Posted on 05/09/2016 6:09:29 AM PDT by GIdget2004
Donald Trump assailed the media on Monday for what he said was a misrepresentation of his comments on debt, rejecting the notion that he would have the United States default on his debt.
"I said if we can buy back government debt as a discount. In other words, if interest rates go up and we can buy bonds back as a discount, if we are liquid enough as a country we should do that. In other words, we can buy back debt as a discount," the presumptive Republican nominee said in a telephone interview on CNN's "New Day."
Those who said he wants to buy debt and default on it are "crazy," he added.
"This is the United States government. First of all, you never have to default because you print the money. I hate to tell you. So there's never a default. But the point is it was reported in the New York Times incorrectly," he said, referring to a critical Times article that ran on Friday.
That article examined an interview Trump gave to CNBC last Thursday in which he suggested that he could reduce the national debt by persuading U.S. creditors to accept less than full payment.
"It was reported in the failing New York Times and other places that I want to default on debt," Trump said. "You know, I'm the king of debt. I understand debt probably better than anybody. I know how to deal with debt very well. I love debt but you know, debt is tricky and it's dangerous and you have to be careful and you have to know know what you're doing. If there's a chance to buy back debt as a discount, interest rates up and the bonds down and you can buy debt. That's what I'm talking about."
(Excerpt) Read more at politico.com ...
You did indeed agree...
“Increased cost of some desirable things would occur briefly in the climate you describe.”
Let me help you; “increased cost” is synonymous with “inflation.” Synonymous means they’re the same thing.
My ECON 101 prof told us that the definition of inflation is: To many dollars chasing to few goods.
Yes, but the printing excess can cause inflation.
They don't make trucks big enough for you to haul your worthless dollars to the store.
I have managed to lower totals owed by 50% in some cases. He is telling it like it is. Would you rather get half your money or 0?
Don HdL,
I simply disagree based on history. If you do not wish to demonstrate that your claim is true, OK. I wish you the best and commend the link for your thought.
Mine said the same sill thing!
The fact of the matter, and Trump understands this perfectly, is that if we don’t get deficit spending under control, the debt under control then at some point just paying the interest on the debt, along with health care cost, are going to eat the budget up and then we will have to Default.
We can’t continue to print money to solve the problem, QE 3 or 4 is coming and it is going to be ugly.
This. I am happy that Trump is talking about debt because this is the legacy we are leaving our children. A devalued dollar and a tax they will pay their entire lives so we can spend today.
However, you are correct - we have to get our spending under control. Everyone with a brain knows there is a bubble that will burst with the dollar and our economy. The easiest solution for politicians is to simply expand the bubble - that is the most painless short term. The hardest solution for politicians is to address this because it will likely cause lots of pain (and anger) in the short term.
We need to face reality. If the GOPe (led by Ryan) calculates this politically they will oppose Trump’s measures because (likely correct) they realize the mid-term elections will be a bloodbath for the GOP if they cut spending. If Trump can get our fiscal house in order it will step on a lot of toes as we throttle back on spending - this is just as likely to lose the Presidency in 4 years as it is to create an economic boom like Reagan. It has to be done though - we must secure a better future for our kids and we are as addicted to deficit spending as a junky is to heroin - throughout the economy and government.
The other thing to prepare yourself for is the media - expect the same kind of crap stories we suffered in the Reagan years - homelessness and hungry kids stories will be the norm along with the separated “immigrant” families and kids without parents. You know that is coming!
Our country will face a decision so Trump needs to pick his words carefully. As soon as it gets tough the left will be right there to promise a return to the status quo and they will be back in power.
It’s a mess, isn’t it?
It’s like Doritos, “Spend all you want, we’ll make more.”
But it’s important to define the problem correctly if you’re going to solve it.
The same we fudge the figure so it will be whatever we want it to be.
Yes. I’d guess so. I’ve always lived by the credo “don’t spend it if you don’t have it”. “Having it” means what you bring in each ‘payday’ vs what you have to spend in my book. This isn’t the case now by a long shot.
That depends upon the velocity of money, the willingness of people to hold cash instead of spend it.
A very large amount of government debt is held by insurance companies and retirement funds as a reliable source of revenue. They would be in a mad grab for other debt instruments.
What’s the matter? Move your factory to China?
“Good luck getting the Rothchilds to go along with that plan. It’s the same plan they use on the entire globe”
I need my tinfoil hat to process that properly.
Stupid does not lent itself to a healthy, long life.
“What about the over $2T in US goods and services exports your tariffs will kill?”
God forbid we destroy our scrap cardboard export industry!
http://www.wsj.com/articles/SB10001424052748704360404576206250585521170
“Scrap paper exporters say they create jobs, help drive down the U.S. trade deficit, and assist in the Obama administration’s goal of doubling exports by 2014.
“People complain that we don’t make stuff in the U.S., but this creates a whole industry,” said Clark Hahne, of Newport CH International LLC, a waste paper exporter in Orange, Calif.
In Carson, Calif., individual and commercial scrap collectors looking to sell their hauls start arriving at the three-acre Corridor Recycling yard at 6 a.m. and pull in all day, backing up trucks to huge mounds of loose cardboard and unloading them.
One regular, José Jimenez Leyva, 58, who had just dropped off a load, said local stores know him and save their boxes for him. He saves the stores the trouble of having to go to the landfill, and he earns about $90 dollars a day. “This is where I get my money for rent and bills,” he said.
Mr. Leonhardt, who arrived in his white pickup loaded with boxes, said he was laid off from a shoe manufacturing company in 2009, and that his unemployment checks ran out in December. He heard about box collecting from a neighbor, who mentioned that prices were going up. “I’d like to earn halfway decent wages again, but for now, this is a help,” he said.”
Quantitative easing is incremental devaluation. Trump is 100% correct.
“What’s really gonna be a bitch is when China tells us they don’t want any of our phony paper money.”
Right, they are going to bring all of their factories to a halt because the massive unemployment and resulting chaos will really show us who’s boss.
Another problem is INTEREST RATES CANNOT BE ALLOWED TO RISE! Sound familiar? If we owe $500 billion a year in interest on the debt, and owe $600 billion for national defense, we cannot allow interest rate payments to soar past the amount we pay for other necessary government services, such as Social Security and Medicare, and defense. Just imagine rates go from 2% to 5-6 %. Interest would be our top cost of government. This artificially keeps interest rates low and stocks high, and cheats retirees out of safer returns. Eventually someone will call the bluff and there will be a run on selling bonds and the interest rates cannot be controlled by the FED. At some point we MUST raise taxes, or cut spending or fail in a spectacular flaming revolution. This is the way of Argentina for decades now. Raising taxes crushes growth and the economy, and cutting spending will result in riots and revolution as in Greece. Trump is showing his Democrat thinking by saying he can print his way out of this mess. Printing money has always been a disaster, but it works for awhile as you borrow money and pay it back with money that is worth less than what you took in. At some point, the lenders bow up and say no more. We have been printing money to buy our own debt now since QE1. China, the Middle East, Japan, the EU have slowed and almost stopped buying our debt because they now know we aren't serious about ever stopping the presses. It's always up to the workers to produce more GDP to help cut the amount debt the government makes, but at $20 trillion, with McDonalds jobs, it ain't happening.
We are playing musical chairs and they have removed 3-4 chairs, not just one, and the music is about to stop.
One more thing, we have been printing money and taking it on our own balance sheet, not for fixing bridges, buying planes and tanks, not for protecting the homeland, but for paying bureaucrats and their retirements and healthcare, paying for illegal aliens to take their place at the gubmint teat, rewarding unions for their support, and just flushing money down toilets like Solyndra and global warming.
I keep praying that Trump will hire some advisers, but it doesn't look promising. If he thinks he's smarter than the average bear, the fall will be quick and violent.
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