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]
I still think that one of the best favors the incoming administration could do is revise the last two decades of financial figures, such as unemployment, to the way they were calculated before Bush and especially Clinton gamed the system.
Oh, I guess I should update my tag line in that vein.
Foreign nations will accept a lesser return in payment for the USA footing the majority of the bill to defeat the Commies. Your welcome.
China will accept a lesser return as a fine for their cheating.
Which is what we should have done years ago, and what would have happened if Cruz had his way, except it would have been a significant “partial” default.
“Wow, so much for US T-bills being a safe place to park money.”
Yeah, a Mason jar buried in the backyard is the new “safe space.”
No, wouldn’t cause inflation in the least. We are in a mass deflationary mode. QE1 and QE2 didn’t even move the dials.
There are countries that owe us money from before 1900. Subtract these types of monies from what we remit. Be sure to include interest.
No, subtract what debts we are owed, with interest, from what we allownto be remitted.
I believe a lot of countries have money they owe us, going back as far as 230+ years.
bingo
Most of the U.S. national debt is held by U.S. citizens. Is Trump going to default on U.S. Savings Bonds?
Greece runs trade deficits because they don’t produce anything. It’s a virtual tourist economy.
Exactly! This is one of the reasons that political and corporate elites, and some countries are afraid of Trump.
That’s a bit extreme even for me, but he might just be throwing it out there in order to move the center of gravity in the negotiating process.
They don’t produce anything because they ran trade deficits. They allowed imports to destroy their industries, just like the US is doing.
And, he seems to be missing some information here. Perhaps too much time negotiating from his side of the table leveraging debt for real estate? The government can basically replicate as much currency as it wants at zero cost. That too comes with peril, but there is really no reason to even talk about renegotiating our debt when it can basically be paid off with the push of a button. Perhaps in the end its the same effect as inflation should cause loss of buying power. In some ways the FedRes has already done that by squashing interest rates, and QE. And that has already come at a cost to savers and those rolling their notes over. But a benefit to those in debt!
IMHO we should default on all our debt before we cut one dollar of Social Security. After all, those people bought bonds voluntarily, knowing the financial situation the country is in. SS recipients OTOH had no choice, our money was taken involuntarily in exchange for specific promises. Our claim is superior.
What's the difference between sucking the value out of your retirement savings with a printing press and seizing it outright (other than being up-front about the fact that you're getting screwed)?
The problem with your answer is that you are using facts and logic. Facts and logic are irrelevant to the people you are trying to convince.
“Most of the U.S. national debt is held by U.S. citizens. Is Trump going to default on U.S. Savings Bonds?”
No.
There's no reason to default unless interest rates have already soared. If they do debt service will cost trillions every year.
Default will happen when there's no other choice. It will happen. It's much easier than raising taxes or cutting spending enough to stop it from happening.
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