Like many kossacks, I’ve been watching the stock market gyrations around Trump’s (anti-)social media concern, Truth Social, and I think there’s an angle that everyone’s missed so far. Truth Social was, from the very beginning, intended as a conduit for processing foreign emoluments and other bribes.
A brief refresher: Truth Social recently merged with Digital World Acquisition Corp., a so-called special purpose acquisition company (SPAC), which was essentially an empty vessel, but one which was already publicly traded on the NASDAQ exchange. This has become a common alternative lately to a traditional IPO (initial public offering) for taking a privately owned company public. Initially, share prices soared as the rubes small investors bought shares. Subsequently, the stock tanked as (probably) short-sellers cashed in. Supposedly, the Don’s net wealth soared, and then crashed — to the delight of many. Ignore all that. It’s a sideshow, and all of it was entirely predictable and not the least bit important.
DJT (as I’ll now call the company, after it’s ticker symbol), isn’t a real company. It has no real revenue, and never will. It was always going to attract a few suckers who’d purchase shares with some of their IRA money, but that was never going to be a significant investment pool. The investors who matter are Russian oligarchs, oil sheikhs, and their ilk. You know, the sort of people who used to rent dozens of rooms in Trump’s DC hotel and never occupy them.
The key attribute of DJT is that it’s publicly traded. Trump can sell a bunch of shares, and whichever foreign autocrat needs a favor from him can swoop in and buys those shares. No sneaky, backroom dealing required. It will take place out in plain sight. In fact, that’s required. As the major shareholder and officer of DJT, Trump must issue a formal announcement whenever he’s intending to sell some of his shares. Which, in his case, is kind of like taking out an ad proclaiming, Who Wants to Get on My Good Side? Now’s Your Chance!
Sure, DJT’s stock has no actual value. That only matters to real investors, like pension funds and mutual fund companies. The people buying DJT stock will be buying a piece of Donald Trump — almost literally.
But wait, you say, what about those restrictions on how much stock Trump can sell and how soon. As a certain Danish prince might say, ah, there’s the rub. You see, the Truth Social/DWAC merger was supposed to happen at least a year earlier, but the SEC put the brakes on. These SPACs aren’t supposed to be launched with the intention of merging with a specific company, but in characteristic TrumpWorld fashion, people started blabbing about how that was exactly why DWAC was created. An investigation was launched and DWAC was forced to fire its founder and CEO, a Miami banker and TrumpFriend named Patrick Orlando. Eventually, the merger was allowed to proceed, but much time was lost. Now Trump has serious financial problems, and his DJT scam offers no short term solutions.
But not everything is about the short term.
Should Trump actually gain reelection the scheme could still pay off spectacularly. Let those Wall Street analysts snicker. The Chinese, the Saudis, the Emirates, and of course the Russians will be lining up to buy shares of DJT — and its owner.
