It isn't really insane. In fact, it is almost perfectly rational. No matter how nobly its founding principles, every government (every bureaucracy, for that matter) at some point becomes motivated solely for its own continued survival. It is not bound by the principles of liberty, freedom, equality, etc. etc. etc. It is bound only to self-perpetuate.
In biology, that behavior is called a cancer.
Government is not of the state but of balance of powers and limits on a hired state.
I start having problems when a cop hired by a neighborhood all of a sudden is empowered to tell a neighbor he has the authorization to attack that neighbor.
Who gave that cop that authorization but himself? What kind of neighbor would do that to others.
This is how conspiracy simply starts folkes, and I know a lot of cops doing just that.