Saturday, July 2, 2016

Trump Introduces the Debt Discussion

Trump’s Debt Warning has these 2 terrifying Implications, Trump Just Said Something about the U.S. Debt that Nobody Wants to Say… And It’s Got Some Americans Very, Very Worried…

Trump is a businessman who understands debt. In fact, he calls himself “The King of Debt.” So when he talks about the mountain of U.S. debt (currently over $19 trillion!) it pays to listen.

To keep Washington running, the U.S. must keep borrowing at faster and faster rates. And, in order for this to be possible, interest rates MUST remain low.

This is why Trump has said that he’s in favor of continuing the Fed’s low interest rate policies, telling CNBC that without them, “We’re going to have some very major problems.”
How Would President Trump Handle the U.S. Debt?

According to Trump, he’d do the same as his predecessors: Print more money. “People said I want to go and buy debt and default on debt… these people are crazy. This is the United States government… You never have to default because you print the money…

Printing more money can postpone a national debt crisis – if interest rates remain low. But if rates go up, Trump knows there will be only TWO options:
Option #1: Washington defaults on its debt.
Option #2: The Fed creates massive amounts of money to repay the debt, thereby hyper inflating (and rapidly devaluing) the U.S. dollar.

It’s a Catch-22 because neither option will be good for Americans.


Comments

To prepare for a “normal market economy’, federal debt needs to be reduced, because a normal economy is a “free market economy” where supply and demand control the prices of things, including interest rates.  The “managed economy” we currently have results in the mess we have that has been caused by excessive government spending, debt, regulations, socialist policies, excessive regulations, excessive immigration and lawless government refusing to enforce the laws on the books.

Trump knows that he can improve our economy and lift US citizens out of poverty with jobs.  He is the first Republican candidate to realize the obvious.  Republicans must protect the welfare safety net as they abandon the policies that created 100 million working-age US citizens without jobs.

Trump doesn’t mind printing some money to avoid sovereign bankruptcy, because we can and will need capital to retool US manufacturing. But Trump doesn’t want to go beyond $20 trillion.

Trump will reduce federal spending and the federal boot-print to allow the “free market” and the Private Economy to grow. Trump knows we need to stop “kicking the can” down the road.

Trump knows that his job creating actions will boost tax revenues sufficient to fund what we really need to do to fix the broken parts of our federal government and our economy.

Trump knows that he needs to prove to the voters that many unconstitutional government subsidized activities are a bad deal, before he will be ready to introduce reforms.


Norb Leahy, Dunwoody GA Tea Party Leader

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