The US will never default on its debt “because you print the money,” says Presidential candidate Donald Trump.
“People said I want to go and buy debt and default on debt, and I mean, these people are crazy. This is the United States government,” Trump told CNN’s Chris Cuomo. “First of all, you never have to default because you print the money, I hate to tell you, OK?”
He continued: “I said if we can buy back government debt at a discount, in other words, if interest rates go up and we can buy bonds back at a discount — if we are liquid enough as a country, we should do that…In other words, we can buy back debt at a discount.” Trump referred to himself as “the king of debt.”
A quick look into Donald Trump’s history reveals he might be the most pro-gold candidate left in the presidential election.
The Trump family history, and its history in the US, is intimately tied to the yellow metal. Donald’s grandfather came to the US from Germany during the 1880s-1890s. After a short stint in New York, he left for west and the Gold Rush. There, he opened restaurants and hotels in Washington State and British Columbia, which, reportedly, had ties to alcohol and prostitution.
Nearly a century later, Donald, when the government legalized private ownership of gold in 1975, bought at $185 per ounce: ”We sold in the range of $780, $790. We did very well. It’s easier than the construction business,” he said.
In 2011, Trump accepted gold bullion for a lease deposit from his then newest tenant at 40 Wall Street, a 70-story Manhattan Financial District skyscraper. The $200,000 deal with Michael Haynes, chief executive of precious metals dealer at APMEX, was not Trump’s idea, (that was APMEX), the 2015 leading Republican presidential candidate’s press office noted he had been bullish on gold due to concerns over the strength of the US dollar.
The gold, a security deposit for a 10-year commercial lease of the entire 50th floor at 40 Wall Street, also known as the Trump Building, took the form of three 0.9999 pure 32.15 kilogram bars.
“Trump is a smart guy, and he’ll realize that taking gold is a better idea than taking cash,” Haynes says.
Trump said in a statement: “It’s a sad day when a large property owner starts accepting gold instead of the dollar. The economy is bad, and Obama’s not protecting the dollar at all….If I do this, other people are going to start doing it, and maybe we’ll see some changes.” He has feigned support, at least, for the gold standard.
“I like the gold standard and there is something very nice about it,” he said, in March 2015, in an interview. “We used to have a very solid country because it was based on a gold standard.”
Gold is interwoven not only into Trump’s investment life, but, as well, into Trump’s life of luxury.
After Trump announced his presidential bid, Stephen Colbert joked about Trump’s “luxurious, gold-plated, diamond encrusted” campaign.
It might not so much have been a joke as much as a reflection of reality.
Trump owns, after all: Trump 24K Super Premium Vodka Well ($100 bottle) labeled with a 24-karat gold “T”; a custom gold motorcycle; a gold-plated helicopter outfitted with gold seatbelt buckles, handles and family crests on the inside; Trump Tower Penthouse Gold platters, lamps, vases, and crown molding; a Private Boeing 757 with 24-karat gold faucets, table legs, seatbelt buckles, trimmings, and insignias.
His Penthouse is designed in the style of Louis XIV style, who reigned France during the European gilded age of the baroque period. True to that period, carved oak and golden frames adorn Trump’s penthouse. Interestingly, the discovery of the New World is associated with the vast increases of wealth which enabled the gaudy Baroque period.
Trump’s also revealed himself to be a bit of a conspiracy theorist when it comes to US gold holdings: “It would be very hard to do at this point and one of the problems is we do not have the gold. Other places have the gold,” he said.
According to Trump’s financial statement submitted to the Federal Election Commission (FEC), the Republican presidential candidate owns between $100,001 and $200,000 of gold bullion. Evidently, Trump owns no gold-back exchanged-traded funds. He also doesn’t known futures contracts. After submitting the data, Trump stated in a press release: “The financial report is not designed for individuals with such a ‘massive wealth,’.…”
Despite some circumstantial that Trump is a bona fide goldbug, another popular goldbug in US politics reviles the man. Ron Paul once sat out a presidential debate hosted by Trump. The storied Senator said:
“The selection of a reality television personality to host a presidential debate that voters nationwide will be watching is beneath the office of the Presidency, and flies in the face of that office’s history and dignity.”
Trump replied: “Ron Paul has zero chance of winning either the nomination or the presidency…Few people take Ron Paul seriously and many of his views and presentation make him a clown-like candidate. I am glad he…will not be attending the debate and wasting the time of the viewers who are trying very hard to make a very important decision.”
At the time, Paul was polling at 18% in Iowa. He won with more than 20%.