Posted on 05/08/2016 5:20:55 PM PDT by RayofHope
Presumptive Republican presidential nominee Donald Trump just revealed an inconvenient truth about U.S. debt, the outspoken and often controversial Peter Schiff told CNBC in a recent interview.
Last week, Trump joined CNBC's "Squawk Box" last week to discuss a wide range of topics including U.S. debt, interest rates and replacing Fed Chair Janet Yellen. It was Trump's comments about potentially renegotiating the more than $19 trillion in U.S. debt and the sensitivity surrounding higher interest rates that raised eyebrows.
While some observers argued that Trump's approach could be tantamount to a debt default, Schiff told CNBC the GOP nominee was fundamentally correct in his observation.
(Excerpt) Read more at cnbc.com ...
Ryan fears default because he doesn’t know how to manage it and he does not want to go against those that control him. He’s really empty between the ears, not at all bright.
Trump knows how to leverage American markets with its debt holders, Ryan has no clue even if he was willing.
The long and short is that the federal government is indirectly propped up by funds creation at Fed Reserve computers, and because of this the members in Congress bow before the privileged class that receives side revenues from the Fed Reserve fund stream. That makes the member of Congress less able to fake allegiance to their constituents, hence fake representation. This process has gone full throttle since 2010.
Most of the debt of the United States is held by member banks of the Federal Reserve, Citibank, JP Morgan, Bank of America, etc. They hold the treasuries in exchange for fed funds they borrowed at 0% or 0.25% or even negative % for certain reserve holdings. But the ‘money’ borrowed from the Fed was digitally created from nothing.
The bank’s bond trading contractors and departments hold the bonds at about 2% to 2.5% paid by the fed government. This is known as the carry trade and bond traders have become filthy rich because of it. They can pull in about $250 million per year with near zero taxes because of loopholes. These are the bastards that Donald Trump wants to raise taxes on.
Donald will take the United States through a controlled bankruptcy or more accurately a controlled default so that interest rates can find their natural level. This means money will flow out to the private sector and the economy will take off.
Ryan has no courage. He only thinks about remaining as a member of the club. Trump on the other hand, knows exactly what to do and who he will delegate to do it.
Ryan is not the only one in the club who is clueless even if willing.
Yup. I didn’t go there because the geniuses at the Fed will never allow that. At interest rates of 8% servicing the debt alone would be 1 trillion a year. At that point the only investments to be made will be in lead and seeds.
How often is too often to go bankrupt?
Trumps companies have declared bankruptcies 4 times. That includes 1 time where the bankruptcy was a planned part of the acquisition, and 1 time where he helped bail out a friend and tired several times to avoid the bankruptcy.
But for sake of discussion, lets use 4 as the number.
Four out of more than 5,000 companies, I think the real number is closer to 10,000 companies, but let’s use 5,000 for this discussion.
How many bankruptcies do you think should there be with 5,000 companies over 40 years?
8 years of Obama’s economic policies. The great one, eh?
I don’t think so. The largest holder of debt in the US is Social Security. Reserve banks come in third to SS and “other government entities”. While SS holds about 16% of the debt, foreigners hold about 37%. It is a giant house of cards but you can not solve it by giving reserve banks a haircut.
>>Meanwhile The dollar continues to be devalued fairly rapidly, anyway.<<
^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
Sorry, that’s just WRONG.
Since 2013 or before all major currencies have been devalued vis a vis the US Dollar. This includes Euros, Yen and Chinese Yuan. During that same period you could also say Gold has been devalued versus the dollar, since its price has gone down too.
Another measure of the value of a currency is Oil. Obviously it has also been devalued versus US Dollars, and with a similar effect to manufacturing. Consumers love it, but the domestic petroleum industry sucks wind.
Sometimes I think Trump might spell all this out better; but, I guess that’s why he’s the political genius and I’m the nerd.
For sure. But it beats the alternative at a certain point.
And wasn’t that wonderful. Buy a home? Forget about it.
No. The System will become unstable if the interest rate on the 10Yr UST goes over 4%.
Obama & company have been loading the Entitlement State up with clients for a reason. They want to implement Socialism by force, with the Constitution being discarded so The People can have their free stuff. Most industries will be nationalized for the Public Good.
debt restructure encourage more debt. WTF!?!? That’s as bad as saying spending cuts encourages more spending
Unfortunately, I believe the biggest holder of our debt is the Social Security Trust Fund.
Raise your hand if you really believed the US could pay back $19 trillion. :-)
Yabbut, what does Paul Ryno say about this?
He says he doesn’t support the debt or a default but wants more-increased spending instead.
The Rinos have a kick the can down the generaion philosophy. Keep spending it now for their causes, salaries, pensions gold healthcare at the expense of OUR children being beholden.
It is very hypocritical to blab about “The Children” when they are burdening other children with their crap.
Are you counting those hands?? :-)
commodities are one thing (and they go up and down)
but
cost of living for American citizens is quite another thing and keeps going up up up (like the space rockets we lost when Obama converted NASA into a World-wide IslamoNazi Cheering Squad)
my comment was reflecting the higher and higher costs of most housing, goods, and services that Americans are faced with these past 7 years
LOL! I can hear the voices out in freeper space right now. “Is she implying we can’t come up with $19 trillion? :-)
And remember, the Core CPI does not include food and energy costs, these sectors were removed years ago......
yes indeedie.
How to Lie With Statistics, deja vu
In Trump we finally have someone who knows how the real world works, and can do something about some looming National problems besides spouting meaningless BS clichés.
Well, I doubt any hands were raised. They are going to be pounding the midnight gavel to raise the debt limit shortly by another two trillion!...........
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