July 16th, 2018 8:00am
In the 80's Trump took out massive high interest loans to build his Atlantic City casino empire and in 1982 the Holiday Inn company partnered with DT to build Trump Plaza.
The Taj Majal opened in 1990, the beating heart of DT's casino empire, considered the place to be by the worlds wealthiest gamblers. He brought some of the biggest boxing matches in the world to the Atlantic City Convention Center. Trump ruled as the undisputed king of Atlantic City with 25% of the casino market.
At a cost of over $1 billion, financed at interest rates as high as 14%, the Taj Mahal never paid off. Think about this, the interest alone, on that loan, was $95MM per year. That's just the interest.
Now, although his casinos were profitable early on, his aggressive borrowing and might makes right strategy left them all floundering under high-interest debt.
In October of 1990, with the economy slowing down, Trump missed the first bond payment. The next year, the Taj Mahal was in bankruptcy court. Within one year, Chapter 11.
The crash left Trump's business 100's of millions of dollars in the hole, but he avoided a personal bankruptcy.
This is interesting. During Trump's first Republican and subsequent debates he stated; "I had the good sense — and I've gotten a lot of credit in the financial pages, I left Atlantic City before it totally cratered," . He also said "I made a lot of money in Atlantic City, and I'm very proud of it. ... Very, very proud."
Trump BK's four times in 18 years in Atlantic City alone.
1. 1991 Taj Majal
2. 1992 Trump Castle Associates
3. 2004 Trump Hotel & Casino Resorts
4. 2009 Trump Entertainment Resort
Chapter 11 restructuring, lets a company stay in business while shedding debt it owes to banks, employees and suppliers. DT is on record stating; "I have used the laws of this country ... the [bankruptcy] chapter laws, to do a great job for my company, for myself, for my employees, for my family,"
An investor who headed a stockholders' committee, Sebastian Pignatello said; "He trampled everyone, the shareholders, the bondholders, the employees, the contractors,"
According to Bankruptcy.com, Trump was the top filer in recent decades.
Sounds like DT personally profited off of his BK's.
Bottom line. DT put his properties in so much debt that his managers couldn't manage them properly. A total failure.
To sum it up, this statement from former Hewlett-Packard CEO Carly Fiorina.
"You know, there are a lot of us Americans who believe that we are going to have trouble someday paying back the interest on our debt because politicians have run up mountains of debt using other people's money,". "That is in fact precisely the way you ran your casinos. You ran up mountains of debt, as well as losses, using other people's money, and you were forced to file for bankruptcy not once, not twice, four times."
Since Trump took office, Congressional spending has soared to new levels. As POTUS has stated, "they'll just print more money". No big deal, right? Wrong.
Here's the highlight. The Military Industrial Complex and it's contractors will reap the rewards of the Trump presidency.
2018: MIC funding rises $176B from 2017 to just under $700B which exceeds the 2011 $549B budget cap agreement.
2019: MIC funding rises to $716B.
This is an unprecedented 27% increase in just two years.
Trump's justification; "So we're going to have the strongest military we've ever had by far. We're increasing arsenals of virtually every weapon,". "We're modernizing and creating brand new — a brand new nuclear force."
I'm pretty sure what he meant to say is "this is my gift to the MIC contractors for supporting me".
Trumps overall budget will add another $7T to our deficit in 10 years.
"They'll just print more money". Yes they will Donald, but you do know the Federal Reserve is a private company that loans the US money at interest, right? You do know about the Federal Reserve Act of 1913, right Donny?
In summary, let's take a look at the things POTUS is consistent with.
1. Acquire financing for project.
2. Mismanaging finances for project.
3. Filing for Chapter 11.
4. Putting together a damage control team to strong-arm shareholders (we the people), while keeping him in charge.
5. Personally capitalizing on his business failure while employee's, stockholder's, financiers suffer heavy losses.
6. Putting a PR team together to rescue his good name.
Donald Trump is always successful in the beginning. He becomes the king and wins public praise. Then bust, he has no follow-through. Yet he rises through the ashes smelling like a rose.
Donald Trump is a starter. He's the best. In his meddling during the midterm he grossly miscalculates his planned results. This is his Achilles heel. Somehow he manages to finish but at the expense of those around him. This does not make him a finisher.
A win, win negotiation means just that. Both parties win.
Money does not represent the status of the war, it's the body count.
What will the body count be this time?
The stakes are high in this political arena. Higher than he's ever been. The higher you are the further you fall.
Let's hope for the worlds sake, POTUS has learned a thing or two in his years. His crass, habitually misdirected efforts that have led him astray in the past have hopefully softened, and have become the beacon of wisdom for the sake of "we the people".
Believe nothing, believe everything.
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