Donald Trump: In the US “you never have to default because you print the money.”
In an attempt to clarify his stance regarding potential default on national debt payments, Republican presidential candidate Donald Trump stated that, in the US, “you never have to default because you print the money.”
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?”
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.”
Trump, the billionaire real estate magnate, called himself the “king of debt,” going on to reference his purchase of discounted mortgages during the housing-bubble collapse that trigger the 2008 recession. However, a nation is different from a business, he said.
Now that Donald Trump has cleared the Republican presidential field and is poised to be his party’s nominee, the next major piece of news out of his campaign could be whom he chooses as his running mate.
The vice-presidential selection is closely watched in part because it’s one of the first opportunities for presidential candidates to demonstrate their decision-making skills under the national spotlight and emphasise the kind of characteristics they value in those who would serve in their administration.
More than that, however, the pick can also have electoral value. Past candidates have used their vice-presidential selection to address perceived shortcomings in their resume or play for support among key constituencies or battleground regions.
Barack Obama picked Joe Biden in 2008 to burnish his foreign policy credentials. Mitt Romney opted for Wisconsinite Paul Ryan in 2012 to appeal to mid-western voters and inject some youthful vigour into his campaign.
The Washington parlour game of guessing who Mr Trump will tab as his ticket-mate is already in full swing. A few prominent names have emphatically ruled themselves out. Others have not-so-emphatically done so. And there are some who are quietly manoeuvring for a place on Mr Trump’s vice-presidential short list.
like a weed pushing through concrete some truth rises to the surface..and this simplistic statement underpins the global hypocrisy of the american status in the financial world..
“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.”
so who will be the donalds running mate?
does it matter?
a few choices above..any other possibles?