Morphine Prince 109,651 Posted May 9, 2016 Share Posted May 9, 2016 "This is the United States government. First of all, you never have to default because you print the money. I hate to tell you. So there’s never a default. But the point is it was reported in the New York Times incorrectly," he said, referring to a critical Times article that ran on Friday. That article examined an interview Trump gave to CNBC last Thursday in which he suggested that he could reduce the national debt by persuading U.S. creditors to accept less than full payment. "It was reported in the failing New York Times and other places that I want to default on debt," Trump said. "You know, I’m the king of debt. I understand debt probably better than anybody. I know how to deal with debt very well. I love debt but you know, debt is tricky and it’s dangerous and you have to be careful and you have to know know what you're doing. If there's a chance to buy back debt as a discount, interest rates up and the bonds down and you can buy debt. That’s what I'm talking about." No one would ever confuse business dealings with government practice, Trump suggested, remarking that the government would not ask creditors to buy back debt at a discount. Source: http://www.politico.com/story/2016/05/trump-no-debt-default-222957 Link to post Share on other sites More sharing options...
Morphine Prince 109,651 Posted May 9, 2016 Author Share Posted May 9, 2016 "You know, I’m the king of debt. I understand debt probably better than anybody. I know how to deal with debt very well. I love debt but you know, debt is tricky and it’s dangerous and you have to be careful and you have to know know what you're doing." I'M ****ING DYING. How does this man say so many words yet says NOTHING of value? Link to post Share on other sites More sharing options...
Luc 4,776 Posted May 9, 2016 Share Posted May 9, 2016 Trump, king of debt he could've put it dofferently. Sounds negative to be honest Link to post Share on other sites More sharing options...
PartySick 172,447 Posted May 9, 2016 Share Posted May 9, 2016 Just now, Morphine Prince said: "You know, I’m the king of debt. I understand debt probably better than anybody. I know how to deal with debt very well. I love debt but you know, debt is tricky and it’s dangerous and you have to be careful and you have to know know what you're doing." I'M ****ING DYING. How does this man say so many words yet says NOTHING of value? I'm floored. Let's add "we can't default 'cause we print the money" to the long list of idiotic things this man has said. HOW can anyone support him?! Even if you shared his every opinion, he has no f*cking clue what he's doing omg Whimsical bitch Link to post Share on other sites More sharing options...
Chromatislaps 34,854 Posted May 9, 2016 Share Posted May 9, 2016 this man is so dumb it's entertaining again...how did he get to be a billionaire again? the last thing we want is to have that national debt rise as quick as it did under George Bush's rule Link to post Share on other sites More sharing options...
Luc 4,776 Posted May 9, 2016 Share Posted May 9, 2016 Just now, PartySick said: I'm floored. Let's add "we can't default 'cause we print the money" to the long list of idiotic things this man has said. HOW can anyone support him?! Even if you shared his every opinion, he has no f*cking clue what he's doing omg Isn't he right, though? It will cause hyperinflation but still, the US doesn't ever have to default. Only Eurozone countries can actually default without the purpose of doing so I think. Link to post Share on other sites More sharing options...
PartySick 172,447 Posted May 9, 2016 Share Posted May 9, 2016 6 minutes ago, Luc said: Isn't he right, though? It will cause hyperinflation but still, the US doesn't ever have to default. Only Eurozone countries can actually default without the purpose of doing so I think. Let me get the local expert in on this. @Economy, what would be the ramifications if the U.S. printed enough money to pay off our debt? Or at least prevent defaulting? Spoiler Looking for figures, pie charts, bar graphs, and a few insults please. Whimsical bitch Link to post Share on other sites More sharing options...
Mast 980 Posted May 9, 2016 Share Posted May 9, 2016 14 minutes ago, Luc said: Isn't he right, though? It will cause hyperinflation but still, the US doesn't ever have to default. Only Eurozone countries can actually default without the purpose of doing so I think. The U.S. could very much choose to default, it's just unlikely that they will. Yeah, we could always print money to pay debts, but that would in turn **** over the economy to the point of another collapse, or at the very least demolish the middle class. You also have to remember that the cost of social-insurance programs like Medicare and Social Security cannot be inflated away. That's not the part of Trump's statement that bothers me the most tho. What bothers me is that he's essentially saying the U.S. is entitled to only pay back fractions of its debts. He also suggests to have the government purchase a large amount of debt in the event of a crash in US debt prices, which doesn't make any sense. It's just horrible business Link to post Share on other sites More sharing options...
Guest Posted May 9, 2016 Share Posted May 9, 2016 You just can't print money. It's not paper, it is an equivalent in gold. What the **** is he even saying Link to post Share on other sites More sharing options...
Economy 52,842 Posted May 9, 2016 Share Posted May 9, 2016 1 hour ago, PartySick said: Let me get the local expert in on this. @Economy, what would be the ramifications if the U.S. printed enough money to pay off our debt? Or at least prevent defaulting? Hide contents Looking for figures, pie charts, bar graphs, and a few insults please. The Federal Reserve (US Central Bank) is not suppostu finance Federal Debt. Both branches of Government operate seperately and arent suppostu work together, this was done to prevent corruption and abuse of currency manipulation The job of Federal Reserve is to Whatch over inflation and set appropriate rates for the state of the economy at the time. Thats it. It isnt suppostu print money and give it to the government If they were ever to do it tho... Wether or not it causes hyper inflation all depends on how much they print... If the Government is short one year by $800 Billion and its only able to raise $780 Billion with bonds and it covers the shortfall of $20 Billion by printing, that couldnt make much difference on inflation If they were to cover all $800 Billion with money printing, hell yes youd notice it on inflation Link to post Share on other sites More sharing options...
Whispering 18,865 Posted May 9, 2016 Share Posted May 9, 2016 Technically, we could just print money to pay off the debt. But that's how you get hyperinflation. Hyperinflation is widely regarded as a bad thing and should be avoided. Trump saying this shows that his understanding of economics in general and how the economical stability in the US impacts the world economy is scarily minimal. Link to post Share on other sites More sharing options...
Guest Posted May 9, 2016 Share Posted May 9, 2016 he does know that excesive money printing leads to inflation right? Link to post Share on other sites More sharing options...
Guest Posted May 9, 2016 Share Posted May 9, 2016 I'm scared for the US if anyone votes for him... I don't live there, but this person in charge of one of the countries with the biggest economies and military forces scares the living crap out of me Link to post Share on other sites More sharing options...
Luc 4,776 Posted May 9, 2016 Share Posted May 9, 2016 One thing I know for sure is that a Trump presidency will immediately being interest rates up for state obligations and might also result in a lower rating by the rating agencies (like what's happened to Poland). Link to post Share on other sites More sharing options...
teo 609 Posted May 9, 2016 Share Posted May 9, 2016 He's not wrong, but at the end people will just be paid in bags of money and they wouldn't be able to buy ****. It happened in my country in the early 90s. Link to post Share on other sites More sharing options...
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