Think what England was like when the government didn't really exist: anyone with any wealth or property had to design their house to withstand infantry-strength assault. That's not efficient. National governments and policemen will survive the electronic revolution because of the efficiencies they create.
If I were to hold a three-hour encrypted conversation with someone in the Medellín drug cartel, it would be a dead giveaway. In routine monitoring, GCHQ (Britain's signals intelligence service) would pick up the fact that there was encrypted traffic and would instantly mark down my phone as being suspect. Quite possibly the police would then send in the burglars to put microphones in all over my house. In circumstances like this, encryption does not increase your security. It immediately and rapidly decreases it. You are mad to use encryption if you are a villain.
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