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Trump: U.S. will never default 'because you print the money'

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posted on May, 10 2016 @ 10:54 AM
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"People said I want to go and buy debt and default on debt, and I mean, these people are crazy. This is the United States government," Trump told CNN's Chris Cuomo on "New Day." "First of all, you never have to default because you print the money, I hate to tell you, OK?"

The presumptive Republican presidential nominee explained he would center his approach on debt buybacks if and when interest rates go up.

"I said if we can buy back government debt at a discount, in other words, if interest rates go up and we can buy bonds back at a discount -- if we are liquid enough as a country, we should do that," Trump said. "In other words, we can buy back debt at a discount."
Trump: U.S. will never default 'because you print the money'


I think we can breath a sigh of relief based on this news. Not that Trump could have actually ever renegotiated the national debt of the United States to begin with, it could never happen. Not only because it's probably unconstitutional but it's also unethical and it would destroy the US economy.

The cynical side of me wonders if the story about renegotiating the national debt was just a ploy for free publicity. How many threads have been started on the topic on this forum alone? Now Trump calls that idea "ridiculous" (that's the actual word he used), everyone breathes a sigh of relief, and forgets about it.

Does that actually help Trump? There's no such thing as bad publicity, right?
edit on 10-5-2016 by Profusion because: (no reason given)




posted on May, 10 2016 @ 10:58 AM
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a reply to: Profusion

Never mind the fact that paper and ink costs money; More money than the actual bill, itself. lol

I guess politician's think our lives are nothing more than a game of Monopoly.


edit on 10-5-2016 by JuJuBee because: (no reason given)



posted on May, 10 2016 @ 10:58 AM
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a reply to: Profusion

A sigh of relief? It's just as dangerous.

He's saying all you have to do is "print more money!" and everything will be all right?

My god, this proves he has NO idea how the economy works.

Or economic theory.

smh
edit on 10-5-2016 by Liquesence because: (no reason given)



posted on May, 10 2016 @ 11:01 AM
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originally posted by: Liquesence
He's saying all you have to do is "print more money!" and everything will be all right?

My god, this proves he has NO idea how the economy works.


We have been doing this for sometime and it only escalated under the recent Quantitative Easing policy. Saying he does not understand the economy puts him at parity with just about every other politician in Washington.



posted on May, 10 2016 @ 11:09 AM
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a reply to: AugustusMasonicus

I think the takeaway is that, while the US may be simply "printing money" in many regards, we still have debt. A lot of it.

You can't just print money to pay off the debt at a "discount," and that seems to be his implication. You can't just print X trillion dollars to pay off debt.


edit on 10-5-2016 by Liquesence because: (no reason given)



posted on May, 10 2016 @ 11:13 AM
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a reply to: Liquesence

I agree that you cannot just print/coin enough currency to pay off the debt without serious economic issues.

My take on what he was saying was just continue to print money and create more debt, but I could be wrong.



posted on May, 10 2016 @ 11:16 AM
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a reply to: Profusion


First and foremost, Trump is a promoter. He excels at it. Second he is a negotiator. One always takes the extreme/strongest position when entering into a negotiation. (it also re-establishes credibility, which the U.S. has lost internationally on many fronts.)


He's also in a huge learning process. Even well experienced politicians have a massive learning curve entering the Presidential fray. His 'outside the box' advisors
on international affairs, the ME, etc., seem to be crash-coursing him. I have zero problems with his so-called "flip-flops" as long as his original intent remains unsullied.

Hillary's flip-flops are engendered by the latest 'speaking engagement' fees/ donations to the Clinton foundation.

I will take Trump's over Hillary's any day.....



posted on May, 10 2016 @ 11:18 AM
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a reply to: Profusion

This has always been the plan.

During economic collapse you simply print your way out of debt using hyper inflation. Technically you don't default because the creditors get paid back. We are far beyond the point of paying back the debt in a reasonable way.
edit on 2016/5/10 by Metallicus because: eta



posted on May, 10 2016 @ 11:19 AM
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originally posted by: Liquesence
a reply to: AugustusMasonicus

I think the takeaway is that, while the US may be simply "printing money" in many regards, we still have debt. A lot of it.

You can't just print money to pay off the debt at a "discount," and that seems to be his implication. You can't just print X trillion dollars to pay off debt.



Why not? If say, a China, decided to dump huge amounts of T-Bills over-night, massive monetizing of that debt would create massive inflation which, in turn, massively reduces the percentile of debt vs the GDP.

It is an option in the right scenario....



posted on May, 10 2016 @ 11:46 AM
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a reply to: Profusion

Possibly for the first time ever he is correct. The US can issue (not literally print) as much money as it needs so it does not ever have to default.



posted on May, 10 2016 @ 12:01 PM
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originally posted by: nwtrucker

originally posted by: Liquesence
a reply to: AugustusMasonicus

I think the takeaway is that, while the US may be simply "printing money" in many regards, we still have debt. A lot of it.

You can't just print money to pay off the debt at a "discount," and that seems to be his implication. You can't just print X trillion dollars to pay off debt.



Why not? If say, a China, decided to dump huge amounts of T-Bills over-night, massive monetizing of that debt would create massive inflation which, in turn, massively reduces the percentile of debt vs the GDP.

It is an option in the right scenario....

China can't do that. US debt is fixed term. The most they can do is sell on the market, selling huge numbers would just depress the price they would get.

No monetisation required.



posted on May, 10 2016 @ 12:18 PM
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a reply to: Liquesence

You hit it before i did!

I thought this guy was a business man who knew finance and how to run things?

This guy has absolutely no clue...

And let's not forget this guys ideas would most certainly piss off those we owe money too, and the fact that those same countries have bought huge swaths of land here in the US....

He thinks they won't collect? Think again!



posted on May, 10 2016 @ 12:20 PM
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a reply to: nwtrucker

Learning process?

Wasn't that exactly what anti Obama people hated these last 8 yrs was someone who didn't know what they were doing and didn't want "on the job" training to the detriment of the country?


Once again trump supporters prove that their principles are weak, because as long as Trump is doing it , it's ok!







posted on May, 10 2016 @ 12:39 PM
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a reply to: Profusion



I think we can breath a sigh of relief based on this news. Not that Trump could have actually ever renegotiated the national debt of the United States to begin with, it could never happen. Not only becauseit's probably unconstitutional but it's also unethical and it would destroy the US economy. 


Economics 101 tells us that printing more money will not fix the problem.

But.. renegotiating debt is far from unconstitutional.



posted on May, 10 2016 @ 12:52 PM
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a reply to: Profusion

Trump, you are STUPID!



posted on May, 10 2016 @ 12:56 PM
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a reply to: ManBehindTheMask


I couldn't disagree more. The alternative being stick with the same arguments of old..."only an experienced politician is right for the job".

I will take a Capitalist, who knows and has used that system to be the one who addresses it. NO ONE who is a new president is expert on all issues under the presidency. Therefore, "advisors" the same crowd that assisted in creating this mess.

My respect of Trump increases when I see he can change his mind when more facts are presented.

I see you've ignored the Hillary point. Good luck with that.....



posted on May, 10 2016 @ 12:56 PM
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Printing more money to pay debts reduces the value of all of the money already in the system, which makes it necessary to print more and more money to cover the debts as they grow in response to the dilution of the value of all the money in the system.

The banking system was designed this way.

The banking system has to change.

We have been here before.

Never-minding the fact that the vast majority of money in the system isn't even printed and never exists in any fashion other than debits and credits in a ledger or computer.

This is the way the system is designed, the ones who can't afford to pay are forced to pay.

Everybody pays but the people who run up the debt.

Trump is a retard.



posted on May, 10 2016 @ 12:59 PM
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a reply to: Liquesence

Uhhh, let me think this through.

Print more money = lower interests = money worth less

Use money to buy back bonds

Raise interest rates = money worth more = bought at discounted rate ( weaker currency )

Did i get that right or is that not how hard assets are bought and sold such as gold and real estate?

Isnt this financial planning 101.



posted on May, 10 2016 @ 01:00 PM
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Even a Child understands Corruption when they see it.




posted on May, 10 2016 @ 01:01 PM
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a reply to: MyHappyDogShiner

But doesnt raising interests rates strengthen the currency?

So first devalue currency secondly buy back bonds third revalue currency.



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