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Trump: U.S. can never default because it prints money
Politico ^ | 05/09/2016 | Nick Gass

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 ...


TOPICS: Government; News/Current Events; Politics/Elections
KEYWORDS: 2016issues; currency; default; fed; trump; usdebt
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To: central_va

I’m not for tariffs, but if a country is hammering us with one, we respond in kind. Not free trade, but fair trade if the tact Trump should take.


161 posted on 05/09/2016 11:25:08 AM PDT by sarge83
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To: aquila48
Unless we find a way to make them suffer directly and quickly the consequences, nothing will change.

They and their families deserve life sentences being chained to the deep fryers at burger joints.

Fair is fair.

162 posted on 05/09/2016 12:01:27 PM PDT by rawcatslyentist (Genesis 1:29 And God said, Behold, I have given you every herb bearing seed,)
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To: central_va; Pelham
The rest of the world has already closed their markets to us.

US exports of goods and services have been steadily rising and stood at $2.34T in 2014.

If the rest of the world has closed their markets who's importing all this stuff, and what happens to our economy when they stop?

163 posted on 05/09/2016 12:13:38 PM PDT by semimojo
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To: semimojo

Reciting gross export numbers is cute but nothing more. You need to read Prestowitz and others who have been in the trenches dealing with our trade rivals.

Cardboard scrap has been one of our major export items in recent years. If you like having the US possess the trade profile of a 3rd world country then I suppose that that poses no problem. Manufacturing matters. The onetime arsenal of democracy is reduced to a junk dealer.


164 posted on 05/09/2016 12:23:48 PM PDT by Pelham (Trump/Tsoukalos 2016 - vote the great hair ticket)
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To: rawcatslyentist

Yeah - I think that would do it.


165 posted on 05/09/2016 12:28:04 PM PDT by aquila48
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To: semimojo
If the rest of the world has closed their markets who's importing all this stuff, and what happens to our economy when they stop?

On average all of those exports carry a heavy duty. Their exports to us, what we import, has no duty at all. That is what I call rape trade.

Where have you been? Under a rock? For example I think the Chinese tariff per car is 30%.

Why is this concept so hard to understand?

There are three countries that do not charge an import duty(tariff) on our goods we export to them. They are Mexico, Canada and Singapore. Two of those, Mexico and Canada are treaty bound by NAFTA and Singapore who knows.

166 posted on 05/09/2016 12:32:16 PM PDT by central_va (I won't be reconstructed and I do not give a damn.)
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To: Pelham; central_va
Cardboard scrap has been one of our major export items in recent years

Right. Forget about airplanes, bulldozers, turbines, cars, computers and software.

Here's the top 10 categories of export goods.

Look, if you want to argue that killing $2T of exports and the related jobs will be balanced out by growth elsewhere in the economy, fine. But don't pretend that the exports don't exist.

167 posted on 05/09/2016 12:47:43 PM PDT by semimojo
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To: semimojo

Nobody is saying we are cutting out exports. All we are saying is we should charge the same duty they charge us now. Is that too hard for you to get? The 20% is about what other countries charge on our exports.


168 posted on 05/09/2016 12:54:59 PM PDT by central_va (I won't be reconstructed and I do not give a damn.)
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To: central_va
Nobody is saying we are cutting out exports.

No, you're saying we should raise our tariffs 20% and our partners should not retaliate. Magical thinking.

169 posted on 05/09/2016 1:06:14 PM PDT by semimojo
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To: semimojo; central_va

“Right. Forget about airplanes, bulldozers, turbines, cars, computers and software.”

In your case it’s “ignore how China demands and gets technology transfers and manufacturing participation in aircraft wings so that soon they will be Boeing’s competition”

And apparently Japan’s decades long ability to keep their home market closed to American cars and other value added products is never mentioned in whatever libertarian comic book you’re reading.


170 posted on 05/09/2016 1:07:19 PM PDT by Pelham (Trump/Tsoukalos 2016 - vote the great hair ticket)
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To: semimojo
partners should not retaliate.

They already do that!

171 posted on 05/09/2016 1:14:34 PM PDT by central_va (I won't be reconstructed and I do not give a damn.)
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To: mkjessup; SkyPilot

He must have heard Alan Greenspan, for this is his line.

Either way, I think the goose is cooked. Unless all nations go “Jubilee Year” and debts are forgiven, including those to U.S. bond-holders, then printing to inflation is about the only route. Eventually, printing will cease, and only electronic “money” will exist. I’d say we are well on our way. There’s really no way out of this corner we’ve been painted into.


172 posted on 05/09/2016 1:27:51 PM PDT by SaveFerris (Be a blessing to a stranger today for some have entertained angels unaware)
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To: central_va
That's the official budget deficit - but it is by no means the ACTUAL deficit!

A deficit means a lack of funds; if we had a $600 billion deficit, we'd expect our debt to increase by $600 billion right? We spent $600 billion more than we took in.

Now look at the actual debt increase of the US. It's over $1 trillion annually. And in fact, it has increased EVERY year since 1957 (Ike - the last last President to have an actual surplus was a Republican nearly 60 years ago).

Yes, the "official" number is just $600 billion - but our debt increased last year by over $1 trillion. One of those two numbers is a lie, and it's not the one that is the official record of how much we owe (the one from the Treasury department).

Bottom line - our actual deficit is about twice what you think it is. There is no way to spend $600 billion more than you took in, but have your debt increase by over $1 trillion. The former number is just a lie, it's the "on budget" deficit meaning the excess we officially planned on spending. The latter number is the real number, it's what we really overspent - and that's the one that matters because that is the number that drives the actual debt.

173 posted on 05/09/2016 4:28:10 PM PDT by Shanghai Dan
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To: Shanghai Dan

It’s a butt load amount of money.


174 posted on 05/09/2016 4:29:51 PM PDT by central_va (I won't be reconstructed and I do not give a damn.)
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To: ken5050

Any 3 year old knows that the Federal Governments bailouts, stimulus, and artificially deflating the value of the dollar is exactly what Trump was talking about because the Government and Treasury have cilluded to print TRILLIONS out of thin air.


175 posted on 05/10/2016 6:13:33 AM PDT by usconservative (When The Ballot Box No Longer Counts, The Ammunition Box Does. (What's In Your Ammo Box?))
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To: GIdget2004

bkmk


176 posted on 05/10/2016 11:42:11 PM PDT by AllAmericanGirl44
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To: central_va

In other words, “we will do socialism better than those other socialists.”


177 posted on 05/13/2016 5:26:31 AM PDT by CSM (White wine sipping, caviar munching, Georgetown cocktail circuit circulating, Perrier conservative.)
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To: central_va

“I dunno..”

Of course you don’t.

“Maybe a 100% tariffs on shoes is in order.”

The typical mantra of progressivism. Our policies have failed, so we need to make them more intrusive and punitive! We just need more time and more power!

If Trump’s proposed 40% tariffs fail to increase manufacturing in the US, then would you take the same position that “maybe a 100% tariff on xxx industry is in order?”


178 posted on 05/13/2016 5:30:33 AM PDT by CSM (White wine sipping, caviar munching, Georgetown cocktail circuit circulating, Perrier conservative.)
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To: GIdget2004

The one thing we cannot fix is if the world rejects the US dollar as the reserve currency of the globe.

That is what keeps us afloat.

Steps are already in place to ease the dollar out as the preferred reserve currency.

If the Saudis no longer demand dollars for oil from the world, it is pretty much over for the dollar in its present form.

A reset would be necessary.


179 posted on 05/13/2016 5:33:23 AM PDT by exit82 (Road Runner sez:" Let's Make America Beeping Great Again! Beep! Beep!")
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To: CSM

Would a complete import embargo on shoes repatriate footwear manufacturing? Or would we all walk around barefoot?


180 posted on 05/13/2016 5:36:33 AM PDT by central_va (I won't be reconstructed and I do not give a damn.)
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