I had a similar situation occur with my manager, mentor, and dear friend. It was rather frightening. He would tell me that things were classified when I thought that they weren't. When I caught him openly discussing them in public later, I would pull him aside and whisper, "I thought that was top secret" and then I became the butt of his jokes. Soon it was, "Did you know she thought this was classified?!?" and everyone laughing at my expense which was difficult given my position of authority and as the GATEKEEPER for classified documents, so how was anyone supposed to take me seriously?
I quickly found myself feeling annoyed and my pride was bruised. I was also concerned about my professional reputation in an industry I had taken a decade to build that is still a Boy's Club. Then, I stepped outside of everything and analyzed the issue without emotion as I would do if he was one of my employees which he essentially was since he had retired and was consulting. I replaced him, but he kept coming back which made things difficult which is another story altogether. He didn't do me any favors there.
When I looked at his behavior, I realized that I had seen it in my patients as a HCP. I had seen it my grandparents as well and one of my best friend's moms. Paranoia, deflection, angst, forgetfulness, confusion, worsening later during the day.... It was all right there in front of me. He had dementia that was induced by Parkinson's.
He ended up running over his briefcase with classified materials he was transporting twice because he forgot they were behind his truck. These are NOT normal briefcases. They are the kind you see in movies made of steel. When that happened the second time, I called his wife since we had a great relationship and said, "I am concerned about Sam."
Just so you know, he took every secret to his grave since he thought everything was classified, he didn't talk about anything. At the end, he wouldn't even tell his children what he did for a living which would have been fine. We can discuss our employer and position, general job duties you would find online, but not the details.
I was noticed by our parent company and offered a position by one of the largest defense providers in the world on their board running security, so everything worked out. It was tragic and bumpy getting there though and I turned down the position because I want to work to live and not live to work. I don't want 100,000 employees under me. That's a little much.... The org charts gave me headaches. Lol!
You have every right to feel the way you do, but I think your boss is likely altered in some way. I had another that drank every day at lunch and came back drunk who was a semi-functional alcoholic. I would start by "Managing You Manager". Put everything in writing. Give him a task list and daily status report. If you meet in person, send him a recap in email. If things don't improve after that, then you need to escalate the matter. Then, everything is also documented and you have CYA'd.
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