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FLPanhandle

(7,107 posts)
Fri May 6, 2016, 09:27 AM May 2016

Trump 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=0

One 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 can’t 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. Trump’s vaguely sketched proposal as fanciful, saying there was no reason to think America’s creditors would accept anything less than 100 cents on the dollar, regardless of Mr. Trump’s 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.
13 replies = new reply since forum marked as read
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Trump hinting at US default on debt? (Original Post) FLPanhandle May 2016 OP
We have never seen this kind of jaw dropping recklessness. sufrommich May 2016 #1
It's basically like the GOP took the average Rushbot and nominated him. trotsky May 2016 #4
You're exactly right maxrandb May 2016 #8
This shouldn't surprise anyone. Trump is in business and has had Blue Meany May 2016 #2
TRUMP!!!!!!!!!!!!! Agnosticsherbet May 2016 #3
He has no problem safeinOhio May 2016 #5
This would destroy the US economy PJMcK May 2016 #6
unheard of that any potentential president would utter such nonsense...would send the markets beachbum bob May 2016 #7
He's been hurting this country madokie May 2016 #9
His potential for damage is a bit higher now. :) FLPanhandle May 2016 #11
misfiring S.O.B. BootinUp May 2016 #10
It's also unconstitutional gratuitous May 2016 #12
Terrible. Katashi_itto May 2016 #13

trotsky

(49,533 posts)
4. It's basically like the GOP took the average Rushbot and nominated him.
Fri May 6, 2016, 09:44 AM
May 2016

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)
8. You're exactly right
Fri May 6, 2016, 09:48 AM
May 2016

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)
2. This shouldn't surprise anyone. Trump is in business and has had
Fri May 6, 2016, 09:36 AM
May 2016

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.

PJMcK

(22,037 posts)
6. This would destroy the US economy
Fri May 6, 2016, 09:45 AM
May 2016

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)
7. unheard of that any potentential president would utter such nonsense...would send the markets
Fri May 6, 2016, 09:45 AM
May 2016

into a tailspin

gratuitous

(82,849 posts)
12. It's also unconstitutional
Fri May 6, 2016, 01:52 PM
May 2016

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?
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