I’m not a Hillary fan and I voted for Romney last time, so don’t even think about pigeonholing me into a partisan / bias debate.
But I have to just point out, this is the mentality of the GOP’s presumptive nominee for the Presidency, on how he thinks about Treasury bonds, which are the bedrock of global capitalism and geopolitical stability in the Milky Way galaxy:
Asked 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.”
If this doesn’t frighten you or bother you – regardless of your party affiliation – then you’re either an anarchist or an idiot.
The whole world runs on the premise that US debt is risk-free in terms of return of principal, backed up by our status as the world’s reserve currency and the enforcement of the US Navy, Army, Air Force and Marine Corps. You can mess with just about anything else you want, but you can’t mess with that. Ted Cruz tried in 20112013 and we should have deported him on the spot. This is a no-go zone for dilettantes and ideologues.
Sorry, I just had to say it. Others will say much the same thing in a thousand articles that will be written today.
He thinks this is like an Atlantic City shakedown against Lehman Brothers or something. Or maybe he doesn’t. Maybe Jared and Ivanka will read the reactions and talk him off this ledge.
Fortunately, like almost everything Trump says about finance and economics, he probably doesn’t mean it and may say the opposite within 24 hours, depending on how he’s feeling or whom he’s speaking to.