Free Republic
Browse · Search
News/Activism
Topics · Post Article

Skip to comments.

Trump: Ill reduce the national debt by getting creditors to accept less
Hotair ^ | 05/06/2016 | AllahPundit

Posted on 05/06/2016 1:00:04 PM PDT by SeekAndFind

Edited on 05/06/2016 1:41:09 PM PDT by Admin Moderator. [history]

Reminds me of something Mike Murphy said about Trump in the aftermath of Jeb’s collapse. The logic in favor of nominating another Bush was always, er, complicated, but the logic against nominating a loose cannon is straightforward.

I’ll bet even Murphy didn’t think Trump would advertise the possibility that America’s creditors might not receive payment in full in a Trump administration. Choose your own preferred term for what he’s recommending here — renegotiation, bankruptcy, default.


(Excerpt) Read more at hotair.com ...


TOPICS: Foreign Affairs; Front Page News; Government; Politics/Elections
KEYWORDS: 2016election; 2016issues; allahpundit; creditors; debt; doddfrank; eib; election2016; exportimportbank; fairtax; flattax; glasssteagall; hotair; ibtz; nationaldebt; newyork; opus; seekandfindagain; taxcuts; taxreform; tdsregrouping; trump
Navigation: use the links below to view more comments.
first 1-2021-4041-6061-73 next last

1 posted on 05/06/2016 1:00:04 PM PDT by SeekAndFind
[ Post Reply | Private Reply | View Replies]

To: SeekAndFind

The technical term is “partial default.”


2 posted on 05/06/2016 1:02:05 PM PDT by Publius ("Who is John Galt?" by Billthedrill and Publius now available at Amazon.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: SeekAndFind
The government runs an annual deficit, so it must borrow to retire existing debt

Do they really think Trump doesn't know that?

3 posted on 05/06/2016 1:02:26 PM PDT by BenLurkin (The above is not a statement of fact. It is either satire or opinion. Or both.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: SeekAndFind

Has Donald been reading the Bible after all? There was a parable along those lines. Now if we can get him to do the Jubilee thing, I am so all in.


4 posted on 05/06/2016 1:02:50 PM PDT by madison10
[ Post Reply | Private Reply | To 1 | View Replies]

To: SeekAndFind

We are on our way to becoming Greece. Trump is the cure.

Greece ran high trade deficits too. Until their unemployment reached so high that nobody could afford the imports. Then Greece’s trade deficits fell. They were left with no industries, no jobs, no money, and a lot of debt.


5 posted on 05/06/2016 1:03:55 PM PDT by DannyTN
[ Post Reply | Private Reply | To 1 | View Replies]

To: BenLurkin

That we need to stop having annual deficits


6 posted on 05/06/2016 1:05:49 PM PDT by neverbluffer
[ Post Reply | Private Reply | To 3 | View Replies]

To: SeekAndFind
Shave and a haircut, two bits?
7 posted on 05/06/2016 1:09:18 PM PDT by buckalfa (I am feeling much better now.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: buckalfa

Tell every commie country and country that hates us to piss off, we are not repaying.


8 posted on 05/06/2016 1:15:58 PM PDT by EQAndyBuzz (United we stand, divided we fall. I think the establishment has divided us enough.)
[ Post Reply | Private Reply | To 7 | View Replies]

To: Publius

And the true problem is that we are in THAT much trouble, financially. The current administration, and one just like it (ie clinton or sanders) CAN’T dig us out.

The only one who can even come close, AND who is willing to put his neck on the line to do it, is Trump. Oprah has a lot of money, do you see HER up there trying? Nope. How ‘bout the Krotch brothers? nope. Warren Buffet? nope. Anyone else? Nope.

obama added to the problems by importing more people for us to have to support when we can barely support ourselves. Combined with jobs taking an over seas powder, leaving low level, low paying jobs isn’t helping. Regulations that protected big business while squashing new businesses aren’t helping. After the big businesses received their protection, they ditched us for someone else.

I’m sure as time goes on that we’ll find out all sorts of nasty deeds we know nothing about right now.

Not to mention all the wars which have been draining us and for which we got no booty.


9 posted on 05/06/2016 1:16:33 PM PDT by PrairieLady2 (Choose Cruz...and looze.)
[ Post Reply | Private Reply | To 2 | View Replies]

To: SeekAndFind

So, like, default.


10 posted on 05/06/2016 1:18:46 PM PDT by Tax-chick ("We like us the way we are. That makes us real, true friends." ~ The Undead Thread)
[ Post Reply | Private Reply | To 1 | View Replies]

To: SeekAndFind
That private bank called the Federal Reserve owns most of our debt.

Could he negotiate a reduced debt to them in return for not printing our own money?

If that doesn't work, then print our own money (debt free), and get a food taster (among other safety precautions).

11 posted on 05/06/2016 1:20:46 PM PDT by Vic S
[ Post Reply | Private Reply | To 1 | View Replies]

To: SeekAndFind
I hope we get to learn the difference between a deal and an negotiated settlement . ..
12 posted on 05/06/2016 1:21:14 PM PDT by uddaudd (>> F U B O << "What the hell kind of country is this if I can only hate a man if he's white?")
[ Post Reply | Private Reply | To 1 | View Replies]

To: SeekAndFind

Last I checked, the amount of debt owed to former federal employee benefits dwarfs the working debt that we’re amazing at an amazing clip (oh, Hi Ryan...)

Perhaps this significant debt is what he was intending to address? Either way, the executive branch neither issues nor retires debt. That would be the House last I checked.


13 posted on 05/06/2016 1:21:34 PM PDT by kingu (Everything starts with slashing the size and scope of the federal government.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: SeekAndFind

The government runs an annual deficit, so it must borrow to retire existing debt.
~~~~~~~~~~~~~~

It’s sad that this is how Washington runs the U.S. —I wonder if it’s occurred to these morons that we could get out of debt and live within our means?


14 posted on 05/06/2016 1:22:13 PM PDT by Cats1 (Trump supporter till the bitter end... Nov 2016)
[ Post Reply | Private Reply | To 1 | View Replies]

To: SeekAndFind
Mr. Pundit gives lip service to recognizing that Corporate CFO's regularly buy back debt instruments at a discount, but fails to recognize that the procedure is perfectly respectable in dealing with Government debt issues. Government debt can certainly trade at a discount, Mr. Pundit is simply confused. Donald Trump is not in the least confused.

As for the idea that the United States does not default on its debt? I suggest that Mr. Pundit look at the history of U.S. Debt repayments (in real terms) since 1933:

Debt Default In America.

15 posted on 05/06/2016 1:23:18 PM PDT by Ohioan
[ Post Reply | Private Reply | To 1 | View Replies]

To: DannyTN

RE: We are on our way to becoming Greece. Trump is the cure.

If the cure is to default on our debts, be prepared for soaring interest rates and a devalued dollar. It would undermine confidence in the world’s most trusted financial asset — our currency.

Even a partial default would mean that tax dollars would have to go toward repaying the debt.

Of course, Many investors would shift their money elsewhere. And the economy could endure a traumatic blow.

And if you have a conservative 401K that invests in treasuries ( as most of those who are close to retiring have ), your portfolio will be devastated.

This will also be historically unprecedented. The move would end a policy introduced during the presidency of George Washington — and celebrated in the Pulitzer Prize-winning Broadway musical “Hamilton”— to pay full face value on the debts incurred by the country.

The government’s unfailing payments of its debt have long pleased investors and supported the economy because the country can borrow at lower rates than it otherwise could.

Defaulting on our debt would cause creditors to rightly question the ‘full faith’ commitment we make.


16 posted on 05/06/2016 1:23:25 PM PDT by SeekAndFind
[ Post Reply | Private Reply | To 5 | View Replies]

To: SeekAndFind

Come on Donald, don’t blow it now! America is not Argentina.


17 posted on 05/06/2016 1:23:53 PM PDT by House Atreides (TRUMP or CRUZ --- The 1st one to get to 1237 gets the Nomination Brass Ring...PERIOD)
[ Post Reply | Private Reply | To 1 | View Replies]

To: SeekAndFind

If anyone thinks that America ever planned on repaying all our debt is nuts. The plan was to print money and have low interest rates, thereby causing
Inflation and a lower dollar. What they didn’t count on was that the rest of the world was in worse shape and devalued their currency better. And the low interest rates didn’t produce the growth they expected either.


18 posted on 05/06/2016 1:25:08 PM PDT by Rusty0604
[ Post Reply | Private Reply | To 1 | View Replies]

To: BenLurkin

The government runs an annual deficit, so it must borrow to retire existing debt

This isn’t the same as refinancing where you pay off one loan by creating another loan. The government borrows money but it does NOT retire the existing debt. It borrows money to pay the interest. And as long as we’re doing that our creditors are happy as can be. But the loan is never paid and we go deeper and deeper into debt.

It may be time to start taking some drastic steps.


19 posted on 05/06/2016 1:28:15 PM PDT by VerySadAmerican (Never held a job in the private sector;never met a payroll,never created a job - CRUZ! Conservative!)
[ Post Reply | Private Reply | To 3 | View Replies]

To: House Atreides

Voluntary repurchases of debt instruments is normal practice in the market. That is not comparable to the Socialist practices in Argentina.


20 posted on 05/06/2016 1:30:29 PM PDT by Ohioan
[ Post Reply | Private Reply | To 17 | View Replies]


Navigation: use the links below to view more comments.
first 1-2021-4041-6061-73 next last

Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.

Free Republic
Browse · Search
News/Activism
Topics · Post Article

FreeRepublic, LLC, PO BOX 9771, FRESNO, CA 93794
FreeRepublic.com is powered by software copyright 2000-2008 John Robinson