Why the Trump Bankruptcies Would Make him a Better President: The billionaires behind the federal government

One of the most common rebukes to the Trump potential presidency is that his companies have filed Chapter 11 bankruptcy several times, the Atlantic City Taj Mahal 1991, the Trump Plaza Hotel in 1992, Trump Hotels and casino Resorts in 2004, and Trump Entertainment Resorts in 2009.  The cause of those bankruptcies was due to over-leveraged assets which can happen when financing speculative endeavors, and on those he came up short.  Casinos are dangerous endeavors, because they are essentially parasitic business practices that rely on strong economies to consume expendable income.  If a society does not have expendable income, it won’t spend money on casinos—which has led to trouble in places like Atlantic City.   However, what I find very interesting about Trump is that he has still managed to build up a personal wealth of billions of dollars in a very traditional way which makes him for me even more of an Ayn Rand hero presidential candidate than virtually any other possible billionaire who could run for president.  To see to what extent he is qualified watch this interview with Judge Jeanine from Fox News.

For me the fact that Trump is a billionaire who is willing to identify with Tea Party politics makes him gold in my book.  He’s willing to put himself out there to break down a bad political system.  Because the real fight is not on Capitol Hill, or even American politics, it’s in the billionaires who work behind the scenes to advocate progressive endeavors that politicians are expected to dance to.  Nothing will change so long as George Soros is pouring his money into left leaning causes, or Bill Gates is trying to advance common core.  Gates has a net worth of $67 billion dollars.  Michael Bloomberg who is a bleeding heart leftist has $27 billion.  Mark Zuckerberg is worth $13.5 billion and is the golden boy for the millennials, and these are all people who are politically active.  Rupert Murdoch is worth $11.2 billion.  Charles Koch is worth $34 billion and his brother David is worth an equal amount—personally.  These are the people who are shaping American politics from the political right and left.  Trump during his recent speeches has stated that Carl Icahn wants to work in his presidential administration—Carl is worth $20 billion dollars.  In comparison, Donald Trump doesn’t even make the top 100.  But he is willing to stick it to the entire system, fund his own campaign free of all their input and turn the entire system completely on its head.  That is something I can get behind in a big way. It’s a unique once and a lifetime opportunity that may not come again.  Billionaires like to stay in the shadows.  They don’t do what Trump is doing, and this is a key strategic opportunity to advance our political system beyond the control of the two-party system in a way that Trump is leveraged to do.

Most of the billionaires listed have managed to get their wealth through stock investments—such as Gates, Soros and Zuckerberg.  If Trump had done what they had, he might be far wealthier than they have become, because the wealth is created by anticipated value of their products as opposed to a tangible asset.  Trump is an old-fashioned guy—he has largely stayed out of stocks and has built his wealth nearly entirely on actual assets, such as golf course, real-estate developments, beauty pageants, entertainment media, etc.  Trump actually owns things, and he has done it in a sole proprietor way as opposed to diversified investments managed from afar.  Trump has remained throughout his career remarkably hands on and to this day has respectable access to liquid cash and very little personal debt.  The Trump brand is actually worth more than his personal assets ranging around $3 billion dollars.  In a brilliant move by Trump and his organization he looks to be aiming to accomplish two things, increasing his personal brand as President of the United States—which will likely triple, perhaps quadruple that brand value, and he will be able to as an insider increase market forces which will increase his holdings with a healthy economy.  As president, Trump could exceed his personal wealth well beyond that of Bill Gates, which is likely the real motivation for his presidential run.  How better to leave his kids with a great company?  But that’s not a bad or selfish thing.  For Trump, he has remained extremely traditional as an investor which has left him vulnerable to market fluctuations, such as what he saw in the early 1990s, and again in 2008.  With the national debt at nearly $19 trillion Trump has the most to lose in a collapsed economy which is inevitable under the current market trajectory.  So for a healthy “A-type” personality, there is no better way to kill two birds with one stone than to do the job yourself.  And I believe that is what Trump is doing.

Then there are the other motivations.  A good negotiator will align their needs with those they are dealing with.  Trump may be the only person available who can fight against these billionaire investments while increasing his own wealth and still helping America find its way again.  I believe those intentions are 100% real and there is nothing wrong with trying to do all those things at the same time. If Trump wasn’t in the game than what would be the option?  A government ran by billionaire leftists, or a government-run by billionaire conservatives.  Both have shown that they aren’t completely authentic in their adherence to the American Constitution and are philosophically weak to the founding ideals of the United States.  Trump made a choice to maintain his personal integrity in spite of the risks associated so that he could own his assets personally—without the usual protections of being able to sell off anticipated value quickly on the stock exchange.  Physical property is much less liquid but Trump made a choice to deal with that in exchange for personal ownership because of ideological commitments that could easily translate to the core problem within the United States—the national debt.

The next president of the United States will have to tackle that $19 trillion-dollar debt, the bankruptcies of the Medicare system, Social Security and the tragic implication of Obamacare starting in 2016.  Much of that debt is in perceived value—anticipated liabilities based against devalued currencies and projected forecasts.  Strategically, Donald Trump is tackling the brand of America and trying to increase its perception globally, by declaring that we need to limit immigration, so to make American citizenship perpetually of an increased value  Once that is accepted, he will gain bargaining leverage with other countries as a president that will make them pay for tariffs that they wouldn’t accept under an open border policy, which is right now most advocated by George Soros—the billionaire most aggressive in advocating for the progressive destruction of America so that he can capitalize off the hedge funds generated off that destruction.  There isn’t another American presidential candidate except for Trump who can actually increase the value of the United States brand to off-set the penalties that will incur if the national debt climbs up over $20 trillion.  At that point bankruptcy is the only way out, and that would cause America to lose its sovereignty to other nations.

From what I see, Donald Trump is all in, his investments are real and his risk is high.  Unlike his fellow billionaires he can’t just have a massive sell-off.  He is taking a gamble as we speak; his companies are buying low hoping for a market turn-around.  Trump, being a patriot at heart—if you don’t believe it, read his books, has jumped all in with no turning back. There won’t be any bankruptcy to save his companies from complete collapse this time.  He’s doing the only thing he could do, he’s stepping down from the billionaire Mount Olympus to fix the situation himself.  His ego wants to be the richest man in America so he doesn’t have any issues with attacking his rival billionaires by out-maneuvering them.  But he wants to save his companies from an economic collapse so that his children will have something left when he’s no longer around.  And to do that he has to save America from that collapse—and the only way he can do that is by becoming president.  There isn’t anybody else who is in his position who can do it—because it is fellow billionaires who are actually running the government anyway.  Donald Trump is a traditional guy who believes in personal ownership almost to a fault, he is chained to the destruction of America with the rest of us.  But unlike the rest of us, Trump is a billionaire who can actually make a difference, and he’s all in to do it.  He’s come too far to turn back and he’s going to need our help.  I think he shares with us the knowledge that 2016 is a do or die moment.  He can either take the party system out of the hands of the billionaires from both the right and left for the good of the country.  Or we lose our country, he loses his wealthy status, and we all go down the drain together.  Donald Trump has a lot more in common with most of us than anybody has yet given him credit for.  And it really comes down to his personal belief in ownership—which he likely inherited from his father and older brother.  Thus he is now taking the biggest gamble of his life.  For the benefit of us all, I hope and trust that he knows what he’s doing.  Because I see his maneuver as the only strategic way out of a minefield of destruction set by the billionaires who really run the federal government.

Also consider this, Barack Obama will be far more destructive as an ex-president advocating socialism and returning to the political scene as a community activists.  He will become very wealthy as a public speaker and will be given a platform to really advance the global intentions of Socialist International within the United Nations.  There isn’t a Republican in the party presently except for celebrities like Clint Eastwood and Donald Trump who can steal away the potential air of a dangerous ex-president Obama in the news cycle.  Trump would have something new happening ever day as president forcing Clinton and Obama to struggle for attention—which would bring an end to their efforts.  If Donald Trump has learned anything over the years with all the hard knocks he’s endured, it’s how to survive this current time.  And for my money I will bet on a tangible asset—Donald Trump—a proven commodity in every way who is highly motivated—and leveraged—to be successful.  Trump is my guy—and like him—I’m all in.

Rich Hoffman


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