How Trump Uses Clawbacks
What are clawbacks? And why is Trump using them everywhere? Trump clawed back 80 million allocated by FEMA to go to the City of New York after he had issued an Executive Order stopping all payments to house Illegal Aliens. Trump and DOGE said that the 80 million should have been used for hurricane relief for Americans instead of being sent to luxury hotels to house Illegal immigrants. New York sued because the comptroller woke up and saw 80 million missing from their bank accounts, because the money had been clawed back. Clawbacks are built into most government contracts and private business contracts as a clause that says that if anyone breaks the law, or if profits drop, or if the employee fails to perform, or if the subcontractor fails to keep accurate accounting records the money can be clawed back, and 80 million can disappear as quickly as overnight like it did in New York.
In addition to clawing back that money, Trump has clawed back money anywhere he can, including in the Ukraine where Trump has now demanded a clawback for all $350 billion dollars of US weapons and money spent over the last 3 years, both as mineral rights that he is demanding from both Zelenskyy and Putin, and in frozen Russian assets. Trump likes to keep all options in play, so is demanding that Zelenskyy give him $350 billion worth of rare earth mineral rights in undisputed Ukrainian territory, and is also demanding that Putin give him $350 billion in rare earth mineral rights in the territory that Russia annexed, and now is also demanding the foreign bonds owned by Russia worth $350 billion that were frozen in Europe in 2022.
Trump is literally asking Russia to pay America back for America running a proxy war against Russia for the last 3 years. And the odd thing is, it is a no-brainer for Putin, just trade the sovereign Russian Assets frozen in 2022 to end the war, they probably wrote those off long ago anyway. And all this talk of rare earth minerals is because Musk is hanging out with Trump, as long as the war ends and Musk can buy the minerals from the Ukraine and Russia and drop a Tesla factory in the Donbas and Russia and the Ukraine can sell Musk and the US their rare earth minerals everything should be fine.
Between 2005 and 2010 clawback provisions in contracts used by Fortune 100 companies went from 3% to 82%. At this point clawback provisions can be assumed to occur in almost all government contracts as well as all corporate contracts. Really if you are not using clawback provisions you are not protecting yourself. There are also bad actor provisions which is likely why Zelenskyy was thrown under the bus, but simply saying that he could not account for half of the $350 billion makes him subject to clawback with penalties. DOGE has found over a trillion dollars worth of money wasted so far and Trump will try to recover or clawback all of it, and they haven't even gotten to the Pentagon yet.
Comments
Post a Comment