Monday, May 09, 2016

Trump: We Won't Default On The National Debt, I'll Just Have Janet Yellen Print More Worthless Money

by JASmius

Well, "death" might be a bit strong; that would be something he would blunder the country into, not (unlike Barack Obama) actively try to bring about.  Remember what I keep saying about a president's words carrying enormous weight because of the excessive power the office wields, putting a premium on avoiding bombast, belligerence, and bluster?  Are we learning yet?  If so, it's coming at least a week, and more likely years, too late.

At any rate, somebody must have talked The Donald in off of the "Defaultageddon" ledge over the weekend, because now he has hastily retreated to what amounts to Barack Obama's monetary policy of full-scale currency debasement and runaway debt monetization:

Donald Trump assailed the media on Monday for what he said was a misrepresentation of his comments on debt, rejecting the notion that he would have the United States default on his debt.

Translation: The media indirectly educated Mr. Amateur Hour on what a default really is, and what its disastrous effects would be for the entire world, and especially the United States of America.  And restored "greatness" would not be among them.  Already I'm noticing the spin pattern of ass-covering Trump's gaffes behind the word "misrepresent," a trademark dishonest and dishonorable rhetorical dodge that is evidently going to be beaten to death for the next six months by his enthusiastic and Stockholm Syndromized apologists.  Which means a lot of fly-wing pulling fun for us true conservatives unhampered by either the former's delusions or the latter's exaggerated fears.

"I said if we can buy back government debt as a discount.

i.e. Defaulting on it.  Remember "a president's words matter"?  They send signals, as to global markets, which will react to them because they still perceive the United States as THE UNITED STATES.  And unlike the pompadoured prince, the rest of the world knows what a default is.  So if a President Trump even suggested that we might not roll over our debt at full face value, global markets would go batshit.  Which is why POTUSes don't say crazy, ignorant, stupid things like that.

Or at least, people who would say crazy, ignorant, stupid things like that have never been nominated for the presidency by a major party.  Before now.

In other words, if interest rates go up and we can buy bonds back as a discount, if we are liquid enough as a country we should do that.

Which we're not - $19.3 TRILLION in debt, remember?

But then he's not referring to liquidity that has any value, is he?

In other words, we can buy back debt as a discount," the presumptive Republican nominee said in a telephone interview on CNN's New Day.

i.e. With worthless money.  Quantitative Easing IV.  Because that "discount" has to go somewhere.  If you don't discount the debt, you have to devalue the currency you're printing up to Ponzily "buy" it.

Or, again, Barack Obama's debt monetization scheme that has camouflaged the economic depression that put him in office and kept him there for almost two full terms.  Which is actually a nominal improvement on Trump's impulsive, brainless "Defaultageddon" gaffe.  In essence, Trump won't bring the walls a-tumblin' down now, but keep kicking Barry's can down the road until it happens without his proactively triggering it.

But it will happen.  It is inevitable, especially given his vow against privatizing the entitlement programs that are bankrupting us.  Wouldn't you think that (1) an alleged "capitalist" with "business acumen" and (2) a "fighter" who intends to "shake up Washington" would actually be proposing policies that would, you know, actually do that, instead of continuing and even exacerbating the financially suicidal status quo?  Sounds like a Democrat establishment hack to me.

Those who said he wants to buy debt and default on it are "crazy," he added.

No, we listened to what he actually said and understood the subject matter better than he did.

Six months of this foolishness, folks.  The Gipper would have been so proud.

Exit quote from Leon Wolf: "It’s easy to write this stuff off as just another example of Trump not knowing what the hell he is talking about and/or talking out of both sides of his mouth, and that’s probably the case here. But you do have to ask, who would benefit from such a move? Who, other than a long time buddy of Donald Trump’s who has made a substantial portion of his money by betting against sovereign currency? None other than George Soros, of course."

UPDATE: My apologies for omitting this YUUUUGEly emblematic Trump quote:
“’It was reported in the failing New York Times and other places that I want to default on debt,’ Trump said. ‘You know, I’m the king of debt. I understand debt probably better than anybody. I know how to deal with debt very well. I love debt but you know, debt is tricky and it’s dangerous and you have to be careful and you have to know what you’re doing. If there’s a chance to buy back debt as a discount, interest rates up and the bonds down and you can buy debt. That’s what I’m talking about.’” [emphases added]

Rationalize that one, Director.  I dare you.

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