It does not imply that what they are doing is a good idea or will work (whatever the objective is), just that there is more rational thought in what they are doing than what people might assume because the public does not have the information and seeing through what is going on requires insights that most people don't have, either.
Again, check @ggm comment above. I am not saying that this is what is going on but it is a possibility, and an average member of the public would never think of that scenario and thus wouldn't see the order in the apparent chaos.
Not insane, incompetent.
The problem with primarily hiring sycophants from his favorite cable news channel is that he's not getting the best, even from the GOP. This also makes him even more susceptible to people with their own agendas like Musk since no one is willing to pushback.
The simplest solution is the right one. You are projecting intelligence, because you are used to.
This is AFTER the US government has roundly fired thousands of their experts and workforce, AND has just told everyone of its intelligence and army rank and file that there are no repercussions for a massive dereliction of duty.
AND IT IS ONLY APRIL.