OP have you read Naomi Wolf's book The End of America, where she writes about the ten things that democracies do to close down a free society. She compares what is happening in America now with what happened in Chille and Germany.
interview with her about the book.
Politicians in nation states are powerless and democracy is an illusion because so much power has now passed to big corporations via chairmen of financial institutions (IFM, World Bank, OECD, issuing banks) The only purpose of governments within nation states is to perpetuate the idea of democracy. Obama hasn't closed down Gauntanamo, instead he has enacted more laws that people barely understand but basically give the state carte blanche to lock anyone up without trial.
Capitalism creates an ever increasing sludge of "useless eaters" thrown onto the pile, unable to find work, unable to live without state subsidy. Neo-liberalisation and the failure of states to stand up to corporations means that the state collects ever less in tax, as small businesses are squeezed out, as corporations find ways of socialising costs and maximising profits, the state is becoming impotent. It can only shrink, and as it does so, many people will suffer. As desperate people realise and act, the state must be ready to impose martial law, and America is ready for just that eventuality. I would add I think the UK government probably have similar contingency plans.
What is amazing is that so many people still equate free markets with free people.