Donald J. Trump Incorporated

One thing I cannot accuse Donald Trump of is not being clever.

Clever is different from being knowledgeable – he is ignorant of many things. But ignorance of foreign affairs and appearing to follow Russian President Putin’s lead on international relations doesn’t preclude his cleverness at playing the system like a virtuoso.

He has had a knack for beating the house when the odds have been against him, and his current travails are no exception.

Currently, he faces 91 serious criminal charges that are wending their way through the courts. To date, he has managed to stay out of prison whereas most Americans would have already been incarcerated for many of his crimes.

Indeed, while he may have to pay substantial penalties for some of his charges, he is managing to delay his trials, reduce the payments he must make, and bid for time until the November election which he hopes to win.

One strategy Trump is using is having his financial supporters fund Robert F. Kennedy (RFK) Jr.’s independent run for the presidency.  

While RFK Jr. doesn’t stand a chance of winning, he could well hive off enough Democrat and centrist voters fed up with two older candidates to beat President Biden. One recalls the impact that independent candidate Ross Perot had on President George H.W. Bush’s loss in 1992 and Jill Stein’s impact on Hilary Clinton losing to Trump in 2016.

According to the New York Times, financial filings this week from two super PACs supporting RFK Jr., which together have raised nearly $10.5 million, seemed to underscore this theme. The pro-Kennedy super PAC American Values 2024 received the bulk of its money from two megadonors: one who has contributed tens of millions to Republican causes, and another who has backed both Democrats and Republicans.

According to Rolling Stone, American Values 2024 has so far raised $38 million for the Kennedy campaign. Its most important donor is long-time Republican financier Timothy Mellon. Mellon, the scion of the famous banking magnate Andrew Mellon, who has contributed millions of dollars to conservative candidates over the years, including $15 million in donations to MAGA Inc, the premiere pro-Trump super PAC, this election cycle.

Another strategy is the merging of Trump Media and Technology with a shell company called Digital World Acquisition Corp that runs Trump’s social media company Truth Social. The new company has taken Digital World’s place on the NASDAQ stock exchange under the moniker “DJT” whose shares now have a market value of almost $6 billion.

Trump holds nearly 60% of the company’s stock, worth just under $3 billion.

The company performs poorly in the media market. Last year it lost $49 million in the first nine months and, according to AP, brought in just $3.4 million but had to pay $37.7 million in interest. 

But he has just created a way to raise cash through which wealthy donors can contribute to his campaign. Indeed, Russia, Saudi Arabia, and other countries may well buy shares through cut outs in order to keep Trump beholden to their interests in the hope that he will win in November and do their bidding as he did during his last term.

According to the New York Times, the merger between Trump Media and Digital World includes restrictions that prevent major shareholders from selling shares for at least a six month “lock up” period or using them as collateral for loans.

But because Mr. Trump controls so much of Trump Media, and because his allies and big- and small-time supporters are expected to make up most of the new board, it could waive those restrictions at his request. Trump would have to be careful in this scenario as to how he sells his shares to avoid creating a run on the stock. But board approval could allow him to use the stock as collateral in obtaining loans.

Indeed, some small-time investors quoted in the New York Times have made it clear that they are investing to support Trump rather than make money.

“We do appreciate President Trump, but it’s more about free speech,” said Mark Willis, 63, who lives in Indian Trail, N.C. “We believe this is the only social media platform that is not heavily influenced by the government.”

Scott Lewczak, a graphic designer in Nokesville, Va., and another long-time shareholder, said that he was going to make money on the big surge in the price of Trump Media, but that his investment was to support Truth Social and Mr. Trump.

“Even if I lose every penny, I will fight to the end,” Mr. Lewczak said.

Trump supporters at home and abroad are putting their money where their hearts and interests are.

Once again. Donald J. Trump is using the system to his advantage.

Can Robert F.Kennedy Jr. attract enough of the protest vote to help Trump win the election? That is a possibility.

Can the new platform survive its low ratings and increase its market share in the medium to longer term?

Most likely not.

But in the short term, it may be a way for supporters of the former president and foreign governments funnel funds to the Trump campaign.

And that will make Mr. Trump a captive of these funders should he win the election.