You are thinking way too small, but yes we do live in an updated 1984 version. The US is only a small part of it. It's the entire world that is in it. It's not as graphic as you say and it's also a lot more subtle. I call it self-inflicted fascism and I believe communication technologies and world security (including, but not limited to the patriot act) are the main ways through which it is enforced.
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