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I agree with your assessment, but there is one saving grace, and that's that this strategy can't be sustainable. Eventually the mountain of lies has to cave in on itself. It happened to the Soviet bloc and it will happen here. When your entire policy is based around lying and heightened military spending, you will fail in due course; that seems to be a truth of governments around the world. This has gotten so bad that even Fox News, in an editorial last week, said this:

    ...to anyone paying the slightest bit of attention to facts, Ryan’s speech was an apparent attempt to set the world record for the greatest number of blatant lies and misrepresentations slipped into a single political speech. On this measure, while it was Romney who ran the Olympics, Ryan earned the gold.

Again, that's from Fox News. When they're calling bullshit on Republicans, we know its gotten bad. Of course, the Romney camp responded by saying:

    We're not going let our campaign be dictated by fact-checkers.