Trump: U.S. will never default 'because you print the money'

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shawnbuddy

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http://www.cnn.com/2016/05/09/politics/donald-trump-national-debt-strategy/

(CNN)Donald Trump declared Monday the U.S. never has to default on debt "because you print the money," while trying to clarify his strategy for managing the national debt.

Trump insisted that he never said the U.S. should default or attempt to renegotiate with creditors, as had been reported.

"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's Chris Cuomo on "New Day." "First of all, you never have to default because you print the money, I hate to tell you, OK?"

The presumptive Republican presidential nominee explained he would center his approach on debt buybacks if and when interest rates go up.

"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."
He also repeated his claim that he is "the king of debt."

"I understand debt better than probably 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," Trump said.
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Anyone else find this alarming? We have several historical examples of how the "just print more money" strategy doesn't work. I guess Trump wouldn't be aware of those because he doesn't read, though.

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Edit: Yeah, this is an old article. Sorry.
 
"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's Chris Cuomo on "New Day." "First of all, you never have to default because you print the money, I hate to tell you, OK?"
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He is, in fact, this fucking stupid.
 
My head hurts.

So he's going to cut taxes and print more money. This is like the first week of my high school economics class of what not to do.

Edit: old? well hopefully he has been enlightened since then /snicker
 
Wow this guy is so smart. Guys how come no one thought of this? You can JUST print money and pay all your debt.

Thanks Trump.
 
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I mean you either get him out in this first year or you'll never quite ever repair the harm he's going to achieve.
 
This is an old article. You should state that.
But yeah, he's an idiot. But hey, maybe everyone should open foreign bank accounts and keep money in euro, yen, etc. You never know.
 
I hate to be that guy but Trump is half right.

Government Debt itself is not that important a number in modern economics. What's actually important is the debt to GDP ratio. You need to have the economy to back up and justify the government debt.
 
I'm not a Trump fan, but he's technically right in this case. The US debt is held in US dollars so all it has to do is to print more money to cover it. The consequences of doing so are catastrophic because nobody would want to lend money any more and the value of the USD would plummet, but it is an option.
 
He has a point, the dollar is very ubiquitous and serves not only as a major staple for foreign currency reserves but also as auxiliary currency in Venezuela, Zimbabwe and a lot of caribbean islands.

Though it's not too big to fail, it'll need a lot of printing to make it's owners exchange it for ch-francs or cn-renminbi.
 
He's not actually wrong. The U.S. will always be able to pay its debt because they are the sole issuer of the U.S. Dollar. Any fear of defaulting is unfounded.

(Note: this doesn't mean you can spend infinitely)
 
Ok, we have enough stupid from Donnie not to have to drag up shit said last year.
 
4Tran said:
I'm not a Trump fan, but he's technically right in this case. The US debt is held in US dollars so all it has to do is to print more money to cover it. The consequences of doing so are catastrophic because nobody would want to lend money any more and the value of the USD would plummet, but it is an option.
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we cant pay back our debt if our 1 billion US dollars is suddenly worth the same as 1 million internationally
 
This is something a political candidate in Australia said quite a while ago. Pauline Hanson. She's a joke too but at least she wasn't the head of the country.
 
Um... he's correct. The US does print its own money and has been for a while. It factually does not have to default on its debt except as a (stupid) political decision. Why do people take "print money" to be prescriptive and mean "print more money than we could possibly need" and not factually descriptive?
 
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