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January 15, 2017 | Trump’s Financial Empire in Danger!

Donald B. Swenson: Born January 24, 1943, Roseau, Minnesota. Graduated H.S. 1961, Moorhead High, Minnesota. Graduated College 1968, Moorhead State University, Minnesota. Designated member of Appraisal Institute (MAI), 1974. Employed with Western Life Insurance Company, 1968 – 71; Iowa Securities Company, 1971 – 73; American Appraisal Company, 1974 – 81. Part-time teacher/valuation consultant/bartender, 1979 – 2008 (taught workshops at Waukesha County Technical Institute, Wi. and Madison Area Technical College, Wi.). Retired 2008 (part time teacher/blogger), AZ. Self educated economist/philosopher/theologian:

Image result for trump turns over financial empire to his sons

My assessment of the Donald’s wealth (google his name and assets) leads me to the conclusion that his empire has a current ‘value’ of around $7 billion (2016). His assets are mostly hotels, condos, golf courses, recreation facilities, entrepreneurial enterprises (wineries and such), and a small stock portfolio (say $75 million). So his wealth is mostly tied up in physical assets which change in ‘value’ with our general economy. He also has assets in some 14 foreign countries!

If our global economy (now interconnected and global) were to enter another serious downturn, the ‘value’ of the Donald’s assets would decline precipitously. This concept called ‘value’ is pure imagination (when understood) and when the general Keynesian debt economy hits a down cycle (soon coming) his enormous portfolio of assets will decline precipitously. The Donald, however, is likely totally unaware of this likely scenario for his financial Empire.

Recently, the Donald has turned his empire over to his two sons who will try to manage these assets for him. His choice, not be liquidate his assets, is unfortunate as I would maintain that we are now at the very TOP of the real estate cycle for many years to come. As real estate goes so goes the general economy. The Donald may attempt to influence Fed policy so as to create a continuing BUBBLE in our metaphysical stock markets, but I wager that this will not work. Cycles are real!

If the Donald were wise and prudent IMO, he would liquidate his entire financial portfolio now and then concentrate on being America’s new President (with his cash assets and some precious metals managed under a ‘blind trust’). His $7 billion Empire could be liquidated rather quickly if he did this today (now) prior to the coming decline in our global markets. The proceeds of a mass sale now could be used to buy a store of ‘value’ which could weather the coming financial holocaust which seems destined to occur.

But Mr. Trump is not of the mindset that I am. He thinks differently. So he has placed his assets under the management of his two son’s and this means that he will be vulnerable to many legal entanglements and conflicts of interest as our financial house of cards enters the next down cycle. He may attempt to reflate our economy to prevent this likely event from happening, but when it comes to ‘control’ of events going forward, Mr. Trump has really NO control.

Cycles happen and this is because human nature does not really change much. The mood of our country is now turning negative and I sense that financial chaos is just around the corner. Real estate ‘values’ are especially vulnerable going forward as this concept called ‘affordability’ is not improving for the many. With interest rates up and ‘affordability’ down this means that ‘values’ will likely also head south in the coming months. Sorry, Donald, but your perspective may not be realized!

But who really KNOWS with certainty what will happen after January 20? No one actually KNOWS with absolute certainty. This means that my scenario could be false. We must wait and see what actually happens after the first 100 days of the Trump administration. These first 100 days should reveal what policies will change. My sense, however, is that the Donald has made a huge mistake with his recent decisions and the consequences will be severe. $7 billion today could be $2 billion in a couple of years. That’s my view, Donald! I am:

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January 15th, 2017

Posted In: Kingdom Economics

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