Trump Takes On The Deep State
by Saxo Bank’s Michael McKenna via TradingFloor.com,
ZeroHedge.com
Jan 17, 2017
Donald Trump engages in war of words with outgoing CIA head
Trump policies on trade, foreign policy depart from longstanding norms
Past events point to policymaking powers beyond elected officials
Russian relations a major sticking point between Trump, much of gov’t
Aggressive stance towards China could result in enormous market volatility
Last Sunday, US president-elect Donald Trump launched one of his now-trademark series of broadsides against the CIA, claiming that the latest series of leaks concerning his alleged misuse of a Moscow hotel suite previously occupied by president Barack Obama was a “complete fraud”.
Trump then compared the US intelligence regime to Nazi Germany in a tweet that called the leak, which alleged various colourful activities involving prostitutes, “fake news […] one last shot at me”.
The incoming president had already been warned against taking on the CIA by no less than Democratic Senate Minority Leader Chuck Schumer, who said on January 2 that Trump was being “really dumb” by taking on the CIA, adding that “you take on the intelligence community, they have six ways from Sunday at getting back at you”.
Last Sunday, outgoing CIA director John Brennan told press that he took “great umbrage” at Trump’s words, noting that Trump, who has repeatedly stated his intention to improve ties between the US and Russia, “has to understand that absolving Russia of various actions that it’s taken in the past number of years is a road that he, I think, needs to be very, very careful about moving down”.
Given that Trump’s plans regarding Russia have been opposed by Democrats, Republicans, and the intelligence community alike, his actions have been interpreted as an assault on what some term “the deep state,” or the collection of policymakers (both elected and not) that guide US policy in certain long-term directions.
According to Saxo Bank head of forex strategy John J Hardy, “the deep state” is shorthand for a force within Washington that is able to guide the US’ ship of state over periods of time longer than presidential terms, and at times despite the stated intentions of elected officials.
If Trump has indeed embroiled himself in a conflict with this entity, then, what does that mean for his policy plans and for the post-Inauguration markets?
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