Donald Trump wants to be president based on his business acumen. He has no political experience. The problem, though, is that his business acumen is nothing more than a fiction. Let’s jump right into his fiction.
Trump Lies About His Net Worth
Donald Trump often trumps up his net worth of $10 billion. Many have argued over the years that Donald Trump inflates his net worth. It has been difficult to track down his actual net worth because, although, he touts it as substantial, the fact is that he does not back it up with facts, until now.
On July 22, 2015, the Federal Election Commission released Trump’s financial disclosure forms. Donald Trump had filed the financial disclosure forms, as part of his running for president a week earlier, again proclaiming his net worth at $10 billion.
CNN analyzed the financial disclosure forms and came up with assets of $1.4 billion and liabilities of $265 million. That would make his net worth about $1.25 billion. That still makes him a billionaire but it is nowhere close to the $10 billion he continues to promote. More importantly, the financial disclosure form is a snapshot of his finances from the previous year.
As most of you know, many companies stopped doing business with Donald Trump as a result of his disparaging remarks about Mexicans. Many of those are significant sources of income for him, according to the financial disclosure forms. Therefore, it is likely his net worth will drop as a result of him attacking Mexicans, like me.
For those of you that will argue that CNN has an agenda, there are other sources that have been trying to gauge Trump’s actual net worth. Among them are the New York Times and Bloomberg. Bloomberg recently estimated Trump’s net worth at $2.9 billion. Bloomberg based its estimate on the FEC financial disclosures submitted by Donald Trump.
Exaggerating by $7 billion is lying.
I realize that ego probably drives Trump’s continued attempt to portray his net worth as $10 billion. However, I submit to you that there is another reason Trump tries to inflate his net worth. It is because he needs investors to overlook his multiple business failures and lend him more money on other projects.
I would argue that by lying about his net worth to secure funding is a form of fraud.
Some of you who support him will likely argue that my net worth is miniscule compared to him. You will also add that my business endeavors represent less than a fraction of one percent of his businesses, but the fact is that I do not sell books and make speeches based on a lie. I have also not filed for bankruptcy.
The Donald Trump Bankruptcies
Facts are important and therefore I’ll stick to the facts. Donald Trump’s companies have filed for bankruptcy four times. That is to say, four companies from which he stakes his financial acumen from have filed for bankruptcy protection. The four corporate bankruptcies were in 1991, 1992, 2004 and 2009. Although he argues that he has not filed for personal bankruptcy, which is true, the argument fails when you consider that Trump loves to trumpet his hands-on business involvement. After all, he loves to see “Trump” on his assets.
Donald Trump believes bankruptcy is a “business tool.” Forbes’ columnist, Keren Blankfeld, quoted Donald Trump as follows when discussing his many bankruptcies.
“Basically I’ve used the laws of the country to my advantage and to other people’s advantage.”
In other words, Donald Trump takes advantage of others. Although Trump likes to argue that the bankruptcies are part of his business acumen and that he has done nothing wrong, it ignores the very obvious truth, people lost money and jobs because of his many bankruptcies.
Between consenting adults that is all fine because both Donald Trump and his creditors knew what they were getting into when they loaned him money. Creditors aren’t stupid. That is why they have money to lend. As much as Trump loves to trumpet his business success, the facts show something entirely different.
The closest I’ve been able to come to see Trump’s finances, without Trump’s embellishments, is the FEC disclosure form he filed while running for president. I have to believe that his filing is as accurate as can be considering that it would be a crime for him to lie on them.
Something clearly stood out for me. The $265 million in debt he lists.
Consider this for a moment, interest rates are low and real estate development requires capital. I understand that Trump seems to have capital, but most businessmen will tell you that borrowing at low interest rates for real estate development is part of the success of the real estate business. It is better to invest other people’s money than your own.
Although Trump is likely to argue that he has no need to borrow money for his real estate deals, I submit to you that the low debt to asset ratios indicate that lenders are worried about lending money to Donald Trump.
Think about it this way. Twenty percent is the required down payment for a normal real estate loan. The higher credit risk the borrower is, the larger the down payment that is required. While thinking about this simple fact, look again at Donald Trump’s asset to debt ratio and I believe you will agree with me that it is indicative of lenders not running to give Trump more money.
However, Donald Trump is not my topic today because of his business savvy but because he wants to be president of the United States. Trump believes that bankruptcy is just a business tool. Is this the kind of president the voters of the United States want to represent them?
I do not believe so and regardless of what the polls show him to be in; in the end I have no doubt that Donald Trump is unelectable. He is trending because of the persona he has created and polls measure perception at the time of the poll and not actual electoral votes on election night.
As much as Donald Trump likes to portray how successful he is, the fact remains that he has filed for bankruptcy not once, not twice but four times.
As I have showed you, Donald Trump has lied about his finances and has fabricated a perception of success allowing him to leverage other people’s monies for his businesses. I have shown you how much he has failed and thus, the persona he has created on lies, in my opinion, have fraudulently attracted investments that have lost money for some investors.
In other words, Donald Trump is a failed businessman that has created a fictional façade based on lies.
Does the United States really want a president that bases his success on a lie?