Summary

Stephen discussed what he calls the Cold Civil War in the United States today. He labels this tension as the reason behind the lack of an expected return to normalcy in the Biden presidency, after four years of Trump. Rather than ever returning to a state of normalcy, Stephen states that we never will, for a complete structural change has occurred within the US political system over the last 50 years. This is because the US has turned into a total state – as a reaction to political liberalism. As a result of this, public and private spheres are merged into the more hostile political sphere.

Obama and Trump were both unsuccessful in reversing the formation of the total state, as they failed in their battle against the ruling class. Biden is failing in his effort too, for we have only seen aggressive politicisation and the weaponization of the government during his term so far. Stephen predicted that Biden would politicise apolitical agencies such as the SEC and FED. The changes we have seen so far in the personnel of both agencies are indicative of this politicisation. For example, the SEC recently concluded that the definition of materiality would not be changed, however, by asking for disclosures from publicly traded corporations, they are changing the definition of materiality that has been the same since 1947. Stephen sees this as an example of how American politics has become all about a political struggle, and how everything is now partisan.

Stephen goes on to discuss how Woodrow Wilson’s presidency – distinctive for its American Progressivism - was the genesis of the partisan struggle within these apolitical agencies. Wilson wanted to create a ‘guardian class’ that was able to correct the mistakes of the masses, especially in the judicial system. This ‘guardian class’ has since evolved and expanded, and is now involved in the financial services, regulatory agencies, and private companies.

Stephen concludes by describing the two routes in which the US total state can now progress. To reverse the total state, a market collapse or central bank policy failure is required due to the misallocation of capital towards the political sphere. The other route is the progression of the total state. This advancement would result in totalitarianism, as state actors are forced to seek greater powers to enact policy upon society.

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