Trump's latest brain fart: Slash the debt by stiffing US creditors

[ag]

I'm going to go out on a limb and say this isn't the kind of stuff that is going to bring Paul Ryan on board.

I mean, this gives Ryan cover to announce tomorrow that he is bolting from the convention even before showing up - and is calling on all good Republicans to follow him. They should schedule an alternative convention for the same dates somewhere in St. Louis, or smthg.

[ag]

This has gone to the second page far too fast. This is the scariest news of the day. Because it indicates, that he really thinks this way. Calling me a rapist I could dismiss as merely posturing for the benefit of racists and other SOBs. Saying something like this, however, is potentially so costly (even if he does not intend to implement it), that it cannot be explained merely as a campaign flourish. It, unfortunately, appears, that this is something Trump actually believes. And that is truly frightening.

[○∙◄☻¥tπ[╪AV┼cVê└]

The sad thing is that there is quite a big audience for pure insane populist notions like this. "F**k the creditors" has lots of appeal to the Sanders crowd as well.

Bernie has never run on this kind of nonsense.

He's even more adamant than Bernie on destroying the United State's financial system and tanking the economy with it.

Bernie's banking plans aren't radical. Even Neel Kashkari said we need to look into breaking up the big banks.

[ag]

The sad thing is that there is quite a big audience for pure insane populist notions like this. "F**k the creditors" has lots of appeal to the Sanders crowd as well.

Bernie has never run on this kind of nonsense.

I will readily grant you that. Even Chavez never rose to Trump's heights of economic incometence. This is, truly, in the Maduro league.

[Ebsy]

I wouldn't be surprised if the US credit rating is downgraded just because of the risk of Trump getting elected. The financial system entirely relies on trust and a moderate level of predictability, and Trump would upend both of those things.

[Absentee Voting Ghost of Ruin]

This has gone to the second page far too fast. This is the scariest news of the day. Because it indicates, that he really thinks this way. Calling me a rapist I could dismiss as merely posturing for the benefit of racists and other SOBs. Saying something like this, however, is potentially so costly (even if he does not intend to implement it), that it cannot be explained merely as a campaign flourish. It, unfortunately, appears, that this is something Trump actually believes. And that is truly frightening.

Perhaps he is attempting to sink the bond market and thus provoke a recession, under the belief that Clinton's chances will go down if the economy is tanking.

[Ogre Mage]

Entire markets can sink based on reckless words uttered by the President of the United States.  

[ag]

Entire markets can sink based on reckless words uttered by the President of the United States.  

That is exactly what he wants. Because then, of course, he would be able to buy out the debt at 80 cents on a dollar.

God, have mercy on us.

[ProudModerate2]

Entire markets can sink based on reckless words uttered by the President of the United States.  

That is exactly what he wants. Because then, of course, he would be able to buy out the debt at 80 cents on a dollar.
God, have mercy on us.

But how would he "buy-out" and pay for the debt at 80 cents a dollar ?
That's still a lot of money.
Maybe issuing new debt instruments ?
Oh ... the irony.
;-)

[ag]

Entire markets can sink based on reckless words uttered by the President of the United States.  

That is exactly what he wants. Because then, of course, he would be able to buy out the debt at 80 cents on a dollar.
God, have mercy on us.

But how would he "buy-out" and pay for the debt at 80 cents a dollar ?
That's still a lot of money.
Maybe issuing new debt instruments ?
Oh ... the irony.
;-)

Well, he will be expecting then, once US credit is sufficiently distrusted, to buy those new debts for 50 cents a dollar. Eventually, I guess, he hopes to reduce the repurchase price to a couple cents.

You know the story of that guy who tried to teach his horse not to eat? The horse really got on with the lessons, and was already fine with a couple small stalks of grass a day. But then, unfortunately, it died, so he was never able to complete the experiment to his satisfaction.

[🦀🎂🦀🎂]

I've always wanted to see what it would like if someone attempted to run a country in the style of a real estate company.

[RightBehind]

Trump thinks people are idiots, and his voters are proving him right.

Remember, he's the one who said he loves the poorly educated.

Think about it!
 

[Joe Republic]

The type of voter who would think this idea is a bold new strategy is no doubt the same person who thinks the 'household finances' analogy is an effective way to view economic policy.

[True Federalist (진정한 연방 주의자)]

In fact I was surprised that Geithner didn't pull an inflation surprise to cover the debt incurred by the 2009 stimulus. It's a tool that sits in the kit of every currency creator.

Except as has been proven time and time again, it's a tool that is very difficult and painful to put back in the box once you no longer want inflation.  To have any hope of pulling it off, you'd have to be able to fudge the statistics to create and remove the expectation of inflation.

What I'm surprised is that no one here has pointed out that what Dummkopf said he wants to do is unconstitutional thanks to the 14th Amendment. We'd literally have to pass another amendment to default on the debt.