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]

This is pretty much the Venezuelan model.

https://www.google.ca/amp/s/amp.businessinsider.com/bob-woodward-book-trump-federal-debt-printing-money-2018-9

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redredred · M

Or the obozo method then known as Quantitative Easing. 85 billion a month for well over a year.

WoodyAq · M

@redredred During a major financial crisis...

redredred · M

Easing that crisis precisely how?@WoodyAq

WoodyAq · M

@redredred By preventing the banking system from collapsing and the financial system from freezing up, choking off economic activity.

redredred · M

You need to look up the adverb "precisely"@WoodyAq

WoodyAq · M

@redredred Okay, buying illiquid assets for which the market had temporarily collapsed kept each of the banks that had held them solvent, which then made it easier for them to restore lending to consumers and businesses, lending which had stopped and which is crucial for economic activity.

redredred · M

Although you haven't indicated who or what did the buying with the inflated flat currency, a more obvious objection is the inherent systemic weakness generated by not allowing the market to resolve this issue. @WoodyAq

WoodyAq · M

@redredred I'm not arguing that it was a good policy for the longterm, only that it ameliorated the immediate extent of the downturn.

But an 'inflated fiat currency' is only an accurate description if there were inflation. There was not.

redredred · M

Says the people who misreported the unemployment numbers@WoodyAq

WoodyAq · M

@redredred Who misreported what, and how is that related to inflation?

redredred · M

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 · M

@redredred So, your measure of inflation... what does it say, and how do you gather the underlying data?