I do believe that governments do keep track of some people. War-protestors, Muslim clerics, militia groups, "Critical Mass" participants. Oh, those subversive bicyclists!!!!
Communications are monitored. Computer programs searching for "key-words" in newsgroups and emails. But does the government care enough to follow me? I don't think so. Not as long as I keep to myself.
It gets stranger and more invasive than that, but do I care? Eh, not really. I'd rather be lining my pockets, too.
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