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
Economist Dean Baker points out what very serious people are ignoring, by assuming Trump meant screw debt holders. Trump is this dumb on lots of policy, but on this one, those dinging Trump without pointing out what Trump (advised by Goldman types) may mean, without checking their assumption, are pulling a dumb move, too:
"But there is a way this can make sense. If interest rates rise, the situation Trump described, the market value of long-term debt falls. For example, a 30-year bond issued in 2015 at an interest rate of less than 3.0 percent, might sell for less than 70 percent of its nominal value if the long-term interest rate crosses 6 or 7 percent, which it certainly could.
The Treasury could buy up long-term debt in the market at its current market value, and replace it with new debt that paid a higher interest rate. This won't change the interest payments owed by the government, but it would reduce the nominal value of the debt outstanding. There is no logical reason to take this sort of step, except that many of the Very Serious People in Washington assign great value to the ratio of debt to GDP."
Argentina does this every 50 years or so. It never works out well for ordinary people. I'm pretty sure the world's financiers, Bertie Wooster type dopes that they are, will not be fooled. Moreover, the rest of the world will get along better than Trump and chauvinists generally think.
One advantage to US bankruptcy and economic collapse: we'd have to give up constant warfare! No more droning wedding parties in Afghanistan, etc, etc. I'm about old enough to start getting social security, but I'd give that up if it meant the end of the Warfare State and the Military-Industrial complex.
What my Grandma Millie does in her own house is her business and no one else
Pretty close!
Both!
Economist Dean Baker points out what very serious people are ignoring, by assuming Trump meant screw debt holders. Trump is this dumb on lots of policy, but on this one, those dinging Trump without pointing out what Trump (advised by Goldman types) may mean, without checking their assumption, are pulling a dumb move, too:
"But there is a way this can make sense. If interest rates rise, the situation Trump described, the market value of long-term debt falls. For example, a 30-year bond issued in 2015 at an interest rate of less than 3.0 percent, might sell for less than 70 percent of its nominal value if the long-term interest rate crosses 6 or 7 percent, which it certainly could.
The Treasury could buy up long-term debt in the market at its current market value, and replace it with new debt that paid a higher interest rate. This won't change the interest payments owed by the government, but it would reduce the nominal value of the debt outstanding. There is no logical reason to take this sort of step, except that many of the Very Serious People in Washington assign great value to the ratio of debt to GDP."
http://cepr.net/blogs/beat-...
Or Randall Flagghttps://youtu.be/BIINHnlGU-...
bang!
and he accuses THEM of sending the rapists....
Everything must go! Wheelin' and Dealin!
"unreasonably smug""in faaaaar too deep""about to get pulverized into the depths of hell"
How's that for starters?
see: Koch brothers
Didn't some dude with a neatly-trimmed mustache do it back circa 1936?
(there are many other treaties he would love to tear up tho)
Talk about tying up liquidity, sheesh
He loves them poorly educated!
So FedEx knows which continent to leave their 'missed delivery' tag.
Argentina does this every 50 years or so. It never works out well for ordinary people. I'm pretty sure the world's financiers, Bertie Wooster type dopes that they are, will not be fooled. Moreover, the rest of the world will get along better than Trump and chauvinists generally think.
One advantage to US bankruptcy and economic collapse: we'd have to give up constant warfare! No more droning wedding parties in Afghanistan, etc, etc. I'm about old enough to start getting social security, but I'd give that up if it meant the end of the Warfare State and the Military-Industrial complex.