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 ...
Yabbut, what does Paul Ryno say about this?
Since the Ryno’s are beholding to the big holders of our Treasuries I doubt you will hear a peep out of them..
Asking for debt holders to take a haircut when they are getting one or two percent on their investment is a pretty tough sell.
If we by-pass spending cuts and fiscal restraint, all debt restructuring will do is encourage more debt. Since Trump is a known debt restructurer (he goes bankrupt too often), this doesn’t sound good.
Yabbut, what does Paul Ryno say about this?>>> i think he’s trying to figure out how to spell “creditors”. He can’t yet pronounce it.
If Trump plays hardball with the Chinese, Japanese and others over their currency manipulations, then that implies the value of those currencies must rise vis a vis the U.S. Dollar.
This is, in effect, a dollar devaluation—really good for U.S. manufacturing and other exports, because it makes our prices more competitive around the world as well as here at home.
Of course, the price of stuff made other places will rise . . . but, if all goes as planned (including changes in corporate tax code), the manufacturing capacity will rapidly build up again in America to replace that supply, and of course Americans will have a far stronger economy. A little pain for a lot of gain.
BUT HERE’S THE POINT: A dollar devaluation also means that all debts can be paid off with cheaper dollars.
THIS IS NOT A DEFAULT . . . but it has some of the same effect. I think this is the strategy behind Trump’s claim the national debt can be paid down in a reasonable number of years (along with removal of regulatory burdens in energy, healthcare, education; and restructuring of Pentagon budget favoring vets but eliminating pork-barrel programs like F-35).
So the answer is part growth, and part restructuring, together with allowing the dollar to get cheaper.
IT IS REALLY THE ONLY WAY THAT MAKES SENSE FOR AMERICA!!!
Interesting since the us debt is owed to the federal reserve bank
Does the question become: “how big a discount is the fed willing to take?
Would this be something similar to the “short sale” of real estate after the 2008-2009 recession?
Sounds to me like Trump has America and her people covered...
RINO RYAN is out in the cold....
I think inflation will eventually rear its ugly head. In the past raising interest rates was the solution. Can we continue to service the debt at 4%, 5%, 6% or more?? I doubt it......
>>Interesting since the us debt is owed to the federal reserve bank <<
^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
The Fed is a globalist institution. They will be the major obstacle to a dollar devaluation to help the economy and pay down the debt,
Meanwhile The dollar continues to be devalued fairly rapidly, anyway.
Good point.......
We pay about 230 billion a year on the debt with T bonds averaging about 2%. If interest rates on T bonds rise to a level of 4%, interest on the debt will be about 500 billion. At that point the USA is Purto Rico.
...and Odungo responded, “ah ah ta...ah err..as..
and you know what?”
>>RINO RYAN is out in the cold....<<
^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
As will be Janet Yellen if Trump is elected.
This has probably hair-lipped the uniparty behind the scenes more than anything. The FED is the crown jewel of the globalists on American soil—probably even more than the U.N,
Exactly! In the past it was not uncommon to see these rates at 7% or 8%. Before Reagan took office and after Carter’s fiasco they were 20%.............
All the gravy trains are going to stop...around the world...oh how sad for those poor people who have fed off of us for years and years...what ever will they do?/s
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.