TRUMP HOTELS FEEL THE PAIN AS BANKS SUFFOCATE REAL ECONOMY, STEPS HE CAN TAKE TO RESTORE GENUINE AND LASTING PROSPERITY


Donald Trump’s luxury hotel in Washington lost 1.1 million dollars in September and October, underlining how sluggish the US economy remains, saddled as it is with historic levels of federal and personal debt.

http://www.politico.com/story/2017/01/trump-washington-hotel-loses-money-234042

The poor results for his DC hotel came in before the Federal Reserve announed an interest rate hike in December, which will further dampen demand for goods and services in the real economy.

Fed chief Janet Yellen has announced plans to raise interest rates to a crushing 3 to 4%. She might do it over time, strangling the economy to death slowly. Or she might chose to make one big hike suddenly, creating a pyschological shock, collapsing the stock market, hurting exports (stronger dollar), sending unemployment soaring, busting companies and triggering a wave of foreclosures.

A quick calculation shows that an interest rate hike to 4% will cost an American who owes, say, 200,000 dollars in mortgages, car loans and credit card debt, 8000 dollars a year.

Assuming a salary of 25,000 dollars, and taxes of 2,000 dollars (plus social security, medicare etc), a 4% interest rate hike means about a third of total income and half of the disposable income will be used for debt payments.

Slashing the tax rate in half, for example, would save such a worker 1000 dollars, a sum that would, however, be swallowed up by the extra interest rate payments.

His DC hotel results should focus Trump’s  mind on the need to reign in the Federal Reserve and Wall Street and steps he can take.

Trump sees the problem but to solve it he needs to get to grips with the way the financial system really works.

http://www.telegraph.co.uk/finance/comment/9623863/IMFs-epic-plan-to-conjure-away-debt-and-dethrone-bankers.html

When he does, he will realize the main conflict lies between Trump, America, the manufacturing base as well as the military and Wall Street and the private Federal Reserve.

Trump is in fact also a victim of a bankster fraud like 99.9% of humanity.

When banks lent him funds to build his skyscrapers, develop his hotels etc, they did not lend him capital or anything of value as they pretended to do. They used the fractional reserve banking system to print money out of thin air. They created a loan electronically as a book keeping entry. In fact, that is how all money has been created in America since 1913 when the Federal Reserve was privatized.

If Trump goes to the bank and takes out real dollar notes and coins at an ATM?, he is using dollar notes and coins supplied by the private Federal Reserve to the private banks to keep them “liquid” so they can continue to print money out of thin air.

The fact that the private banks have a monopoly access to the only legal tender in the USA allows them to control the entire economy.

With time, the private creation of money generates so much debt and interest payments that it crushes the real economy. That is the bust cycle we are now in.

As revenues fall for Trump’s business group, and his interest payments on loans created out of thin air rise to 4% if Yellen gets her way, his group could even go bankrupt.

At that point, the banks can seize his skyscraper, hotels, golf clubs and other assets. Because to get the book keeping loans, Trump had, presumably, to put up real collateral.

In short, the banks will be able to obtain control of all his real world assets although they gave no capital or money to him. Steven Mnuchin and Wilbur Ross know making loans to create a boom and them witholding loans to engineer a bust is lucrative. There are skyscrapers, hotels, golf courses, companies to be bought up for nothing. Yes, Mnuchin even got the state to fund his purchase of a bank which he turned into a foreclosure machine.

In fact, Trump could use the argument of US lawyer Jerome Daly in 1968 who stopped the banks foreclosing on his house by pointing out that the banks never lent him anything of value in the first place.

https://archive.org/stream/pdfy-83f9GYTm1KE7PLuo/Jerome-Daly-The-Mahoney-Credit-River-Decision_djvu.txt

To deal with the crushing effect of interest and the private creation of money

He can sign an executive order for the Treasury to issue debt free money, a so called Trump dollar based on the British Bradbury pound.

“On the 7th August 1914, in order to avoid a run on the banks, the Treasury issued Treasury Notes signed by John Bradbury – a form of national credit backed by the credit of the nation.

We require that the Treasury immediately restarts issuing such interest-free money, based upon the wealth, integrity and potential of our country. Such an initiative would completely remove the hold the banks have over the nation, and would kickstart a productive economy.”

https://www.britishconstitutiongroup.com/campaign/bring-back-the-bradbury

http://www.ukcolumn.org/bring-back-the-bradbury

Trump can fund his spending plans (wall with Mexico, military spending) using these Trump dollars.

The use of debt free Treasury money will stop the US going even deeper into debt or making austerity and budgets cuts that will fuel the poverty and escalate social tension. For example, a touted plan to cut social benefits for disabled children is plainly unjust. Why not issue debt free Treasury money?

Or Trump can be more ambitious and issue an executive order renationalizing the Federal Reserve altogether and setting up an inflation control commission.

In 1833, Andrew Jackson issued an executive order to shut down the Second Bank of the USA, the precusor to the Federal reserve.

http://www.history.com/this-day-in-history/andrew-jackson-shuts-down-second-bank-of-the-u-s

He can issue a house bank order, loosening restrictions on the license for companies like Ford and Dell to set up their own house bank.

He should not allow the Volcker rule to be abolished as this is a safe guard to banks robbing tax payers and savers through speculative tricks.

He should also ditch the Wall Street banksters foreclosure king Steven Mnuchin and bankruptcy vulture Wilbur Ross and the new chiefs of the stock market regulators.

Comments are closed.

%d bloggers like this: