Posted on 05/09/2016 6:09:29 AM PDT by GIdget2004
Not necessarily. Your assumption that American consumers will simply pay more for higher priced imports is not based on empirical evidence. It is actually more likely they will choose a comparable lower priced domestic product.
Trump is operating at an understanding of finances far above most.
I don’t know the answer to your question...but I do believe $19 trillion won’t pay off all our debt.
There are federal pension obligations, and for as far as forecasters can see, SS is in the red every year.
Add in the gubmint’s insuring shaky pension plans, student loans backed by the gubmint that will never get paid back, and a possible repeat of the real estate bubble, and the total unfunded obligation probably rivals that of the official debt.
Then there are state and local government obligations...
We’d run out of green ink.
“Well then, this proves Trump has the intelligence of a 3 year old.”
Which means, for you, that when you approach his 757 in your 757 that you should be cautious.
The USA's exports are already subject to burdensome duties and tariffs now. Other countries can't retaliate because the have already used up their ammo. You actually are so misinformed as to not know that we are in a one sided trade war now? Where have you lived for the past 4 decades?
When did Keynes supplant Bastiat as a conservative icon?
Trump flexes his economic chops
Even better! More domestic manufacturing is the goal!
Yes, I agree, but it didn't sound to me, from reading what he said, that this is what he's advocating. What he said was:
“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.”
What he's saying is that this has been the ongoing modus operandi in the US, which is why we've never defaulted to this point. That's why the comment “I hate to tell you”. He's basically saying that the impression that most Americans probably have, that money actually means something, is unfortunately false. In reality, when we pay people in dollars, what we are really giving them are certificates to ‘trade in’ for US goods, services, real estate etc. In that manner, if inflation drives down the purchasing power of each US dollar, we are actually paying them less - but we would then be destroying the purchasing power of each US worker's paycheck, so it could be a disaster for the consumer.
So if the G printed enough cash so that every American had 10 million in his pocket, prices would not rise?
My father, who was born and raised in NYC, used to say "in other words" all the time! When I hear Donald Trump speak, it's almost like I hear my own father speak. The words and phrases he uses are pure "New Yorkese."
I wouldn't go that far... Our actual annual deficit is $1 trillion. US imports of goods is about $2.3 trillion. Twenty percent of that would be $460 billion.
We'd come up about 54% shy of eliminating the deficit. Of course, that assumes that imports would stay the same with an extra 20% tacked on. My guess is we'd see imports actually drop by at least 20% - so we'd probably only realize a $300 billion cut in the deficit, leaving us around $700 billion in the hole, annually.
“So if the G printed enough cash so that every American had 10 million in his pocket, prices would not rise?”
Probably not in the sense you mean it.
It would depend on why it happened and if there was confidence in the government.
If it was “kept in their pocket” it would be worse than if it were spent.
Velocity of money is more important than volume in existence.
Don't see that happening. Trump promised the voters in Iowa he'd keep the ethanol mandate.
We already have 12,000 tariffs for imports and we still have manufacturers offshoring. All we need is 1 more and everything will be solved!
Go Trump!
He is really, really, really wrong. Any hint of a partial default on US Tsys will obliterate financial markets worldwide. Vaporize. Detonate. Ours as bad or worse than any others.
We only collect <1% on those tariffs. The number of tariffs on the books don’t matter if you don’t set the rate above 1%. Same with immigration laws that are not enforced.
What's really gonna be a bitch is when China tells us they don't want any of our phony paper money. They will demand payment to be in gold, oil and weapons.
Maybe a way to do both...
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