Not to mention the 400 billion plus per year we spend servicing the debt in a ZIRP environment. Mr. Trump is just a very poorly informed candidate.
We'll just default on that, his predicted massive recession will come true.
Am I cynical, or is it possible that Donald, who I agree is poorly informed and clearly lacking informed advisors, has determined to appeal to even lesser informed voters, based on reality tv soundbites?
The masses, democracy in action. Though I don't think he's bringing enough of the masses along.
The Federal Reserve has been loaning money to banks at 0%. What is to stop them from providing refinancing at 0% to buy back the debt they don’t already own ? Then we stop issuing any new T-Bills to anyone. All our debt is at 0% interest and we owe it to ourselves. We save the remaining interest portion of the debt service payments. All of those T-Bill holders that got redeemed early now have cash that needs to be invested somewhere else like the stock market or corporate bonds.
Also remember that Trump expects huge economic growth from his pro-business and working class tax cuts and import tariffs. 5% GDP growth is almost $1T per year, and nets $200B/yr in additional tax revenue. Plus his special tax rate for repatriation of offshore corporate profits would be a one-time infusion of $2T cash pumped into the economy. The tariffs on imports mean those repatriated corporate profits go to expand/rebuild American manufacturing.
Then there are the actual budget cuts. I’ve heard him scoff at Hannity about across the board 1% per year cuts, say there is a “lot more” than that to cut immediately in everything but military and SS/M spending. Even in the military spending he seems to think that he can offset some of it by making foreign government cough up more and eliminating some of the excesses in weapons development and procurement that result in $500 toilet seats. He’s also talked about huge amounts of fraud in Medicare, so that spending in not sacrosanct either.
If you look at the budget, it is easy to find at least $1T per year that SHOULD be cut.