Trump has prompted concern in the financial sectors across the globe with his latest claim that the US can just “print the money.” Pending US inflation and an undermining of global financial stability are just few of the many concerns that may result from a deep recession for the American economy.
Trump told CNN this week that “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 … “First of all, you never have to default because you print the money, I hate to tell you, OK?”
The claim if turned into action could spur on a mass global financial shock, as US debt is considered the lowest risk financial risk internationally.
But Trump isn’t concerned so much with global implications as he is domestic. Drawing parallels with his own business deals, he suggests the US economy is not so different.
“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 stated. “In other words, we can buy back debt at a discount.”
He continues by saying “In business (debt buyback) happens all the time. I bought mortgages back when the market went bad [GFC], I bought mortgages back at tremendous discounts, and I love doing that.”
“There’s nothing like it actually, it gives me a great thrill. But in the United States with bonds, that won’t happen because you know in theory the market doesn’t go down so that you default on debt, and that’s what happens.”
Trump, when questioned on his precarious stance on debt, did not waiver, stating that if the economy did crash, a deal could be made. “And if the economy was good, it was good. So, therefore, you can’t lose.”
Not only are the Americans eagerly watching the 2016 race for presidency, Trump has caught the attention of every world economy; wondering on the likelihood of a potential 2017-2018 GFC.
Sources: CNN, CNBC, Media Matters, RT.
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Just wonering how you yanks make money now and the chinnesee. So Donald Duck is any different. I am white and british lived in your shit hole country where you live on dreams and desires…. So icant wait for you fucks to sort it out or shut the fuck up, be quick your empire is falling and so is mine. VOTE TRUMP
Better Saunders though if you get a chance. You gas bags
Asked specifically about Trump’s remark that the U.S. will never default on its debt because it can always print more money, Norquist said: “Well, that’s just stating a fact. It’s what the United States government has been doing for quite a number of years is printing more money.”
“Is it a good thing to do? No. Is it where you want to be? No. Is it what governments do over time? He’s quite correct, that’s what they tend to do,” he said.
http://edition.cnn.com/2016/05/09/politics/donald-trump-national-debt-strategy/index.html
“(But) when somebody says this is the way governments have behaved, that’s not necessarily an argument that that’s what they ought to do — what we should do is reduce spending as well as create growth.”
I hate Trump but it’s what the Fed has been doing for decades now so really he’s not lying. Lol currency backed by gold is a long dead practice.