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Beneath the Surface

Exposing the Empire’s Secrets In Real Time

Loading ...John Rubino

February 12, 2025 • 6 minute, 42 second read


DOGEfraudGovernment Spending

Exposing the Empire’s Secrets In Real Time

“The more corrupt the state, the more numerous the laws.”

—Tacitus


 

February 12, 2025— The U.S. political class has created a constellation of taxpayer-funded grifts and sinecures that provide swamp creatures a lifetime of employment for a minimal amount of work. All that’s required is moral flexibility.

A graduate of, say, Georgetown University, can build a “career” by cycling through the following entities:

Congressional/White House staff

Washington think tanks

Non-governmental organizations (NGOs)

Legacy media outlets

K-Street lobbying firms

D.C. law firms

Ivy League universities

Regulatory agencies

“Regulated” companies like defense contractors and pharmaceutical firms

At the end of the process, our hypothetical bureaucrat will have made a ton of money, impressed the credulous with his/her official titles, and never, in all that time, created anything of value. A cynic might call this a wasted life.

Until very recently, it wasn’t understood just how much the rest of us paid for this deep state gravy train — and how much damage these people were doing to U.S. interests and other countries’ stability.

But now we’re finding out, and the revulsion is global.

At the epicenter of the scandal is USAID, a shadowy, government-funded entity that spends billions of dollars doing bad things that the State Department and CIA are reluctant to do for themselves.

To understand USAID, two of the best sources are Glenn Greenwald and Mike Benz. Here they are together:

Here’s what happened when the new US government discovered that USAID was financing partisan legacy media outlets like Politico.

Zerohedge reports that in light of the firestorm over tens of millions of dollars going from the US government to various media outlets in the form of subscriptions, particularly Politico, President Trump has directed the General Services Administration to terminate “every single media contract” expensed by the agency, according to an email obtained by Axios.

“GSA team, please do two things,” the email begins.

  • Pull all contracts for Politico, BBC, E&E (Politico sub) and Bloomberg
  • Pull all media contracts for just GSA – cancel every single media contract today for GSA only.

The move comes after internet sleuths discovered tens of millions of dollars going towards Politico Pro subscriptions, with particular focus on one $8 million allocation.

On Wednesday, White House Press Secretary Karoline Leavitt said that the executive branch would cancel their contract with Politico…

…and today we find that it goes much further than just the rag that laundered the deep state’s ’51 intel officials’ Hunter Biden laptop propaganda. For example, the NY Times was also cut off.

Politico responded on Thursday, claiming that they have “never received any government funding — no subsidies, no grants, no handouts. Not one dime, ever, in 18 years.”

No, just tens of millions in Politico Pro subscriptions from the government. Like Hunter Biden received $200,000 for a painting of his excrement, which was totally not influence peddling.

Deep Cuts To USAID

Meanwhile, the White House is also planning to cut USAID’s staff from roughly 10,000 employees to just 294 – a 97% reduction, after Elon Musk’s DOGE team revealed that the international aid organization has essentially been funding woke pet projects and anti-American activities.

On Tuesday, the administration put a stop on all USAID work and placed all employees on leave, with thousands of overseas workers to be recalled within 30 days.

And here, from the EKO Substack, is a more in-depth look at what this sudden exposure of the Empire’s dark underbelly means going forward:

Override: Inside the Revolution Rewiring American Power

USAID fell next. No midnight raids this time. No secret algorithms. Just a simple memo on agency letterhead: “Pursuant to Executive Authority…”

Career officials panicked—and for good reason. Created by Executive Order in 1961, USAID could be dissolved with a single presidential signature. No congressional approval needed. No court challenges possible. Just one pen stroke, and six decades of carefully constructed financial networks would face sunlight.

“Pull this thread,” a senior official warned, watching DOGE’s algorithms crawl through USAID’s databases, “and a lot of sweaters start unraveling.”

The resistance was immediate—and telling. Career officials who had barely blinked at Treasury’s exposure now worked through weekends to block DOGE’s access. Democratic senators who had ignored other moves suddenly demanded emergency hearings. Former USAID officials flooded media outlets with warnings about “institutional knowledge loss” and “diplomatic catastrophe.”

But their traditional defenses crumbled against DOGE’s new playbook. While bureaucrats drafted memos about “proper procedures,” the young coders were already mapping payment flows. While senators scheduled hearings, pre-positioned personnel were implementing new transparency protocols. While media allies prepared hit pieces, DOGE’s algorithms exposed decades of questionable transactions.

Turn Your Images On

Young guns at DOGE doing God’s work

The scale was breathtaking:

EPA climate initiatives? Not just mapped—found unauthorized programs in 47 states. Education’s DEI maze? Not just exposed—revealed coordination across 1,200 programs. Intelligence community black budgets? Not just traced—uncovered patterns hidden for 30 years.

“The administrative state runs on two things,” a senior advisor explained, watching patterns emerge across DOGE’s screens. “Control of information and money flows.” His eyes tracked new connections forming in real-time. “We’re not just exposing their networks—we’re rewriting their DNA.”

The cracks began showing in unexpected places. A career EPA director, tears streaming: “Everything we built…” A USAID veteran, hands shaking: “They’re inside all of it…” A Treasury lifer, closing his office: “They move faster than we can think.”

Across Washington, officials who had weathered every reform since Reagan began quietly updating LinkedIn profiles. A Deputy Director: “Open to opportunities.” An Agency Chief: “Exploring new challenges.” A Bureau Head: “Time for change.”

DOGE’s algorithms weren’t just programs—they were archaeology tools, excavating decades of buried networks. Each data point connected to another. Each discovery revealed new targets. Each pattern exposed larger systems.

“It’s beautiful,” one of the coders whispered, watching connections form across his screen. “Like watching a galaxy map itself.”

For the permanent bureaucracy, this wasn’t just change. It was an extinction-level event. Their power came from controlling who got paid, when they got paid, and what they got paid for. Now those controls were evaporating like dawn burning away darkness.

The pattern was devastating in its simplicity:

  1. Map the money flows
  2. Deploy aligned personnel
  3. Expose the networks
  4. Restructure the systems

By the time bureaucrats drafted objections to one breach, three more had already occurred.

The revolution wasn’t just spreading. It was accelerating.

Regards,

John Rubino,
Grey Swan

P.S. Grey Swan member Howard S. writes:

I am 81 and am shocked by the $22,000 gold possibility! All the best!

It’s only shocking until you consider how much money is truly being created and wastefully spent –  and stolen – not to mention the soaring demand for gold by big buyers like central banks today.

While we view tariffs as poor economic policy, some of you disagree with that assessment. Reader DB writes:

Going back aways – to the constitution, tariffs are meant to be the way the US government obtains money. Not taxation on its local constituency.

As a producer, (the government produces nothing) something is sent to a user in another governmental jurisdiction. The producer has an agreed upon “price” which he will get from the user but the user will also have to pay an “override price” [tariff] to the government or governments involved just because something crossed its border(s). At the same time accounting may occur that would go on the GDP ledger.

This practice is no longer followed or never was followed. That is why we are in trouble.

Whatever Richards says should boil down to this: He seems to explain the various actions as somewhat questionable. The only thing questionable in the mix is the amount of the override.

And David chimes in on Jim Rickards and the case for tariffs as a trade and negotiation tool:

Rickards’ idea is absolutely “bananas.”…Fortunately GSIF doesn’t like tariffs as most of the world; bring the chainsaw!

We’ll bring the chainsaw oil.

As always, send any comments you have to addison@greyswanfraternity.com. We read all responses. Thank you in advance.


The Dominoes Keep Falling in the Move to Digital Money

October 21, 2025 • Ian King

Trillions of dollars are already being transferred and tracked on the tokenized rails that Visa, JPMorgan, Mastercard and other major financial institutions plan to scale globally in the next 12 months.

Meaning, there’s no longer such a thing as “crypto vs. the banks.”

Because the same financial giants that crypto once tried to replace are taking the best parts of blockchain — speed, transparency and programmability — and fusing them into the system they already control.

And as each domino falls, it brings us closer to a world where money moves as easily as data.

It means that by the end of 2025, digital dollars could settle more value than PayPal ever has.

So if you’re still treating digital money as “the future,” you’re already a step behind.

The Dominoes Keep Falling in the Move to Digital Money
Inside Dollar 2.0

October 21, 2025 • Addison Wiggin

Consumer spending on ChatGPT has plateaued in Europe, with growth now near zero after peaking at +20% in 2023. Yet investors continue to price in boundless growth — what we’ve come to recognize as a classic late-stage bubble pattern.

Inside Dollar 2.0
The New Great Wall of China

October 21, 2025 • Addison Wiggin

Some historic irony, here.

China invented paper currencies in the Tang Dynasty in the 7th Century. Known then by the Mandarin characters that mean “flying cash,” the currency, like all paper money, lost its value.

Today, as the rest of the world goes all-in on fiat, and begins to digitize the dollar, China’s rediscovery of gold as an asset suggests that gold’s run isn’t over… yet.

The New Great Wall of China
“No Kings” or Just Bad At Math

October 20, 2025 • Addison Wiggin

The “No Kings” crowd might one day discover that the tyranny they fear doesn’t wear a crown. It wears a smile, signs checks, and calls itself “the common good.”

And like all monarchs in the end, it will demand obedience — long after the cheering stops.

If history rhymes, as it seems to, we’re somewhere between the late 1930s and the late Roman Republic. The crowds are restless, the debt insatiable, the elites insulated, and the reformers convinced they can vote their way to virtue. The yachts are still in the harbor; the customers are still swimming.

“No Kings”? Fine. But remember: every time the crowd dethrones a monarch, it tends to crown a bureaucracy. And bureaucracies, unlike kings, never die.

“No Kings” or Just Bad At Math