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Beneath the Surface

Clearest Proof That the Bureaucratic State Needs to Go

Loading ...James Hickman

August 25, 2025 • 3 minute, 46 second read


bureaucracy

Clearest Proof That the Bureaucratic State Needs to Go

“In any bureaucracy, there’s a natural tendency to let the system become an excuse for inaction.”

–Chris Fussell

August 25, 2025 — Welcome to Alligator Alcatraz — the detention center in the middle of the swampy Everglades, surrounded by razor wire, armed guards, and actual alligators.

Formally known as the Everglades Transitional Detention Center, it was built by the state of Florida inside federal land managed by the National Park Service, designed to detain illegal immigrants apprehended under Florida law.

The facility went up in record time— especially for a government project— complete with fences, floodlights, sewage and power systems, and modular housing pods for hundreds of detainees.

Then came the lawsuits.

Environmental groups and the Miccosukee Tribe filed a case earlier this year claiming the facility violated the National Environmental Policy Act (NEPA), interfered with tribal land use, and posed ecological risks to the surrounding wetlands.

And on August 21, US District Judge Kathleen Williams of the Southern District of Florida issued an 82-page ruling granting a preliminary injunction.

It orders Florida to stop using the Everglades detention site, prohibits new detainees, mandates the removal of all infrastructure, and requires the relocation of current detainees within 60 days.

To save the endangered Florida bonneted bat and snail kite… allegedly.

Allegedly, because what activists actually want Alligator Alcatraz shut down for is holding illegal immigrants.

Clearly there is no standing to argue that people who broke the law entering the country illegally cannot be detained for their crimes.

But lucky for far-left activists, there are 200,000+ pages of federal regulations that surely every single person, property, project, and business in America has violated in some way.

So all they have to do is find the crime, and they can obstruct, harass, arrest, sue, or charge anyone they want!

That’s one problem, but another is the power of one judge to unilaterally road-block this facility.

In July, the Supreme Court limited the scope of nationwide injunctions that allow activists to find any federal judge in the country that might agree with them, and obstruct anything the executive branch tries to do.

But activists can still find judges within their federal district to handicap executive actions at every turn. And again, because the government is clearly allowed to detain illegal immigrants, they had to think up some other excuse.

This whole situation is just so emblematic of why America is completely unable to solve its problems.

First of all, not only will the money spent creating Alligator Alcatraz be a total waste, but the government will have to spend more money tearing it down, transporting illegal immigrants, and finding new accommodations for them.

Stopping the runaway spending and borrowing is one of the most crucial problems America needs to solve to avoid catastrophic economic consequences and intense inflation.

The other issue is that there are so many federal laws, rules, and regulations, that even the federal government can’t take a step without tripping over red tape.

So how do they expect the private sector to fare any better when the potential presence of the Florida bonneted bat can cause all progress to come crashing down?

They need to take a chainsaw to federal regulations if they want to spur the type of economic growth America needs in order to grow itself out of its debt problem.

James Hickman
Schiff Sovereign & Grey Swan Investment Fraternity

P.S. from Addison: Bureaucracy doesn’t just prevent America from solving problems – while perpetuating existing ones in the process.

Rather, a bureaucracy’s chief goal is defending its own existence – and growing its turf as much as possible. That’s why managing a problem is better than fixing it. Fixing a problem might mean the end of a bureaucracy.

The end result is clear from the Bureau of Labor Statistics (BLS). As noted with Matt Clark and Andrew Packer on Grey Swan Live! last week, the data is increasingly based on estimates, not facts. And prior revisions have been massive.

This week on Grey Swan Live!, we’ll explore the topic further with Andrew Zatlin. Andrew has been rated #1 by Bloomberg for his views on the labor market. “You know the old saying, garbage in – garbage out,” quips Andrew.

He’ll share some other factors for investors to consider to get a better sense of the economy’s current state. Stay tuned for more details on our upcoming live! zoom this week. Join our fully-paid Fraternity members so you can get our top-level contacts and their insights.

Turn Your Images On

Your thoughts? Please send them here: addison@greyswanfraternity.com


The Hindenburg Five

February 24, 2026 • Addison Wiggin

The stock market “rebalancing” is a polite way to put it. Energy and health care are getting a healthy boost. But tech hardware and software makers are still getting dressed down and have been asked to report to the principal’s office.

The great rotation underway has triggered a series of “Hindenburg Omens.” Five have occurred in recent weeks.

The Hindenburg Five
Piercing The Veil

February 23, 2026 • Addison Wiggin

The S&P 500 has traded in a 3.7% range over the past two months — less than half the 20-year median of 8.6%. One of the tightest ranges in modern history.

In trader parlance, the indexes are “flat,” a setup that often materializes before a sell-off at the top after a multi-year bull market.

Goldman Sachs told its own traders to be aware that institutional trading activity resembles a VIX reading near 35. Rather than a reading of 20, where the VIX has been trading over that same 2-month period.

The U.S. software ETF, IGV, tested its April 2025 lows last week and trades roughly 35% below its peak. The “SaaS-pocalypse” in software companies reflects the fear of Citrini’s 2028 scenario happening in real time.   That divergence now exceeds the spread seen at the peak of the Great Financial Crisis.

Under the surface, the “great rotation” we wrote about last week is threatening to widen.

Piercing The Veil
Oh. Canada

February 23, 2026 • Addison Wiggin

Despite its overly-educated 40-million-plus population, on a GDP per capita basis Canada is null. Collectively, the Great White North would rank as America’s second-lowest state, coming in above Mississippi, but below Alabama.

Oh. Canada
Matt Milner: SpaceX + xAI: What It Means for You

February 20, 2026 • Addison Wiggin

SpaceX is the most valuable private startup in history — and if its success continues, it might become the most valuable public company in history.

After all, as Musk famously said in 2023, “I have never lost money for those who invest in me and I am not starting now.”

For investors, SpaceX has been a wild, joyful ride — and now the journey continues!

Matt Milner: SpaceX + xAI: What It Means for You