So Trump’s only true leverage is on long term debt, by way of pressuring Congress to spend within their means? IOW, if some national debt is retired, not rolled over, then some of those “zero discretion” notes aren’t renewed. The institutions that “must” hold these now more scarce notes have to take what they can get - the note issuer (us) has the advantage and will re-price them for a lower return, a lower interest rate?
But Trump does not seem keen on lowering the national debt. Puzzling.
Ahh someone who understands the numbers.
Get Congress to spend within their means? That’s a 2 Trillion spending cut (the total deficit), out of 6 Trillion, and 1 Trillion of that spending is interest on the debt. So a 2 Trillion cut is not out of 6 trillion, it is out of 5 Trillion. 40% of the budget.
Ain’t gonna happen.
This is why we get headlines of reporters who grab proposed plans (of about 2 weeks ago) to cut XX trillion from the deficit or spending or whatever OVER 10 YEARS.
It has all gone too far. There is no solution. It is papered over and has been for about 15 years. What is going to kill it all is the day our oil is essentially exhausted.
Russia’s won’t be. They have sooo much surface area. We will as to buy some. They will say they are willing to sell, but not for pieces of paper with ink on them.