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The world economy is currently doing its best impression of a Trump casino. Markets are cratering. Gold is sliding. Silver is sliding. Oil is hitting records. And unlike every other crisis in living memory, there is no off-ramp, no bailout phone, no adult in the room ready to talk everyone down from the ledge. Just the sound of chips hitting the floor and a man in a red hat somewhere telling everyone it’s going brilliantly. Which brings us, with a certain horrible logic, to Atlantic City. Because before Trump got his hands on the global economy, he practiced on a smaller scale. Three casinos, one boardwalk, and a financial philosophy that can be summarised as follows: borrow enormous sums at ruinous interest rates, collect a fat salary, and let someone else hold the bag when the whole thing goes sideways. He refined this technique over twenty-five years and four bankruptcies. It is, in retrospect, less a cautionary tale and more a dry run. Trump arrived in Atlantic City in the early 1980s with gold letters, junk bonds, and absolute certainty that he was about to reinvent American gambling. He ended up doing something rather different. His first casino was Trump Plaza, opened in 1984. Then came Trump’s Castle. Then the centrepiece: the Trump Taj Mahal, whose $1 billion construction was financed by junk bonds at an interest rate of 14 percent.  Trump called it the eighth wonder of the world. It went bankrupt in 1991, less than a year after opening. That was just the warmup. His casino companies made four trips to bankruptcy court, each time persuading bondholders to accept less money rather than be wiped out. But the companies repeatedly added more expensive debt and returned to the court for protection from lenders.  The holding company Trump Entertainment Resorts filed for bankruptcy three times – in 2004, 2009 and 2014, weighed down by debt each time.  Here is the part Trump doesn’t mention at rallies: even as his companies did poorly, Trump did well. He put up little of his own money, shifted personal debts to the casinos and collected millions of dollars in salary, bonuses and other payments. The burden of his failures fell on investors and others who had bet on his business acumen.  A Temple University law professor who studied the casinos concluded they lost more jobs and money than competitors and went through more bankruptcies than any other major business in America.  Trump’s response to the 2004 bankruptcy: “I don’t think it’s a failure.”  Trump Plaza was eventually demolished in February 2021 using 3,000 sticks of dynamite.  It took about ten seconds to come down. The loans took rather longer. And now, with gold and silver falling, oil surging, and equity markets convulsing from Seoul to Sydney, one is left with an uneasy feeling that the man who perfected the art of the managed collapse has simply found a larger venue. The boardwalk was just the dress rehearsal. Gandalv / Gandalv

Gandalv

35,905 görüntüleme • 4 ay önce

⛽ HERE'S THE PART NOBODY EXPLAINS TO YOU ABOUT GAS PRICES! Trump is right: Oil companies are playing both ends against the middle! A gas station owner does not set his own fuel cost. He buys his gasoline wholesale from a refiner or distributor, often locked into a supply contract with a major oil company brand. That wholesale price is set upstream. By the refiners. By the majors. Not by the guy running the register. So why is wholesale still high when crude is sitting at $68 a barrel. The industry's answer is inventory lag. Refiners are still selling fuel made from oil they bought weeks ago at higher prices. Chevron's own CFO has said publicly that lower crude prices take time to work through the supply chain before drivers see real savings. Fine. But here is the question that breaks that excuse wide open. If stations are selling old inventory bought at yesterday's price, why does the pump price jump the second crude spikes, before that expensive new oil has even been delivered. You cannot have it both ways. Slow to fall because of old cheap inventory, but instant to rise before the new expensive inventory even arrives. The real answer is something called replacement cost pricing. Retailers price gas based on what it will cost to refill the tank tomorrow, not what they paid for the gas sitting in the ground today. That is why prices jump like lightning when crude rises. But somehow that same forward looking logic disappears the moment crude falls. Suddenly everybody remembers the inventory they are still working through. That is not a supply chain mystery. That is a choice. Economists call the pattern rockets and feathers. Prices shoot up like rockets the second crude spikes. They drift down like feathers when crude falls. The same companies pricing forward on the way up are mysteriously pricing backward on the way down. Trump named the companies directly. ExxonMobil. Chevron. Shell. BP. He said it plainly in the Oval Office, that they are the ones not passing along the savings they should already be passing along. California gets singled out too. Gas there averages over five dollars a gallon, with state taxes piling on top of everything else. This is not Trump bullying small business. This is Trump asking the companies holding the lever why the logic only runs in one direction. Lower oil should mean lower gas, with the same speed it took to raise it.

Bill Mitchell

307,264 görüntüleme • 1 ay önce