An investment can be analyzed as a product being supplied to the market, so it is subject to the interaction between supply and demand. According to the law of supply and demand, when the price of a good or service is low, consumers tend to demand that good more. Conversely, when the price is high, consumers tend to demand less of this good or service. Therefore, a low risk investment tends to have a low price if the demand for it is high.
The author means that, <em>once the series of lies became exposed, it would then fail to protect the presidency from the very aim it wanted to. That, the trust will be eroded due to those lies leading to mistrust of the government by its'people.</em>