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"How much d'ya want this time, Donald?"
"How much d'ya want this time, Donald?"
Responding to questions over recent comments indicating that as president, he would renegotiate US national debt rather than pay creditors in full — which could spur a global financial shock — Trump said the notion that he would default on national debt is 'crazy.' "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 on Monday "First of all, you never have to default because you print the money, I hate to tell you, OK?"
Comment: Do you hear that world? This is America! We print, you pay!
Not that this is any secret, but The Donald just explained why the US is number 1: it has flooded the world with dollars, which, until recently, most every other country had no choice but to use. It means, effectively, that the rest of the world pays for the privilege of the US being the hegemon.
Late last week, Trump said that as president, he 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." Trump's comments alarmed many, as defaulting on national debt would send reverberations throughout global finance given US debt is considered about the lowest-risk financial asset the world over. On Monday, Trump addressed his previous comments.
"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."
Comment: The Donald just said what US leaders are not supposed to say publicly; that the United States lives high on the hog at the expense of the rest of the world.
The arrogance is breathtaking. But thankfully it means the mask of sanity is coming off.