What Happened?
On Monday, Trump will be due to pay $454 Million as a bond to the state of New York. A New York state judge, Arthur Engoron, claimed Trump inflated his assets and properties on financial statements to banks and insurers to get better loans, paying less interest.
Despite this, he has paid back the loans and the banks have not had an issue with the alleged inflation of assets. New York Attorney General Letitia James is attempting to bankrupt Donald Trump. This is so he has less money for the presidential campaign and can’t pay his lawyers. As a result, can’t defend himself in the several other politically motivated cases across the country.
New York Attorney General Letitia James pictured above
Image belongs to Copyright Holder. Image from – https://apnews.com Bebeto Matthews/AP Photo
Properties and Assets that Letitia James is looking to freeze and seize multiple Trump assets. This includes “Trump Tower”, “Trump Park Avenue LLC” and the “Trump Building”. As a result of a politically motivated case many wealthy people are moving themselves and their companies out of New York State.
Impressions upon the People
This case demonstrates to the wealthy in New York that if the Democrat Party in New York does not like you, they will attempt to bankrupt you and take all that you have in the state of New York.
Image belongs to Copyright Holder. Image from – https://apnews.com
Furthermore, Arthur Engoron valued Mar-a-Lago, Trump’s primary residence, in Florida at only $18 Million. This is an extremely low price as other houses, which are far smaller, sell for $50 Million. Palm Beach real Estate along the Ocean Front is extremely expensive. A far more realistic valuation of Mar-a-lago, once intended to be a winter White House, would be approximately $440 Million to $600 Million.
A Palm Beach Property Appraiser, who valued the property not based on the Real Estate value, but on the Mar-a-Lago Clubs profits was why it was valued so low. Despite the separation between Real Estate and Company value, the New York Judge confirmed it would be appraised at $18 Million.
Image belongs to Copyright Holder. Image from – https://www.gettyimages.co.uk
Trump and his legal team have tried multiple methods to raise money for his bond. They have gone to over 300 Bond companies that will pay for an individual’s Bond if they have liquid assets like Stocks and Precious metals. So far, every Bond company has refused to pay due to the large sum of $454 Million and the risk they take of also being involved in a politically motivated trial.
The Impact of Trump’s Truth Social
Trump has said that he has $500 Million in Cash, but preferably does not want to use it on this Bond, only as a last resort. Trump’s social media platform called “Truth Social” will become a public company and start trading with a $42 share price.
Donald Trump owns approximately 78 million shares of Truth Social. Trump will have a further 3 Billion dollars of Net worth and liquid assets once the stock exchange lists it. Trump’s cash can be recuperated after paying the Bond by selling Truth Social stock. Trump Media and Technology Group, the company that owns Truth Social, merged with Digital World Acquisition. This means that the firm’s value is approximately 6 Billion Dollars.
We will have to wait till tomorrow, Monday the 25th of March 2024. This is when the markets open and we see how Donald Trump pays the bond . We can certainly tell now that the high company valuation has been a blessing after politically motivated attempts to undervalue Trump’s assets and bankrupt him ahead of the November 2024 Presidential Election.
Currently, the average polling between Trump and Biden shows that Trump is leading by 2%. A McLaughlin & Associates poll put Trump 6% ahead of Biden. With little time before the election, the politically motivated cases will seek to hinder Trump as much as possible. The question is not whether they will be successful, but whether they will be successful before the election.
Image belongs to Copyright Holders. Image from – https://www.nytimes.com Sophie Park/New York Times
All images belong to Copyright Holders.
Cover Image – https://www.cbsnews.com
Article as of 24th March 2024
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