It is now serious what is going on between the people who are pushing out information about POTUS and the White House sensing it is under siege. We are at the point in which two sides are giving out information that sounds convincing to the public. It is now a darkening situation in our government, and that could impact stocks and the stability of the Republic. 

Most people now side with the main stream media as Trump's popularity drops in polls. But, the main stream media (MSM) cannot always be trusted, and research shows that trust of MSM is at an all time low. 

It would not take much for Americans to transfer that lack of trust to support of Donald Trump. It appears that Steve Bannon is now courting favor of the White House. I wrote about how radical he is as he has espoused a libertarian economic agenda on steroids. I said:

This is essentially a call for the New Normal on steroids. The problem with this is that it is the opposite of the euphoria pushing the markets up, a strong dollar and higher interest rates! It is the opposite of the Trumponomics analysis given by Wilbur Ross. But Bannon would have to allow the recession that is expected as we are at the end of the business cycle, in order for stimulus to work in its aftermath, because there may not be enough slack in the economy. And Bannon would likely have to turn it into a major depression!
So now, at the end of the business cycle, where there is little slack, that fiscal stimulus could be a big mistake. Steve Bannon appears to understand this in a diabolical way. But for his plan to work the dollar would have to crater and rates would have to plunge and the stimulus would have to be delayed! Millions of people could lose their jobs and a credit crisis of epic proportions would be the result. This would be Bannonomics, not Trumponomics. 

There are dangers to our political and financial system that could be real here. I view Steve Bannon as a dangerous guy simply based on what he has said in the past. Draining the swamp, if there is a swamp, could be a cure worse than the disease. If it is applied to our economic situation, we could face the mother of all credit crises, because of a man who does not think credit depressions are that bad. That is essentially the Austrian Economic School's position and that is a school that comes from the Libertarian movement. 

However, Steve Bannon is not necessarily a free market guy like other libertarians. I believe that he is an authoritarian figure with Libertarian hate of the New Normal which is an abnormal situation where an incredibly large amount of debt is used as an asset, like gold itself. It is unlikely that using this amount of debt as gold has ever been created before the creation of the massive derivatives markets.

But breaking this reliance upon debt as gold is a very risky proposition. Bannon could use a big depression to break out of the new normal (as he uses low interest rates to that end) resulting in massive and unsustainable growth 

So, what are the political issues? 

The issues are about the Trump administration's Russian's connections and efforts to squash the investigation of those connections, versus claims [reported by Axio on May 26th] by Trump staffers that the "Deep State" is threatening the presidency. 

Certainly, it was floated that Jared Kushner wanted a secret back room tie to Russia. Before that hit the news, it was in the news that Kushner had limited the power of Steve Bannon. It now appears that:

Nine sources in the West Wing and within Trump's close orbit said the Russia situation is Bannon's shot at redemption. He's being described as a "wartime consigliere" relishing a fight against the "deep state," media, Democrats and investigators.
Why it matters: Bannon had been on very rocky footing recently (to the extent that the President has vented to a number of people about him), but the bolstering of the White House team to respond to the outside crises is a joint effort led by Kushner, Bannon and Chief of Staff Reince Priebus, two sources said. The senior staff that had been out for each other is now united by a common enemy.

It seems from the Axio article that the Trump administration is circling the wagons against forces in the United States government that they consider the enemy.  However, it must be pointed out that there is no direct quote from Bannon regarding any enemy. Still, an unnamed source, perhaps one of the nine to speak to Axio, is reported to have said this:

"It is now very clear that there is a unified opponent and that's ultimately the swamp, both with regard to the deep state leakers, to the partisan opponents and the people who just don't want to give up their power. That includes the media," said one source close to the process. "Obviously you want it [unity] under different circumstances but it's really united this team and helped bring clarity to their focus."

The source did mention the swamp and the deep state but not a talk of part of the government as the enemy.

Whether there are people who are out to get Trump impeached from high up in government, or not, Trump's White House believes that is the case and that it is a conspiracy! This is a serious situation. To balance this out, it is worth noting that other presidents, like FDR, were threatened with impeachment and it came to nothing. 

But a White House full of paranoia could be a dangerous place, planning dangerous actions. It may be that most Americans will not support Trump even if he is reporting some truth, simply because he is so repulsive and seemingly unstable, shown pushing dignitaries out of the way in Europe, putting the relationship with NATO on shaky ground, etc. 

It will also take a lot of convincing to show Americans that there is a deep state to start with. Perhaps taking Trump out by impeachment or by the 25th amendment will convince some. But many will think that this paranoia is unfounded, whether it is or not, and that he deserved to go by way of the 25th amendment because his paranoia shows he is crazy and unfit for office. 

Pushing officials out of the way to get into the front of the line in Europe doesn't help Donald Trump's case when gauging personal mental stability. 

If this battle between a real or imagined deep state versus Donald Trump were to get out of hand, the actors in government must realize that our military is the most trusted establishment in the land, even though it has been shown that in the 1960's that this very government had a plan to attack Americans called Operation Northwoods. Even with that declassified information available, this is what Americans think: 

But it’s not hard to predict how Americans feel about the military overall. Americans have long trusted the military more than any other institution in society. In 2016, according to Gallup, Congress achieved a 9 percent trust rating, the Supreme Court and the presidency 36 percent, organized religion 41 percent, the police 56 percent, and at the top of the list, the military at 73 percent. Only small business has ever approached the same level of trust as the military, according to the averages Gallup has collected over 43 years.

It is unlikely that the military would take the side of the libertarian populist radicals like Steve Bannon. I personally believe that there is most likely a deep state, but that Donald Trump has proven that he is no John Fitzgerald Kennedy and his right hand man, Steve Bannon, is not a sympathetic figure either.