Of course the most important key fact is left out. He’s not talking about government spending, he’s talking about an infrastructure bond fund, i.e. private investors with private money. And, if you are worried about your borrowing costs, then it is indeed time to do financings.
He will just executive-order the debt into cyberspace.
Let’s see... more debt, more spending and “re-building our roads and bridges”... Where have I heard that before?
Oh yeah... Any speech by a Democrat...
Borrow. Spend,
Make America Great Again.
Stop it, Donald!
Don’t even think about adding to that $20 trillion. Instead take a meat axe to all agencies of the central socialist government and slash, slash, slash! Eliminate all the alphabet soup agencies that contribute to America’s failure, like the EPA, Energy, Education, etc. etc. etc.
You’re talking like a Democrat now! Drastically reduce the needless bureaucracy that has wrapped itself around America’s neck like a millstone.
Let Hillary plot and plan to drive us deeper into debt.
Are these projects gonna be shovel ready?
Oy
What if this is a tactic to take away one of Hillary’s mere 3 economic planks? The interest rates will rise eventually anyway, so do some while you can. And he can say he’ll do it better than the Obama Pork-ulus.
Next forgive a portion of Federal student loans, which were rigged, as long as you end the Federal program forever.
Then say all her other planks are state decisions: abortion, gay marriage, minimum wage, wind farms, policing.
I guess I’d look at it from a standpoint of what the effect of current interests rates are now. Would it be preferable to refinance your home loan, or use your cash and borrowing at generous terms to do other things?
My inclination would be to ‘refinance’ the debt at a better interest rate. To me this frees up money that comes in which is already sequestered for debt service, in effect increasing the spendable income government gets from taxes. Alternatively, I guess one could rationalize that taking the realized increase due to refinancing and channel it into some purchase that has tangible value.
Spend. Debt. Yay.
$14 trillion debt? Who paid off the other $5 trillion plus?
A 20% import tariff would raise $500B/yr all of that could go to infrastructure spending and also promote domestic industry and repatriation. It is how the founders would handle this.
Another Porkulous?
Just great.
So Trump goes Keynesian.
Wow, that leaves me speechless and as a Trump supporter, confused.
This is quite a flip on a very basic economic principle, and now this election doesn’t matter as much to me.
Donald Trump appeared to change his stance on the federal debt Thursday, saying that, with interest rates low, the U.S. should borrow money to spend on infrastructure rather than lowering the $14 trillion federal debt.
“This is the time to borrow,” the Republican candidate said in an interview on CNBC Thursday morning.
...
IIRC he said the same thing months ago.
AUDIT, AUDIT AND FIX THE FRAUD AND WASTE. Build or provide ONLY what the MILITARY wants/needs, not what PORK some congress critter can bring home. In fact NO PORK projects allowed. PIG BOOK OF PORK http://www.cagw.org/reporting/2015-pig-book
Military Waste and Fraud Continue In the Middle of the Government Shutdown
http://www.washingtonsblog.com/2013/10/wasted-military.html
Express Scripts Fraud
https://www.express-scripts.com/TRICARE/fwa/
Express Scripts facing antitrust, contract complaint
http://www.bizjournals.com/stlouis/blog/health-care/2015/01/express-scripts-facing-antitrust-contract.html
$60 BILLION MEDICARE FRAUD http://abcnews.go.com/Politics/medicare-funds-totaling-60-billion-improperly-paid-report/story?id=32604330
PORK NIH Funds $2.6 Million Study to Get Prostitutes in China to Drink Less
http://www.foxnews.com/politics/2009/05/14/nih-funds-million-study-prostitutes-china-drink/
Get the people who write the PIG BOOK to help you identify waste, duplication, and stop funding welfare for illegals and refugees. GO to Workfare, reduce what food stamps can buy to no junk food allowed, prepared meals, energy drinks or cash back.
And when rates go up?
The scary thing is most federal debt is financed with short
term bonds.
Debt service costs will go through the roof when rates go up.
Now ISN’T the time to borrow.
The government must shrink and quit spending so much money.
Who advised him to say something that stupid?
We spent 300 billion on “stimulus” under Bush’s last year, about a trillion on “shovel ready jobs”, and all anyone can say is infrastructure is old and falling apart.
Where did it go if not to critical infrastructure? Buy land for parks and put in biking paths, put in fountains and art, stuff that looks good in an article at an opening ceremony and is done quickly, not bridges, roads, sidewalks.
WAKE UP, TRUMP!
I watched the interview being discussed. I’ll re-watch it, but it seemed to me Trump was sort of thinking out loud. The interviewers pressed him on how he could afford the infrastructure spending. He talked about privatizing some of it, discussed how tax revenues would increase with companies bringing back their cash from overseas. Then he said that while government is different from a private business, and while normally doesn’t like debt, he does like using leverage as a businessman.
He made the point that while interest rates are low now, they can’t stay at zero forever, and when they start rising to historically normal levels it will be extremely expensive for the government, so it might be smart to borrow now before borrowing becomes prohibitive with higher interest rates.
This is a work in progress and Trump didn’t seem to commit one way or another but was rather weighing possibilities. I’m sure this is something he’ll continue discussing with his economic team, and if it’s a mistake, they’ll let him know. I didn’t get the impression that he was talking about massive Keynesian style borrowing but rather weighing the possibility of borrowing in the short term to take advantage of an opportunity that won’t be there when interest rates rise.