The damned NYT had no problem with Obama riunning up the National Debt to the tune of $20 Trillion and not a word from the whores at the NYT about that.
The Federal Reserve is NOT a voluntary contract.
The people are not obligated to pay. It is not like a car payment.
No nation’s people are required to pay their central bank.
Zip. Zilch. Nada.
Central banks are a fool’s scam.
Govt is the Big Lie.
Go Trump Go!
In other words he wants to do the Greek strategy. Tell them you’ll default unless that agree to take less than they are owed. But I have to say I think that is actually inevitable irrespective of what Trump says. He’s doing us a favor by saying it now rather than pretending the problem doesnt exist.
If I were one of those creditors, and was offered the choice of ten cents on the dollar now, or certain collapse in the future, I know what I’d do.
Unfortunately, in the past, the Government uses only "bailouts" at the expense of the taxpayers to solve thier problems.
My point: THEY do NOT lose... the taxpayers DO.
We have 94 million people out of work.
The tax revenues from them being employed would be $2 trillion per year into the government coffers.
That would reduce the debt rather decently.
Imagine if you made $50,000 a year, continued to spend $70,000 a year (putting the balance on your credit cards) and today had a credit card debt of $450,000. Where do you think that would lead - especially if your credit interest rate was 1% but was soon going up?
Let's face it. We've been totally screwed by our politicians. They have been spending our money and going into huge debt to get themselves re-elected. Both Parties have been playing the game and kicking the inevitable calamity down the road.
The complete economic crash will be coming soon. Trump is sending up the WARNING flags now. He sees it and so do most of us who are paying attention. The coming economic reckoning is a disaster and it can't be stopped without radical and massive surgery soon. It can only be mitigated if we miraculously get a booming economy (more revenue), massively cut our expenses (hugely doubtful), and start paying off our principle. And then we might have a chance if the interest rates stay historically low - and it will still take many years to do it.
It's bleak out there, folks, and Trump is only pointing it out. The Washington politicians sure won't.
From my end Trump can have quite a bit of slack to pursue strategies or head games with our creditors/competitors. I certainly don’t want him to curtail his options to those that comfort the weakest links.
Issuing bonds when rates are low, and buying the same bonds back and retiring them when rates rise (and bonds sell at a discount) is standard practice for corporations.
However, it does not necessarily work with the government, because the government does not usually have excess cash around to purchase and retired debt. It could work for a government who was operating at a surplus.
The only way the government could do this would be to issue new debt, but the new debt would be priced exactly the same as the purchased debt, because of the fact the two bonds would be considered exactly the same risk.
In finance, there is a term called the “risk-free interest rate”. It is generally approximated by government bonds issued by large stable economies.