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Author Topic: Trump explains how he'll solve the debt problem- unreal  (Read 362 times)
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« on: May 09, 2016, 11:48:32 PM »

Can anyone explain how a man who spent his lifetime dealing with million-dollar deals, is this ignorant on debt?

" First of all, you never have to default because you print the money"



Donald Trump just made a new mess while walking back his controversial plan for US debt




Donald Trump on Monday said it was "crazy" to think he would try to negotiate his way out of full repayment of government bonds — despite what he suggested last week — but he did suggest another potentially alarming option for debt management.

"First of all, you never have to default because you print the money," the presumptive Republican presidential nominee said on CNN.

This is true, but as with trying to get bondholders to take a haircut, it's out of the economic mainstream.

Last Thursday, Trump suggested on CNBC that he would be able to reduce the national debt by persuading creditors to accept a "haircut" on that debt, in which case creditors would be repaid less than the face value of US Treasury bills and bonds. For example, a Trump administration might repay $80 of a $100 bond to the bond's holder.

"I've borrowed knowing that you can pay back with discounts," he said. "I would borrow knowing that if the economy crashed, you could make a deal."

Such a proposal, implying that the US would not fully pay back its debts, was immediately condemned in the finance world.

US government debt is widely viewed as one of the safest available investments. So the idea of investors' receiving less than they were promised by the most powerful government in the world would almost certainly dramatically increase interest rates in the US and would very likely set off a global recession, experts said.

In a Monday interview on CNN's "New Day," as Trump attempted to clarify his plans for the national debt, he said the US would never default on its obligations because it printed money (emphasis added):

If interest rates go up, and we can buy bonds back at a discount, if we are liquid enough as a country, we should do that. In other words, we can buy back debt at a discount. People said I wanted to go and buy debt and default on debt, these people are crazy. This is the United States government. First of all, you never have to default because you print the money, I hate to tell you.
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« Reply #1 on: May 10, 2016, 08:22:12 AM »

Trump: No need to worry about debt default


Source: USA Today

People worried about the U.S. government defaulting on its debt “are crazy,” according to Donald Trump in an interview with CNN’s New Day Monday morning.

"People said I want to go and buy debt and default on debt, and I mean, these people are crazy," said the presumptive GOP nominee. "This is the United States government. First of all, you never have to default because you print the money, I hate to tell you, OK?”

* * *
On Monday, Trump expanded on his earlier comments, saying: “If we can buy back government debt at a discount, in other words, if interest rates go up and we can buy bonds back at a discount, if we are liquid enough as a country, we should do that. In other words, we can buy back debt at a discount."

And Trump thinks his plan will work because: “I'm the king of debt. I understand debt better than probably anybody. I know how to deal with debt very well.”


Read more: http://www.msn.com/en-us/news/politics/trump-no-need-to-worry-about-debt-default/ar-BBsOxNs?ocid=iehp
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« Reply #2 on: May 10, 2016, 11:15:41 AM »

He's 100% right. If you understand the devaluation of the dollar is part of lowering/maintaining the debt that we were never going to re-pay anyway. Do you realize that there is more debt and derivatives in the world than the world can account for in real value and production in 100 years future prosperity? Devaluation and then a reset is what is going to happen when you can print the world reserve currency out of thin air.

All monetary systems are doing the same thing trying not to get caught holding the dollar too long. Think of holding a US Treasury as a negative interest rate instrument. Whatever yield you get is offset by the dollar value dropping over time. That means the debt gets cheaper for the USA over time without restructuring it. That's also why China is doing the same thing with the Yuan, to keep up.
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polychronopolous
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« Reply #3 on: May 10, 2016, 11:38:02 AM »

Peter Schiff explains why Trump is on the right side of this issue.

<a href="http://www.youtube.com/watch?v=ZNNDMCWHSQg" target="_blank">http://www.youtube.com/watch?v=ZNNDMCWHSQg</a>
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TuHolmes
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Bitch... Go apply for a 'fatport'


« Reply #4 on: May 10, 2016, 11:48:31 AM »

Funny. That didn't work for Germany in the 1920s.

People were burning the currency and letting their kids play with it because of hyper inflation during that time.
That's essentially what Trump is advocating.
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« Reply #5 on: May 10, 2016, 03:13:39 PM »

Funny. That didn't work for Germany in the 1920s.

People were burning the currency and letting their kids play with it because of hyper inflation during that time.
That's essentially what Trump is advocating.


He's not an advocate...it's the unchangeable reality of the situation and he is working/thinking within that reality. The problem is much bigger than one person, and an executive order won't change a thing about it. It's been going on for longer than when Nixon took us off the gold standard in '71 but it really ramped up from there. Continued inflation is a must in this system....everything is coordinated to maintain it and avoid anything deflationary...bailouts, war, anything to protect it.

Hyperinflation happens at the very end and deflation happens for a short time before that. The sign that things are heading to that point is slowing money velocity and deflationary signs like falling prices and not enough buyers for homes, cars, etc.

The only way we beat China economically when they make everything is to change the game at some point and default. We buy everything from them on debt and they own the debt as well. Think about that....

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tonymctones
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« Reply #6 on: May 10, 2016, 04:47:57 PM »

The executive branch doesn't control the FED, it's an independent entity.

That being said the plan itself has some credibility. If rates rise and you can pay pennies on the dollar to those who want to sell their bonds in the market you are effectively retiring debt at a discount. I don't know how effective it would be but the idea is sound outside of printing money.

Tu's point is correct in that hyper inflation is the potential issue but even in that you're buying dollars with dollars and the higher rates would make your bond cheaper so.
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« Reply #7 on: May 10, 2016, 11:20:24 PM »

Atlantic - Donald Trump's Economic Plans Would Destroy the U.S. Economy


Pretty nice summary of the illogic of Trump's proposals. Too bad the media rarely covers policy, choosing instead to focus on insults and liners.

http://www.msn.com/en-us/news/opinion/donald-trumps-economic-plans-would-destroy-the-us-economy/ar-BBsM3lU?ocid=spartandhp

Trump has promised to make America great again. But a closer look his policy proposals, such as they are, suggests that within his first few years as president, he would more likely American recessionary again.

The problem begins with his outspoken approach to Mexican immigration. His “plan” to deport 11 million undocumented immigrants would shrink the economy by about 2 percent, according to American Action Forum (AAF), a conservative and pro-business think tank. The sudden subtraction of 7 million workers would cause an immediate shock to thousands of businesses, triggering a GDP collapse ranging from $400 billion to $600 billion in production, AAF’s analysis found, with the worst of the slump occurring in industries like construction and hospitality. "The things Donald Trump has said are utterly unworkable," Douglas Holtz-Eakin, an economic adviser to Senator John McCain's 2008 presidential campaign and the forum's president, told Reuters.

* * *
Here is Trumponomics, in a sentence: Create an unnecessary economic downturn by deporting 7 million workers while cutting taxes for the rich and requiring the United States to borrow trillions of dollars from creditors, whom Trump has now threatened to cheat out of their money if he feels like it. It would be the greatest, dumbest recession in American history.

Trump’s abandonment of economic common sense is, like so much of his appeal, not an outlier position in the GOP so much as an extrapolation of his party’s recent departures from fiscal sanity. Republicans elites have responded to widening income inequality by proposing a series of escalating tax cuts for the rich. Paul Ryan, nominally the adult-elect of the party, rose to fame with tax-cut promises and draconian proposals to shrink the safety net. When interest rates were historically low and infrastructure spending was attractive, Republicans called for deficit reductions. When the recovery was still fragile, they played chicken with the debt ceiling by threatening a default until the president caved to their budget demands.  via DU
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« Reply #8 on: May 11, 2016, 10:14:02 AM »

The executive branch doesn't control the FED, it's an independent entity.

That being said the plan itself has some credibility. If rates rise and you can pay pennies on the dollar to those who want to sell their bonds in the market you are effectively retiring debt at a discount. I don't know how effective it would be but the idea is sound outside of printing money.

Tu's point is correct in that hyper inflation is the potential issue but even in that you're buying dollars with dollars and the higher rates would make your bond cheaper so.

maybe but it would hurt our prestige as a nation to default and ahve to pay back pennies on the dollar....no one would EVER invest in the U.S EVER AGAIN..our economy would be destroyed
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« Reply #9 on: May 11, 2016, 11:01:46 AM »

maybe but it would hurt our prestige as a nation to default and ahve to pay back pennies on the dollar....no one would EVER invest in the U.S EVER AGAIN..our economy would be destroyed


If you believe that the eventuality is economic parity with the rest of the world then that is exactly what we have to look forward to. The US standard of living is being scaled back as the former working poor give up work for free benefits and the middle class ages and those old ideas rot away.

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tonymctones
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« Reply #10 on: May 11, 2016, 11:20:09 AM »

maybe but it would hurt our prestige as a nation to default and ahve to pay back pennies on the dollar....no one would EVER invest in the U.S EVER AGAIN..our economy would be destroyed
It wouldn't be a default...don't know where you got that. People buy debt in the market for more or less than what other me paid for all the time. All things equal if interest rates go up the prices of bonds goes down and inflation means higher interest rates
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« Reply #11 on: May 17, 2016, 09:13:12 AM »

Thanks, Donald.   Everyone is now dumping US debt, thanks to his promise to just not pay it back.  You ass.



http://money.cnn.com/2016/05/16/news/economy/us-debt-dump-treasury/index.html
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tonymctones
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« Reply #12 on: May 17, 2016, 12:00:31 PM »

Thanks, Donald.   Everyone is now dumping US debt, thanks to his promise to just not pay it back.  You ass.



http://money.cnn.com/2016/05/16/news/economy/us-debt-dump-treasury/index.html
Hahah what a fucking ignorant tard you are
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