Is Trump's idea about renegotiating the national debt unconstitional?

originally posted by: ScepticScot
In economics velocity of money is GDP divided by money supply. Bond purchases would not be included in GDP.

Dude, you just made that up, stop.

Vt = PT/M. Bonds are included as they are a transactional purchase.

In terms of the quantity theory of money, we may say that the velocity of circulation of money does not remain constant. “You can lead a horse to water, but you can’t make him drink.” You can force money on the system in exchange for government bonds, its close money substitute; but you can’t make the money circulate against new goods and new jobs. - Paul Samuelson

a reply to: AugustusMasonicus

He is talking about adding money to the system (quantity) not velocity. Bond purchases are not included in GDP and not included in the velocity of money.

originally posted by: ScepticScot
He is talking about adding money to the system (quantity) not velocity. Bond purchases are not included in GDP and not included in the velocity of money.

Read the first line again, 'In terms of the quantity theory of money we may say that the velocity of circulation of money does not remain constant...'

a reply to: AugustusMasonicus

Who claimed it did? That has absolutely nothing to do with bond transactions being included in GDP and I am not really sure why you think it does?

a reply to: ScepticScot

You introduced GDP.

Velocity of money is a wholly different measure and takes into account dollar profits spent on T-Bills.

a reply to: AugustusMasonicus

You think velocity of money and GDP are wholly different measures? That is certainly an alternative view point.

Is Trump's idea about renegotiating the national debt unconstitional?

Yeah well fiat currency didn't exist at the time.

Neither did the federal reserve.

Neither did the big fat sacred cows social security, medicare, and medicaid.

And the prescription drug plan.

The government take over of student loans didn't exist.

Food stamps didn't exist.

Big oil subsidies didn't exist.

Big alternative subsidies didn't exist.

'unconstitutional' ?

Nope.

Borrowing more money is asinine though.

Want to fix the debt ?

Fix the money as in fiat currency.

Take cut down the number of $$ in circulation increasing the value of the dollar.

Back it with something gold,silver,platinum

Less than 20 silver.

100's gold.

Create a new bill like the 500 back it with platinum.

Then get the US government the hell out of the insurance business, healthcare business, education business, and foodstamp business.


None of that is ever going to happen though as badly as it's needed.

We will always have debt, and since the state created money.

That is never going to change.

Profusion, if you are going to start all of these anti-Trump threads, at least own them. I had you say in another thread that participants have derailed this thread from topic...it is up to you as the OP to set them straight, otherwise ATS gets overrun with repeats and loses its appeal to those you are reaching out to. Speak up! It is your thread!

Edit add: Neo96, kudos to you. Just seen your post.

originally posted by: neo96
Is Trump's idea about renegotiating the national debt unconstitional?

Yeah well fiat currency didn't exist at the time.

Neither did the federal reserve.

Neither did the big fat sacred cows social security, medicare, and medicaid.

And the prescription drug plan.

The government take over of student loans didn't exist.

Food stamps didn't exist.

Big oil subsidies didn't exist.

Big alternative subsidies didn't exist.

'unconstitutional' ?

Nope.

Borrowing more money is asinine though.

Want to fix the debt ?

Fix the money as in fiat currency.

Take cut down the number of $$ in circulation increasing the value of the dollar.

Back it with something gold,silver,platinum

Less than 20 silver.

100's gold.

Create a new bill like the 500 back it with platinum.

Then get the US government the hell out of the insurance business, healthcare business, education business, and foodstamp business.


None of that is ever going to happen though as badly as it's needed.

We will always have debt, and since the state created money.

That is never going to change.

The population has our grown the WORLDS gold reserves. There are too many people to back our money with precious medals.

You need a certain number of units per person to power an economy. There is t enough..

That said, why not just keep trading the world fiat currency, while we hoard goods and services?

originally posted by: introvert
Why would anyone be interested in negotiating the terms of the debt when they already have contracts? What incentive would they have to take less money for their investment?

Also I don't see how re-negotiating this debt would do anything good for the value of the dollar. Could easily lower the value by make some US companies and other countries weary about buying US bonds.