Can someone explain this? This is scary as hell.

[Decus]

The explanation revolves around our increasing and unsustainable levels of debt. Other than meaningless reductions in our deficit, no party has shown a real willingness to address the what the GAO refers to as our country's unsustainable national debt problem. - ( GAO: Federal Spending Driving ‘Unsustainable’ Debt).

Printing money is often synonymous with higher inflation and it may be the only way to address the problem but it is not a painless solution:

"In other words, partial defaults are possible through above-the-table negotiations (such as those Trump hinted at) or the backdoor channel of inflation. But they almost universally agree that the covert losses through higher inflation is the far, far better scenario than the global financial meltdown that they believe would result from an overt restructuring of U.S. debt."

Here is a very real near-term risk regarding our debt:

"But even with these inconsistent musings, Trump acknowledged a hint of realism that other politicians can’t. He said that the U.S. economy remains extremely dependent on ultra-low interest rates, and that even a one per cent increase could make America’s budget position untenable."

Peter Schiff: Why Donald Trump wants to make runaway inflation great again

The above link is a good article that also touches on Trump's desire for a weaker dollar so as to increase our ability to export and compete with countries like China.

.

 

[SeaGal]

What is the definition of delusional for $1000, Alex?

 

[Call Sign Chaos]

Were you asleep next to Rip Van Winkle

Not asleep at all. Just trying to get someone to explain how anyone can say "because you print the money," when discussing US debt and the economy.

If you don't have an answer, that is fine.

Because the US uses a petro backed fiat currency, it's virtually impossible to default.

 

[edthecynic]

Bush racked up about 500 dead. The rest of the American dead happened after obama changed the rules of engagement. The changes were deliberately designed to increase the number of American casualties.

Dang, Trumpsters are STUPID!!!!! No wonder Tramp loves to lie to them.

Of the 4,497 American dead in Iraq alone, only 260 happened after Obama took office, so it appears Obama's rules of engagement saved American lives, no wonder the Right hates Obama so much.

 

[yiostheoy]

Donald Trump: U.S. will never default 'because you print the money' - CNNPolitics.com

"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."

Here is the explanation.

Your word for the day is "monetization".

The House Of Reps can easily direct the Treasury to print enough money to give to everyone who owns government notes, bonds, and T-bills.

If they do, then the debt goes away "poof!"

Trump, Ryan, and McConnell would all need to agree, as would Schumer.

The rich won't know what to do with their cash then, and it would force them to invest it.

Sounds like a good plan to me.

 

[GaryDog]

Donald Trump: U.S. will never default 'because you print the money' - CNNPolitics.com

"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."

Weird that he said something stupid.

Watch as the TrumpHumpers try and explain this one away.

 

[WinterBorn]

Donald Trump: U.S. will never default 'because you print the money' - CNNPolitics.com

"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."

Here is the explanation.

Your word for the day is "monetization".

The House Of Reps can easily direct the Treasury to print enough money to give to everyone who owns government notes, bonds, and T-bills.

If they do, then the debt goes away "poof!"

Trump, Ryan, and McConnell would all need to agree, as would Schumer.

The rich won't know what to do with their cash then, and it would force them to invest it.

Sounds like a good plan to me.

The debt goes away? And our dollar worth pennies.

 

[JimBowie1958]

It's old news, might have been a Monday but it was a while back. I'm not leaving to go to a fake news site either. The issue was defaulting and we'd print our way out first. It would be massive inflation though and I didn't hear Trump say that's the preferred economic strategy.

It will not ever result in hyperinflation or even much inflation as long as the Saudis and their friends continue to use the US dollar as their market currency, which causes almost all other markets to also use it and this causes HUGE demand for US dollars. Much more US dollars are in foreign banks and vaults than in the USA.

We do not control our own currency any more.

 

[Conservative65]

Were you asleep next to Rip Van Winkle

Not asleep at all. Just trying to get someone to explain how anyone can say "because you print the money," when discussing US debt and the economy.

If you don't have an answer, that is fine.

When a democrat is president Republicans care about the debt but now debt doesn't matter.

And whenever they want they can create an economic crisis and go bankrupt. Could you imagine relying on a 401k and have that happen? Or they might go bankrupt and renig on social security.

If anyone will go bankrupt it's trump. He's not afraid to gamble and lose. He will still be rich but the people he hired or us, get screwed

When a Republican is President, Democrats blame the debt increasing on him. When a Democrat is President, the debt going up is someone else's fault.

 

[JimBowie1958]

It's a CNN story, so there's really no point in taking it seriously.

After about 6 more months we'll know if Trump is going to do well or not.

If Trump didn't say it, I will be relieved. But if this is an accurate quote, there is a huge potential for disaster.

Trump does not tell the Federal Reserve whether to print money or not. That is done with bond and bill sales which are managed by the Treasury but offered by the Federal Reserve. This is also how they set the prime interest rate based on what interest is needed to be offered to sell the bonds, the lower the better for the buyer.

If bonds go a long time without being sold, the Federal Reserve will buy back its own bonds, something that many economists think a precursor to uncontrolled printing..

But again, as long as the US dollar is the world reserve currency, the global markets will buy up any US dollars available out there so that they can buy oil.

 

[Pete7469]

Trump does not tell the Federal Reserve whether to print money or not. That is done with bond and bill sales which are managed by the Treasury but offered by the Federal Reserve. This is also how they set the prime interest rate based on what interest is needed to be offered to sell the bonds, the lower the better for the buyer.

If bonds go a long time without being sold, the Federal Reserve will buy back its own bonds, something that many economists think a precursor to uncontrolled printing..

But again, as long as the US dollar is the world reserve currency, the global markets will buy up any US dollars available out there so that they can buy oil.

My concern is if interest rates go up even a fraction of a percent on 20 trillion, you're looking at a massive chunk of the budget going down a drain.

They really need to limit debt and interest payments. Trump may convince the feds to erase some debt, in other words the richest mother fuckers would have to take a hit. It's not fair to them, but I never gave hitlary, Bush or any other democrook a penny.

 

[JimBowie1958]

My concern is if interest rates go up even a fraction of a percent on 20 trillion, you're looking at a massive chunk of the budget going down a drain.

They really need to limit debt and interest payments. Trump may convince the feds to erase some debt, in other words the richest mother fuckers would have to take a hit. It's not fair to them, but I never gave hitlary, Bush or any other democrook a penny.

The problem with any legal limits imposed by Constitutional Amendment or whatever is that it will have to have some kind of exception for a major war or emergency.

And then Congress would drive a convoy of tractor trailer rigs through it and every budget would be an emergency budget or a war on terrorism, etc, and completely negate any constraint on Federal Spending.

I think we either need to seriously reform the Fed or change the laws to make it focus on providing astable currency only and remove its mandate to maintain full employment.

 

[edthecynic]

It will not ever result in hyperinflation or even much inflation as long as the Saudis and their friends continue to use the US dollar as their market currency, which causes almost all other markets to also use it and this causes HUGE demand for US dollars. Much more US dollars are in foreign banks and vaults than in the USA.

We do not control our own currency any more.

China calls for new global currency

 

[JimBowie1958]

We do not control our own currency any more.

China calls for new global currency

A nuke for us that is worse than North Korea is ever likely to have.

 

[HenryBHough]

BREAKING!

Trump to authorize printing of one trillion Obama $3 bills to cover inherited deficit.......

 

[JimBowie1958]

BREAKING!

Trump to authorize printing of one trillion Obama $3 bills to cover inherited deficit.......

Yeah, that'll work as well as anything Obummer ever did.

 

[Old Rocks]

War tends to do that. And it was all a bipartisan effort. When will you get that?

As soon as the leftist programmers allow their sheep to believe it. If it ever suits the purpose of the left, they will go after and kill muslims. They'll go after gays, take down abortion, endorse Christianity, and ramp up oil and coal production.

Again, when it benefits the state and they have control of it, there is no policy or principle they currently pretend to support that won't be set aside.

Whee, your little tin hat is getting too tight.

 

[ScienceRocks]

BREAKING!

Trump to authorize printing of one trillion Obama $3 bills to cover inherited deficit.......

Yeah, that'll work as well as anything Obummer ever did.

Trump would be wise to start a charted asteroid mining company and find some asteroids packed with rare metals. America would rule the market for about 20 years at least.

 

[Old Rocks]

Oh brother. Are Ds that stupid?





YES

Like I've said numerous times. These parasites are dangerously stupid. They're being used as weapons by criminally insane sociopaths against us. In order to get their regressive marxist agenda pushed on the rest of us, there is no depth of depravity or evil a leftist will not sink to. If they're willing to have starved millions in Russia, China, N.Korea, Cuba, Laos et al. then massive misinformation and subversive propaganda is just a step in the process of securing the power to disarm and starve the excess human resources.

Check under your bed tonight. Never know where one of them thar progs might be hiding. Probably have a knife and a Koran, LOL

 

[MindWars]

Donald Trump: U.S. will never default 'because you print the money' - CNNPolitics.com

"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."

It's scary because CNN makes up pure bs lies so it's not true.