Trump, Murdoch, Epstein and MAGA: Bannon predicts firestorm, but it's not clear who will get burnt
The president phoned Murdoch in an effort to kill the story, but the Journal published nevertheless. Trump denounced it as fake and sued Murdoch for a minimum claim of $US10 billion for defamation. It would be 'an interesting experience' to get Murdoch into the witness box, said the president.
But, to Bannon, it was not a problem. It was an opportunity. 'The real enemy has revealed itself,' he exclaimed. Immediately, he rallied the MAGA movement in defence of Trump. And in pursuit of Murdoch: 'This was a kill shot by Murdoch,' Bannon tells me in a Monday phone call, meaning a political hit rather than a kinetic one. 'All of MAGA will rally around because of the attack on President Trump,' he predicted.
'This is going to blow up the Murdoch empire in the US. People will turn on him. Already, the streaming services have a bigger audience than Fox News' – the Murdoch cable TV channel which created the far-right-wing ecosystem to incubate Trump's first presidential candidacy.
'Their audience will turn against Murdoch for trying to smear the president of the US. Besides, President Trump is suing him for $10 billion. The Achilles' heel of the Murdoch empire is Murdoch.'
Trump and Murdoch have had ructions over the years, but the two men have maintained a cordial relationship. Indeed, Trump entertained Murdoch in his box at the FIFA Club World Cup final five days before the WSJ story ran.
But why would Murdoch unleash a political 'kill shot' against the president only six months into a four-year term? Bannon has two explanations – one immediate and one larger.
The immediate reason, he says, was to deflect attention from an imminent news event. On Friday, US time, the day after the WSJ 's story ran, Trump's director of national intelligence, Tulsi Gabbard, was due to release an investigation into the claims of Russian interference in the 2016 election. She duly did.
Gabbard sought to discredit the US intelligence community's finding that Vladimir Putin had meddled to harm Hillary Clinton's campaign and to help Trump's. Gabbard accused Obama administration officials of 'treasonous conspiracy' in confecting the claims of Russian interference and referred documents to the Justice Department for possible investigation.
Loading
The WSJ published story of the Trump letter 'to thwart the Tulsi Gabbard files,' says Bannon.
But why would Murdoch and his newspaper want to do that? Because Murdoch is in league with the so-called 'deep state', the career officers of the US intelligence agencies. 'It's the deep state, with their media partners, led by Murdoch, that's out to destroy Trump,' Bannon told The Washington Post.
Murdoch and the intelligence services want to foment suspicions that Trump was involved with Epstein's sex-trafficking ring, he says. 'Epstein is tied to the intelligence services.' I ask Bannon outright whether, if there is a list of Epstein clients, he thinks Trump might be on it. 'Zero chance,' he replies.
'The No.1 thing we have to do now is to take down the deep state,' he tells me. 'Who governs us?' He cites the two attempts to assassinate Trump last year. 'The FBI hasn't released all its files,' he says, implying possible complicity.
'Who governs this country? The intelligence agencies, the CIA, Mossad, the FBI, the Five Eyes?' The Five Eyes is an intelligence-sharing arrangement that sprang up in World War II between five allies – the US, UK, Canada, Australia and New Zealand.
Loading
'Who governs your country?' he poses to me, hinting that a conspiracy of the five countries' intelligence agencies might secretly control Australia as well as the US. 'This is of vital importance to Australia too. Do elections mean anything? This is bigger than Watergate.' He has no answers, but many questions.
Bannon gave Trump a way out of his MAGA crisis – he urged the president to order Bondi to ask the courts to release any 'pertinent' Epstein testimony held under seal – and the president took it.
Bannon says, approvingly, that 'it's a dramatic first step – it's going to be a firestorm'. But he demands that Trump go further by appointing a special counsel to investigate the Epstein case. So the pressure remains on the president to restore faith with his base.
But Bannon is confident that MAGA will emerge intact. Besides, there are yet more enemies to be confronted: 'The biggest schism is not the Epstein case, it's with the tech bros.' But that's a conspiracy for another day.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Sydney Morning Herald
an hour ago
- Sydney Morning Herald
The astonishing fall from grace of an 87-year-old economic kingpin
'He wasn't perfect, but he has been stitched up because he wouldn't go when people wanted him to go,' one person close to the organisation told The Telegraph. Other insiders fear that the push to remove Schwab will come at too high a reputational cost to the WEF itself. 'They've used a sledgehammer to crack a nut,' one said. It is an astonishing fall from grace from the former executive chairman, who was awarded an honorary knighthood by the UK in 2006. The German-born professor built his empire from humble beginnings, establishing the WEF in 1971 as a forum for policymakers and CEOs to discuss global issues. Over the years it mutated into a magnet for world leaders, a capital of fevered dealmaking, a byword for elitism and a lightning rod for conspiracy theories. The title of his book The Great Reset – about how the pandemic could remake global economies – has become shorthand for online extremists convinced that plots to create a world government are hatched at Davos. Schwab, the quintessential 'Davos Man,' was front and centre every year as he welcomed a galaxy of heads of state and government. They included prime ministers and presidents as different as Angela Merkel and Donald Trump, Emmanuel Macron and Narendra Modi or Baroness May and Vladimir Putin. At this year's gathering, in January, there was no Sir Keir Starmer, French president or German chancellor in Davos. The demise of Davos has often been predicted, but rivals are circling. China has the Boao Forum, colloquially known as 'the Asian Davos', and Saudi Arabia has launched the Future Investment Initiative, which is dubbed 'Davos in the Desert'. Loading The rumblings of what would become an avalanche of revelations about Schwab began with a 2024 investigation by the Wall Street Journal, which accused the WEF of having a workplace culture that was hostile to black people and women. Women were allegedly sidelined after becoming pregnant, while two staff members used the n-word, according to the Journal. The WEF said at the time it had zero tolerance for discrimination and harassment and disputed the allegations in the newspaper report. Staff alleged that Schwab was inappropriate and made unwanted suggestive remarks, while one female staffer claimed he put his leg on her desk with his crotch in front of her face. She said Schwab told her he wished she was Hawaiian because he'd like to see her in Hawaiian costume, which the WEF fiercely denied. Others told the Wall Street Journal that attractive women were chosen to meet international delegates. There was a slang term for such encounters – 'white on blue action' – a reference to the different coloured lanyards worn at the conference by officials and famous guests. Former staff at the non-profit were reported to have set up a WhatsApp group called 'WEFugees' in which they shared horror stories about their experiences. A former staffer told the Journal: 'We promote inclusion and improving the state of the world and women's issues but do the opposite.' Schwab complained bitterly about the Journal 's reporting but was determined to craft a graceful, prolonged exit from the WEF, which generates about $US00 million a year. The WEF's founding bylaws state 'the Founder himself designates his successor', and stipulates he or 'at least one member of his immediate family' is on the board of trustees. Schwab's plan was to move to a role as non-executive chairman and retire in stages, picking his successor. But then whistleblowers sent a letter in an email to WEF trustees, including luminaries such Al Gore, the former US vice-president, and cellist Yo Yo Maa. It accused Schwab and his wife, Hilde, of misusing WEF funds. It said Schwab had used company funds to pay for private massages, and he had redirected WEF resources and staff in a vainglorious bid to get nominated for the Nobel Peace Prize. 'This was not a WEF initiative, but a self-driven effort disguised as organisational work,' the letter said. It complained about Hilde Schwab's spending of about $USUS50 million on Villa Mundi, a mansion next to WEF headquarters overlooking Lake Geneva. It alleged she controlled access to the property and that one entire floor was reserved for the couple's exclusive use, according to the Wall Street Journal. They denied the allegations. In April this year, a WEF audit committee recommended opening an independent investigation into the new allegations. Schwab went on the attack. He wrote a furious email to the committee demanding the probe be dropped within 24 hours and threatened to file a criminal complaint. The gamble backfired. After the WEF board insisted the investigation had to go ahead, Schwab resigned 48 hours after sending his email. He insisted his legacy was 'well established', adding he had received 'the highest national distinction from numerous countries for my efforts in helping economic developments, reconciliation efforts and even avoiding a war'. After a two-hour emergency meeting of trustees, Schwab's ouster was announced on April 21. He was swiftly replaced by Peter Brabeck-Letmathe, the WEF's vice-chairman and former Nestle CEO. A law-firm led independent investigation began in accordance with Swiss regulations. Last Sunday, some preliminary findings were published in Switzerland's SonntagsZeitung newspaper. Law firm Homburger has looked into some £836,000 in expenses submitted by Schwab and his wife which, it was reported, were not sufficiently linked to WEF activities. Schwab sent suggestive emails and had 'embarrassing interactions' with younger WEF staff, according to the leaked findings. The newspaper revealed he had told staff that the UK 'must not see any improvement' in the WEF's annual Global Competitiveness Report, which ranks countries on productivity. Otherwise it would be 'exploited by the Brexit camp', he wrote. In the 2017/2018 report, the UK's ranking improved from seventh to fourth after a change in methodology. Loading The final report published in 2017 – a year after the Brexit referendum – showed the UK had dropped one place to eighth. It was not the only example of political manipulation of research, according to the newspaper. Schwab has denied all the allegations.
The Age
an hour ago
- The Age
The astonishing fall from grace of an 87-year-old economic kingpin
'He wasn't perfect, but he has been stitched up because he wouldn't go when people wanted him to go,' one person close to the organisation told The Telegraph. Other insiders fear that the push to remove Schwab will come at too high a reputational cost to the WEF itself. 'They've used a sledgehammer to crack a nut,' one said. It is an astonishing fall from grace from the former executive chairman, who was awarded an honorary knighthood by the UK in 2006. The German-born professor built his empire from humble beginnings, establishing the WEF in 1971 as a forum for policymakers and CEOs to discuss global issues. Over the years it mutated into a magnet for world leaders, a capital of fevered dealmaking, a byword for elitism and a lightning rod for conspiracy theories. The title of his book The Great Reset – about how the pandemic could remake global economies – has become shorthand for online extremists convinced that plots to create a world government are hatched at Davos. Schwab, the quintessential 'Davos Man,' was front and centre every year as he welcomed a galaxy of heads of state and government. They included prime ministers and presidents as different as Angela Merkel and Donald Trump, Emmanuel Macron and Narendra Modi or Baroness May and Vladimir Putin. At this year's gathering, in January, there was no Sir Keir Starmer, French president or German chancellor in Davos. The demise of Davos has often been predicted, but rivals are circling. China has the Boao Forum, colloquially known as 'the Asian Davos', and Saudi Arabia has launched the Future Investment Initiative, which is dubbed 'Davos in the Desert'. Loading The rumblings of what would become an avalanche of revelations about Schwab began with a 2024 investigation by the Wall Street Journal, which accused the WEF of having a workplace culture that was hostile to black people and women. Women were allegedly sidelined after becoming pregnant, while two staff members used the n-word, according to the Journal. The WEF said at the time it had zero tolerance for discrimination and harassment and disputed the allegations in the newspaper report. Staff alleged that Schwab was inappropriate and made unwanted suggestive remarks, while one female staffer claimed he put his leg on her desk with his crotch in front of her face. She said Schwab told her he wished she was Hawaiian because he'd like to see her in Hawaiian costume, which the WEF fiercely denied. Others told the Wall Street Journal that attractive women were chosen to meet international delegates. There was a slang term for such encounters – 'white on blue action' – a reference to the different coloured lanyards worn at the conference by officials and famous guests. Former staff at the non-profit were reported to have set up a WhatsApp group called 'WEFugees' in which they shared horror stories about their experiences. A former staffer told the Journal: 'We promote inclusion and improving the state of the world and women's issues but do the opposite.' Schwab complained bitterly about the Journal 's reporting but was determined to craft a graceful, prolonged exit from the WEF, which generates about $US00 million a year. The WEF's founding bylaws state 'the Founder himself designates his successor', and stipulates he or 'at least one member of his immediate family' is on the board of trustees. Schwab's plan was to move to a role as non-executive chairman and retire in stages, picking his successor. But then whistleblowers sent a letter in an email to WEF trustees, including luminaries such Al Gore, the former US vice-president, and cellist Yo Yo Maa. It accused Schwab and his wife, Hilde, of misusing WEF funds. It said Schwab had used company funds to pay for private massages, and he had redirected WEF resources and staff in a vainglorious bid to get nominated for the Nobel Peace Prize. 'This was not a WEF initiative, but a self-driven effort disguised as organisational work,' the letter said. It complained about Hilde Schwab's spending of about $USUS50 million on Villa Mundi, a mansion next to WEF headquarters overlooking Lake Geneva. It alleged she controlled access to the property and that one entire floor was reserved for the couple's exclusive use, according to the Wall Street Journal. They denied the allegations. In April this year, a WEF audit committee recommended opening an independent investigation into the new allegations. Schwab went on the attack. He wrote a furious email to the committee demanding the probe be dropped within 24 hours and threatened to file a criminal complaint. The gamble backfired. After the WEF board insisted the investigation had to go ahead, Schwab resigned 48 hours after sending his email. He insisted his legacy was 'well established', adding he had received 'the highest national distinction from numerous countries for my efforts in helping economic developments, reconciliation efforts and even avoiding a war'. After a two-hour emergency meeting of trustees, Schwab's ouster was announced on April 21. He was swiftly replaced by Peter Brabeck-Letmathe, the WEF's vice-chairman and former Nestle CEO. A law-firm led independent investigation began in accordance with Swiss regulations. Last Sunday, some preliminary findings were published in Switzerland's SonntagsZeitung newspaper. Law firm Homburger has looked into some £836,000 in expenses submitted by Schwab and his wife which, it was reported, were not sufficiently linked to WEF activities. Schwab sent suggestive emails and had 'embarrassing interactions' with younger WEF staff, according to the leaked findings. The newspaper revealed he had told staff that the UK 'must not see any improvement' in the WEF's annual Global Competitiveness Report, which ranks countries on productivity. Otherwise it would be 'exploited by the Brexit camp', he wrote. In the 2017/2018 report, the UK's ranking improved from seventh to fourth after a change in methodology. Loading The final report published in 2017 – a year after the Brexit referendum – showed the UK had dropped one place to eighth. It was not the only example of political manipulation of research, according to the newspaper. Schwab has denied all the allegations.
SBS Australia
an hour ago
- SBS Australia
EU and US announce tariff deal to avoid spiralling trade war
The United States struck a framework trade deal with the European Union on Monday AEST, imposing a 15 per cent import tariff on most EU goods, but averting a spiralling battle between two allies which account for almost a third of global trade. The announcement came after European Commission President Ursula von der Leyen travelled for talks with US President Donald Trump at his golf course in western Scotland to push a hard-fought deal over the line. "I think this is the biggest deal ever made," Trump told reporters after an hour-long meeting with von der Leyen, who said the 15 per cent tariff applied "across the board". "We have a trade deal between the two largest economies in the world, and it's a big deal. It's a huge deal. It will bring stability. It will bring predictability," she said. The deal, which also includes US$600 billion ($914.9 billion) of EU investments in the United States and US$750 billion ($1.1 trillion) of EU purchases of US energy over Trump's second term, will indeed bring clarity for EU companies. Even so, the baseline 15 per cent tariff will be seen by many in Europe as a poor outcome compared with the initial European ambition of a zero-for-zero tariff deal, although it is better than the threatened 30 per cent rate. German Chancellor Friedrich Merz welcomed the deal, saying in a statement that a trade conflict had been averted that would have hit Germany's export-driven economy and its large auto sector hard. But Bernd Lange, the German Social Democrat who chair's the trade committee of the European Parliament, said he was "quite critical" because the tariffs were imbalanced and the pledged $600 billion of investment would likely come at the expense of EU industry. The euro rose around 0.2 per cent per cent against the dollar, sterling and yen within an hour of the deal. The deal mirrors key parts of the framework agreement the United States clinched with Japan last week. Shipping containers and cargo ships seen in the port of Barcelona one of the biggest sea ports of Europe. Source: AAP / Davide Bonaldo / SOPA Images "We are agreeing that the tariff ... for automobiles and everything else will be a straight-across tariff of 15 per cent," Trump said. That rate will not, however, apply to steel and aluminium, for which a 50 per cent tariff will remain in place, although von der Leyen said it would be cut and replaced with a quota system. Von der Leyen said the rate also applied to semiconductors and pharmaceuticals, and there would be no tariffs from either side on aircraft and aircraft parts, certain chemicals, certain generic drugs, semiconductor equipment, some agricultural products, natural resources and critical raw materials. "We will keep working to add more products to this list," she said, adding that the situation on spirits was still to be established. Eric Winograd, chief economist at AllianceBernstein in New York, noted the similarity with Japan's US deal. "We will need to see how long the sides stick to the deal. From a market perspective, it is reassuring in the sense that having a deal is better than not having a deal," he said. Trump, who is seeking to reorder the global economy and reduce decades-old US trade deficits, has so far reeled in agreements with Britain, Japan, Indonesia and Vietnam, although his administration has failed to deliver on a promise of "90 deals in 90 days." He has periodically railed against the European Union, saying it was "formed to screw the United States" on trade. Arriving in Scotland, Trump said the EU wanted "to make a deal very badly" and said, as he met von der Leyen, that Europe had been "very unfair to the United States". His main bugbear is the US merchandise trade deficit with the EU, which in 2024 reached $235 billion, according to US Census Bureau data. The EU points to the US surplus in services, which it says partially redresses the balance. Trump also talked on Sunday about the "hundreds of billions of dollars" that tariffs were bringing in. On 12 July, Trump threatened to apply a 30 per cent tariff on imports from the EU starting on 1 August, after weeks of negotiations with the major US trading partners failed to reach a comprehensive trade deal. The EU had prepared countertariffs on 93 billion euros of US goods in the event there was no deal, and Trump had pressed ahead with 30 per cent tariffs. Some member states had also pushed for the bloc to use its most powerful trade weapon, the anti-coercion instrument, to target US services in the event of a no-deal.
