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"If this is true, this is incredibly bad, and the CIA should be discredited.

What do you mean by "discredited"? If anything this gives a ton of credibility to CIA's rumored capability. Hell, it gives CIA so much credibility now that they can practically make up stuff and people will believe it by saying "oh they can bug everything, of course they found out about it".

It tells us what they can do but it certainly doesnt incentivize trust.

Public trust is a pretty low tier item on the list of priorities for global intelligence agencies. They exist to do their job and be effective at furthering our own national interest while screwing over enemies.

Public trust is a PR problem and there are other people that manage it.

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