Massive Debt Levels Could Cause Trump To Lose His Beloved Manhattan Skyscraper - The Ring of Fire

Donald Trump is deeply underwater on his Manhattan skyscraper as his debts increase and the income at the property goes down. And with the rent that he pays expected to increase by 8 times what he pays right now in the near future, he needs to come up with some cash quickly or he stands the risk of losing the property. This could help explain why Trump is so hellbent on using the presidency to make as much money as humanly possible, as Ring of Fire’s Farron Cousins explains.

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*This transcript was generated by a third-party transcription software company, so please excuse any typos.

As we all know, Donald Trump has been averaging about $1 billion in revenue since he was sworn in as president for his second term. That includes a $4 billion investment from two separate Middle Eastern companies, totaling 4 billion into his world. Liberty Financial. It includes all of these investors dumping hundreds of millions into his meme coin, and of course all the lucrative contracts that he is getting to build golf resorts in Djibouti, Abu Dhabi, Vietnam. Billions of dollars worth of new Trump projects that certainly won't go bankrupt in the next five years, right? Um, first of all, yeah, they will. Second of all, all of that is currently hypothetical money. Yes, it is part of his net worth, but it's not liquid, okay? It's not like he's sitting on an extra $1 billion in cash every month. He would have to cash out in order to get that money.

This is why this is a problem. Donald Trump has lots of properties all over the world and he's about to have many more, but there is none that he loves more than that skyscraper sitting on 40 Wall Street in Manhattan. That is his crown jewel. That is his pride and joy and that property is so badly underwater that he is now at risk of losing it. Let me read you this. The president currently pays two and a half million a year in ground rent, but that expense is set to skyrocket to an estimated $16 million in 2033, potentially wiping out all of his $9 million of operating income.

So in just a few years, the rent on that property, just to put this in perspective, is gonna jump to 16 million a year. And he is only bringing in $9 million a year from the property. So he is gonna be underwater by 7 million a year on that one property. As a result, the asset is now worth about 85 million according to Forbes, or 30 million less than the remaining balance on the loan. To plug the hole, someone will have to come up with a pile of cash and the $115 million mortgage on the skyscraper is due in less than 45 days. So Donald Trump has roughly a month, maybe a month and a half to come up with $115 million in cash to pay this mortgage, or he stands to lose the property potentially. Now he has options, right? He could sell some of his stake in the meme coin, which he owns about 80%, and uh, you know, easily have the cash to do that, but then he can't profit off that as much. So he's probably not gonna do that. He could sell

His media company, but then again, that thing is hemorrhaging money. Nobody's gonna buy it. So he can't really do that. He could borrow money from banks, but considering the fact that he is a convicted felon, even if he is the president and his Trump organization got popped for all of that bank fraud and whatnot, gonna be a little bit harder to come up with that money. So where does Trump get the money to pay this? Because he will get the money to pay it folks, and this is likely where all of that bribery and that open corruption comes into play. Trump knows he's in a cash crunch, but he also knows that he now knows a lot of people with very deep pockets who are willing to give him whatever the hell he wants. So he's probably not worried at all about it. If he needs to, he can make a call to Elon Musk and say, Hey, Elon GoPay and Elon would probably do it.