presidents

NEW YORK — For decades, presidents avoided even the appearance of profiting from their office.

Harry Truman refused to lend his name to any business, even in retirement. Richard Nixon so feared a brother might profit off their ties, he had his phone tapped. And George W. Bush dumped his individual stock holdings before taking office.

President Trump is taking a different approach.

The family real estate business is undergoing the fastest overseas expansion since its founding a century ago, each deal potentially shaping everything including tariffs and military aid.

Led by Eric Trump and his brother, Donald Jr., the family business has expanded into cryptocurrencies with ventures that brought in billions of dollars but raised questions about whether some big investors received favorable treatment in return.

The brothers have also joined or invested in a number of companies that aim to do business with the government their father runs. Last month, they struck a deal giving them stakes worth millions in an armed drone maker seeking contracts with the Pentagon and with gulf states under attack by Iran and dependent on the U.S. military led by their father.

The White House and the Trump Organization deny there are any ethical problems. Asked about the issue at a recent crypto conference, Donald Jr. said, “Frankly, it’s gotten old.”

The problem of conflicts of interest goes back a decade to when Trump first ran for office, but some government ethics experts and historians argue it’s more pressing than ever as conflicts pile up in his second term that they consider unprecedented, blatant and dangerous to democracy.

“I don’t think there’s any line right now between policy decisions and political calculations and the interest of the Trump family,” said Julian Zelizer, a presidential historian at Princeton University.

Deal-making spree abroad

In Trump’s first term, the Trump Organization did zero deals in foreign countries. In a little over a year into his second term it did eight, all ostensibly complying with the Trump Organization’s self-imposed rule not to do business directly with foreign governments.

But governments in authoritarian and one-party states rarely take a hands-off approach — especially when the business belongs to a sitting president.

In Qatar, a Trump golf club and villa project is being developed in part by a company owned by the Qatari government. In Vietnam, where The New York Times reported the government pushed farmers off their land to make way for a Trump resort, the country’s deputy prime minister signed off on the deal at a ceremony. And in Saudi Arabia, a planned “Trump Plaza” resort on the Red Sea is being built by a Saudi real estate developer close to the ruling family.

Whether the deals played any role in changing U.S. policies in ways these countries sought is nearly impossible to know, but the countries did get what they wanted — access to advanced U.S. technology for Qatar, tariff relief for Vietnam and fighter jets for Saudi Arabia.

And the Trump Organization got something too: tens of millions in fees.

Asked about those projects, the Trump Organization said it has done no deals with governments so far, noting that the Saudi company was private, and has said it is “collaborating” with the Qatari business and had not struck a “partnership” with it that would have broken its self-imposed rules.

The UAE, crypto and Binance

Another deal raising conflicts of interest questions first came to light in a Wall Street Journal article in January — a year after it was struck.

Days before the inauguration, the Trump family sold nearly half of its World Liberty Financial crypto business to a UAE government-linked company run by a member of the UAE royal family for $500 million.

A second UAE entity, a government fund, invested in the offshore cryptocurrency exchange Binance using $2 billion worth of a digital currency called a stablecoin issued by World Liberty. That allowed the Trump company that received the dollars to put it in safe investments such as bonds or money market funds and keep the tens of millions of dollars in interest for itself.

Shortly after, the Trump administration reversed a Biden-era restriction and granted the UAE access to advanced U.S. chips. Binance’s founder, Changpeng Zhao, later got a pardon from Trump, despite having pleaded guilty to failing to stop criminals from using his platform to move money connected to child sex abuse, drug trafficking and terrorism.

A lawyer for Zhao denied any connection between Binance’s business with the Trump family and the pardon.

“Any claim of a quid pro quo by Binance or CZ, or preferential financial treatment by Binance, is a clear misstatement of the public record,” said Teresa Goody Guillen in a email to the AP, referring to Zhao by his initials.

Asked about the pardon, the White House said federal authorities had unfairly punished Zhao in what it called “The Biden Administration’s war on crypto.”

World Liberty dismissed the notion of a conflict, saying the UAE deal had no connection to the president’s chips policy.

Crypto billions

World Liberty has also provided a separate income stream to a new Trump limited liability corporation through sales of “governance tokens” that give owners certain voting rights in its business, though not equity stakes, raising $2 billion last year. That translates into hundreds of millions of dollars for the Trumps through their World Liberty ownership stake and a separate side deal allowing them a cut of these sales.

One big token investor was Justin Sun, a cryptocurrency billionaire who as a foreign citizen would be banned under U.S. law from making political donations to U.S. politicians. Between Trump’s election and inauguration, Sun spent $75 million on the tokens.

In February last year, a federal lawsuit charging Sun with duping investors was paused before being settled last month for a $10-million fine.

Then there are the souvenir-type “meme” coins stamped with Trump’s face that went on sale days before he took the oath of office last year.

Over the next four months, the coins generated $320 million, mostly going to Trump-related entities, according to blockchain tracker Chainalysis. That is more than double the money collected in four years running his Washington hotel in Trump’s first term.

Unlike the lobbyists or campaign donors trying to influence Trump, the coin buyers can buy anonymously. One who chose to make his purchase public was Sun, who spent $200 million on the coins and got access to Trump at a gala party he held for the biggest buyers.

Another family cryptocurrency business, American Bitcoin, went public in September, giving Donald Jr. and Eric about $1 billion in paper wealth at that time. Months earlier, their father announced a new national bitcoin reserve, sending the price for the cryptocurrency soaring to a record.

The Trump businesses aren’t completely immune to crypto’s notorious volatility. The value of bitcoin and other digital tokens has since plunged and rattled investors. Both American Bitcoin stock and the value of Trump’s souvenir meme coins have collapsed 90% from their highs.

Last month, Trump announced he would hold another dinner with new top holders of his meme coins, giving the coin a boost before it fell back again.

“Whatever constraints there were in the first term appear to have completely disappeared,” says Columbia University historian Timothy Naftali. “Do you want future presidents to be open to the highest bidder?”

Trump thinks people don’t care

Asked to comment for this story, the White House said Trump acts in an “ethically-sound manner” and that any suggestion to the contrary is either “ill-informed or malicious.” It reiterated that his assets are in a trust managed by his children and stated he has “no involvement” in family business deals.

“There are no conflicts of interest,” said spokesperson Anna Kelly.

In a separate statement, the Trump Organization said it is “fully compliant with all applicable ethics and conflicts of interest laws” and added, “The implication that politics has enriched the Trump family is unfounded.”

Trump in January told the New York Times that when it comes to potential conflicts of interest, “I found out that nobody cared, and I’m allowed to,” alluding to an exemption the president gets from the federal statute banning federal officials from holding financial interests in businesses impacted by public policy they help shape.

It’s not clear he’s wrong about American attitudes, though they appear to be changing even among Republicans. In a Pew Research Center poll in January, 42% of those voters said they were confident that Trump acts ethically in office, down from 55% at the start of his second term a year ago.

Change of fortune

Forbes estimates Trump’s net worth is now $6.3 billion, soaring 60% from before he returned to office, a striking development given how much the Trump Organization struggled before.

The Trump International Hotel in D.C. never turned a profit before being sold. Two Trump hotel chains catering to middle-class travelers in his first term shut down for lack of demand. Condominium buildings stripped the Trump name off their facades after discovering that instead of attracting buyers, it was repelling them.

No new U.S. condominiums are putting the Trump name above their entrances in his second term, but his name is prized in Washington, where people have business before the federal government.

Donald Jr., Trump’s oldest son, opened a private club in the Georgetown section of Washington that is charging initiation fees as high as $500,000 for founding members.

One of the few clubs with comparable fees, the Yellowstone Club in Montana, offers access to multiple resorts, 50 ski trails and more than a dozen restaurants across a members-only area the size of Manhattan.

Donald Jr.’s club is in the basement of a building but offers something else — proximity to power.

The club’s name is “Executive Branch.”

Bibles, guitars and sneakers

Other presidents and their families have done things in pursuit of profit that stained that high office.

Hunter Biden got paid as a director of a Ukrainian gas company while his father was vice president. The Clinton Foundation got foreign donations, though after Bill Clinton had left office. And Jimmy Carter’s brother Billy cashed in on the family name by selling beer.

In Trump’s case, the president himself is hawking goods, including $59.99 “God Bless the USA” Bibles, $399 sneakers stamped “Never Surrender” and electric guitars priced up to $11,500 — shipping not included — for a model autographed by the president.

New year, new profits

In the first months of Trump’s second year back in the White House, the momentum hasn’t let up.

In January, the Trump Organization announced its third deal involving Saudi Arabia in less than a year, this time a “collaboration” with a company more directly tied to the government because it is owned by the country’s sovereign wealth fund chaired by its crown prince, Mohammed bin Salman. Asked by the AP whether the project outside Riyadh for Trump mansions, a hotel and golf course violated the company’s pledge not to strike deals with foreign governments, the Trump Organization said it doesn’t “conduct business with any government entity” but didn’t address the project specifically.

Meanwhile, as the two oldest brothers’ new drone company seeks Pentagon contracts, other government contractors in which one or both have gotten ownership stakes this past year are taking in tens of millions of dollars of new taxpayer money. That includes a rocket motor maker, an AI chip supplier and a data analytics company, according to government contracting records.

Asked about potential conflicts after the drone deal was announced, Eric said, “I am incredibly proud to invest in companies I believe in.” A spokesman for Donald Jr. said he doesn’t “interface” with the government on companies in his portfolio, adding that “the idea that he should cease living his life and making a living to provide for his five kids just because his dad is president, is quite frankly, a laughable and ridiculous standard.”

A new investment firm that the brothers joined as advisors last year has raised $345 million in an initial public offering to buy stakes in U.S. companies designed to help their father revive America’s manufacturing base. After the AP asked Trump’s chief business lawyer about language in a regulatory filing stating the firm would target companies seeking federal grants, tax credits and government contracts, he filed a new document with that language removed.

Zelizer, the Princeton historian, says he expects future presidents will show more restraint in enriching themselves, but worries about the message Trump is sending.

“He has shown politically there is no price to be paid to making money,” he said. “You know you can go there.”

Condon writes for the Associated Press.

WASHINGTON — Buried in the fine print of the massive deficit-reduction bill is–of all things–a brand new social program.

The new program will cost $1 billion over the next five years–somewhat less than the Clinton Adminstration had requested, but still a substantial sum in this era of tight budgets.

Supporters, including Health and Human Services Secretary Donna Shalala, insisted that some provisions in the new program actually would save the government money in the long run. Even many of the program’s supporters questioned that assertion, however, although they insisted that the money is worth spending in any case.

The family preservation and support program–along with expanded spending for childhood immunization, tuberculosis prevention, food stamps, “empowerment zones” intended to help inner cities and the earned income tax credit for low-income workers–represents the flip side of the massive budget cutting and tax-raising efforts of the bill. All told, those social programs–aimed in large part at helping families with children–will receive an additional $29 billion from the bill.

“The President’s long-term investments for kids and families have been very well supported by this bill,” said Shalala.

The social-program funds not only were key to keeping some of President Clinton’s policy initiatives alive, they were crucial to winning support for the budget in the heavily Democratic House, where liberal Democrats and members of the Congressional Black Caucus had threatened to vote against the budget bill unless it contained money to back up at least part of Clinton’s promise to “invest” in programs for the poor.

“There are a number of important features in this bill that represented the basis for many liberal and progressive Democrats to feel they could support the overall budget,” said Rep. Henry A. Waxman (D-Los Angeles).

The survival of the family preservation program, which at several points during the long budget negotiations seemed likely to die, would mark the end of a long legislative road. The program would give money to the states for early intervention and support programs for troubled families. It has passed the House three times and was approved by both chambers last year as part of another piece of legislation ultimately vetoed by then-President George Bush.

Supporters of the program argued that, by intervening early, social workers can help troubled families before their situations deteriorate so much that the state has to place children in costly foster care programs.

Skeptics, including Senate Finance Committee Chairman Daniel Patrick Moynihan (D-N.Y.), argued that the ability of social workers to accomplish those goals has never been proven. At one point during budget talks, Moynihan derided the program as “welfare for social workers,” several participants said.

But other legislators argued that, even if the program does not save money by avoiding foster-care placements, it will provide badly needed help for children. “This creates early intervention to keep children from being abused,” said Rep. Robert T. Matsui (D-Sacramento), who was the program’s chief sponsor in the House.

The program “has been pared down a good deal, but at least we got it,” Matsui said.

The birth of this new program is an object lesson in how legislators and Administration officials can use the arcane rules of the budget-cutting process to advance other items on the legislative agenda.

Over the years, Waxman has become a master at that art. This time around, he engineered a new $200-million program to expand the number of tuberculosis patients who can receive federal Medicaid benefits over the next five years. He also played a key role in winning money for the Administration’s proposed child immunization program, which would receive $585 million under the budget bill.

Although immunization has been a high priority for Clinton and First Lady Hillary Rodham Clinton, Waxman and other supporters of the program had to overcome opposition not only from congressional conservatives but from some White House officials who were willing to accept much lower dollar amounts for the program as they sought to hit their deficit-cutting goals, according to Administration and congressional sources.

Under the tuberculosis program, people who are poor but not otherwise eligible for Medicaid–primarily single men without children–and who have active tuberculosis can receive government-supplied out-patient services if the state they live in decides to participate. Public health officials said they hope that the additional money will reduce the rapid spread of the disease by targeting a group of people who often do not receive care.

The immunization program has two major components. The first part will provide $500 million over the next five years to pay for vaccinations for 2.6 million children whose families lack insurance. The money also will cover the 6.5 million children now covered under Medicaid, relieving the states of a financial burden.

The second part of the bill, which has drawn howls of outrage from drug manufacturers, would allow all states to buy vaccines in bulk at the price manufacturers provide to the federal Centers for Disease Control and Prevention–something 11 states now do. The CDC has negotiated steep discounts from the prices that drug companies charge private pediatricians.

WASHINGTON — The Senate Government Affairs Committee voted Tuesday to curtail the privileges of former presidents.

The bill was approved by voice vote and sent to the full Senate. The measure would limit the round-the-clock Secret Service protection for former presidents to five years instead of life and cut protection for their spouses to two years. Protection for children of former presidents, now extended until they are 16, would be limited to two years after their parent leaves office.

The legislation would prohibit former presidents from using their taxpayer-funded offices and staff for any money-making or political endeavors such as preparing speeches and memoirs.

Israeli President Isaac Herzog was forced to take cover as a missile struck nearby shortly after he gave a press conference in the northern Israeli town of Kiryat Shmona. During the speech, Herzog aid Israel cannot return to last year’s ceasefire and must secure “strategic depth inside Lebanon.”

SACRAMENTO — President Trump claims Gov. Gavin Newsom is unfit to be president because he has a “learning disability.” It’s a classic case of the pot calling the kettle black.

The centuries-old pot-kettle idiom points out hypocrisy — as when one person accuses another of a flaw that afflicts himself.

California’s governor has battled dyslexia all his life — very successfully, by any measure. Dyslexia is a learning disability that makes reading and writing difficult. But it doesn’t mean a stricken person is unable to learn. He just needs to learn differently, as Newsom has done since he was a teen.

Trump apparently isn’t dyslexic. But he clearly has some learning disabilities — including stubbornness, narrow-mindedness and intolerance.

The president still hasn’t learned, for example, that he lost the 2020 election. He persists in the belief — or maybe it’s merely another boldface lie — that the election was stolen in a Joe Biden conspiracy. That’s a bizarre fantasy.

He also didn’t learn from past administrations that a commander in chief should not wage war against Iran without a concrete plan to keep open the Strait of Hormuz so Middle Eastern oil can keep flowing to the world.

And he never has learned what most of us were taught by our parents: that you don’t berate your friends if you expect to keep them friendly — lashing out, for instance, at allies before and after their balking at sending warships to help protect the vital strait.

Moreover, he didn’t learn that the nation’s founders embedded a checks-and-balances governing system in the Constitution and that Congress has a role in imposing tariffs.

When the normally Trump-friendly Supreme Court ruled against his unilateral tariff agenda, the spoiled president did what he usually does: attack, insulting the justices who struck down his edicts.

“Fools,” “lapdogs” and a “disgrace to our nation,” he whined. “It’s an embarrassment to their families.”

Trump still hasn’t learned to shut up and try to be civilized.

Not even after shocking everyone by saying of the late Republican Sen. John McCain, a Navy Pilot who spent more than five years as a tortured POW in the Hanoi Hilton: “He’s a war hero because he was captured. I like people that weren’t captured.”

Any respect I might have had for the guy vanished in 2015 when the then-candidate for president publicly mocked a New York Times reporter’s disability. At a campaign rally, Trump jerked his arms and flailed his hands while making fun of the reporter’s palsy-like ailment.

So it wasn’t a surprise recently when Trump tore into Newsom for his dyslexia four times in one week.

Yes, Newsom has his eye on the 2028 presidential election and has been scoring points nationally with Democratic activists by using Trump as a punching bag. But Trump keeps offering himself up as an irresistible target.

Regardless, there’s no excuse — even in hard knocks politics — for attacking someone because of his disability.

“Gavin Newscum” — Trump’s synonym for the governor — ”has admitted he has learning disabilities, dyslexia,” he told reporters in the Oval Office. “Honestly, I’m all for people with learning disabilities but not for my president.”

“Everything about him is dumb,” Trump added.

In a Fox News Radio interview, Trump said that “presidents can’t have a learning disability.” And on Facebook, Trump wrote: “I don’t want the president of the United States to have a cognitive deficiency.”

A quick Google search could have shown Trump that several presidents have had learning disabilities, including dyslexia.

Start with George Washington, who struggled with grammar and spelling. And Thomas Jefferson, author of the Declaration of Independence, who had trouble with reading and spelling.

Other presidents with learning disabilities: Andrew Jackson, Woodrow Wilson, Dwight Eisenhower, John F. Kennedy and Lyndon Johnson. “It’s a poor mind that can think of only one way to spell a word,” Jackson asserted.

Scientist Albert Einstein was dyslexic. So were Apple co-founder Steve Jobs and Thomas Edison.

Dyslexia affects roughly one in five Americans to some degree — more than 40 million people, although relatively few are aware of it, according to researchers.

Newsom has spoken openly for years about his struggles with dyslexia. It’s difficult for him to read, especially prepared speeches. So he reads and re-reads, underlines and highlights and meticulously takes notes. When a speech must be read off a teleprompter, he practices for hours.

In January, the governor began his State of the State address to the Legislature with this ad-lib:

“I’m not shy or, you know, embarrassed about my 960 SAT score. But I am a little bit about my inability to read the written [speech] text. And so it’s always been something that I have to work through and I’m confronting.”

In his recently released autobiography, “Young Man in a Hurry,” Newsom writes: “My high school grades were all over the place and I scored lousy on the SAT, three hours of dyslexic torture.”

Early in his political career as a San Francisco supervisor, he writes, “speaking to a crowd was not unlike the fear I felt in third grade reading to my classmates …. So I learned to memorize my talking points and best lines … and wing it from there.

“This is how I discovered one of the secret powers of dyslexia. I could read a room with the best of them. I’d walk in and immediately size up the faces, mood and manners. … I learned that an audience didn’t mind occasional hiccups of speech as long as you looked them in the eye.”

Newsom was twice elected mayor and twice governor.

None of this means he should necessarily be elected president.

There may be policy and political reasons to consider him unfit — but not because of any learning disability.

What else you should be reading

The must-read: Newsom leads Harris for president among California Democrats, poll finds
The TK: Democrats excluded from USC gubernatorial debate urge rivals to boycott in solidarity
The L.A. Times Special: Rep. Eric Swalwell’s private AI company raises money, questions

Until next week,
George Skelton

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Latin American leaders met at the 10th Community of Latin American and Caribbean States (CELAC) Summit in Bogota on Saturday where Colombian President Gustavo Petro called for an immediate Middle East ceasefire to prevent a global economic crisis and ‘potential world war’.