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originally posted by: Profusion
Didn't Trump just describe the essence of bankruptcy?
originally posted by: TonyS
a reply to: Profusion
JUst making himself unelectable.
But when pressed to name their biggest concern, nearly half of respondents say they are alarmed by the prospect that the debt could grow beyond its current limit of $14.3 trillion, according to a new Washington Post-Pew Research Center poll. Only 35 percent say they are more worried about the risk of default and economic destabilization if Congress does not raise the debt limit.
originally posted by: burdman30ott6
originally posted by: Profusion
Didn't Trump just describe the essence of bankruptcy?
Isn't the United States, in essence, bankrupt? We have a national debt which exceeds the value of our assets (GDP). That's bankrupt. Should we just keep kicking the can down the road, amassing more and more debt so that we can also amass more and more austerity? Or, since the United States prints its own money AND is the owner of the defacto reserve currency of the world, do we declare bankruptcy and tell the creditors "Suck it," knowing that we have the ability to live well within our means following that declaration of bankruptcy and can run this nation perfectly without the need to borrow money following dissolution of the government's debts?
originally posted by: CynConcepts
originally posted by: burdman30ott6
originally posted by: Profusion
Didn't Trump just describe the essence of bankruptcy?
Isn't the United States, in essence, bankrupt? We have a national debt which exceeds the value of our assets (GDP). That's bankrupt. Should we just keep kicking the can down the road, amassing more and more debt so that we can also amass more and more austerity? Or, since the United States prints its own money AND is the owner of the defacto reserve currency of the world, do we declare bankruptcy and tell the creditors "Suck it," knowing that we have the ability to live well within our means following that declaration of bankruptcy and can run this nation perfectly without the need to borrow money following dissolution of the government's debts?
We cannot just print out our own money per say! Our dollars would be completely devalued globally. Even Trump recognizes this. He can attempt to negotiate a 'trim' with creditors, but being the one of the super powers of the world means, not many creditors would actually negotiate a lower debt.
The United States of America, however, is not a real estate development company. If a real estate company defaults on its debts and its creditors lose money, that's their problem. If a bank fails as a result, then it's the FDIC's responsibility to clean it up.
The government doesn't work like that. Right now, people and companies all around the world treat US government bonds as the least risky financial asset in the universe. If the government defaults and banks fail as a result, the government needs to clean up the mess. And if risk-free federal bonds turn out to be risky, then every other financial asset becomes riskier. The interest rate charged on state and local government debt, on corporate debt, and on home loans will spike. Savings will evaporate, and liquidity will vanish as everyone tries to hold on to their cash until they can figure out what's going on.
Every assessment of risk in the financial system is based on the idea that the least risky thing is lending money to the federal government. If that turns out to be much riskier than previously thought, then everything else becomes much riskier too. Business investment will collapse, state and local finances will be crushed, and shockwaves will emanate to a whole range of foreign countries that borrow dollars.
Donald Trump just threatened to cause an unprecedented global financial crisis
originally posted by: burdman30ott6
originally posted by: Profusion
Didn't Trump just describe the essence of bankruptcy?
Isn't the United States, in essence, bankrupt? We have a national debt which exceeds the value of our assets (GDP). That's bankrupt. Should we just keep kicking the can down the road, amassing more and more debt so that we can also amass more and more austerity?
originally posted by: UKTruth
It's an interesting approach. If ever there were any entity that was too big to fail, its the USA. Every country in the world would sink into depression if the US economy really tanked. It seems like Trump is going to play hardball in a number of areas on the basis that the US economy is the golden goose for the world.
In essence his plan can be viewed as taking money back from greedy creditors and giving it back to the people. The elite and utterly greedy bankers are not going to like this at all.
What Trump is telling the world is that the USA holds all the cards. He is right.
originally posted by: burdman30ott6
a reply to: CynConcepts
Yet print excessive amounts of money is exactly what we did over the past 3 "Quantitative Easings."
originally posted by: burdman30ott6
a reply to: FamCore
Let them start a war. We'll finish it and come out of it with another long boom period just as we did following WWII. If the USA started a war over debt, we'd be the bad guys... I must presume if someone else starts a war against the USA over debt, we'd be the good guys.
originally posted by: CynConcepts
a reply to: Profusion
Profusion, you never responded to me in your unconstitutional thread. I had provided you information and source links, showing that it was not unconstitutional. Plus, Trump didn't say he would just ignore debts owed. He said he would negotiate with the creditors. Big difference.
originally posted by: damwel
You realize when people do this it destroys their credit. America becoming a deadbeat nation is somehow making America great again?