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Nobody should have been surprised when Egyptian President Mohamed Morsi issued a “constitutional declaration” on Thursday asserting total political power. This was, after all, the former Muslim Brotherhood leader’s second power grab since he took office in June, complementing his earlier seizure of legislative and constitution-writing authorities by now insulating himself from judicial oversight. Yet Washington was caught entirely off-guard: Morsi’s power play was at odds with the administration’s view that the Muslim Brotherhood is a “democratic party,” and his impressive handling of last week’s Gaza ceasefire created a modicum...