We are on our way to becoming Greece. Trump is the cure.
Greece ran high trade deficits too. Until their unemployment reached so high that nobody could afford the imports. Then Greece’s trade deficits fell. They were left with no industries, no jobs, no money, and a lot of debt.
RE: We are on our way to becoming Greece. Trump is the cure.
If the cure is to default on our debts, be prepared for soaring interest rates and a devalued dollar. It would undermine confidence in the world’s most trusted financial asset — our currency.
Even a partial default would mean that tax dollars would have to go toward repaying the debt.
Of course, Many investors would shift their money elsewhere. And the economy could endure a traumatic blow.
And if you have a conservative 401K that invests in treasuries ( as most of those who are close to retiring have ), your portfolio will be devastated.
This will also be historically unprecedented. The move would end a policy introduced during the presidency of George Washington — and celebrated in the Pulitzer Prize-winning Broadway musical “Hamilton”— to pay full face value on the debts incurred by the country.
The government’s unfailing payments of its debt have long pleased investors and supported the economy because the country can borrow at lower rates than it otherwise could.
Defaulting on our debt would cause creditors to rightly question the ‘full faith’ commitment we make.
All will end well if his term is 50 years x2.
[They were left with no industries, no jobs, no money, and a lot of debt.]
Yes, the U.S.A.’s destiny. People think it can’t happen. We’re in a very dangerous situation. People flirting with Hillary and Bernie and “Global Warming” haven’t a clue.
Greece runs trade deficits because they don’t produce anything. It’s a virtual tourist economy.