Remark: please read Part One for a primer on bankruptcy.
Donald Trump managed to convince a crowd of Republican constituents large enough to help him knock out all of his 16 challengers in the primary elections. Those constituents were angry enough, on the verge of delusion, gullible enough to believe anything Mr. Trump promised them. The economy which is usually at the top of everyone’s list – who doesn’t want a job? Who doesn’t need a better job? Who wouldn’t make use of extra cash? – is unfortunately still not great and was easily exploited by Mr. Trump. He first devised the biggest scam of all; he promoted the idea that he financed his own campaign – his supporters swallowed it of course – although Mr. Trump used a borrowing strategy he’s very familiar with, a scheme he has used in his business deals. Trump led his supporters to believe that since he’s self-financed, he owes no one any favor. His supporters are unfortunately not smart enough to figure it out and that’s exactly what Mr. Trump bet on. He has thus bragged his business-success way to the nomination. According to him, he is the most capable of making trade deals beneficial to US with other countries; his campaign signature to build a wall between US and Mexico and have Mexico pay for it has of course his supporters go wild. But most importantly, Mr. Trump “humbly” offered himself as the savior of the economy, the successful businessman who has the know how to win, win, win. How did he do it?
1.- The Great Businessman of the Century
Here is the truth, and nothing but the truth. Mr. Trump filed bankruptcy because he couldn’t operate his business profitably, it’s as simple as that. It’s really not that complicated. That’s the ONLY logical reason one would file for bankruptcy. So, there is no argument here; the “successful businessman Donald Trump” who offers to fix the US economy, the same Donald Trump who knows how to deal with China when it comes to trade, yes that same Donald Trump couldn’t manage” his business to make a profit, but it was worse than that, the business was insolvent (unable to pay its debts); the business was so much in debt that he had to file bankruptcy, not once, not twice, not three times, not four times but six times. Yes, the same Donald Trump who has been bragging about being successful couldn’t manage his business, had to file bankruptcy six times.
You’re probably asking the one-million-dollar question right now, how could he be a billionaire if he’s not successful? You’re smarter than I thought. I’ll let you figure it out, not because I don’t know the answer but because I believe you’re smart enough to figure it out on your own but I’ll give you a head start anyway, a) NO ONE files for bankruptcy because he’s doing well financially; so, it’s undeniably true that Mr. Trump was not doing as great as he wants you to believe. Please read part one to see why to file bankruptcy in the first place shows lack of money management ability, lack of knowledge and to file bankruptcy six times doesn’t spell financial success in any book except Trump’s and of course those who support him.
2.- Trump Deliberately Screws People Over
Recall Trump suggested that one of the ways he would deal with national debt is by “refinancing US debt”? Remember that? Translation: a) he would default on US debts b) he would force China – US largest creditor – to accept less than owed. Mr. Trump got a lot of press for suggesting “such nonsense”, a move that would negatively impact the world economy. Of course, Trump backpedaled the idea and tried to explain it away. Well, it turns out that Donald Trump was not kidding when he suggested that US defaults on its debts. In fact, Trump has done exactly that during his whole business career. In addition to filing for bankruptcy, the main driver which forces creditors to accept the little he offers to pay back of his debts, he also denies paying small contractors and vendors who sold products or rendered service to his company. How did he do it?
When a company (or an individual) files bankruptcy, most small creditors, contractors, service providers (who cannot afford legal representation) do not get paid – shocking revelation, huh!: that’s exactly what Trump did to those small businesses – large contractors (they’re able to afford a lawyer) would usually get penny on the dollar; for example, a creditor who extended $10 million credit to Trump might get $1 million or less once Mr. Trump files bankruptcy.
If we accept the premise that Trump is successful, there is another reason he may have filed for bankruptcy, and it’s not any better than being a crook; in fact, it’s even worst. It is to avoid paying those who sold products or rendered service to his company and repaying those who extended him credit. Recall I explained earlier what happens when one files bankruptcy, small contractors get nothing, large ones get peanut! So, since to screw people over and over doesn’t in any way, shape or form affects his personal assets or wealth, Trump has made a profession out of filing for bankruptcy, six times so far. You see, Trump wasn’t kidding when he offered NOT to pay the national debt. He built a fortune doing just that.
To recap, once Trump files for bankruptcy (which he did six times already), small contractors who provided service or sold products to Trump’s organization didn’t get paid; large creditors got much, much less than Trump borrowed from them.
As his supporter, those things may not bother you, but if you were one of those small businesses whose livelihood depend on getting paid for the items you sold to Trump’s organization or the service you rendered him, you would certainly consider him a crook, not a great businessman. Would you enjoy being taken advantage of time and again by Trump? He didn’t do it once or twice, he did that six times; he didn’t do it to a couple of small businesses, he did it to dozens of small businesses.
Think about it, if you have a friend who has filed bankruptcy six times and is now looking to manage your money or to run your company, would you let him? But how come he is a billionaire? I almost forgot; Mr. Trump’s personal assets (salaries, bonuses, real estate, savings/checking accounts, mutual funds, stocks, bonds, etc.) is shielded from bankruptcies, lawsuits and any legal troubles which affect the company he owns. In other words, he can file bankruptcy as many times as he feels like without his personal assets being affected. So, why not? That is Trump’ definition of a successful businessman.
Yes, that very successful businessman (sarcasm) you blindly trust to fix the economy has failed again, again and again. He has screwed people over again and again. Donald Trump is not the successful businessman he’s cracked up to be; he is a crook by definition.
He failed to pay his contractors, spent millions of dollars in legal fees to avoid providing health care coverage for his employees and giving them a raise; now, he is unwilling to release his tax returns which contain the ultimate proof where his money comes from but most importantly how much he’s really worth. But don’t tell his supporters that Trump is not all he’s cracked up to be; they don’t want to hear it. By now, they’ve already started to see thru Trump’s cunning craft but like anyone with too much pride to admit being wrong and moving away from the Donald, they’ve become religious fans of the Lying King. So, they had to come up with “justification”; luckily, they did not have to look hard. Trump’s opponent, Hillary, has been an easy target since the Benghazi tragedy. So, they all settled for that; Hillary, they say, is a liar; they couldn’t possibly vote for her.
Stay tuned for Part 3 of The Lying King in which we discuss whether Trump is in any position to call Hillary (or anyone else) a liar. In the meantime, share this article with your social network. You may also want to take a look at the article Where Are The Patriots .Follow @mducheiney