The US system always had a huge number of Presidential political appointees to the various government agencies; what's different now is that the level of abuse by the bushco is unprecedented.  I can't find an analogue in German politics of Karl Rove.

The system was founded on checks and balances of the various institutions, as well as separation of powers. These bedrock principles no longer exist; thus the liklihood that the system is broken beyond repair.

Strangely, blogging is perhaps the main check on the system now, fulfilling the former role of the press, the Fourth Estate.  Prime example:  the detailed blogosphere scrutiny of the Plame case.  But even then the system miscarried justice, despite Libby's conviction. Despite the evidence, Cheney wasn't nailed.

"Life shrinks or expands in proportion to one's courage." - Anaïs Nin