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| A Trump proposal for national debt would send rates soaring |
| 2016-05-07 |
| Slouching towards Venezuela WASHINGTON (AP) ‐ In the event that the U.S. economy crashed, Donald Trump has floated a recovery plan based on his own experience with corporate bankruptcy: Pay America's creditors less than full value on the U.S. Treasurys they hold. Experts see it as a reckless idea that would send interest rates soaring, derail economic growth and undermine confidence in the world's most trusted financial asset. The presumptive Republican presidential nominee suggested in a phone interview Thursday with CNBC that he would stimulate growth through borrowing. If trouble arose, he added, he could get investors to accept reduced payments for their Treasury holdings. Trump later clarified that comment to say he would offer to buy the bonds back at a discount from investors in hopes of refinancing them at lower rates. "I would borrow, knowing that if the economy crashed, you could make a deal," Trump told CNBC. Such a move, never before attempted by the U.S. government, would likely spook investors whose trust in Treasury notes keeps global financial markets operating. |
| Posted by:Zhang Fei |
| #9 BTW, because of all that, expect the amount of (illegal) foreign money flowing into the Hillary campaign to eclipse the first Obama run. Got to keep the game going. |
| Posted by: Procopius2k 2016-05-07 09:30 |
| #8 |
| Posted by: Besoeker 2016-05-07 08:40 |
| #7 Such a move, never before attempted by the U.S. government, would likely spook investors whose trust in Treasury notes keeps global financial markets operating. We are bankrupt. The only thing keeping the game going is lying to ourselves. When we go tango uniform like other countries, they'll all go down economically with us. What would they prefer, to be paid at a discount or stiffed like the GM/Chrysler stockholders? The 'world financial markets' are just as guilty in keeping this ponsi scheme running as anyone else. They should have avoided buying Treasury notes a long time ago. |
| Posted by: Procopius2k 2016-05-07 08:30 |
| #6 How do you say "screwed" in Mandarin? |
| Posted by: g(r)omgoru 2016-05-07 06:08 |
| #5 Rising interest rates could also signal a return of investor dollars to banks, which sadly, are now owned by the government. |
| Posted by: Besoeker 2016-05-07 05:10 |
| #4 The reason that we are in such trouble is BECAUSE the interest rates have been held artificially low. If Bush or Obama had raised them to even half of the real cost of borrowing money, there would have been 18 months of pain followed by at least a partial authentic recovery. But that would entail incumbent politicians and bureaucracy chiefs falling on their swords and losing their precious six-figure jobs, so it never happened. Forty years of easy borrowing so that the entrenched in the public sector have never had to tell the truth about the WWII peace dividend running out and come up with honest solutions and plans for America going forward have come home to roost. |
| Posted by: no mo uro 2016-05-07 05:03 |
| #3 How about something innovative. Lets say, recalling all gold and silver and issuing an entirely new currency, something called Obamabacks ? ...derail economic growth and undermine confidence That train has already left the station. |
| Posted by: Besoeker 2016-05-07 04:49 |
| #2 The economy has been on the verge of collapsing since about 2007. There has been no real economic growth. Only the Fed's money printing and suppression of interest rates has been keeping it going. Maybe the easiest way out of a crash would be an Arc Light strike of B52s dropping Benjamins over US soil. |
| Posted by: Anguper Hupomosing9418 2016-05-07 03:31 |
| #1 The deficit has doubled under Obama on the Dem side and under the Republican Chair of the House Budget Committee .............. Paul Ryan Who is the Republican Speaker of the House who says he is not ready to support the Republican Nominee? ................ Paul Ryan Who was a major Republican who said he will skip the Republican Convention this year because he cannot support the current Republican nominee? Mitt Romney. And who is close to Mitt Romney? ............. Paul Ryan Who lost his own state in the 2012 election as candidate as Vice President? ............... Paul Ryan Who is willing to try anything now to stay in power even if it means undermining Trump somehow, someway? ............ The Establishment and Republican Speaker of the House Paul Ryan. |
| Posted by: Ho Chi Crinens5363 2016-05-07 01:22 |