Deep State Turns on Trump - Vivek Kaul's Diary
Free Reports

Deep State Turns on Trump

Jul 19, 2018


YOUGHAL, IRELAND - We left off yesterday with a provocative question: Has Trump really gone to war with the Deep State?

Or was he just mouthing off in Helsinki... off message... and out of control?

There are a couple more hypotheses, too... but we'll get to them in a moment.

Off the Reservation

Even some of Mr. Trump's dearest supporters seemed to think Mr. Trump he has gone too far off the reservation. Newt Gingrich, for example, seemed to suggest that the president needed to edit his transcript:

"It is the most serious mistake of his presidency and must be corrected - immediately," he tweeted.

And here is Dan Coats, the president's own Director of National Intelligence, sticking to the Russians-are-bad-guys trope and referring to allegations of election interference:

  • These actions are persistent, they are pervasive, and they are meant to undermine America's democracy.

From Senator John McCain:

  • He and Putin seemed to be reading from the same script...

And here is Indiana Representative Jim Banks:

  • I want President Trump's diplomatic efforts to be successful, but I'll take the word of a Hoosier over Vladimir Putin any day.
--- Advertisement ---
ALERT: This Stock Market Revelation Happens Only FOUR Times a Year…

Four times a year, a unique but extremely lucrative document is released…

A document that discloses exactly which stocks look 'marked' to boom in the months or years to come.

Now, please understand that this document is available to everyone…

But it can be downloaded only from a specific site and very few investors know how to do this.

Click here to find out how you could download this document yourself.


The word he was taking was what U.S. intelligence agencies were putting out - that is to say, the word of Deep State operatives. Their claim was that Russia hacked into U.S. computers, specifically the systems of the Democratic National Committee, to try to influence the presidential election of 2016.

We bring the Deep State into the conversation because it may turn out to be the "who" in this "who-dunnit."

Regular readers will remember that the Deep State is the loose collection of special interests... government insiders... and financial elites that control the country.

Remember, too, that Italian economist Vilfredo Pareto described how all governments are taken over by the "foxes" - aka the Deep State - smart, elite insiders who use the power of the state for their own purposes.

The Deep State is the major beneficiary of the Warfare State, the Welfare State, and the Police State. And if Donald J. Trump really was a threat to any of them, the insiders had a better motive than the Russians for wanting to slow him down.

Besides, U.S. intelligence agencies had much more money to work with... much more talent to draw on... and many more opportunities to get up to mischief.

That's why some analysts believe that the mischief at the heart of the Russiagate story was more likely gotten up to by U.S. spooks rather than foreign ones.

Two retired NSA and CIA analysts, William Binney and Ray McGovern, with a combined 63 years of experience, came forward over the weekend and made an astounding charge.

They said the hack - made by a program called "Guccifer" - was almost certainly an inside job, carried out by America's own intelligence professionals and made to look like a Russian job.

Want to know where Guccifer came from? "Ask the FBI," proposed the two intelligence experts.

Trimmed Wings

In the last half-century - since Eisenhower spoke out and JFK was assassinated - no president has ever seriously challenged the Deep State.

There was one brief moment, early in the Reagan administration, when it looked as though the feds' wings might be trimmed.

Our colleague, David Stockman - who, as President Reagan's budget advisor, had the clippers in his hands - tells the tale in his marvelous memoir, The Triumph of Politics: Why the Reagan Revolution Failed.

Writing on the inner workings of The Swamp, David recalls:

  • More than anything else, I was struck by the dramatic contrast between how hard and with what care, pride, and discipline the nation's citizens worked to earn our national income and wealth on the one hand, and the feckless, inconsistent, and muddled manner in which it was shunted around the halls of Washington on the other.

But there was never any effort to restrain the deepest elements of the Deep State - the military and the spooks.

And despite initial successes - budget and tax cuts - the insiders were soon back in control, and Stockman left Washington.

By the end of its second term, the Reagan administration had added more spending and more debt than any previous administration.

Here at the Diary, we don't trust Hoosiers or Putin. After all, Mike Pence is from Indiana.

And when Donald Trump says, "I'd rather take a political risk in search of peace than risk peace in the name of politics," it makes sense to us.

But Deep State warmongers can't stand peace; it endangers their supply lines. In the absence of a real enemy, huge wealth transfers to the Warfare and Police States make no sense.

Reagan got bamboozled into big "defense" increases because he feared communism.

The Warfare State hawks and intelligence insiders lit up his imagination with images of Soviet hordes streaming across Europe... infesting Latin America... and rolling tanks towards Singapore.

We found out a few years later that it was all nonsense. The Soviet Union could not even hold itself together, let alone attack the world's number one military power. Besides, communism is a self-correcting malady.

(In the late 1980s, another of our colleagues, who had been working with former CIA director William Colby, predicted that the Soviet Union would soon go out of business. He was dismissed and laughed at, not only by the mainstream media, but by Washington's security professionals. The Soviet state collapsed a few years later.)


So what is going on? We don't know, of course. But we'll take some guesses.

Senator Chuck Schumer and The Washington Post wonder whether Putin has something on the U.S. president - a kompromat.

Did he do something naughty with hookers? Does he owe the Russians a lot of money?

Anything is possible... but it is even more likely that the Deep State has something on Mr. Trump, as it might have on almost everyone. So the "hidden-motive hypothesis" could go either way.

And Mr. Trump is no fool. He's not really going to enter a serious, protracted war with the Deep State.

If he did, he would soon be isolated... marginalized... driven out of town... or worse.

He has already made peace with the Warfare, Welfare, and Police States. What would he gain from stirring up trouble now?

The best hypothesis is probably the most obvious one: The Helsinki meeting was just another episode in Mr. Trump's reality TV show.

The ratings were great. Nothing else matters much.

Business as usual. Bankruptcy and depression still lie ahead.


BILL BONNER Founder, Agora Inc
Bill Bonner, Bonner & Partners
Vivek Kaul's Diary

PS: When the markets nosedive, that's the best time to put wealth building in motion. Small caps are crashing - that only means there is more opportunity than ever to buy them up - get our market-beating small caps recommendations here.

Bill Bonner is the President & Founder of Agora Inc, an international publisher of financial and special interest books and newsletters.

Disclaimer: The views mentioned above are of the author only. Data and charts, if used, in the article have been sourced from available information and have not been authenticated by any statutory authority. The author and Equitymaster do not claim it to be accurate nor accept any responsibility for the same. The views constitute only the opinions and do not constitute any guidelines or recommendation on any course of action to be followed by the reader. Please read the detailed Terms of Use of the web site.

Recent Articles

A 40 Somethings Guide to YouTube Hits March 20, 2019
Vivek dwells into a new YouTube phenomenon.
As the Economy Slows Down, Maruti and Two-Wheeler Companies Cut Production March 19, 2019
The country's largest car maker has cut production by more than a fourth.
In Supporting Demonetisation, RBI Behaved Like an Old Uncle Not Willing to Take a Stand March 13, 2019
The minutes of the meeting of the RBI Board which happened before demonetisation have been released.
Four Economic Indicators Show Economy Has Slowed Down Further Since January 2019 March 12, 2019
For the first time in four years, car sales, two-wheeler sales, tractor sales and commercial vehicles sales, all fell in February 2019.

Equitymaster requests your view! Post a comment on "Deep State Turns on Trump". Click here!