Bubble Boy

Our new book is The Comeback: The 2024 Elections and American Politics. The second Trump administration has been full of ominous developments.

Jonathan Lemire at The Atlantic:

Every president, of course, deals with being in a bubble, distanced by the demands on his time and the extraordinary security concerns that come with the office. But in his return to the presidency this year, Trump has seldom ventured across the country to anywhere other than his own clubs. He also inhabits something of a news silo, watching far-right cable channels such as One America News and Newsmax along with Fox News. Even his social-media consumption has become narrower: Instead of being on the app formerly known as Twitter, where he’d occasionally encounter contrary views, he now posts solely on Truth Social, which he owns and where he is surrounded by sycophants. And his own White House staff, this time largely populated by true believers and yes-men (and a few yes-women), only adds to the echo chamber.

...

“People voted for him to lower prices, to bring manufacturing back, to stand up to those taking advantage of them,” a close Trump ally told me on the condition of anonymity so as not to antagonize the president. “They didn’t vote for him to build a damn gilded ballroom. He’s not hearing them.”

The Cabinet makes the bubble thicker and darker.  Jack Blanchard and Dash Burns at Politico:

SHOW TIME: It’s a strange place, Washington in 2025, but rarely stranger than when the president assembles his Cabinet for the TV cameras. This town is well acquainted with long, pointless meetings packed full of boastful claims, but these truly bizarre White House events stand out even in such a crowded field.

So once again this morning, we’ll see some of America’s most successful business leaders, politicians, war veterans and legal minds crowd into a room at the White House to pay homage to their boss.

In case you weren’t watching: At the last meeting in October, we were treated to Marco Rubio — a two-term United States senator — telling Trump that no president in modern history could have pulled off a ceasefire deal in the Middle East. Pete Hegseth, a proud war veteran, told Trump it was “a personal honor” to “witness the way you lead.” Doug Burgum — a billionaire businessman and former state governor — told the president he’d delivered “a masterclass in peace through strength.” The previous meeting in August went even further, dragging on for more than three hours as Trump’s team took lengthy turns to out-do one another. Does anyone actually talk to their boss like this?

It’s not entirely clear what the purpose of all this actually is. No other democracy in the Western world showcases its officials paying homage like this to their leader. And how many people are even watching a three-hour Cabinet meeting on live TV? But beyond the wild claims and the flattery, we should actually get some interesting moments today — not least because this will likely be the first public outing for Hegseth since that Washington Post story on Caribbean missile strikes was published Friday afternoon.

 

Cui Bono?

Our new book is The Comeback: The 2024 Elections and American Politics. The second Trump administration has been full of ominous developments. Its corruption is unprecedented.  Qatar's gift of a jet is just one example. His memecoin is another. Its corruption is unprecedented.  Qatar's gift of a jet is just one example. His memecoin is another. The Ukraine sellout is a third.

Tom Burgis at The Guardian:

The Trumps’ income in the first half of this year increased 17-fold, from $51m 12 months earlier to $864m, Reuters calculates. Of that, more than 90% came not from real estate but from cryptocurrency. The Trumps’ representatives have questioned those numbers but it is clear that this new frontier is proving remarkably lucrative for them.

When Trump launched World Liberty Financial two months before his re-election, he claimed it would help make “America the crypto capital of the world”. Three of his sons – Don Jr and Eric along with Barron, aged 19, net worth about $150m – are named as co-founders, as was Trump himself until he was sworn in.

Four months into Trump’s second term, World Liberty announced that its USD1 digital currency had been selected for a gigantic transaction. Binance, the world’s biggest crypto exchange, was selling a stake to a United Arab Emirates state-owned fund called MGX. The $2bn price could have been paid in dollars. Instead, Binance would receive 2m freshly minted USD1.

Because USD1 is a stablecoin – crypto pegged to a real currency – World Liberty holds one dollar for each token it issues. It makes money from the interest and investment returns on these reserves. The $2bn jump in the reserves from this one deal could end up making the Trumps’ company tens of millions annually.

Around the same time, Binance’s stratospherically wealthy Chinese-born founder, Changpeng Zhao, asked Trump for something. He had served a four-month sentence in a California prison for violating US laws against money laundering. Prosecutors said that allowing sanctioned Russians, al-Qaida and assorted others to move illicit funds over Binance – which paid a $4bn fine – had caused “significant harm to US national security”.

Upon his release, CZ, as he is known, went home to the UAE. His criminal record looked like an obstacle to re-establishing Binance in the US. He applied for a pardon in May, just as it emerged that the $2bn deal was done with USD1. On 23 October, Zhao posted on X: “Deeply grateful for today’s pardon and to President Trump for upholding America’s commitment to fairness, innovation, and justice.”

David Sacks is a South African-American who chairs the President's Council of Advisors on Science and Technology.  Cecilia Kang et al. at NYT:

Since January, Mr. Sacks, 53, has occupied one of the most advantageous moonlighting roles in the federal government, influencing policy for Silicon Valley in Washington while simultaneously working in Silicon Valley as an investor. Among his actions as the White House’s artificial intelligence and crypto czar:

• Mr. Sacks has offered astonishing White House access to his tech industry compatriots and pushed to eliminate government obstacles facing A.I. companies. That has set up giants like Nvidia to reap an estimate of as much as $200 billion in new sales.
• Mr. Sacks has recommended A.I. policies that have sometimes run counter to national security recommendations, alarming some of his White House colleagues and raising questions about his priorities.
• Mr. Sacks has positioned himself to personally benefit. He has 708 tech investments, including at least 449 stakes in companies with ties to artificial intelligence that could be aided directly or indirectly by his policies, according to a New York Times analysis of his financial disclosures.
• His public filings designate 438 of his tech investments as software or hardware companies, even though the firms promote themselves as A.I. enterprises, offer A.I. services or have A.I. in their names, The Times found.
• Mr. Sacks has raised the profile of his weekly podcast, “All-In,” through his government role, and expanded its business.