Donald Trump’s Idea to Cut National Debt: Get Creditors to Accept Less

[Expat1 971]

http://www.cnbc.com/2016/05/06/donald-trumps-idea-to-cut-national-debt-get-creditors-to-accept-less.html

Unfortunately everyone who has a retirement account, pension, or is planning on social security is included in this "list of creditors" (since the social security 'trust fund' is really a filing cabinet full of bonds).

What a thief.

One day after assuring Americans he is not running for president "to make things unstable for the country," the presumptive Republican nominee, Donald J. Trump, said in a television interview Thursday that he might seek to reduce the national debt by persuading creditors to accept something less than full payment.

Asked whether the United States needed to pay its debts in full, or whether he could negotiate a partial repayment, Mr. Trump told the cable network CNBC, "I would borrow, knowing that if the economy crashed, you could make a deal."

Edited May 6, 2016 by Expat1

[Teddy B 17,252]

http://www.cnbc.com/2016/05/06/donald-trumps-idea-to-cut-national-debt-get-creditors-to-accept-less.html

Unfortunately everyone who has a retirement account, pension, or is planning on social security is included in this "list of creditors" (since the social security 'trust fund' is really a filing cabinet full of bonds).

What a thief.

One day after assuring Americans he is not running for president "to make things unstable for the country," the presumptive Republican nominee, Donald J. Trump, said in a television interview Thursday that he might seek to reduce the national debt by persuading creditors to accept something less than full payment.

Asked whether the United States needed to pay its debts in full, or whether he could negotiate a partial repayment, Mr. Trump told the cable network CNBC, "I would borrow, knowing that if the economy crashed, you could make a deal."

While the part in bold may be true, I doubt that Trump made that connection. He was more than likely referring to foreign countries to whom we owe, like China. He's probably thinking the country can simply file chapter 11 and start over again with a clean slate like he did numerous times.

[smilesammich 10,727]

what an idiot.

Asked whether the United States needed to pay its debts in full, or whether he could negotiate a partial repayment, Mr. Trump told the cable network CNBC, "I would borrow, knowing that if the economy crashed, you could make a deal."

He added, "And if the economy was good, it was good. So, therefore, you can't lose."

Such remarks by a major presidential candidate have no modern precedent. The United States government is able to borrow money at very low interest rates because Treasury securities are regarded as a safe investment, and any cracks in investor confidence have a long history of costing American taxpayers a lot of money.

While the part in bold may be true, I doubt that Trump made that connection. He was more than likely referring to foreign countries to whom we owe, like China. He's probably thinking the country can simply file chapter 11 and start over again with a clean slate like he did numerous times.

it's almost like he has no experience. not even at the community-organizer level and that's pretty far removed from the realm of potus experience if i recall correctly..

[Expat1 971]

While the part in bold may be true, I doubt that Trump made that connection. He was more than likely referring to foreign countries to whom we owe, like China. He's probably thinking the country can simply file chapter 11 and start over again with a clean slate like he did numerous times.

Only 30% of US debt is held by foreign countries. The rest is held by insurance companies, pension plans, government agencies, the Fed, and domestic private investors.

The Fed can burn theirs for all I care.

Edited May 6, 2016 by Expat1

[Teddy B 17,252]

what an idiot.

it's almost like he has no experience. not even at the community-organizer level and that's pretty far removed from the realm of potus experience if i recall correctly..

If it wasn't already clear just how much of a debacle a President Trump would be, it will definitely become even clearer as the election draws near and he is pressed for details on the issues. Stating that he will build a wall one week and then claiming he loves Hispanics on Cinco De Mayo while digging in to a taco bowl aint gonna cut it for most peeps.

[Teddy B 17,252]

Only 30% of US debt is held by foreign countries. The rest is held by insurance companies, pension plans, government agencies, the Fed, and domestic private investors.

The Fed can burn theirs for all I care.

I'm not arguing your prior statement, I'm stating that I seriously doubt Trump knew that and made that connection when making his statement about having creditors accept less.

[Expat1 971]

If it wasn't already clear just how much of a debacle a President Trump would be, it will definitely become even clearer as the election draws near and he is pressed for details on the issues. Stating that he will build a wall one week and then claiming he loves Hispanics on Cinco De Mayo while digging in to a taco bowl aint gonna cut it for most peeps.

The Trump-leer is not family friendly. Reported.

[Teddy B 17,252]

The Trump-leer is not family friendly. Reported.

Somethins goin on under that desk.

[Expat1 971]

I'm not arguing your prior statement, I'm stating that I seriously doubt Trump knew that and made that connection when making his statement about having creditors accept less.

Not arguing - just adding a little support data. There is no way he has a clue what he is talking about doing and who he is talking about shafting (not that shafting people ever put a speed bump in his business practices anyway)

[Expat1 971]

Somethins goin on under that desk.

Same smile Cruz gets when he's talking about spanking a little boy

[ExPatty 502]

While the part in bold may be true, I doubt that Trump made that connection. He was more than likely referring to foreign countries to whom we owe, like China. He's probably thinking the country can simply file chapter 11 and start over again with a clean slate like he did numerous times.

In many ways it actually could. Its debt is substantially denominated in US currency, which is a luxury--owing numbers in a form which you can reprint. This is why the US could if it chose to borrow as much as it liked and never default on the debt. It could just print more. Inflation is an obvious result of this.

I almost don't care about Trump's policies now. The crazier ones have no chance of being passed by congress anyway. I just see him as a neverhillary vote. And if he prevents her succession to the throne and the republican party obliterates itself thus spawning a third party we will all be better for it.

[OriZ 3,157]

In many ways it actually could. Its debt is substantially denominated in US currency, which is a luxury--owing numbers in a form which you can reprint. This is why the US could if it chose to borrow as much as it liked and never default on the debt. It could just print more. Inflation is an obvious result of this.

I almost don't care about Trump's policies now. The crazier ones have no chance of being passed by congress anyway. I just see him as a neverhillary vote. And if he prevents her succession to the throne and the republican party obliterates itself thus spawning a third party we will all be better for it.

Printing does not always cause inflation, as has been evident in recent years despite the FED's futile attempts. When there is no demand for that money and/or too much debt is being retired prices do not rise automatically only because it is being printed. As you can see by the FED's own chart here - https://research.stlouisfed.org/fred2/series/M2V - velocity of money is still going down which is a huge problem for this service based economy.

Anyway, I'm just going to shake my head at this one:

Mr. Trump told CNBC that he was concerned about the impact of higher interest rates on the cost of servicing the federal debt. "We're paying a very low interest rate," he said. "What happens if that interest rate goes two, three, four points up? We don't have a country. I mean, if you look at the numbers, they're staggering."

[Expat1 971]

Printing does not always cause inflation, as has been evident in recent years despite the FED's futile attempts. When there is no demand for that money and/or too much debt is being retired prices do not rise automatically only because it is being printed. As you can see by the FED's own chart here - https://research.stlouisfed.org/fred2/series/M2V - velocity of money is still going down which is a huge problem for this service based economy.

Anyway, I'm just going to shake my head at this one:

Mr. Trump told CNBC that he was concerned about the impact of higher interest rates on the cost of servicing the federal debt. "We're paying a very low interest rate," he said. "What happens if that interest rate goes two, three, four points up? We don't have a country. I mean, if you look at the numbers, they're staggering."

I would venture that bubbles are a form of inflation

[Póg mo 1,749]

So Paul Krugman was right then?

[Expat1 971]

So Paul Krugman was right then?

Roosevelt was.

"Loan to prosperity" using printed bailout money just enriched a few leaving the average a lot worse off than when they started