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Trump Will Turn USA Into The Next Greece - US Debt Default Full Speed Ahead



gleeful

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If Trump gets elected he is proposing a default on US sovereign debt obligations as the solution to the US debt problem. The are no alternatives so the creditors (big hint at the Chinese here) will have to take a massive haircut. The US can't even pay interest on the debt any more so forget about the US repaying it.

Trump just exposed America's dirty little secret: Schiff
The US can print money to pay its debt - as Japan does (and everyone seems happy about). Greece is greece because they cant (and never could - even before the euro, as no one wanted Drachma-debt).

That said, a President Trump may do something daft.
 

Dame_Enda

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I understood during the primaries their plan was to pay off the debt through privatisation?
 

drummed

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I understood during the primaries their plan was to pay off the debt through privatisation?
Privatise what? There isn't anything to privatise bar his hair.
 

johnnypockets

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Mad as Fish

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If Trump gets elected he is proposing a default on US sovereign debt obligations as the solution to the US debt problem. The are no alternatives so the creditors (big hint at the Chinese here) will have to take a massive haircut. The US can't even pay interest on the debt any more so forget about the US repaying it.

Trump just exposed America's dirty little secret: Schiff
An interesting link, if I read it correctly it concludes that Trump wants to make the US great again by dumping on the Chinese.

Yep, sounds like a plan, I'll be down in the bunker if you want to let me know how that works out.
 

Dame_Enda

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Privatise what? There isn't anything to privatise bar his hair.
Well there's the state lands. I think that that would help in some of those anti government western states where people resent things like Eminent Domain and could have helped him reassure conservatives there.
 

stopdoingstuff

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Trump is right in that the real value of what is repaid will be less than what is borrowed. They might not default but they will eventually print and devalue. This will happen Trump or no Trump. Doesn't bother me -I have metals.
 

Mad as Fish

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Well there's the state lands. I think that that would help in some of those anti government western states where people resent things like Eminent Domain and could have helped him reassure conservatives there.
19tr dollars worth?
 

Sexual Harassment Panda

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If Trump gets elected he is proposing a default on US sovereign debt obligations as the solution to the US debt problem. The are no alternatives so the creditors (big hint at the Chinese here) will have to take a massive haircut. The US can't even pay interest on the debt any more so forget about the US repaying it.

Trump just exposed America's dirty little secret: Schiff
So Obama and Bush turned the USA into Greece and Trump has explained how he'll sort it out?

Given that America is already struggling to pay interest, it's thus already basically Greece. If they can't afford to pay, they can't afford to pay. A default then becomes inevitable in some form, even if it's that they print money and devalue?
 

YouKnowWhatIMeanLike

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So Obama and Bush turned the USA into Greece and Trump has explained how he'll sort it out?

Given that America is already struggling to pay interest, it's thus already basically Greece. If they can't afford to pay, they can't afford to pay. A default then becomes inevitable in some form, even if it's that they print money and devalue?
apparently that already is just conventional wisdom
 

Mad as Fish

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Could the TTIP then come to viewed as a method of protecting American assets? Or maybe because the US has some serious debt problems it's going to do its damndest to screw other countries to keep its ship afloat.
 

YouKnowWhatIMeanLike

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Could the TTIP then come to viewed as a method of protecting American assets? Or maybe because the US has some serious debt problems it's going to do its damndest to screw other countries to keep its ship afloat.
This certainly explains the Stiglitz & Krugman position. debt is good for governments. Only little people will have to pay their debt obligations in the future.
 

Sexual Harassment Panda

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apparently that already is just conventional wisdom
Yeah I read that earlier. It's sorta not at all revelatory or shocking, except for in the minds of idiots, where it is deeply revelatory and shocking.

If you can't afford the interest on your national debt, you MUST default in some form.
 

Mad as Fish

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This certainly explains the Stiglitz & Krugman position. debt is good for governments. Only little people will have to pay their debt obligations in the future.
Strikes me that the TTIP will allow all sorts of actions to be taken against EU governments on ever meaner pretexts, where are all these fines that are levied by secret courts going to end up? Is the US simply engineering a system that allows them to siphon money out of Europe to prop up their debt habit?
 

gerhard dengler

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If Trump gets elected he is proposing a default on US sovereign debt obligations as the solution to the US debt problem. The are no alternatives so the creditors (big hint at the Chinese here) will have to take a massive haircut. The US can't even pay interest on the debt any more so forget about the US repaying it.

Trump just exposed America's dirty little secret: Schiff
Those holding the largest slice of outstanding US government debt are American citizens.

http://useconomy.about.com/od/monetarypolicy/f/Who-Owns-US-National-Debt.htm
 

Sexual Harassment Panda

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Strikes me that the TTIP will allow all sorts of actions to be taken against EU governments on ever meaner pretexts, where are all these fines that are levied by secret courts going to end up? Is the US simply engineering a system that allows them to siphon money out of Europe to prop up their debt habit?
The only solution to the chaos which TTIP will cause, will be a single Trade orientated something agency, which will provide a safeguard against countries who ban specific product/ingredients. TTIP creates the problem they need a new global business/trade agency to solve. That's my crazy theory anyways.
 


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