Woodward claims that Cohn was “astounded” by POTUS’ idiotic suggestion on how to eliminate the country’s national debt, which he previously claimed would be gone within the upcoming decade. According to Fear, the then-president-elect allegedly told Cohn in 2016 that the country could simply get rid of debt by … wait for it … taking on more debt.
“We should just go borrow a lot of money, hold it, and then sell it to make money,” Trump allegedly told Cohn, as reported by Vanity Fair. The economic adviser was reportedly shocked by Trump’s “lack of basic understanding” of what additional borrowing would mean and how it would only increase deficit. So, Trump, being the “stable genius” that he is, offered another suggestion.
Per an excerpt obtained by Vanity Fair:
The president-elect offered a solution.
“Just run the presses—print money,” Trump said, according to Woodward.
Cohn suggested that would be detrimental to the fiscal and economic health of the U.S., since printing vast amounts of money is thought to lead to inflation. . . . Cohn also pointed to the federal debt ceiling, a statutory limit to the amount of debt the federal government can have outstanding. Even approaching the debt ceiling can be harmful to the stock market and U.S. economic growth.
But according to Woodward, Cohn’s message did not seem to connect.
“It was clear that Trump did not understand the way the U.S. government debt cycle balance sheet worked,” Woodward wrote.
Some believe Trump’s suggestions are based on the polarizing Modern Monetary Theory, which takes an unconventional look at debt. Basically, MMT states a country that creates its own currency can never really run out of money and that the panic over national debt is, for the most part, unwarranted.
It’s a theory that is rejected by many and, as demonstrated on social media, many Americans.
Cohn has claimed Woodward’s book included inaccuracies; however, he failed to provide specifics.
“This book does not accurately portray my experience at the White House,” Cohn told Axios. “I am proud of my service in the Trump Administration, and I continue to support the President and his economic agenda.”
Woodward’s Fear hit shelves on Tuesday.