Trump Would Make America Default On Our Debt…
While everyone focuses on his taco salad tweet, the Donald suggested that under his presidency, he’d run the government just like his businesses by defaulting on our debt, ruining our credit, and trying to undercut those we owe money to.
That would be a disaster.
From the New York Times:
After assuring Americans he is not running for president “to make things unstable for the country,” the presumptive Republican nominee, Donald J. Trump, suggested that he might reduce the national debt by persuading creditors to accept something less than full payment.
Asked on Thursday whether the United States needed to pay its debts in full, or whether he could negotiate a partial repayment, Mr. Trump told the cable network CNBC, “I would borrow, knowing that if the economy crashed, you could make a deal.”
He added, “And if the economy was good, it was good. So, therefore, you can’t lose.”
Such remarks by a major presidential candidate have no modern precedent. The United States government is able to borrow money at very low interest rates because Treasury securities are regarded as a safe investment, and any cracks in investor confidence have a long history of costing American taxpayers a lot of money.
Experts also described Mr. Trump’s proposal as fanciful, saying there was no reason to think America’s creditors would accept anything less than 100 cents on the dollar, regardless of Mr. Trump’s deal-making prowess.
“No one on the other side would pick up the phone if the secretary of the U.S. Treasury tried to make that call,” said Lou Crandall, chief economist at Wrightson ICAP. “Why should they? They have a contract” requiring payment in full.
What’s even more alarming is that it’s clear he’s just flailing around for whatever random solution he can conjure up for the national debt. Earlier he said that he would cut the budget so steeply that he would pay off the debt in 8 years.
When he found someone who had more than an grade school understanding of math to explain to him that this is mathematically impossible, he backed off on that idiotic notion.
But THIS “solution” would completely wreck America’s credit, and put our economy in enormous danger.
Here is the orange-skinned idiot talking about it to Bret Baier:
Notice the sleight-of-hand he’s using here – it’s one of his favorite tactics and also a logical fallacy. If we don’t do what Trump does, then we don’t care about the debt and we want it to get worse. But that’s a false choice fallacy – there are many other things we can do about the debt.
Only simple-minded fools believe his irrational argument. Too bad there’s so many of them….
UPDATE:
Apparently he was backed into a corner about his economic plan, and this was his solution:
This moron has the economic understanding of an 8-year-old reading right-wing blogs pic.twitter.com/DyafWHZbHm
— el ¡Soopèr! ن (@SooperMexican) May 9, 2016
Just print more money. Unbelievable.
