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Attention DU economists
Donald Trump just said defaulting on our debts isn't such a bad thing because we can repay them at a lower rate. I don't claim to have the business acumen of Donald Trump but that seems preposterous.
On the mirco level if an individual defaults on his or her debt it becomes harder for him or her to borrow money in the future and if he or she does find lenders it is at a much higher rate rather because of the risk of default.
12 replies
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= new reply since forum marked as read
(CNN)Donald Trump declared Monday the U.S. never has to default on debt "because you print the money," while clarifying his strategy for managing the national debt.
Trump insisted that he never said the U.S. should default or attempt to renegotiate with creditors, as had been reported.
"People said I want to go and buy debt and default on debt, and I mean, these people are crazy. This is the United States government," Trump told CNN's Chris Cuomo on "New Day." "First of all, you never have to default because you print the money, I hate to tell you, OK?"
Trump said he would center his approach on debt buybacks if and when interest rates go up.
Trump insisted that he never said the U.S. should default or attempt to renegotiate with creditors, as had been reported.
"People said I want to go and buy debt and default on debt, and I mean, these people are crazy. This is the United States government," Trump told CNN's Chris Cuomo on "New Day." "First of all, you never have to default because you print the money, I hate to tell you, OK?"
Trump said he would center his approach on debt buybacks if and when interest rates go up.
http://www.cnn.com/2016/05/09/politics/donald-trump-national-debt-strategy/index.html
