Fear: Trump in the White House

by Bob Woodward

Next, Cohn repeated what everyone was saying: Interest rates were going to go up over the foreseeable future. I agree, Trump said. “We should just go borrow a lot of money right now, hold it, and then sell it and make money.” Cohn was astounded at Trump’s lack of basic understanding. He tried to explain. If you as the federal government borrow money through issuing bonds, you are increasing the U.S. deficit. What do you mean? Trump asked. Just run the presses—print money.

The president had said for months he wanted to leave NAFTA and renegotiate. “The only way to get a good deal is to blow up the old deal. When I blow it up, in that six months, they’ll come running back to the table.” His theory of negotiation was that to get to yes, you first had to say no. “Once you blow it up,” Cohn replied, “it may be over. That’s the most high-risk strategy. That either works or you go bankrupt.” Cohn realized that Trump had gone bankrupt six times and seemed not to mind. Bankruptcy was just another business strategy. Walk away, threaten to blow up the deal. Real power is fear.