Gary Cohn was 'astounded at Trump's lack of basic understanding' about the federal debt
[quote]President Donald Trump suggested that since interest rates were going up, the US government should simply borrow massive amounts of money.[/quote]
[quote]When Gary Cohn explained that increasing borrowing would push up the federal deficit, [b]Trump suggested simply printing more money to pay off the debt[/b].[/quote]
If this administration proves ANYTHING, it's that WHOEVER becomes President, they shouldn't be allowed ANYWHERE NEAR the country's potential borrowing !
@WoodyAq I think the 'projected' might be a bit on the hopeful side. Unless there's significant numbers in the export column come the end of 2020/2022 (the only way i can see any positive movement on employment; wages; pensions; pubic spending etc) it might go beyond even the '08 problem !
It's the same government that reports on inflation that reports on unemployment. I haven't trusted anything the government says since JFK got shot.@WoodyAq
@WoodyAq In Manhattan business circles in the 80's and 90's, Trump was known as "Don the con". When his business enterprises went belly up, Trump would use the bankruptcy laws to stiff his creditors.
@whynottalk Technically, yes. But that ends up devaluing the dollar, allowing other governments and major private equity holders to leverage currency markets.
The Venezuela comparison is an exaggeration since Venezuela never had the economy the US does, however, the same market principles apply.
The Fed does issue new money by selling more bonds, but the US hasn't literally printed more currency to pay down debt anytime in recent history, nor would any of the president's advisors support this notion. The US currency rating is key element in stabilizing the world economy.
Printing currency would never make sense in this scenario.
