It wasn’t very long ago that Donald Trump vowed he could completely eliminate the American federal debt by the end of his second term as president.
Now, the Republican presidential candidate is doing a complete 180, telling CNBC’s Squawk Box that because interest rates are so low, that this is the time to borrow, and to borrow long term, so that we can have money to rebuild our infrastructure.
Trump demurred when asked just how much debt he was comfortable with taking on, but he argued that ideally the U.S. would borrow even more than the $500 billion in new infrastructure spending he pledged last week. That would only compound the problem Trump already faces in his proposed tax cuts adding to the debt and deficit. Previous analyses of Trump’s tax plan said that it would add $9.5 trillion in debt over 10 years, although the revisions he announced earlier this week would likely bring that figure down.
Whatever he does, it will be the smartest play for the economics of the country. But I had feared if he eliminated the national debt over two terms through responsible spending, he would just create an opportunity for the next wave of establishment politicians to re-waste all that money again, and push us even farther r.
This may indicate that he thinks the end result of the debt spiral is money printing and inflation, so why not borrow the money now, and pay it back later in worthless inflated currency? In the interim it is like getting free bridges, highways, train stations, airports, and other infrastructure, as well as the jobs those will produce.
The big advantage I see is this means the Apocalypse is probably still on. It sounds crazy, but the Apocalypse is a necessary part of nature, and vital to the sanity of a civilization. It is best gotten out of the way before it gets so big, and the left goes so insane, that citizens begin filling the mass graves.
As it is, I am not sure we haven’t gone too long already, given the left is already fully insane, and we still have a decade or so until the Apocalypse gets officially under way, assuming Trump isn’t able to revitalize the nation’s economy and pay off most of the national debt.
[…] Will Trump Use The National Debt? […]
When was the last time an apocalypse like this has happened before?
Collapse of Rome. Literally. Only this one, due to technology interconnecting everywhere simultaneously, and directly controlling trade, appears as if it may produce the full collapse in a couple of years. No slow decay for us when it hits.
I’m starting to hear some noise about ‘faithless-electors’ who must vote their conscience bcos muh popular vote.
I’m not American, is this a thing? Damn these bastards are doubling down.
Many states require the electors to vote for the candidate. Further, many of the electors in the states are pre selected by the candidate. So the odds of a faithless elector voting against their state’s choice is very small.
“This may indicate that he thinks the end result of the debt spiral is money printing and inflation, so why not borrow the money now, and pay it back later in worthless inflated currency?”
Highly likely. Cuurency reform and/or devaluation. USA had it coming since 2008 through massive increase of currency supply.
Reagan also ran up a huge debt, but set the country on an economic path to reducing that debt over the long term because of increased economic productivity led to higher tax revenues. Trump’s plan seems to be the same: invest money now in order to obtain a large payoff later that would be used to pay off the debt.
I don’t think he needs to increase spending. We already have a $1 trillion dollar annual slush fund built in, as the original $1T stimulus was continued for the last 8 years via a continuing resolution.
All he needs to do is spend that wisely. But, being government, it’ll be damned hard to spend it wisely.
It’d would be excellent if he actually tracked down where the $8T went over the last 8 years. Probably enough dirt there to put the entire Obama cabinet behind bars.
Maybe he knows the truth about the debt. You must understand how money is created in the US and most other countries world wide. The Treasury asks the FED for money and the FED prints up a bond for the principle plus interest. The Treasury then just prints the money. Where does the FED get money from? Thin air. THE most important point you should get from this is that ALL money is debt. If we pay down the debt we will have NO money. All this talk of paying down the debt will never happen because it would extinguish ALL money. I know this sounds stupid but it’s just the way it is.
The Treasury normally sells the bonds but they don’t have to and they have been keeping an enormous number of them. The FED is the largest holder of US debt. DO they have to sell them. No. As long as too much money is not created then there is no problem with this.
It doesn’t take a rocket scientist to realize that if all money is debt ,the FED gets interest from every single dollar ever issued and the only way you can pay the earlier debt is to go into more debt creating more money then eventually the interest will compound to consume all money. For the people who own the FED this is not a defect it’s a feature. They knew this when they started the system.
I bet Trump knows this. If he’s thinking what I’m thinking he’ll force the FED to issue bonds but hold them and not sell to keep cash in the economy. Presently they are doing this but they give the money to the banks and they use close to zero percent interest to buy all the stocks in all the productive parts of the economy. I would bet my life the banks own damn near everything by now. They got, we know from Rep. Ron Paul’s forced audit of the FED $16 trillion. Estimates of the total amounts a few years ago from looking at financial data is $29 trillion. At $29 Trillion and 300 million Americans we could have given a zero interest loan for every family of four of $386,666. Housing crisis solved and the economy would have roared with all that cash going into people’s pockets.
This is similar to what Hitler did. He cut out his “FED” and started issuing cash based on labor which he spent on public works. He took a country from people starving to death to maximum employment immediately. Trump is supposedly up on Hitler so you can bet he’s studied his financial maneuvers which worked magic on the German economy.
Chicago economics is not the only path of economics no matter what they say. The Japanese, Chinese and Koreans use a different form of economics that’s not the same as ours in terms of what they use for capital. A lot comes from state banking that they control instead of Jews. People to read are “Chang Ha-Joon” another is “In Praise of Hard Industries: Why Manufacturing, Not the Information Economy, Is the key to Future Prosperity” by Eamonn Fingleton.
Now the press will have a cow if he does this, they will scream inflation, but where were they when the banks got $29 trillion?