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Related: Editorials & Other Articles, Issue Forums, Alliance Forums, Region ForumsTrump hinting at US default on debt?
http://www.nytimes.com/2016/05/07/us/politics/donald-trumps-idea-to-cut-national-debt-get-creditors-to-accept-less.html?_r=0One day after assuring Americans he is not running for president to make things unstable for the country, the presumptive Republican nominee, Donald J. Trump, said in a television interview Thursday that he might seek to reduce the national debt by persuading creditors to accept something less than full payment.
Asked whether the United States needed to pay its debts in full, or whether he could negotiate a partial repayment, Mr. Trump told the cable network CNBC, I would borrow, knowing that if the economy crashed, you could make a deal.
He added, And if the economy was good, it was good. So, therefore, you cant lose.
Such remarks by a major presidential candidate have no modern precedent. The United States government is able to borrow money at very low interest rates because Treasury securities are regarded as a safe investment, and any cracks in investor confidence have a long history of costing American taxpayers a lot of money.
Experts also described Mr. Trumps vaguely sketched proposal as fanciful, saying there was no reason to think Americas creditors would accept anything less than 100 cents on the dollar, regardless of Mr. Trumps deal-making prowess.
No one on the other side would pick up the phone if the secretary of the U.S. Treasury tried to make that call, said Lou Crandall, chief economist at Wrightson ICAP. Why should they? They have a contract requiring payment in full.
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This guy is already hurting the country just by being a nominee.
sufrommich
(22,871 posts)It just boggles the mind.
trotsky
(49,533 posts)His understanding of all the issues consists of simplistic soundbites. No depth on anything whatsoever. No comprehension of the complexities and interconnectedness of the issues.
It's the steady diet right-wing media has been feeding their idiots for decades, and this is the result.
maxrandb
(15,336 posts)they took the typical Rush or Hannity caller and made him their nominee for the highest office in the land.
Blue Meany
(1,947 posts)multiple bankruptcies, which is one of the ways businesses get rid of debt. They also negotiate with debt,as he describes.
I've long thought that the US would end up allowing the value of the dollar to decrease--allowing for higher inflation--as a way of avoiding paying the full value of the government debt. Once the dollar is no longer the reserve currency, this is bound to happen. It will make it harder and more expensive for the government to borrow, but it would probably increase employment by decreasing the cost of American labor in a global market.
Agnosticsherbet
(11,619 posts)safeinOhio
(32,696 posts)Filing bankruptcy. Always part of his busness plan, as long as he gets his.
PJMcK
(22,037 posts)Here's an excellent article explaining how the US Dollar functions as the "international currency" and why it would be disastrous if that were to end:
http://www.testosteronepit.com/home/2012/4/28/marin-katusa-so-long-us-dollar.html
Donald Trump is dangerous just as a candidate. His prominence, ignorance and impetuousness are more dangerous than anything I've seen in my 58 years.
beachbum bob
(10,437 posts)into a tailspin
madokie
(51,076 posts)since day one when he was born
FLPanhandle
(7,107 posts)BootinUp
(47,166 posts)gratuitous
(82,849 posts)See the 14th Amendment, Section 4:
The validity of the public debt of the United States, authorized by law, including debts incurred for payment of pensions and bounties for services in suppressing insurrection or rebellion, shall not be questioned. But neither the United States nor any State shall assume or pay any debt or obligation incurred in aid of insurrection or rebellion against the United States, or any claim for the loss or emancipation of any slave; but all such debts, obligations and claims shall be held illegal and void.
Trump is proposing to subvert the Constitution, which, should he be elected, he must swear to preserve, protect, and defend. Honestly, doesn't anyone in the Fourth Estate know a goddam thing about the country and its laws?
Katashi_itto
(10,175 posts)Munches Popcorn.