Donald Trump is a rich man and there is no doubt that Trump has done a great job. That being said, he didn`t build his empire from zero. He is born in a rich family and went from rich to even richer.
Donald John Trump who is from Queens in New York City, is a son of real estate developer Fred Trump. He joined his father’s company in 1971 and changed the name from Elizabeth Trump & Son to «The Trump Organisation».
Donald Trump is the man behind Trump Tower, a 58-story, mixed-use skyscraper in Manhattan. He is also the man behind Trump Taj Mahal, which is a casino in Atlantic City. He is the owner of The Trump Organization which owns, operates, develops, and invests in real estate around the world.
Trumps hotel and casino businesses have declared bankruptcy five times between 1991 and 2014. The reason for the first four bankruptcies were over-leveraged hotel and casino businesses in Atlanta City: Trumps Taj Mahal, Trump Plaza Hotel, Trump Hotels and Casino Resorts, and Trump Entertainment Resorts.
According to a report by Forbes in 2011, Trump said: “Ive used the laws of this country to pare debt...... Well have the company. Well throw it into a chapter. Well negotiate with the banks. Well make a fantastic deal. You know, its like on The Apprentice. Its not personal. Its just business.” He indicated that other «great entrepreneurs» do the same.
In his campaigns, Donald Trump often talks about negotiations and how to do business. Trump had problems because he had too much debt. So is it in the The United States. The U.S debt is the largest in the world right now. Nearly $20 trillion.
If Donald Trump solved the debt problems in his own companies, will it be easy for him to solve America`s debt too? People vote for him and belive he can handle the economy, taxes and create jobs better than Hillary Clinton. Simply because he is a businessman and not a politicians.
He said: «We owe $19 trillion. Boy, am I good at solving debt problems. Nobody can solve it like me.»
Debt-based growth must come to an end, and sometimes it goes terribly wrong. Not only for private persons and corporations, but also for country`s. Donald Trump had too much debt, but he negotiated and survived.
Some countries have debt greater than their entire annual economic output, which is more than 100% of their GDP. Those countries are in danger of default, just like Iceland in 2008. Japan is the worst example with 229,20% debt. Greece are in trouble with 179% debt-to-GDP.
The United States has a debt-to-GDP ratio of 102,98%. The private debt is nearly $14 trillion larger than any other single country. If the U.S defaulted on its debt, it would bring the global economy down to its knees. In comparison, the U.S debt in 1945 (end of World War II) peaked at 113%.
Ronald Reagan became the 40th president of the United States in 1980, and he declared «debt» to be one of his major campaign issues.
In 1981 he said: «For decades, we have piled deficit upon deficit, mortgaging our future and our children`s future for the temporary convenience of the present….. You and I, as individuals, can, by borrowing, live beyond our means, but for only a limited period of time. Why, then, should we think that collectively, as a nation, we are not bound by that same limitation?»
Between 1980 and 1990, the debt more than tripled as the government borrowed money to fund military build-ups and many elaborate new policies, such as «the war on drugs.» Americans began relying more and more on credit cards and jumbo mortgages, and being «in debt» became a new way of life in America.
Debt-to-GDP rose under Ronald Reagan, when the U.S fell into a particularly nasty recession, set off by the Federal Reserve under Paul Volcker, who raised interest rates to record heights in order to defeat inflation.
The Federal Reserve left the target range for its federal funds rate unchanged at 0,25% to 0,50% for the second time during the meeting held on March 16th 2016. That`s low right.
36 year ago, on March of 1980, the interest rate reached an all time high of 20%!
Government receipts flattened thanks in part to the large, permanent tax cuts that served as one of the top accomplishments of President Ronald Reagan`s first term. Spending jumped on both defense and social programs, and deficit exploded.
President Obama talked about his visions during his election. One of his cases was Guantanamo bay. He wanted to close it, but its still open. He still have ten months left, but it seems like a Republican-led Congress will do anything to help bring Obamas 2008 campaign promise to fruition.
Many of Trumps ides sounds very expensive, and sometimes it will be difficult for him to get any support because he wont have a free pass from Congress, even if it remains under the control of the Republican party.
Trump`s immigration plans was not a popular decision and may have cost him a lot of business deals, but it might cost the Unites States much more, while Immigration is an enormous source of economic vitality.
The Census Bureau estimates the US population will grow to 397 million in 2050 with immigration, but only to 328 million with no immigration. One of the biggest challenges in the future will be demand based on accelerating retirement of the baby boomers.
Like in Europe, immigration can therefore be the solution. It`s not a crisis, but an opportunity.
Donald Trump floated the idea of running for president in 1988, 2004 and 2012, and for Governor of New York in 2006 and 2014, but did not enter those races. Trump is pro-active and there is no doubt that he wan`t to reach the top. This is a big thinker.
Despite a lot of anti-Trump ads, he is at the top of the Republican party, but betting odds for the next U.S President is pretty clear: 70 – 30 in favour of Hillary Clinton.
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