is another, more shadowy, more indefinable government that is not explained in Civics 101 or observable to tourists at the White House or the Capitol. The former is traditional Washington partisan politics: the tip of the iceberg that a public watching C-SPAN sees daily and which is theoretically controllable via elections. The subsurface part of the iceberg I shall call the Deep State, which operates according to its own compass heading regardless of who is formally in power.3

At the end of 2013 a New York Times Op-Ed noted this trend, and even offered a definition of the term that will work for the purposes of this essay:

DEEP STATE n. A hard-to-perceive level of government or super-control that exists regardless of elections and that may thwart popular movements or radical change. Some have said that Egypt is being manipulated by its deep state.4

The political activities of the deep state are the chief source and milieu of what I have elsewhere called “deep politics:” “all those political practices and arrangements, deliberate or not, which are usually repressed rather than acknowledged.”5

Others, like Tom Hayden, call the deep state a “state within the state,” and suggest it may be responsible for the failure of the Obama administration to follow the policy guidelines of the president’s speeches:

We have seen evidence of a "state within the state" before, going back as far as the CIA's operations against Cuba. In Obama's time, the president correctly named the 2009 coup in Honduras a "coup", and then seemed powerless to prevent it.6

This development of a two-level or dual state has been paralleled by two other dualities: the increasing resolution of American society into two classes – the “one percent” and the “ninety-nine percent” – and the bifurcation of the U.S. economy into two aspects: the domestic, still subject to some governmental regulation and taxation, and the international, relatively free from governmental controls.7 All three developments have affected and intensified each other – particularly since the Reagan Revolution of 1980, which saw American inequality of wealth cease to diminish and begin to increase.8 Thus for example we shall see how Wall Street – the incarnation of the “one percent” – played a significant role in increasing the deep state after World War Two, and how three decades later the deep state played a significant role in realigning America for the Reagan Revolution.

In earlier books I have given versions of this America-centered account of America’s shift into empire and a deep state. But another factor to be mentioned is the shift of global history towards an increasingly global society dominated by a few emergent superpowers. This trend was accelerated after the Industrial Revolution by new technologies of transport, from the railroad in the 19th century to the jet plane and space travel in the 20th.9

In the fallout from this rearrangement we must include two world wars, as a result of which Britain ceased to act as the dominant superpower it had been since Napoleon. Not surprisingly, the Soviet Union and the United States subsequently competed in a Cold War to fill the gap. It  was not however predetermined that the Cold War would be as thuggish and covertly violent as for decades it continued to be. For that we should look to more contingent causes on both sides of the Iron Curtain – starting with the character of Stalin and his party but also including the partly responsive development of the American deep state.

The Deep State, The Shadow Government and the Wall Street Overworld

The “deep state” was defined by the UK newsletter On Religion as “the embedded anti-democratic power structures within a government, something very few democracies can claim to be free from.”10 The term originated in Turkey in 1996, to refer to U.S.-backed elements, primarily in the intelligence services and military, who had repeatedly used violence to interfere with and realign Turkey’s democratic political process. Sometimes the definition is restricted to elements within the government (or “a state-within-the state”), but more often in Turkey the term is expanded, for historical reasons, to include “members of the Turkish underworld.”11 In this essay I shall use “deep state” in the larger sense, to include both the second level of secret government inside Washington and those outsiders powerful enough, in either the underworld or overworld, to give it direction. In short I shall equate the term “deep state” with what in 1993 I termed a “deep political system:” “ one which habitually resorts to decision-making and enforcement procedures outside as well as inside those publicly sanctioned by law and society.”12

Like myself, Lofgren suggests an ambiguous symbiosis between two aspects of the American deep state:

1)  the Beltway agencies of the shadow government, like the CIA and NSA, which have been instituted by the public state and now overshadow it, and

2)  the much older power of Wall Street, referring to the powerful banks and law firms located there.

In his words,

It is not too much to say that Wall Street may be the ultimate owner of the Deep State and its strategies, if for no other reason than that it has the money to reward government operatives with a second career that is lucrative beyond the dreams of avarice - certainly beyond the dreams of a salaried government employee.13

I shall argue that in the 1950s Wall Street was a dominating complex. It included not just banks and oil firms but also the oil majors whose cartel arrangements were successfully defended against the U.S. Government by the Wall Street law firm Sullivan and Cromwell, home to the Dulles brothers. This larger complex is what I mean by the Wall Street overworld.

The Long History of the Wall Street Overworld

Lofgren’s inclusion of Wall Street is in keeping with Franklin Roosevelt’s observation in 1933 to his friend Col. E.M. House that “The real truth … is, as you and I know, that a financial element in the larger centers has owned the Government ever since the days of Andrew Jackson.”14

FDR’s insight is well illustrated by the efficiency with which a group of Wall Street bankers (including Nelson Rockefeller’s grandfather Nelson Aldrich and Paul Warburg) were able in a highly secret meeting in 1910 to establish the Federal Reserve System – a system which in effect reserved oversight of the nation’s currency supply and of all America’s banks in the not impartial hands of its largest.15 The political clout of the quasi-governmental Federal Reserve Board (where the federal Treasury is represented but does not dominate) was clearly demonstrated in 2008, when Fed leadership secured instant support from the successive administrations of a Texan Republican president, followed by a Midwest Democratic one, for public money to rescue the reckless management of Wall Street banks: banks Too Big To Fail, and of course far Too Big To Jail, but not Too Big To Bail.16

Wall Street and the Launching of the CIA

Top-level Treasury officials, CIA officers, and Wall Street bankers and lawyers think alike because of the “revolving door” by which they pass easily from private to public service and back. In 1946 General Vandenberg, as Director of Central Intelligence (DCI), recruited Allen Dulles, then a Republican lawyer at Sullivan and Cromwell in New York, "to draft proposals for the shape and organization of what was to become the Central Intelligence Agency in 1947." Dulles promptly formed an advisory group of six men, all but one of whom were Wall Street investment bankers or lawyers.17 Dulles and two of the six (William H. Jackson and Frank Wisner) later joined the agency, where Dulles proceeded to orchestrate policies, such as the overthrow of the Arbenz regime in Guatemala, that he had previously discussed in New York at the Council on Foreign Relations.18

There seems to be little difference in Allen Dulles’s influence whether he was a Wall Street lawyer or a CIA director. Although he did not formally join the CIA until November 1950, he was in Berlin before the start of the 1948 Berlin Blockade, “supervising the unleashing of anti-Soviet propaganda across Europe.”19 In the early summer of 1948 he set up the American Committee for a United Europe (ACUE), in support of what became by the early 1950s “the largest CIA operation in Western Europe.”20

The Deep State and Funds for CIA Covert Operations

Wall Street was also the inspiration for what eventually became the CIA’s first covert operation: the use of “over $10 million in captured Axis funds to influence the [Italian] election [of 1948].”21 (The fundraising had begun at the wealthy Brook Club in New York; but Allen Dulles, still a Wall Street lawyer, persuaded Washington, which at first had preferred a private funding campaign, to authorize the operation through the National Security Council and the CIA.)22

Dulles’s friend Frank Wisner then left Wall Street to oversee an enlarged covert operations program through the newly created Office of Policy Co-ordination (OPC). Dulles, still a lawyer, campaigned successfully to reconstruct Western Europe through what became known as the Marshall Plan.23 Together with George Kennan and James Forrestal, Dulles also “helped devise a secret codicil [to the Marshall Plan] that gave the CIA the capability to conduct political warfare. It let the agency skim millions of dollars from the plan.”24

This created one of the earlier occasions when the CIA, directly or indirectly, recruited local assets involved in drug trafficking. AFL member Irving Brown, the assistant of AFL official Jay Lovestone (a CIA asset), was implicated in drug smuggling activities in Europe, at the same time that he used funds diverted from the Marshall Plan to establish

a "compatible left" labor union in Marseilles with Pierre Ferri-Pisani. On behalf of Brown and the CIA, Ferri-Pisani (a drug smuggler connected with Marseilles crime lord Antoine Guerini), hired goons to shellack striking Communist dock workers.25

An analogous funding source for the CIA developed in the Far East: the so-called

"M-Fund," a secret fund of money of enormous size that has existed in Japan [in 1991] for more than forty years. The Fund was established by the United States in the immediate postwar era for essentially the same reasons that later gave rise to the Marshall Plan of assistance by the U.S. to Western Europe, including the Federal Republic of Germany….. The M-Fund was used not only for the building of a democratic political system in Japan but, in addition, for all of the purposes for which Marshall Plan funds were used in Europe.26

For at least two decades the CIA lavishly subsidized right-wing parties in countries including Japan and Indonesia, possibly still using captured Axis funds.27 (One frequently encounters the claim that the source of the M-fund was gold looted by Japan during World War Two (“Yamashita’s gold”).28

As a general rule the CIA, rather than assimilating these funds into its own budget, appears to have left them off the books in the hands of cooperative allied powers – ranging from other U.S. agencies like the Economic Cooperation Administration (ECA. set up in 1948 to administer the Marshall Plan) to oil companies to powerful drug kingpins.29

The CIA never abandoned its dependency on funds from outside its official budget to conduct its clandestine operations. In Southeast Asia, in particular, its proprietary firm Sea Supply Inc., supplied an infrastructure for a drug traffic supporting a CIA-led paramilitary force, PARU.30 The CIA appears also to have acted in coordination with slush funds from various U.S. government contracts, ranging from the Howard Hughes organization to (as we shall see) the foreign arms sales of U.S. defense corporations like Lockheed and Northrop.31

Lockheed Payoffs and CIA Clients: the Netherlands, Japan, Italy, Indonesia, and Saudi Arabia



Kodama Yoshio, war criminal, drug trafficker, and purveyor of deep state US funds to Japanese politicians

Through the 1950s payouts from the M-fund were administered by Kodama Yoshio, “probably the CIA's chief asset in Japan;” while ”All accounts say that after the end of the occupation, the fund's American managers came from the CIA.”32  Kodama also received and distributed millions of funds from Lockheed to secure military contracts – an operation the CIA knew about but has never admitted involvement in.33 Lockheed’s system of payoffs was world-wide; and one sees CIA involvement with it in at least four other countries: the Netherlands, Italy, Indonesia and Saudi Arabia. (Lockheed, the builder of the U-2, was a major CIA-cleared contractor.)34

The beneficiary in the Netherlands was Prince Bernhard, a close friend of CIA directors Walter Bedell Smith and Allen Dulles, and the organizer of the Bilderberg Group.35 In the case of Italy, payments were handled through a contact (“Antelope Cobbler”) who turned out to be whoever was the Italian Prime Minister of the moment (always from one of the parties subsidized earlier by the CIA).36

In the revealing instance of Indonesia, Lockheed payments were shifted in May 1965, over the legal objections of Lockheed's counsel, to a new contract with a  company set up by the firm's long-time local agent or middleman, August Munir Dasaad.86 This was just six months after a secret U.S. decision to have the CIA covertly assist

“individuals and organizations prepared to take obstructive action against the PKI [Indonesian Communist Party].” Over the longer term this meant identifying and keeping tabs on “anti-regime elements” and other potential leaders of a post-Sukarno regime.37

Although Dasaad had been a long-time supporter of Sukarno, by May 1965 he was already building connections with Sukarno’s eventual successor, Gen. Suharto, via a family relative, General Alamsjah, who knew Suharto and was the beneficiary of the new Lockheed account.38 After Suharto replaced Sukarno, Alamsjah, who controlled certain considerable funds, at once made funds available to Suharto, earning him the gratitude of the new President.39

In July 1965, furthermore, at the alleged nadir of U.S.-Indonesian aid relations, Rockwell-Standard had a contractual agreement to deliver two hundred light aircraft (Aero-Commanders) to the Indonesian Army (not the Air Force) in the next two months. Once again the commission agent on the deal, Bob Hasan or Hassan, was a political associate (and eventual business partner) of Suharto. More specifically, Suharto and Bob Hasan established two shipping companies to be operated by the Central Java army division, Diponegoro. This division, as has long been noticed, supplied the bulk of the personnel on both sides of the Gestapu coup drama in September 1965 -- both those staging the coup attempt, and those putting it down.40

While this was happening, Stanvac (a joint venture of the Standard companies known later as Exxon and Mobil) increased payments to the army's oil company, Permina, headed by an eventual political ally of Suharto, General Ibnu Sutowo. Alamsjah is said to have been allied with Ibnu Sutowo in plotting against Sukarno, along with a well-connected Japanese oilman, Nishijima Shigetada.41 After Suharto's overthrow of Sukarno, Fortune wrote that "Sutowo's still small company played a key part in bankrolling those crucial operations, and the army has never forgotten it."42

We shall deal later with the special case of Lockheed kickbacks to Saudi Arabia, which were far greater than those to Japan. It is important to note, however, the linkage between Middle East oil and arms sales: as U.S. imports of Middle East oil increased, the pressure on the U.S. balance of payments was offset by increased U.S. arms sales to the region. “In the period 1963-1974, arms sales to the Middle East went from 10 per cent of global arms imports to 36 per cent, half of which was supplied by the United States.”43

Iran in 1953: How an Oil Cartel Operation Became a Job for the CIA

The international lawyers of Wall Street did not hide from each other their shared belief that they understood better than Washington the requirements for running the world. As John Foster Dulles wrote in the 1930s to a British colleague,

The word “cartel” has here assumed the stigma of a bogeyman which the politicians are constantly attacking.  The fact of the matter is that most of these politicians are highly insular and nationalistic and because the political organization of the world has under such influence been so backward, business people who have had to cope realistically with international problems have had to find ways for getting through and around stupid political barriers.44

This same mentality also explains why Allen Dulles as an OSS officer in 1945 simply evaded orders from Washington forbidding him to negotiate with SS General Karl Wolff about a conditional surrender of German forces in Italy – an important breach of Roosevelt’s agreement with Stalin at Yalta for unconditional surrender, a breach that is regarded by many as helping lead to the Cold War.45 And it explains why Allen, as CIA Director in 1957, dealt summarily with Eisenhower’s reluctance to authorize more than occasional U-2 overflights of the USSR, by secretly approving a plan with Britain’s MI-6 whereby U-2 flights could be authorized instead by the UK Prime Minister Macmillan.46

This mentality exhibited itself in 1952, when Truman’s Justice Department sought to break up the cartel agreements whereby Standard Oil of New Jersey (now Exxon) and four other oil majors controlled global oil distribution. (The other four were Standard Oil Company of New York, Standard Oil of California or Socony, Gulf Oil, and Texaco; together with Royal Dutch Shell and Anglo-Iranian, they comprised the so-called Seven Sisters of the cartel.) Faced with a government order to hand over relevant documents, Exxon’s lawyer Arthur Dean at Sullivan and Cromwell, where Foster was senior partner, refused: “If it were not for the question of national security, we would be perfectly willing to face either a criminal or a civil suit. But this is the kind of information the Kremlin would love to get its hands on.”47



Wall Street, the former headquarters of both Sullivan and Cromwell and the J. Henry Schroder Banking Corporation

At this time the oil cartel was working closely with the British Anglo-Iranian Oil Company (AIOC, later BP) to prevent AIOC’s nationalization by Iran’s Premier Mossadeq, by instituting, in May 1951, a successful boycott of Iranian oil exports.

In May 1951 the AIOC secured the backing of the other oil majors, who had every interest in discouraging nationalisation.... None of the large companies would touch Iranian oil; despite one or two picturesque episodes the boycott held.48

As a result Iranian oil production fell from 241 million barrels in 1950 to 10.6 million barrels in 1952.

This was accomplished by denying Iran the ability to export its crude oil. At that time, the Seven Sisters controlled almost 99% of the crude oil tankers in the world for such export, and even more importantly, the markets to which it was going.49

But Truman declined, despite a direct personal appeal from Churchill, to have the CIA participate in efforts to overthrow Mossadeq, and instead dispatched Averell Harriman to Tehran in a failed effort to negotiate a peaceful resolution of Mossadeq’s differences with London.50




Allen and John Foster Dulles, pillars of both the state and the deep state

All this changed with the election of Eisenhower in November 1952, followed by the appointment of the Dulles brothers to be Secretary of State and head of CIA. The Justice Department’s criminal complaint against the oil cartel was swiftly replaced by a civil suit, from which the oil cartel eventually emerged unscathed.51

Eisenhower, an open friend of the oil industry…changed the charges from criminal to civil and transferred responsibility of the case from the Department of Justice to the Department of State – the first time in history that an antitrust case was handed to State for prosecution. Seeing as how the Secretary of State was John Foster Dulles and the defense counsel for the oil cartel was Dulles’ former law firm (Sullivan and Cromwell), the case was soon as good as dead.52


Cooperative control of the world market by the major oil companies remained in effect, with varying degrees of success, until the oil embargo of 1973-74. That the cooperation was more than tacit can be seen by the fact that antitrust regulations were specifically set aside a number of times during the 1950-1973 period, allowing the major companies to negotiate as a group with various Mideastern countries, and after its inception [in 1960], with the Organization of Petroleum Exporting Countries or OPEC.53

Also in November 1952 CIA officials began planning to involve CIA in the efforts of MI6 and the oil companies in Iran54 -- although its notorious Operation TP/AJAX to overthrow Mossadeq was not finally approved by Eisenhower until July 22, 1953.55

The events of 1953 strengthened the role of the oil cartel as a structural component of the American deep state, drawing on its powerful connections to both Wall Street and the CIA.56  (Another such component was the Arabian-American Oil Company or ARAMCO in Saudi Arabia, which increased oil production in 1951-53 to offset the loss of oil from Iran. Until it was fully nationalized in 1980, ARAMCO maintained undercover CIA personnel like William Eddy among its top advisors.)57 The five American oil majors in particular were also strengthened by the success of AJAX, as Anglo-Iranian (renamed BP) was henceforth forced to share 40 percent of the oil from its Iran refinery with them.

Nearly all recent accounts of Mossadeq’s overthrow treat it as a covert intelligence operation, with the oil cartel (when mentioned at all) playing a subservient role. However the chronology, and above all the belated approval from Eisenhower, suggest that it was CIA that came belatedly in 1953 to assist an earlier oil cartel operation, rather than vice versa. In terms of the deep state, the oil cartel or deep state initiated in 1951 a process that the American public state only authorized two years later. Yet the inevitable bias in academic or archival historiography, working only with those primary sources that are publicly available, is to think of the Mossadeq tragedy as simply a “CIA coup.”

The CIA, Booz Allen Hamilton, and the Wall Street Overworld

The “revolving door” also circulates top-level intelligence officials and the chiefs of the cleared contractors referred to by Mike Lofgren as part of the deep state. Tim Shorrock revealed in 2007 that “about 70 percent of the estimated $60 billion the government spends every year on…intelligence” is outsourced to private intelligence contractors like Booz, Allen & Hamilton (now Booz Allen Hamilton) and SAIC.58 For example Mike McConnell “went from being head of the National Security Agency under Bush 41 and Clinton directly to Booz Allen, one of the nation’s largest private intelligence contractors, then became Bush’s Director of National Intelligence (DNI), then went back to Booz Allen, where he is now Executive Vice President.” Intelligence officers in government write the non-competitive contracts for the private corporations that they may have worked for and may work for again.59 And over the years the “revolving door” has also exchanged personnel between Booz Allen and the international oil companies served by the firm.

The original firm of Booz, Allen, & Hamilton split in 2008 into Booz Allen Hamilton, focused on USG business, and Booz & Company in New York, assuming the old company’s commercial and international portfolio. Booz Allen Hamilton is majority owned by the private equity firm the Carlyle Group, noted for its association with political figures like both presidents Bush.60




Booz Allen Hamilton Headquarters

Lofgren points to the deep state importance of Booz Allen Hamilton, 99 percent of whose business dependent on the U.S. government.61 Booz Allen has been linked in the media to NSA ever since its employee Edward Snowden decamped with NSA records. But Booz Allen, one of the oldest and largest of the “cleared contractors,” has been intertwined with the CIA’s covert operations since Allen Dulles became CIA Director in 1953.62 In the same year, Booz Allen began “to take on several overseas assignments…: a land-registration system in the Philippines, a restructuring of Egypt’s customs operations and textile industries, and work for Iran’s national oil company.”63 All three assignments overlapped with CIA covert ops in 1953, including the Philippine land distribution program which Edward Lansdale promoted in order to fight a Huk insurrection, and the CIA’s operation TP/AJAX (with Britain’s MI6) to rescue the Anglo-Iranian oil company (later BP).64



Miles Copeland, Jr., ex-CIA, ex-Booz Allen & Hamilton, ex-Khashoggi’s private CIA

But the most important CIA-Booz Allen cooperation may have been in Egypt. In March 1953 Miles Copeland, having resigned from the CIA to join Booz-Allen, “returned to Cairo under what was, for all practical purposes, a joint CIA-BA&H mission.”65 In addition to offering management advice to the Egyptian government in general, and to a private textile mill, Miles also gave Nasser advice on establishing his intelligence service (the Mukhabarat), and “soon became his closest Western advisor” (as well as his top channel to the USG, more important than either the local US ambassador or CIA chief)66

Copeland’s role with Nasser did not make him a shaper of U.S. policy; his pro-Nasser views were largely subordinated to the pro-British anti-Nasserism of the Dulles brothers. But they did establish a bond between Copeland and the Eisenhower White House. By 1967, when Nixon was preparing to run for president, Copeland had taken a leave of absence from Booz Allen to become a prestigious and well-paid consultant for oil companies.

The CIA, Miles Copeland, and Adnan Khashoggi

In 1966 Copeland, while technically on leave from Booz Allen, made close contact with Adnan Khashoggi, a young Arab who was in the course of becoming both a “principal foreign agent” of the U.S. and also extremely wealthy on the commissions he earned from Lockheed and other military firms on arms sales to Saudi Arabia.67 (“To give some sense of the size of the business, the company acknowledged in the mid-1970s that it had provided $106 million in commissions to Khashoggi between 1970 and 1975, more than ten times the level of payments made to the next most important connection, Yoshi [sic] Kodama of Japan.”68




Adnan Khashoggi, shadowy backer of politicians (Time, Jan. 19, 1987)

By Copeland’s own account in 1989, this encounter with Khashoggi “put the two of us on a ‘Miles-and-Adnan’ basis that has lasted for more than twenty years of business, parties, and a very special kind of political action.”69 Copeland adds that

Adnan and I, separately had been called on by our respective friends in Langley [i.e., CIA] to… have an official [sic], off-the-record exchange of ideas on the emerging crisis in the Middle East, and come up with suggestions that the tame bureaucrats would like to have made but couldn’t.70

Copeland almost immediately flew to Cairo and immersed himself in a series of high-level but ultimately unsuccessful efforts to forestall what soon became the 1967 Six Day Egyptian-Israeli Six Day War. By his account, his mission, though unsuccessful, gave a “tremendous boost” to his reputation, enabling him “to accelerate the attempt I had already started to establish a ‘private CIA’ by use of confidential arrangements with politically astute members of the client companies.”71

Copeland’s self-promoting claims are controversial, and a number of establishment writers have described his books as “unreliable.”72 But eyewitness Larry Kolb corroborates that Copeland was close to Khashoggi, and that the two of them

had written a white paper… proposing that… rich countries, including not only the United States but also the Arab oil states, should establish a “Marshall Plan” for all the needy countries of the Middle East, including Israel.

Rewritten with Kolb’s assistance after consultation with the Reagan White House, the plan would be backed by a “Mideast Peace Fund” to which “Adnan was pledging a hundred million dollars of his own money.”73

The proposal failed, partly because of the Middle East’s resistance to negotiated solutions, but also partly because by the 1980s Khashoggi was no longer as rich and influential as he had once been. His function as an agent of influence in the Middle East and elsewhere had been sharply limited after the United States, by the Corrupt Federal Practices Act of 1978, outlawed direct payments by US corporations to foreign individuals. Henceforward the function of bestowing money and sexual favors on client politicians passed primarily from Khashoggi to another CIA connection, the Bank of Credit and Commerce International (BCCI).74 A major shareholder in BCCI was Saudi intelligence chief Kamal Adham, Khashoggi’s friend and business partner and (according to the Senate BCCI Report) “the CIA's former principal contact in the Arab Middle East.”75

What the story of the failed “Mideast Peace Fund” reveals is first, that Khashoggi (like BCCI after him) was of interest to Washington because of his ability to negotiate with both Israel and Arab countries; and second, that Copeland and what Copeland called his “private CIA,”76 was in a commanding position as lead adviser to Khashoggi, while still on unpaid leave from Booz Allen Hamilton.

Khashoggi, the CIA’s Asset Edward K. Moss, and Political Corruption

A powerful connection was formed by combining Copeland’s political contacts with Khashoggi’s millions. Copeland may have been responsible for Khashoggi’s inspired choice of the under-recognized Edward K. Moss, another man with CIA connections, as his p.r. agent in Washington.77

Back in November 1962, the CIA, as part of its planning to get rid of Castro, decided  to use Moss for the Political Action Group of the CIA’s Covert Action (CA) staff.78 This was more than a year after the FBI had advised the CIA that Moss’s mistress Julia Cellini and her brother Dino Cellini were alleged to be procurers, while “the Cellini brothers have long been associated with the narcotics and white slavery rackets in Cuba.”79

This FBI report suggests an important shared interest between Moss and Khashoggi: sexual corruption. Just as his uncle Yussuf Yassin had been a procurer of women for King Abdul-Aziz, so Khashoggi himself was said to have “used sex to win over U.S. executives.” The bill for the madam who supplied girls en masse to his yacht in the Mediterranean ran to hundreds of thousands of dollars.80 Khashoggi made a practice of supplying those he wished to influence with dollars as well as sex.




Khashoggi’s Superyacht Kingdom 5KR, now owned by Prince Al-Waleed bin Talal

The CIA of course was forbidden to use sex and money in this way in the United States, or to make in the United States the payments to right-wing politicians that characterized its behavior in the rest of the world. But no such prohibition applied to Khashoggi. According to Anthony Summers,

Khashoggi had courted Nixon in 1967 by putting a plane at his disposal to tour the Middle East after the Six-Day War. Soon afterward, using a proxy, he opened an account at Rebozo’s [Bebe Rebozo, Nixon’s close confidante] in Florida. He did so, he explained to Watergate prosecutors, hoping to “curry favor with Rebozo,” to get an entrée to the man who might become president, and to pursue business deals.81

Khashoggi in effect served as a “cutout,” or representative, in a number of operations forbidden to the CIA and the companies he worked with. Lockheed, for one, was conspicuously absent from the list of military contractors who contributed illicitly to Nixon’s 1972 election campaign. But there was no law prohibiting their official representative, Khashoggi, from cycling $200 million through the bank of Nixon’s friend Bebe Rebozo.82

(Pierre Salinger heard from Khashoggi that in 1972 he had donated $1 million to Nixon, corroborating the often-heard claim that Khashoggi had brought it in a briefcase to Nixon’s western White House in San Clemente, and then “forgotten” to take it away.)83

Khashoggi of course did not introduce such corruption to American politics; he merely joined a milieu where defense companies had used money and girls for years to win defense contracts in Washington and Las Vegas.84 Prominent in this practice was Howard Hughes, whom Khashoggi soon joined in international investments. (After a Senate investigator on Khashoggi’s trail registered at the Hughes-owned Sands Hotel in Las Vegas, a blonde came unexpectedly to his hotel room, and said, “I’m here for your pleasure.”)85

But Khashoggi’s corruption channels and targets overlapped with those of others with CIA connections. In 1972 it was alleged that funds from the Paradise Island casino in the Bahamas were being secretly carried to Nixon and his friend Bebe Rebozo, by a casino employee. This was Seymour (Sy) Alter, who was both “a friend of Nixon and Rebozo since 1962” and also an associate of Edward Moss’s brother-in-law Eddie Cellini, the casino manager at Paradise Island. 86 The funds came from the Paradise Island Bridge Company, a company partly owned by an officer of Benguet International, a firm represented in America by Paul Helliwell.87 It is likely that Nixon himself had a hidden interest in the Bridge Company, which might explain the revelation through Operation Tradewinds that a “Richard M. Nixon” (not otherwise identified) had an account at Helliwell’s Castle Bank.88

Three facts point to a deep state interest in what might otherwise seem a matter of personal corruption. The first is that Paul Helliwell had set up two companies for the CIA  -- CAT Inc. (Later Air America) and SEA Supply Inc. in Bangkok -- that became the infrastructure of the CIA’s covert operations with drug-trafficking armies in Southeast Asia.89 The second is that Paul Helliwell’s banking partner, E.P. Barry, had been the postwar head of OSS Counterintelligence (X-2) in Vienna, which oversaw the recovery of SS gold in Operation Safehaven.90 The third is that for over four decades persons from Booz Allen Hamilton have been among the very small group owning the profitable Paradise Island Bridge Company. (A recent partner in the Paradise Island Bridge Company is Booz Allen Senior Vice-President Robert Riegle.)91




The Safari Club today, now the Fairmont Mount Kenya Safari Club

Moss, Khashoggi, the Safari Club, and the International Overworld

The power exerted by Khashoggi and Moss was not limited to Khashoggi’s access to funds and women. By the 1970s, Moss was chairman of the elite Safari Club in Kenya, where he invited Khashoggi in as majority owner.92 The exclusive property became the venue for an alliance between intelligence agencies that wished to compensate for the CIA’s retrenchment in the wake of President Carter’s election and Senator Church’s post-Watergate reforms.93

As former Saudi intelligence chief Prince Turki bin Faisal once told Georgetown University alumni,

In 1976, after the Watergate matters took place here, your intelligence community was literally tied up by Congress. It could not do anything. It could not send spies, it could not write reports, and it could not pay money. In order to compensate for that, a group of countries got together in the hope of fighting Communism and established what was called the Safari Club. The Safari Club included France, Egypt, Saudi Arabia, Morocco, and Iran.94

Prince Turki’s candid remarks– “your intelligence community was literally tied up by Congress. …. In order to compensate for that, a group of countries got together … and established what was called the Safari Club.” – made it clear that the Safari Club, operating at the level of the deep state, was expressly created to overcome restraints established by political decisions of the public state in Washington.

Obviously the property owned by Khashoggi and Moss in Kenya should not be confused with the intelligence operation of the same name. But it would be wrong also to make a radical separation between the two: the two men Khashoggi and Moss would appear to be part of this supranational intelligence milieu.

Specifically Khashoggi’s activities of corruption by sex and money, after they too were somewhat curtailed by Senator Church’s post-Watergate reforms, appear to have been taken up by the Bank of Credit and Commerce International (BCCI), a bank where Khashoggi’s friend and business partner Kamal Adham, the Saudi intelligence chief and Safari Club member, was a part-owner.95




BCCI on the cover of Time, July 6, 1991.

The Deep State, the Safari Club, and BCCI

The usual account of this super-agency’s origin is that it was

the brainchild of Count Alexandre de Marenches, the debonair and mustachioed chief of France’s CIA. The SDECE (Service de Documentation Extérieure et de Contre-Espionnage)…. Worried by Soviet and Cuban advances in postcolonial Africa, and by America’s post-Watergate paralysis in the field of undercover activity, the swashbuckling Marenches had come to Turki’s father, King Faisal, with a proposition…. [By 1979] Somali president Siad Barre had been bribed out of Soviet embrace by $75 million worth of Egyptian arms (paid for… by Saudi Arabia)….96

However the well-informed Mahmood Mamdani sees it as the product of Washington’s search for new proxies after the debacle of the U.S.- South African debacle in Angola in the mid-1970s:

Apartheid South Africa was confirmed to be a political liability. The recognition only aggravated the search for proxies. Its first success was a regional alliance called the Safari Club, put together with the blessing of Henry Kissinger.97

As Kissinger was still Secretary of State when the Safari Club was founded, this would suggest that it was an authorized, not a deep state creation. So would the Club’s early successes that Mamdani cites, especially when

it helped bring about the historic rapprochement between two strategic American Allies, Egypt and Israel, laying the ground for Anwar al-Sadat’s pathbreaking November 1977 visit to Jerusalem. The suggestion for the meeting was first made in a letter from Israeli Prime Minister Yitzhak Rabin to President Sadat, carried by the Moroccan representative in the club.98

But after Carter was elected, according to Trento, the Safari Club allied itself with Richard Helms and Theodore Shackley against the restrained intelligence policies of Jimmy Carter. In Trento’s account, the dismissal by William Colby in 1974 of CIA counterintelligence chief James Angleton,

combined with Watergate, is what prompted the Safari Club to start working with [former DCI Richard] Helms [then U.S. Ambassador to Iran] and his most trusted operatives outside of Congressional and even Agency purview. James Angleton said before his death that “Colby destroyed counterintelligence. But because Colby was seen by Shackley and Helms as having betrayed the CIA to Congress, they simply began working with outsiders like Adham and Saudi Arabia. The traditional CIA answering to the president was an empty vessel having little more than technical capability.”99

Joseph Trento adds that “The Safari Club needed a network of banks to finance its intelligence operations,… With the official blessing of George Bush as the head of the CIA, Adham transformed…  the Bank of Credit and Commerce International (BCCI), into a worldwide money-laundering machine.”100

Trento claims also that the Safari Club then was able to work with some of the controversial CIA operators who were then forced out of the CIA by Turner, and that this was coordinated by perhaps the most controversial of them all: Theodore Shackley.

Shackley, who still had ambitions to become DCI, believed that without his many sources and operatives like [Edwin] Wilson, the Safari Club—operating with [former DCI Richard] Helms in charge in Tehran—would be ineffective. …  Unless Shackley took direct action to complete the privatization of intelligence operations soon, the Safari Club would not have a conduit to [CIA] resources. The solution: create a totally private intelligence network using CIA assets until President Carter could be replaced.101

Kevin Phillips has suggested that Bush on leaving the CIA had dealings with the bank most closely allied with Safari Club operations: the Bank of Credit and Commerce International (BCCI). In Phillips’ words,

After leaving the CIA in January 1977, Bush became chairman of the executive committee of First International Bancshares and its British subsidiary, where, according to journalists Peter Truell and Larry Gurwin in their 1992 book ‘False Profits’ [p. 345], Bush ‘traveled on the bank’s behalf and sometimes marketed to international banks in London, including several Middle Eastern institutions.’102

It is clear moreover that BCCI operations, like Khashoggi’s before them, were marked by the ability to deal behind the scenes with both the Arab countries and also Israel.103

Khashoggi, Copeland, BCCI, and the Iran-Contra Scandal

Joseph Trento adds that through the London branch of this bank, which Bush chaired, “Adham’s petrodollars and BCCI money flowed for a variety of intelligence operations”104 It is clear moreover that BCCI operations, like Khashoggi’s before them, were marked by the ability to deal behind the scenes with both the Arab countries and also Israel.105

Khashoggi and BCCI together, moreover, with the assistance of Miles Copeland, initiated what we remember as the Iran-Contra arms scandal. According to Theodore Draper, in his exhaustive study of Iran-Contra,

A chance encounter between Adnan Khashoggi and Manucher Ghorbanifar effectively set the Iran affair in motion. As Khashoggi told the story to the French writer Michel Clerc, the meeting took place in Hamburg in April 1985.

Draper notes furthermore that the deal soon involved three Israelis, Yaacov Nimrodi, Adolph (Al) Schwimmer, and David Kimche, for whom “Khashoggi was no newcomer.”Together with Israeli Defense Minister Sharon, the three had “met with President Nimeiri of the Sudan [in May 1982] at a safari resort in Kenya owned by Khashoggi”—i.e., the Safari Club.106 But Khashoggi’s connection to Schwimmer went even further back: the two men had been introduced in Las Vegas by Schwimmer’s partner in gun-running to the infant state of Israel, Hank Greenspun.107

Draper’s account of the Hamburg meeting fails however to note that Miles Copeland and his assistant Larry Kolb were (according to their own accounts) also present. Copeland writes that he and Khashoggi met with the Iranian arms dealer Manucher Ghorbanifar, after which Copeland wrote up an Iran arms sales proposal. Copeland claims this had nothing to do with either Contras or hostages, but was intended as a “second paper to McFarlane…as an appendix to the ‘Marshall Plan’ paper. So far as [Khashoggi} was personally concerned, he was attracted to [Ghorbanifar’s] proposal only to the extent to which it could be tied into plans for over all Middle Eastern peace.”108

Copeland’s aide Larry Kolb agrees that he, Copeland, Khashoggi, and Schwimmer were all present with Ghorbanifar and others at the 1985 Hamburg meeting. There, according to Kolb, Khashoggi

said that in recent meetings in Washington, he’d been told that if the American government was going to participate in this venture…it would have to be structured in such a way that there would be no trail of arms… leading from the United States to Iran. So, Adnan said… it had been arranged that the actual goods could come from the Israeli government… and be transported directly from Israel to Iran….

But arms trading and spare parts and hostages took up very little of the conversation that day. Most of the time was spent thinking, and talking,… about a strategic opening between the United States and Iran – as a means of blunting Soviet attempts to dominate the world’s third largest oil producer.109

Later he and Copeland wrote up the meeting in a paper “titled ‘Adnan Khashoggi’s Views on the Possibilities of a Strategic Initiative Between the United States and Iran’,” that “wasn’t about an arms deal.” They gave it to Khashoggi to present to McFarlane.

We had no idea then that… months later a wild-ass Marine colonel would force the whole thing out into the open by stealing Adnan [Khashoggi]’s fifteen-million-dollar bridge loan which funded the sale and sending the money to the Nicaraguan Contra rebels.110

The Congressional investigation of the Iran-Contra Affair agrees with Kolb that “Khashoggi suggested that Ghorbanifar try to develop access to the United States and its arms through Israel.”111 And the Senate investigation of BCCI also reports:

Both Saudi businessman Adnan Khashoggi and Iranian arms merchant Manucher Ghorbanifar were central agents of the United States in selling arms to Iran in the Iran/Contra affair. According to the official chronologies of the Iran/Contra committees, Khashoggi acted as the middleman for five Iranian arms deals for the United States, financing a number of them through BCCI …. According to his own and other published accounts, he provided some $30 million in loans altogether…. Both Khashoggi and Ghorbanifar banked at BCCI's offices in Monte Carlo, and for both, BCCI's services were essential.112

Both Ghorbanifar and Khashoggi have been presented as mavericks interested in arms sales for their own individual profit. However the participation of Copeland  suggests that, once again,  what Copeland called “friends in Langley” may have been interested in engaging them in an operation to which both the Secretaries of State and of Defense were resolutely opposed.

The Deep State and the BCCI Cover-Up

It is clear that for years the American deep state in Washington was both involved with and protected BCCI. Acting CIA director Richard Kerr acknowledged to a Senate Committee “that the CIA had also used BCCI for certain intelligence-gathering operations.”113

Later, a congressional inquiry showed that for more than ten years preceding the BCCI collapse in the summer of 1991, the FBI, the DEA, the CIA, the Customs Service, and the Department of Justice all failed to act on hundreds of tips about the illegalities of BCCI’s international activities.114

Far less clear is the attitude taken by Wall Street banks towards the miscreant BCCI. The Senate report on BCCI charged however that the Bank of England “had withheld information about BCCI’s frauds from public knowledge for 15 months before closing the bank.”115

Of course the scope and influence of BCCI reflected changes in the global superstructure of finance since the oil price hikes of the 1970s. A recent study of the dangerously unstable concentration of ownership in the world showed only four recognizable Wall Street institutions among the top twenty: JPMorgan Chase & Co, the Goldman Sachs Group, Bank of New York Mellon Corp, and Merrill Lynch.116 Of these, Bank of New York, the bank heavily involved in the 1990s looting of Russia, interlocked with BCCI through the Swiss banking activities of the international banker Bruce Rappaport, “thought to have ties to US and Israeli intelligence.” (Alfred Hartmann, a board member of BCCI, was both vice-chairman of Rappaport's Swiss bank, Bank of New York-Intermaritime, and also head of BCCI’s Swiss subsidiary, the Banque de Commerce et de Placements).117 The mysterious E.P. Barry, the OSS veteran who had overseen the recovery of SS gold in Operation Safehaven before becoming the banking partner of Paul Helliwell, was also a major stockholder in Rappaport’s Inter Maritime Bank.)118

The collapse of BCCI in 1991 did not see an end to systematic Saudi-financed political corruption in the U.S. and elsewhere. After a proposed major arms sale in the 1980s met enhanced opposition in Congress from the Israeli lobby, Saudi Arabia negotiated a multi-billion pound long-term contract with the United Kingdom – the so-called al-Yamamah deal. It developed much later that overpayments for the purchased weapons were siphoned off into a huge slush fund for political payoffs, including “hundreds of millions of pounds to the ex-Saudi ambassador to the US, Prince Bandar bin Sultan."119 According to Robert Lacey, the payments to Prince Bandar were said to total one billion pounds over more than a decade, including “a suitcase containing more than $10 million” that went to a Vatican priest for the CIA’s long-time clients, the Christian Democratic Party.120 The money went through a Saudi Embassy account in the Riggs Bank, Washington; according to Trento, the Embassy’s use of the Riggs Bank dated back to the mid-1970s, when, in his words, “the Saudi royal family had taken over intelligence financing for the United States.”121

As we saw earlier. the CIA had “laundered over $10 million in captured Axis funds to influence the [Italian] election [of 1948].”122 These practices, in other words, survived the legal efforts to end them.

Conclusion: A Supranational Deep State

The complex milieu of Khashoggi, the BCCI, and the Safari Club can be characterized as a supranational deep state, whose organic links to the CIA may have helped consolidate it. It is clear however that decisions taken at this level by the Safari Club and BCCI were in no way guided by the political determinations of those elected to power in Washington. On the contrary, Prince Turki’s candid remarks revealed that the Safari Club (with the alleged participation of two former CIA Directors, Bush and Helms) was expressly created to overcome restraints established by political decisions in Washington.

A former Turkish president and prime minister once commented that the Turkish deep state was the real state, and the public state was only a “spare state,” not the real one.123 A better understanding of the American deep state is necessary, if we are to prevent it from assuming permanently the same role.

Peter Dale Scott, a former Canadian diplomat and English Professor at the University of California, Berkeley, is the author of Drugs Oil and War, The Road to 9/11, and The War Conspiracy: JFK, 9/11, and the Deep Politics of War. His most recent book is American War Machine: Deep Politics, the CIA Global Drug Connection and the Road to Afghanistan. His website, which contains a wealth of his writings, is here.

Recommended Citation: Peter Dale Scott, "The State, the Deep State, and the Wall Street Overworld," The Asia-Pacific Journal, Volume 12, Issue 10, No. 5, March 10, 2014.


1 Dana Priest and William Arkin, Top Secret America: The Rise of the New American Security State (New York: Little Brown, 2011), 52.

2 E.g. Marc Ambinder and D.G. Grady, Deep State: Inside the Government Secrecy Industry (New York: Wiley, 2013); cf. John Tirman, “The Quiet Coup: No, Not Egypt. Here,” HuffingtonPost, July 9, 2013: “Now we know: the United States of America is partially governed by a deep state, undemocratic, secret, aligned with intelligence agencies, spying on friend and foe, lawless in almost every respect.”

3 Mike Lofgren, “A Shadow Government Controls America,” Reader Supported News, February 22, 2014.

4 Grant Barrett, “A Wordnado of Words in 2013,” New York Times, December 21, 2013.

5 Peter Dale Scott, Deep politics and the death of JFK (Berkeley: University of California Press, 1998), 7.

6Tom Hayden discussing the crisis in Venezuela,” Tikkun, February 25, 2014.

7 To take a single telling example, six of Sam Walton's heirs are now reportedly wealthier than the bottom 30% of Americans, or 94.5 million people (Tim Worstall, “Six Waltons Have More Wealth Than the Bottom 30% of Americans,” Forbes, December 14, 2011). Cf. the devastating picture of a disintegrating America in George Packer, The Unwinding: An Inner History of the New America (New York: Farrar, Straus and Giroux, 2013).

8 See Kevin Phillips, The politics of rich and poor: wealth and the American electorate in the Reagan aftermath (New York: HarperCollins, 1991). Cf. John T. Stinson, The Reagan Legacy (Bloomington, IN: iUniverse, 2009), 146; Timothy Noah, The great divergence: America's growing inequality crisis and what we can do about it (New York: Bloomsbury, 2012).

9 For the impact of railroads on expanded social awareness, see Benedict Anderson, Imagined communities: reflections on the origin and spread of nationalism (London: Verso, 1991).

10What is the Deep State?” On Religion [2013].

11 Gareth Jenkins, “Susurluk and the Legacy of Turkey’s Dirty War,” Terrorism Monitor, May 1, 2008; quoted in Peter Dale Scott, “9/11, Deep State Violence and the Hope of Internet Politics," Global Research, June 11, 2008. For the Susurluk incident, see also Scott, American War Machine, 19-20, etc.

12 Scott, Deep Politics and the Death of JFK, xi-xii.

13 Lofgren, “ A Shadow Government Controls America.”

14 Quoted in Peter Dale Scott, The Road to 9/11: Wealth, Empire, and the Future of America, 1.

15 Forbes magazine founder Bertie Charles Forbes wrote six years later: “Picture a party of the nation's greatest bankers stealing out of New York on a private railroad car under cover of darkness, stealthily riding hundred[s] of miles South, embarking on a mysterious launch, sneaking onto an island [the appropriately named Jekyll Island] deserted by all but a few servants, living there a full week under such rigid secrecy that the names of not one of them was once mentioned, lest the servants learn the identity and disclose to the world this strangest, most secret expedition in the history of American finance. I am not romancing; I am giving to the world, for the first time, the real story of how the famous Aldrich currency report, the foundation of our new currency system, was written (B.C. Forbes, Leslie’s Weekly, October 19, 1916; in T. Cushing Daniel, Real money versus false money-bank credits; the most important factor in civilization and least understood by the people [Washington, D.C., The Monetary educational bureau, 1924], 169; cf. B.C. Forbes, Men who are making America [New York: Forbes Publishing Co., 1922], 398; cf. G. Edward Griffin, The Creature from Jekyll Island: A Second Look at the Federal Reserve [Westlake Village, CA: American Media, 1994]). Paul Warburg later wrote that “Though eighteen years have since gone by, I do not feel free to give a description of this most interesting conference, concerning which Senator Aldrich pledged all participants to secrecy” (Paul Warburg, The Federal Reserve System: Its Origin and Growth [New York, Macmillan, 1930], ZZ).

16 Congress was persuaded to provide perfunctory support of the bailout, under an alleged mysterious threat of martial law. See Peter Dale Scott, “Martial Law, the Financial Bailout, and War,” Global Research, January 8, 2009; reprinted in  Michel Chossudovsky and Andrew Gavin Marshall, eds., The Global Economic Crisis: The Great Depression of the XXI Century (Montreal, Global Research Publishers. Centre for Research on Globalization, 2010), 219-40; Llewellyn H. Rockwell, Jr., “Sen. Inhofe: [Henry] Paulsen [Secretary of the Treasury and former Chief Executive Officer of Goldman Sachs] Threatened Martial Law To Pass Bailout,”, November 20, 2008.

17 Richard Helms with William Hood A look over my shoulder: a life in the Central Intelligence Agency (New York: Random House, 2003), 82-83. Cf. Scott, American War Machine, 26-28.

18 Laurence H Shoup and William Minter, Imperial brain trust: the Council on Foreign Relations and United States foreign policy (New York: Monthly Review Press, 1977).

19 Gordon Thomas, Secret Wars: One Hundred Years of British Intelligence Inside MI5 and MI6 (New York: Thomas Dunne Books/ St. Martin’s Press, 2009), 98. This may have occurred during Dulles’s visit to Europe in the spring of 1947 (James Srodes, Dulles: Master of Spies [Washington: Henry Regnery, 1999], 392).

20 Richard Aldrich, The Hidden Hand: Britain, America, and Cold War secret intelligence (Woodstock, NY: Overlook Press, 2001), 343. Dulles also chaired the executive committee of the companion National Committee for a Free Europe (behind the Iron Curtain), whose legal affairs were handled by Sullivan and Cromwell (Wilson D. Miscamble, George F. Kennan and the Making of American Foreign Policy, 1947-1950 (Princeton, NJ: Princeton University Press, 1992), 204.

21 Amy B. Zegart, Flawed by Design: The Evolution of the CIA, JCS, and NSC (Stanford: Stanford UP, 1999), 189; citing Christopher Andrew, For the President’s Eyes Only (New York: HarperCollins, 1995), 172; see also Church Committee, Final Report, Book 4, 28-29.

22 David Wise and Thomas B. Ross, The Espionage Establishment (New York: Random House, 1967), 166; Scott, Road to 9/11, 13.

23 “In January 1946 Dulles outlined in some detail a reconstruction plan that is one of the earliest notions of what would, a year later, be known as the Marshall Plan” (Srodes, Allen Dulles: Master of Spies, 374).

24 Tim Weiner, Legacy of ashes: the history of the CIA (New York: Doubleday, 2007), 28.

25 Douglas Valentine, “The French Connection Revisited: The CIA, Irving Brown, and Drug Smuggling as Political Warfare,” Covert Action.

26 Norbert Schlei, “Japan's ‘M-Fund’ Memorandum, January 7, 1991,“ JPRI [Japan Policy Research Institute] Working Paper No. 11: July 1995: “Incident to the revision of the Security Treaty [in 1960], Vice President Nixon agreed to turn over exclusive control of the M-Fund to Japan. It has been alleged that this action by Nixon was part of a corrupt political bargain, whereby it was agreed that if Japan would assist him to become President of the United States, Nixon would agree to release control of the Fund to Japan and, if he became President, would return Okinawa to Japan.”

27 "C.I.A. Spent Millions to Support Japanese Right in 50's and 60's," New York Times, October 9, 1994. Cf. Scott, American War Machine, 93-94, 298-99; citing Chalmers Johnson, “The 1955 System and the American Connection: A Bibliographic Introduction,” JPRI [Japan Policy Research Institute] Working Paper No. 11: July 1995.

28 Sterling Seagrave and Peggy Seagrave, Gold warriors: America's secret recovery of Yamashita's gold (London: Verso, 2003). Cf. Richard Hoyt, Old Soldiers Sometimes Lie (New York: Forge, 2002), 80.

29 Scott, American War Machine, 94, etc.

30 Scott, American War Machine,

31 Norman Mailer, “A Harlot High and Low: Reconnoitering Through the Secret Government,” New York, August 16, 1976 (Hughes); Michael Schaller, Altered states: the United States and Japan since the occupation (New York: Oxford University Press, 1997), 294 (Lockheed).

32 Johnson, “The 1955 System and the American Connection.”

33  David E. Kaplan and Alec Dubro, Yakuza: Japan's Criminal Underworld (Berkeley: University of California Press, 2003), 89-90. Cf. Jonathan Marshall, in William O. Walker, III, ed., Drug control policy: essays in historical and comparative perspective (University Park, PA: Pennsylvania State University Press, 1992), 108:

“Yoshio Kodama’s fortune, built of profits from tungsten and opium, established the party that today rules Japan…. Kodama contributed to the pervasive corruption of Japanese politics by steering huge corporate contributions into the coffers of favored LDP members. This pattern culminated in the Lockheed scandal, which revealed that multi-million-dollar payoff by American aerospace firms had swayed key procurement decisions by Japan’s national airline and defense establishment and raised the possibility that the CIA had used Kodama and corporate funds to influence Japanese politics. The money-laundering channel used for Lockheed’s bribes was favored both by the CIA and international drug traffickers.”

34 Thomas Fensch, ed. The C.I.A. and the U-2 Program: 1954-1974 (The Woodlands, TX: New Century Books, 2001).

35 William D. Hartung, Prophets of war: Lockheed Martin and the making of the military-industrial complex (New York: Nation Books, 2011), 121; David Boulton, The Grease Machine (New York: Harper & Row, 1978), 97 (friends).

36 Andrew Feinstein, The shadow world: inside the global arms trade (New York: Farrar, Straus and Giroux, 2011), 265; Anthony Sampson, The Arms Bazaar (New York: Viking, 1977), 135-36.

37 Bradley R. Simpson, Economists with guns: authoritarian development and U.S.-Indonesian relations, 1960-1968  (Stanford: Stanford University Press, 2008), 142;

quoting from CIA, “Political Action Project,”, November 19, 1964; FRUS, 1964-1968, 26:181-84.

38 In addition there was “a US deal to deliver 200 light aircraft to the Indonesian Army in July 1965.” The aircraft went to the army’s Diponegoro division, which “ as well as supplying the bulk of the  [September 30] “coup” personnel in Java, … also provided the bulk of the personnel for its suppression” (Nathaniel Mehr, Constructive bloodbath' in Indonesia: the United States, Britain and the mass killings of 1965-66 [Nottingham: Spokesman Books, 2009], 36).

39 Peter Dale Scott, “The United States and the Overthrow of Sukarno, 1965-1967,” Pacific Affairs, 58, Summer 1985; citing

United States. Congress. Senate. Committee on Foreign Relations, Multinational corporations and United States foreign policy, hearings before the Subcommittee on Multinational Corporations (Washington: U.S. Govt. Printing Office, 1973-1976), Part 12, 937-65.

40 Scott, “The United States and the Overthrow of Sukarno.”

41 Masashi Nishihara, The Japanese and Sukarno's Indonesia: Tokyo-Jakarta relations, 1951-1966 (Honolulu: University Press of Hawaii, 1976), 171, 194, 202; Scott, “The United States and the Overthrow of Sukarno.”

42 Fortune, July 1973, 154, cf. Wall Street Journal, April 18, 1967.

43 John Dumbrell and Axel R Schäfer (eds.), America's 'special relationships’: foreign and domestic aspects of the politics of alliance (London: Routledge, 2009), 187.

44 John Foster Dulles to Lord McGowan, Chairman of Imperial Chemical Industries; in Nancy Lisagor and Frank Lipsius, A law unto itself: the untold story of the law firm of Sullivan & Cromwell (New York: Morrow, 1988), 127.

45 Charles T. O'Reilly, Forgotten Battles: Italy's War of Liberation, 1943-1945 (Lanham, MD: Lexington Books, 2001), 288; Peter Dale Scott, "How Allen Dulles and the SS Preserved Each Other," Covert Action Information Bulletin, 25 (Winter 1986), 4-14.  Dulles’s plans to use SS resources in post-war Germany cab be seen as part of a successful plan to frustrate the implementation of Roosevelt’s so-called Morgenthau Plan to deindustrialize Germany.

46 Stephen Dorril, MI6, 659-660.

47 Ovid Demaris, Dirty Business: The Corporate-Political Money-Power Game (New York: Avon, 1974), 213-14.

48 J.P.D. Dunbabin, International relations since 1945 : a history in two volumes

(London: Longman, 1994), Vol 2, 344. The boycott is denied without argumentation in Exxon’s corporate history (Bennett H. Wall et al., Growth in a changing environment: a history of Standard Oil Company (New Jersey), Exxon Corporation, 1950-1975 (New York: McGraw-Hill, 1988), Vol. 4, 476: “Despite oft-printed statements to the contrary, the oil majors did not conspire to boycott NIOC oil.”

49 Robert Palmer Smith, Darkest truths of black gold: an oil industry executive breaks the industry's code of silence (New York: iUniverse, 2007), 256. In July 1952 Mossadeq attempted to break the embargo by contracting to sell oil to a small private Italian oil firm. The manoeuver was frustrated by the British Royal Navy, which in July 1952 intercepted the Italian tanker Rose Mary and redirected it to Aden. The news dissuaded other tankers from trying to reach Abadan (Mary Ann Heiss, Empire and Nationhood: The United States, Great Britain, and Iranian Oil, 1950-1954 [New York: Columbia University Press, 1997], 130; Stephen Kinzer, All the Shah's men: an American coup and the roots of Middle East terror [Hoboken, NJ: John Wiley & Sons, 2003], 136).

50 Mostafa Elm, Oil, Power, and Principle: Iran's Oil Nationalization and Its Aftermath (Syracuse, NY: Syracuse University Press, 1992), 198-99 (Churchill); Robert Moskin, American Statecraft: The Story of the U.S. Foreign Service (New York: Thomas Dunne Books/ St. Martin's Press, 2013), 627-28 (Harriman).

51 Demaris, Dirty Business, 214-25: “The incoming Eisenhower Administration… quickly dropped the criminal case. The civil suit that was instituted alleged that the five American oil companies violated the Sherman Antitrust and the Wilson Tariff Acts by conspiring to divide and control foreign production and distribution…. An inadequate staff was assigned to the case and the action finally petered out a decade later with a couple of meaningless consent decrees.”

52 Robert Sherrill, The oil follies of 1970-1980: how the petroleum industry stole the show (and much more besides) (Garden City, NY: Anchor Press/Doubleday, 1983), 221).

53  William R. Freudenburg and Robert Gramling,     Oil in troubled waters: perceptions, politics, and the battle over offshore drilling (Albany : State University of New York Press, 1994); 17; citing Shukri Mohammed Ghanem, OPEC, the Rise and Fall of an Exclusive Club (London : KPI, 1986); Mira Wilkins, “The Oil Companies in Perspective,” in Raymond Vernon (ed.), The Oil Crisis (New York: Norton, 1976).

54 William Roger Louis, “Britain and the Overthrow of Mossadeq,” in Mark J. Gasiorowski and Malcolm Byrne (eds.), Mohammad Mosaddeq and the 1953 coup in Iran (Syracuse: Syracuse University Press, 2004), 168. Cf. William R. Clark, Petrodollar warfare: oil, Iraq and the future of the dollar (Gabriola Island, B.C.: New Society Publishers, 2005), 125: “[T]he Dulles brothers had already conceived a plot when Eisenhower became president in January 1953.”

55 Scot Macdonald, Rolling the iron dice : historical analogies and decisions to use military force in regional contingencies (Westport, CT: Greenwood Press, 2000), 98. Cf. Richard H. Immerman, John Foster Dulles: Piety, Pragmatism, and Power in U.S. Foreign Policy (Wilmington, DE: Scholarly Resources, 1999), 67. Allen Dulles played a personal role in TP/AJAX, by flying to Italy and persuading the frightened Shah to return to Tehran.

56 In the past, wishing to dissociate the term “deep state” from organizational connotations, I have written of the American “deep state” as “a milieu both inside and outside government with the power to steer the history of the public state and sometimes redirect it” (“William Pawley, the Kennedy Assassination, and Watergate,” Global Research, November 29, 2012. But because there are extra-governmental structural components to the deep state, it might be better to think of it as not just a milieu, but more analogous to an oligopolistic market.

57 See Chalmers A Johnson, The Sorrows of Empire: Militarism, Secrecy, and the End of the Republic (New York: Metropolitan Books, 2004), 218-19; Timothy Mitchell, Carbon Democracy: Political Power in the Age of Oil (New York: Verso Books, 2011), 212.

58 Tim Shorrock, Spies for Hire (New York: Simon & Schuster, 2008), 6.

59 Glenn Greenwald, “Mike McConnell, the WashPost & the dangers of sleazy corporatism,” Salon, March 29, 2010.

60 George H. W. Bush was an adviser to Carlyle, which in its early days “backed a management-led buyout of Caterair and appointed George W Bush to the board” (Jamie Doward, “Bush Sr's Carlyle Group Gets Fat On War And Conflict,” The Observer, March 25, 2003.)

61 Lofgren, “ A Shadow Government Controls America.”

62 Booz Allen Hamilton’s headquarters is now in McLean, Virginia, close to the HQ of the CIA.

63 Art Kleiner, Booz Allen Hamilton: Helping Clients Envision the Future, (Old Saybrook, CT: Greenwich Publishing, 2004), 43.

64 John Prados, Safe for Democracy: The Secret Wars of the CIA (Chicago: Ivan R. Dee, 2006.), 139. Cf. Christine N. Halili, Philippine History (Manila: Rex Book Store, 2004), 258 (Philippines land distribution).

65 Miles Copeland, The Game Player: the confessions of the CIA's original political operative (London: Aurum Press, 1989), 158.

66 Ephraim Kahana and Muhammad Suwaed, Historical dictionary of Middle Eastern intelligence (Lanham, MD: Scarecrow Press, 2009), 65 {“advisor”); Jack O'Connell, King's Counsel: A Memoir of War, Espionage, and Diplomacy in the Middle East, (New York : W.W. Norton & Co., 2011), 20 (channel).

67 The BCCI Affair: BCCI, the CIA and Foreign Intelligence, Report to the U.S. Senate Committee on Foreign Relations by John Kerry and Hank Brown, December 1992; 102nd Congress, 2nd Session, Senate Print 102-140 (“agent”).

68 William D. Hartung, Prophets of war: Lockheed Martin and the making of the military-industrial complex (New York: Nation Books, 2011), 126.

69 Copeland, The Game Player, 231.

70 Copeland, The Game Player, 233.

71 Copeland, The Game Player, 239.

72 E.g. Evan Thomas, The Very Best Men: Four Who Dared: The Early Years of the CIA

 (New York: Simon & Schuster, 1995), 380.

73 Larry J. Kolb, Overworld: The Life and Times of a Reluctant Spy [New York: Riverhead/Penguin, 2004], 237-38. Cf. Copeland, The Game Player, 230, 262-63; Ronald Kessler, The Richest Man in the World: The Story of Adnan Khashoggi (New York: Warner Books), 300-01: “[O]n May 17, 1983, [Khashoggi] submitted to President Reagan a confidential ‘yellow paper’ [which] proposed an economic aid program similar to the 1949 Marshall Plan developed by the U.S. for Europe. Called a Peace Fund, it would provide up to $300 billion in regional economic aid from the U.S., Saudi Arabia and Kuwait to Israel and any Arab country that signed a peace treaty with it.”

74 Peter Dale Scott, “Deep Events and the CIA's Global Drug Connection,”, October 12, 2008; American War Machine, 160-65.

75The BCCI Affair.” Khashoggi’s status had declined, but by no means vanished. As late as 2003, Khashoggi was negotiating with Richard Perle, a member of the Cheney-Rumsfeld clique who at the time was still Chairman of the U.S. Defense Policy Board, to invest considerable Saudi money in Perle's company Trireme (Seymour Hersh, New Yorker, 3/17/03).

76 Copeland, Game Player, 239; cf. 2128.

77 Kessler, The Richest Man in the World, 84, 188, etc.; Scott, American War Machine, 158-62.

78 “Moss, Edward K. #172 646,” CIA Memo of 19 April 1967, NARA #104-10122-10006; CIA Inspector General’s Report on CIA-Mafia Plots to Assassinate Fidel Castro, NARA # 104-10213-10101, p. 38. Cf. memo of 7 November 1962 in CIA’s Edward K. Moss folder, p. 26, NARA #1994.05.03.10:54:53:780005.

79 “Manuel Antonio Varona,” FBI Memorandum of January 16, 1961 to A. H. Belmont, p. 2, 105-76826-20; NARA #124-90055-10139. Cf. “Moss, Edward K. #172 646,” CIA Memo of 14 May 1973, in Meyer Lansky Security File, p. 9, NARA #1993.08.13.17:42:12:560059; CIA letter of 16 December 1960 to FBI, FBI file 105-76826-18; NARA #124-90055-10133. The CIA itself had notified the FBI on December 16, 1960, that Julia “Cellino” had advised that her brothers “have long been associated in the narcotics and white slavery rackets in Cuba (CIA letter of 16 December 1960 to Director, FBI, FBI File 105-76826-18; NARA #124-90055-10133; apparently no copy of this letter has been released from CIA files).

80 Kessler, Richest Man in the World, 29 (Yassin), 275–78 (Khashoggi). A friend of Khashoggi’s, Larry Kolb, reports that Khashoggi himself essentially corroborated the story that Khashoggi and John Kennedy had a friendship in the 1950s that “evolved primarily out of whoring together” (Larry J. Kolb, Overworld: The Life and Times of a Reluctant Spy [New York: Riverhead/Penguin, 2004], 236). The woman who destroyed the presidential aspirations of Senator Gary Hart in 1987 was one of Khashoggi’s many girls.

81 Anthony Summers with Robbyn Swan, The Arrogance of Power: The Secret World of Richard Nixon (New York: Viking, 2000), 283. Cf. Kessler, The Richest Man in the World, 171: Khashoggi told the prosecutors “that he churned millions through the tiny [Rebozo] bank to win favor with the president.”

82 Investigative reporter Jim Hougan reports the incredulity of congressional investigators that Lockheed was the only large corporation not to have made a contribution to Nixon’s 1972 election campaign (Hougan, Spooks, 457–58.

83 Scott, Road to 9/11, 35; citing Summers, Arrogance of Power, 283; Robert Baer, Sleeping with the Devil (New York: Crown, 2003), 43. (Baer reports the year of the briefcase as 1968, not 1972.) Kolb (“unequivocally, and from personal experience”) denies the briefcase story (Overworld, 299).

84 Scott, Deep politics and the death of JFK, 234-39.

85 Kessler, Richest Man in the World, 129, 160-61. When Hughes flew from Las Vegas to the Paradise Island casino in the Bahamas (where Edward Moss’s brother-in-law Eddie Cellini was casino manager, he did so on a Khashoggi plane. (Kessler, Richest Man, 149-50).

86 Summers with Swan, The Arrogance of Power, 242, 252; Jim Hougan, Spooks, 398. Cf. Denny Walsh, New York Times, January 21, 1974; Gerth, in Government by Gunplay, 137-39.

87 Block, Masters of Paradise, 94-96; Summers with Swan, The Arrogance of Power, 244-45. Benguet Mines have also been associated with Yamashita’s gold (Seagrave, Gold Warriors, 147; Scott, American War Machine, 322n15).

88 Summers with Swan, The Arrogance of Power, 244-45, 253-54.

89 Scott, American War Machine, 71-72. Cf. Wall Street Journal, April 18, 1980: “In 1951, Mr. Helliwell helped set up and run Sea Supply Corp., a concern controlled by the CIA as a front. For almost 10 years, Sea Supply was used to supply huge amounts of weapons and equipment to 10,000 Nationalist Chinese [KMT] troops in Burma as well as to Thailand’s police.”

90 In the course of Operation Safehaven, the U.S. Third Army took an SS major “on several trips to Italy and Austria, and, as a result of these preliminary trips, over $500,000 in gold, as well as jewels, were recovered” (Anthony Cave Brown, The Secret War Report of the OSS [New York: Berkeley, 1976], 565-66).

91 Who's who in Finance and Industry, Marquis Who's Who, 1979, 568.

92 Kessler, Richest Man in the World, 238-41; Scott, American War Machine, 161-62.

93 The operation kept the name “Safari Club” even after moving from Khashoggi’s Club to a permanent headquarters in Cairo.

94 Ibrahim Warde, The price of fear: the truth behind the financial war on terror (Berkeley: University of California Press, 2007), 133. Cf. Lacey, Inside the Kingdom, 66, 72, 76.

95 Christopher Byron, "The Senate look at BCCI,” New York Magazine, October 28, 1991, 20–21.

96 Lacey, Inside the Kingdom, 66. Cf. John Cooley, Unholy Wars (London: Pluto Press, 1999), 24-27.

97 Mahmood Mamdani, Good Muslim, bad Muslim:  America, the Cold War, and the roots of terror (New York: Pantheon Books 2004), 84.

98 Mamdani, Good Muslim, bad Muslim, 85.

99 Joseph J. Trento, Prelude to terror: the rogue CIA and the legacy of America's private intelligence network (New York: Carroll & Graf, 2005), 61.

100 Trento, Prelude to terror, 104-05. Kevin Phillips also notes that  “Bush cemented strong relations with the intelligence services of both Saudi Arabia and the shah of Iran. He worked closely with Kamal Adham, the head of Saudi intelligence” (Kevin Phillips, “The Barrelling Bushes,” Los Angeles Times, January 11, 2004).

101 Trento, Prelude to terror, 113-14.

102 Phillips, “The Barrelling Bushes,” Los Angeles Times, January 11, 2004.

103 There is no published evidence that Copeland was involved in the Safari Club covert operations. But it may be significant that Copeland’s activity of advising the Egyptian Army became after the creation of the Safari Club a franchise of a “private” U.S. firm, J.J. Cappucci and Associates, owned by Theodore Shackley (Trento, Prelude to Terror, 150, 247).

104 Trento, Prelude to Terror, 139.

105 There is no published evidence that Copeland was involved in the Safari Club covert operations. But it may be significant that Copeland’s activity of advising the Egyptian Army became after the creation of the Safari Club a franchise of a “private” U.S. firm, J.J. Cappucci and Associates, owned by Theodore Shackley (Trento, Prelude to Terror, 150, 247).

106 Theodore Draper, A Very Thin Line (New York: Hill and Wang, 1991), 129, 131. Cf. Dan Raviv and Yossi Melman, Every spy a prince: the complete history of Israel's intelligence community (Boston: Houghton Mifflin, 1990), 261; Mayn Katz, Song of Spies (Heliographica Press, 2005) 136-37.

107 Samuel Segev ; translated by Haim Watzman, The Iranian triangle : the untold story of Israel's role in the Iran-Contra (New York: The Free Press, 1988), 10. For the collaboration of Greenspun, Schwimmer and Meyer Lansky in gun-running, see Leonard Slater, The Pledge (New York, Simon and Schuster, 1970). Paul Helliwell may have been part of this operation; see Scott, American War Machine, 71, 164.

108 Copeland, The Game Player, 263.

109 Kolb, Overworld, 246.

110 Kolb, Overworld, 247.

111 Iran-Contra Affair, Report of the congressional committees investigating the Iran-Contra Affair (U.S. Congress, H. Rept. No. 100-433, S. Rept. No. 100-216), 164.

112 Kerry-Brown Report, Part 11, “BCCI, the CIA and Foreign Intelligence.”

113 Kerry-Brown Report, Part 11, “BCCI, the CIA and Foreign Intelligence.”

114 Dan Bawley, Corporate Governance and Accountability: What Role for the Regulator, Director, and Auditor? (Westport, CT: Quorum, 1999). 37.

115 Bawley, Corporate Governance and Accountability, 37.

116Revealed – the capitalist network that runs the world.” New Scientist, October 24, 2011.

117 Scott, American War Conspiracy, 163; quoting from Peter Truell and Larry Gurwin, False Profits: The Inside Story of BCCI, the World’s Most Corrupt Financial Empire (Boston: Houghton Mifflin, 1992), 384 (“ties”).

118 Alan A. Block and Constance A. Weaver, All is clouded by desire: global banking, money laundering, and international organized crime (Westport, CT: Praeger, 2004), 36-37.

119Saudi prince 'received arms cash',” BBC, June 7, 2007. It is unclear whether payments continued after 2001, when the UK signed the OECD's Anti-Bribery Convention, making such overpayments illegal.

120 Robert Lacey, Inside the Kingdom: Kings, Clerics, Modernists, Terrorists, and the Struggle for Saudi Arabia (New York: Penguin Books, 2009), 108.

121 Trento, Prelude to Terror, 102.

122 Amy B. Zegart, Flawed by Design: The Evolution of the CIA, JCS, and NSC (Stanford: Stanford UP, 1999), 189; citing Christopher Andrew, For the President’s Eyes Only (New York: HarperCollins, 1995), 172; see also Church Committee, Final Report, Book 4, 28-29.

123 Former Turkish President and Prime Minister Suleyman Demirel commented that “In our country… there is one deep state and one other state…. The state that should be real is the spare one, the one that should be spare is the real one” (Jon Gorvett, “Turkey’s ‘Deep State’ Surfaces in Former President’s Words, Deeds in Kurdish Town,” Washington Report on Middle East Affairs, January/February 2006); quoted in Scott, American War Machine, 24.

Top updates

Bulletin Latest Past week Past month
Google Search


Old News ;-)

The Deep State 2019 2018 2017 2016 2015

[Mar 22, 2018] The Israelis I believe needed JFK dead so they made sure he became deceased. He was in the way and with so many others hating him and his brother after he challenged the CIA, his days were numbered. Then it was Bobbies turn.

Mar 22, 2018 |

robert e williamson jr , March 20, 2018 at 12:44 pm

Ray good stuff. Let us talk about the Israelis and the problems they have created in this country. I'm 69 drafted in May 1968 no Vietnam, I was a spook attached to the 592nd Signal Co of the Berlin Brigade. I got hooked and I haven't really been a "TRUE BELIEVER" since. I mean that in the sense that I have suspected the activities of the state ever since.

I'm no genius and you may already gather that , no matter, but I know B.S. from Shinola which was a famous shoe polish.

I have been anti-Israeli Government since I realized who they were. The Israelis compromised J.J. Angleton and our country has been adversely affected ever since. They have compromised our sovereignty ever since.

Shapiro spirited SNM-fissile out of the country. The Israelis I believe needed JFK dead so they made sure he became deceased. He was in the way and with so many others hating him and his brother after he challenged the CIA, his days were numbered. Then it was Bobbies turn. The damned guy just wouldn't quit, so when it became obvious he was likely to be elected president in 68 he had to go also. Nice Irish Catholic boy scout like him wasn't about to let those who murdered his brother get away with it. But it much more involved than simply him getting his brothers killers. RFK had front row knowledge of his brother battles with the Israelis over their nuclear weapons program.

Sometime during 1967 John Hadden learned that Portsmouth Ohio HEU-235 was present in Isreal. In April or May Helms contacted the attorney general about this and then the FBI contacted him, Ramsey Clark, in May about opening an investigation in Zalmon Shaprio of NUMEC fame. At that point in time I can see that RFK must go. If RFK had learned of the Portsmouth Ohio U-235 in Israel he would have known immediately who had what to hide and why. His friggin' security detail should have been beefed up. Nothing of the sort happened. So depending on how you count the days from the time that CIA and FBI contacted the AG R Clark about the U-235 in Israel and FBI contacted the AG was a matter or 30 or so days. RFK died on June 6, 1968 and it was no Dogdamned coincident.

I have done limited research on the CIA machinations and FBI investigations connected with the NUMEC saga. The pursuit of the investigation was hampered because "The Fix" was in and I think you know this.

The present time is the best time I've seen in my life to expose this bullshit for what it is. Keep up the great work.