The technical term is “partial default.”
Do they really think Trump doesn't know that?
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.
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.
So, like, default.
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).
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.
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?
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:
Come on Donald, don’t blow it now! America is not Argentina.
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.
By “creditors,” does he mean citizens with Savings Bonds and Treasury Bills ?
He thinks this bankruptcy court and this will have no effect on trade or the value of the U.S. Bonds.
A very, very not good idea. Sorry, very not good.
The past 7 years have IMO resulted in a tremendous mistrust of the US. There is a lot of work to do to reclaim whatever status we once held. A partial debt default would work exactly the opposite to that aim. Interest rates would soar; while the rest of the world is moving to NIRP.
This would be a world shaking event and it’s difficult to see how anyone would come out well. Maybe a George Soros might come out well. I think it would tank the USD with extreme prejudice. My opinion is that it would be massively destructive and produce a grotesque worldwide credit crisis.
I support DJT but I think he is out of his league here. Yes, despite his billions.
I’m not reading the article you posted from the worst writer on Internet but I did see what Trump said. Amongst budget cutting, asset sales, use of federal lands for income again, the debt terms are also in the mix. If China held 2 trillion in debt from the U.S. Or Japan held another 1 trillion and one were about to renegotiate those economic relationships on a go forward basis, including market access, barriers, tariffs, non-tarrif barriers, stolen intellectual property and the like, one would be negligent to leave that debt of the negotiation, no?
When will posters, bloggers, etc. learn to leave the negotiations to Trump? He’s good at it, pssst- pass it on!
The dirty secret is that we already defaulted in part the national debt through currency debasement.
The real default was in 1971. Everything since has been a shell game.
>> “I would borrow, knowing that if the economy crashed, you could make a deal.”… <<
Does that include Social Security payments? Military payroll? Contractor payments? State matching funds?
Mike Murphy is a first class doofus...I’ll wager Trump knows more about negotiating debt restructure than all these so-called experts combined.