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Looks Like Donald Trump Is Bad At 'Economy.' Huh!
Donald Trump, he is the greatest at all the deals and the money, but he is REALLY the best at not paying people what he owes them. Guess what! He thinks America should do that too! Stiffing our creditors? What could go wrong?
See, as Mister Donald J. Trump sexplains, the country owes a lot of "debt." So why not just call up your grandma who bought you a $5 treasury bond that on your 75th birthday will be worth $50 and ask her if it's okay if your $5 treasury bond is worth $3 instead. Grandma Millie won't mind, right? After all, Grandma Millie LOVES GETTING FUCKED IN THE ASS.
Asked whether the United States needed to pay its debts in full, or whether he could negotiate a partial repayment, Mr. Trump told the cable network CNBC, “I would borrow, knowing that if the economy crashed, you could make a deal.”
He added, “And if the economy was good, it was good. So, therefore, you can’t lose.”
Oh, can't you? Walk it back, Mister Trump:
Pressed to elaborate on his remarks, Mr. Trump did appear to step back. He said that he was not suggesting a default, but instead that the government could seek to repurchase debt for less than the face value of the securities. The government, in other words, would seek to repay less money than it borrowed.
Well, I am very sure nobody will mind, it will not cost billions and billions in higher interest rates (like when "real conservative" Ted Cruz cost the country $19 billion to make a point, the point being "holy shit everyone hates Ted Cruz"), and the entire "full faith and credit" of the United States would not become a tragic and hilarious Zimbabwe-style laughingstock.
New York Times, got any ways Donald Trump is a total crook who will make Enron's Ken Lay look like ... oh, sorry, I tried to come up with an example for "a corporate person or businessman known for having good ethics," and came up with bupkis. Anyway, he would make Ken Lay look "better":
Repurchasing debt is a fairly common tactic in the corporate world, but it only works if the debt is trading at a discount. If creditors think they are going to get 80 cents for every dollar they are owed, they may be overjoyed to get 90 cents. Mr. Trump’s companies had sometimes been able to retire debt at a discount because creditors feared they might default.
(It is because he is always declaring bankruptcy, because he is terrible at business.)
Have fun crashing the world economy, America!
[ NYT ]