US President-elect Donald Trump at a meeting with House Republicans in Washington on November 13. A crisis of credibility faces America's educated and technocratic leadership, which is why this looming national demolition derby appeals to so many Trump voters. EPA
US President-elect Donald Trump at a meeting with House Republicans in Washington on November 13. A crisis of credibility faces America's educated and technocratic leadership, which is why this looming national demolition derby appeals to so many Trump voters. EPA
US President-elect Donald Trump at a meeting with House Republicans in Washington on November 13. A crisis of credibility faces America's educated and technocratic leadership, which is why this looming national demolition derby appeals to so many Trump voters. EPA
US President-elect Donald Trump at a meeting with House Republicans in Washington on November 13. A crisis of credibility faces America's educated and technocratic leadership, which is why this loomin


Donald Trump's target isn't the 'deep state' – it's America's institutions


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  • Arabic

November 28, 2024

Weeks before his January 20 inauguration, US President-elect Donald Trump is already creating a carnivalesque, dizzying American political atmosphere. He is cultivating the image of not merely being a change agent but an author of calculated chaos. Out with the old, in with the new.

Even more than in 2016, this year Mr Trump ran as a disruptor. He said his mission would not just be "retribution" against his political opponents but would involve a wholesale attack on existing administrative structures, which he derides as a "deep state".

But there is no American deep state – just a government. And it's the target.

Several of Mr Trump’s major cabinet nominations plainly reflect his hostility towards the institutions they are being chosen to head. Some, like potential Secretary of State Marco Rubio, Secretary of the Interior Doug Burgum and Treasury Secretary Scott Bessent, are credible and conventional Republican appointments, perfectly capable of performing their tasks. But others defy not just convention, but also credentials and even credulity.

Secretary of Defence nominee Pete Hegseth is certainly the least qualified figure in modern US history tapped to head this mammoth department. He is a Fox TV news presenter and former Minnesota National Guard major. He has never managed any organisation. Still, Mr Trump expects him to run the US Department of Defence, which employs more than 3.4 million people and is one of the largest and most complex entities in human history.

Mr Trump has nominated former Democratic representative Tulsi Gabbard to be the director of national intelligence, despite her strong record of sympathy for US adversaries like Russia, including its invasion of Ukraine, and the government of Syrian President Bashar Al Assad. Similarly, nominating Robert F Kennedy Jr to head the Department of Health and Human Services seems decidedly counterintuitive, given his adherence to anti-vaccine and other conspiracy theories and extensive history of promoting medical and other misinformation. Neither have any experience running large organisations.

Education Secretary nominee Linda McMahon does have managerial experience, as chief executive of a professional wrestling entertainment company. Like Mr Trump, she regularly appeared in its theatrics. Perhaps that was perfect preparation.

As if these 'through the looking glass' appointments weren't disorder enough, Mr Trump is promising something far more disruptive: massive across-the-board tariffs

And then there are the religious fundamentalists. Russell Vought, tapped to head the crucial Office of Management and Budget, is a Christian nationalist who also believes in total presidential authority with no independent governmental institutions, agencies or departments whatsoever. Similarly, nominated ambassador to Nato, Matthew Whitaker, argues only devout Christians can credibly serve as judges.

All these appointees, well qualified or manifestly not, are united by fealty to Mr Trump. But a shocking number also have faced accusations involving sexual misconduct.

Mr Trump's initial Attorney General nominee, Matt Gaetz, had to withdraw almost immediately because the House Ethics Committee was finalising a reportedly devastating investigation into allegations such behaviour, including with minors. Mr Hegseth is the subject of a detailed police report regarding his alleged sexual assault on a woman he subsequently paid to sign a “nondisclosure agreement” about the incident. Billionaire Elon Musk, who is co-heading a "department" of government efficiency, paid a flight attendant to sign a nondisclosure agreement regarding an alleged sexual assault on an airplane. Mr Kennedy, too, stands accused of sexually assaulting a young babysitter who has described the alleged incident in considerable detail.

Even Ms McMahon is being sued for allegedly enabling the sexual exploitation of minors in her professional wrestling company. And, of course, Mr Trump was found civilly liable for sexually assaulting a columnist in 1996.

This is an unprecedented and horrifying through-line in any emerging administration. It presents a theme of extraordinary levels of alleged transgression and exploitation, of entitlement and abuse of power.

As if these “through the looking glass” appointments weren't disorder enough, Mr Trump is promising something far more disruptive: massive across-the-board tariffs. He has vowed to impose 25 per cent tariffs on all goods from Canada and Mexico, and 10 per cent from China, immediately upon taking office in a few weeks.

His phraseology strongly suggests that he continues to erroneously believe that tariffs are somehow paid by these countries. In reality, they are a massive regressive tax on US consumers and are normally employed to strategically raise prices. There’s no indication Mr Trump understands this, as he prepares to disrupt the global trading system, wreck supply chains and so on.

There is nothing in place to make up for all the goods and services that will be rendered unaffordable. And the tariffs do not seem to be part of any broader national economic strategy.

Meanwhile, Mr Trump and his "border czar" Tom Homan are vowing to implement his promised mass deportations of millions of asylum seekers and undocumented migrants.

An electorate enraged by inflation that hovered just under 3 per cent in the final year of the Joe Biden administration may not be prepared for the impact on prices at large retail stores of massive tariffs on all goods and services from major trading partners combined with the mass deportations of millions of workers.

Ware are displayed on shelves at a Walmart store in Washington on Tuesday. Walmart US CEO John David Rainey has said tariffs proposed by the incoming Trump administration will affect store prices. EPA
Ware are displayed on shelves at a Walmart store in Washington on Tuesday. Walmart US CEO John David Rainey has said tariffs proposed by the incoming Trump administration will affect store prices. EPA

A huge crisis of credibility faces the educated and technocratic American leadership that runs most major national institutions, particularly in the federal government. That is why this looming national demolition derby appeals to so many Trump voters.

But many may discover they have been relying on federal departments and agencies in ways they did not understand or took for granted. It may not be ideal to have them run by remarkably unsuited or unqualified persons with a pattern of highly disturbing accusations.

Tariffs may not work as expected because they turn out to be a huge new sales tax on ordinary Americans. Expelling millions of migrants may sound great until you see what it actually involves, and the effect it has.

Many Americans may think a carnival of misrule is a political necessity now. But they may soon recall the adage about being careful what you wish for, as buyers' remorse sinks in, prices skyrocket and chaos swirls merrily from sea to shining sea.

How to become a Boglehead

Bogleheads follow simple investing philosophies to build their wealth and live better lives. Just follow these steps.

•   Spend less than you earn and save the rest. You can do this by earning more, or being frugal. Better still, do both.

•   Invest early, invest often. It takes time to grow your wealth on the stock market. The sooner you begin, the better.

•   Choose the right level of risk. Don't gamble by investing in get-rich-quick schemes or high-risk plays. Don't play it too safe, either, by leaving long-term savings in cash.

•   Diversify. Do not keep all your eggs in one basket. Spread your money between different companies, sectors, markets and asset classes such as bonds and property.

•   Keep charges low. The biggest drag on investment performance is all the charges you pay to advisers and active fund managers.

•   Keep it simple. Complexity is your enemy. You can build a balanced, diversified portfolio with just a handful of ETFs.

•   Forget timing the market. Nobody knows where share prices will go next, so don't try to second-guess them.

•   Stick with it. Do not sell up in a market crash. Use the opportunity to invest more at the lower price.

A timeline of the Historical Dictionary of the Arabic Language
  • 2018: Formal work begins
  • November 2021: First 17 volumes launched 
  • November 2022: Additional 19 volumes released
  • October 2023: Another 31 volumes released
  • November 2024: All 127 volumes completed
Islamophobia definition

A widely accepted definition was made by the All Party Parliamentary Group on British Muslims in 2019: “Islamophobia is rooted in racism and is a type of racism that targets expressions of Muslimness or perceived Muslimness.” It further defines it as “inciting hatred or violence against Muslims”.

Evacuations to France hit by controversy
  • Over 500 Gazans have been evacuated to France since November 2023
  • Evacuations were paused after a student already in France posted anti-Semitic content and was subsequently expelled to Qatar
  • The Foreign Ministry launched a review to determine how authorities failed to detect the posts before her entry
  • Artists and researchers fall under a programme called Pause that began in 2017
  • It has benefited more than 700 people from 44 countries, including Syria, Turkey, Iran, and Sudan
  • Since the start of the Gaza war, it has also included 45 Gazan beneficiaries
  • Unlike students, they are allowed to bring their families to France

Russia's Muslim Heartlands

Dominic Rubin, Oxford

Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.

Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.

Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.

Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.

“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.

Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.

From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.

Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.

BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.

Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.

Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.

“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.

Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.

“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.

“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”

The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”

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Updated: November 28, 2024, 4:10 AM