Trump's Idea to Cut National Debt - Get Creditors to Accept Less

[driftdiver]

More likely to invest. Right now its a bad investment as they can lose it all very fast if it all goes to hell in a hand basket like the warning signs say it will. But if its made healthy by removing the cancers then it will be more attractive to investors. Ever notice how so many creditors extend credit to people who just filed Bankruptcy. They know that they cannot do it again for a long time. A Correction is coming, it will either be massive and maybe not survivable or controlled and survivable.

So Shocking that a Soros connected finance guy would steer the US towards bankruptcy.

[driftdiver]

Thats going to happen no matter what unless something is done to change it. Both Cruz and Trump agree.

@Free Vulcan   George Soros has a history of making large amounts of money by bankrupting countries.  He's trying to destroy this country so he can rebuild it as a socialist utopia. 

[Free Vulcan]

@Free Vulcan   George Soros has a history of making large amounts of money by bankrupting countries.  He's trying to destroy this country so he can rebuild it as a socialist utopia.

Totally agree, Soros wants us brought down, though I'm betting they want a breakup of the USA and take us completely off the map.

[ABX]

A large percentage of those creditors are American citizens, either through direct holdings or bonds in retirement accounts as well as banks investing in bonds for holdings security.

[Free Vulcan]

You don't even have to pay it down.  As long as you can keep it at the same percentage of GP, and make interest payments, you don't have to discount it or inflate to pay it off.  Don't get me wrong -- I'm not against paying it down.  I'm just saying that the idea that we'll have no choice but to discount it at some point in the future is not correct if we do things like control entitlement spending.

Which Trump opposes, of course.

Exactly. We are significantly going to have to improve our cash flow in order to keep paying the interest on the debt we've accumulated the last 8 years under Obama. It's rapidly becoming an issue even at these basement level interest rates.

[massadvj]

I own much Treasury material. So understand where I am coming from. The current status will result in NOTHING or very little ROI as its leading to a global economic collapse. If a knowledgeable finance person goes in and trims out the cancer parts it may survive. it will not survive as it it going and I do not want to lose that much.

If you believe your "treasury material" is in such danger, why not just sell it right now?

[Mechanicos]

So Shocking that a Soros connected finance guy would steer the US towards bankruptcy.

Do your due diligence and not let the enemy do your thinking for you. The man of which you speak has been on his own for what 2 decades? And hes donated to GOP more then Dems. Look him up outside the #nervertrump liberals and Establishment sources. Conservatives should be ashamed they are not using their inherent superior analysis skills to vet the news they are seeing just because it is feeding the normalcy bias created by a wide spread disinformation campaign.

[driftdiver]

If you believe your "treasury material" is in such danger, why not just sell it right now?

Better yet why is he advocating for bankruptcy?  Maybe because he thinks he can make money off it.

[Bigun]

Which is superfluous to the conversation. What Trump is suggesting would be financial suicide. For the entire globe, not just us.

But that won't matter a whit to his supporters here because they are, for the most part, economic illiterates!

[driftdiver]

Do your due diligence and not let the enemy do your thinking for you. The man of which you speak has been on his own for what 2 decades? And hes donated to GOP more then Dems. Look him up outside the #nervertrump liberals and Establishment sources. Conservatives should be ashamed they are not using their inherent superior analysis skills to vet the news they are seeing just because it is feeding the normalcy bias created by a wide spread disinformation campaign.

You think bankruptcy is good and reducing spending is bad.   Why would I listen to anything you have to say?

[Mechanicos]

Better yet why is he advocating for bankruptcy?  Maybe because he thinks he can make money off it.

Who said anything about bankruptcy? I have done turn arounds. Its SOP to try to negotiate with creditors since the BATNA is a bankruptcy. Which is virtually certain to occur if a turn around is not effected. 

[Mechanicos]

You think bankruptcy is good and reducing spending is bad.   Why would I listen to anything you have to say?

Only ones saying bankruptcy are people who appear to not understand business practices when doing a turn round of a failing operation. Hint, its the very last thing as an option.

[Free Vulcan]

Only ones saying bankruptcy are people who appear to not understand business practices when doing a turn round of a failing operation. Hint, its the very last thing as an option.

Govt finance is not business finance. Discounting debt in the govt world is a form of default, which is a form of bankruptcy. You speak of what you do not understand.

[geronl]

He told truth and was pragmatic. I suspect tho this segways into his wanting to charge for arrears the countries we financially and militarily support who do not pay their fair compensation for the services we have provided. So, this can reduce the Debt owed to them by the amounts they owe us. Good Idea  when you think about it.

Trump said this in one of his books. He pays contractors 85% of the bill and dares them to sue him for the rest.

he's been a scam artist from day one

[jmyrlefuller]

Unfortunately for Trump, any kind of default on sovereign debt is unconstitutional under the 14th Amendment.

There is one thing he could do as a "silver bullet:" mint platinum coins for the net amount of the public debt; effectively, create money out of thin air. It'd throw the markets into chaos, but it would take care of the problem.

[driftdiver]

Who said anything about bankruptcy? I have done turn arounds. Its SOP to try to negotiate with creditors since the BATNA is a bankruptcy. Which is virtually certain to occur if a turn around is not effected.

Negotiating with your creditors to pay them less then you owe IS bankruptcy.  It will destroy our credit as a nation, our economy, and our country.

Coming from someone who doesn't think we should address the entitlement program this is a clear effort to destroy this country.   Entitlements by themselves will destroy our nation if not addressed.  Unfunded liabilities dwarf our national debt.

[driftdiver]

Only ones saying bankruptcy are people who appear to not understand business practices when doing a turn round of a failing operation. Hint, its the very last thing as an option.

Yet you don't want to address entitlements? Why is that?

How much does Trump pay his trolls?

[Mechanicos]

Govt finance is not business finance. Discounting debt in the govt world is a form of default, which is a form of bankruptcy. You speak of what you do not understand.

True or false; we are heading to a bankruptcy/default now unless there is a major change? 

[massadvj]

If he does not cut spending, and renegotiates all the debt, then our credit rating gets shot, so how is he going to borrow more to pay the current deficit?  I suppose he could just have the Fed buy all the new debt and wait for the hyperinflation.

BTW, the Fed is buying most of the new issues right now, which means he could bankrupt the Fed (and by extension, most of the banks in the country) by discounting treasuries.

And, yes, this is the way Trump does business. 

[Mechanicos]

Yet you don't want to address entitlements? Why is that?

How much does Trump pay his trolls?

Entitlements are contractual obligations, such as SS. They are like secured debt. The welfare, especially the stuff for illegals and cronies, etc.,  is akin to unsecured and they can be pressured to take less when the alternative is default.

And no I am not a paid person unlike some of the #neverTrump people appear to be.

[Free Vulcan]

True or false; we are heading to a bankruptcy/default now unless there is a major change?

This is not a courtroom. You are not a lawyer. Asking 'true or false' questions as if you have some sort of expertise on the matter is empty pretense, because you are not asking the right questions.

[driftdiver]

Entitlements are contractual obligations, such as SS. They are like secured debt. The welfare, especially the stuff for illegals and cronies, etc.,  is akin to unsecured and they can be pressured to take less when the alternative is default.

And no I am not a paid person unlike some of the #neverTrump people appear to be.

Secured debt.  Lol

[Wingnut]

Mechanicos

When you are in to deep.  It is best to stop digging.

[ABX]

True or false; we are heading to a bankruptcy/default now unless there is a major change?

False. We are headed towards a high deflationary point with devalued currency. At this time, our nation isn't set up to be able to declare bankruptcy in any fashion nor is there any entity out there who can secure our debt if we were able to go bankruptcy- the IMF and EU for example, only have a fraction of the valuation necessary to even consider a small portion.

No, in the US, we print our way out of the mess creating inflationary cycles.

Aspects of the debt may go into default such as specific bond holdings, but bankruptcy isn't in our cards.

[Mechanicos]

False. We are headed towards a high deflationary point with devalued currency. At this time, our nation isn't set up to be able to declare bankruptcy in any fashion nor is there any entity out there who can secure our debt if we were able to go bankruptcy- the IMF and EU for example, only have a fraction of the valuation necessary to even consider a small portion.

No, in the US, we print our way out of the mess creating inflationary cycles.

Aspects of the debt may go into default such as specific bond holdings, but bankruptcy isn't in our cards.

Yeah right. Fails economics 101. We are heading to a crash. Both Trump and Cruz agree. That's at minimum a default.