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Trump: U.S. will never default 'because you print the money'

Trump is correct! :cool: This will lead to some very interesting discussion.

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

Maybe Trump listened to Greenspan?
Greenspan: US "Can Pay Any Debt It Has Because We Can Always Print Money" | RealClearPolitics


(Trump is still an idiot, but the fact he has said this is a huge deal.)

the fact that trump said this is meaningless. In fact.. ANYONE including Greenspan saying this is meaningless.

Yes.. technically we could "pay any debt" by just printing money.

Doing so could cause an economic collapse of this nation.
 
So, Trump is declaring that he'll do what every other recent President has done.

Good job.

It's not like one man is going to change the Federal Reserve.
 
All it proves is what I have long thought...Trump is a macroeconomic ignoramus.

This ridiculous, dangerous, weak, mooch-based, unimaginative theory is what simplistic economists suggest...and none of them can offer the slightest, unbiased historical statistics/proof that it would actually work (i.e. help the economy).

If you hear someone suggest such a thing then you KNOW that they do not understand how macroeconomics works in the real world. They probably have never been either successful entrepreneurs and/or investors (like Krugman whose entire real world experience is with that disaster, Enron).

Trump is a buffoon...this is just further proof.


And anyone of his fans should realize that if they think this guy is NOT part of the establishment..they are dreaming. This latest 'printing money' nonsense is almost exactly what the establishment/Clinton/the Fed are proposing.

Anyone who thinks this guy is genius is probably as dumb as he is.
 
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All it proves is what I have long thought...Trump is a macroeconomic ignoramus.

This ridiculous, dangerous, weak, mooch-based, unimaginative theory is what simplistic economists suggest...and none of them can offer the slightest, unbiased historical statistics/proof that it would actually work (i.e. help the economy).

If you hear someone suggest such a thing then you KNOW that they do not understand how macroeconomics works in the real world. They probably have never been either successful entrepreneurs and/or investors (like Krugman whose entire real world experience is with that disaster, Enron).

Trump is a buffoon...this is just further proof.


And anyone of his fans should realize that if they think this guy is NOT part of the establishment..they are dreaming. This latest 'printing money' nonsense is almost exactly what the establishment/Clinton/the Fed are proposing.

Anyone who thinks this guy is genius is probably as dumb as he is.

We're all still waiting for you to explain to us why we can't "print" money to pay debt. Or should you just say "good day" and abandon another thread? Don't start talking about some other country. Don't use your typical logical fallacies of bad correlation. Just tell us why trump's statement is incorrect. Just walk us thru the steps of what is actually stopping us?

Don't say "massive inflation" because that's not an answer. Even we allow you to suspend disbelief and imagine all of the resource constraints that would require that to be true, we'd still be paying the debt, inflated currency or otherwise.

Don't say "confidence" - because if all you have is feelings then you've got no "statistics/proof" either.

P.S. Trump is an idiot, but the sun shines on even dogs butt sometimes.
 
One can only hope that he realizes that it is a truism that has very little to do with real life. There are actually people that think this means a country can borrow with impunity.

Let me ask you this, what is stopping me from refinancing my house forever?
 
Trump: U.S. will never default 'because you print the money'

"quantitative easing" v 536.2.

hyperinflation.jpg
 
Except QE hasn't caused any inflation, after trillions.

a fine argument for expanding it instead of paying the bills, no?
 
a fine argument for expanding it instead of paying the bills, no?

When the country is experiencing incredibly slow growth with millions unemployed, with stagnant wages, a massive loss of demand.. Spending is the key.
 
When the country is experiencing incredibly slow growth with millions unemployed, with stagnant wages, a massive loss of demand.. Spending is the key.

which should have been the strategy in 2009. at this point, i'd be happy with all income being taxed as income above a cap, and a reprioritization of how we spend our tax revenue.
 
which should have been the strategy in 2009. at this point, i'd be happy with all income being taxed as income above a cap, and a reprioritization of how we spend our tax revenue.

We've lost so much output and demand. It's going to take a lot to get us to where we need to be. I expect us to go into another recession, and maybe then we'll finally realize "Hey, deficits aren't bad!"
 
which should have been the strategy in 2009. at this point, i'd be happy with all income being taxed as income above a cap, and a reprioritization of how we spend our tax revenue.

You do realize that since 2007, between the Fed and the federal government that over $12 trillion (with a 't') has been simply created to try and stimulate the economy (through deficits, QE's and toxic asset purchases)? And this was all at record low interest rates. And still the economy is stagnant and there is zero proof that had the government not done anything and just let the economy fix itself that the economy would not be far better off by now.

There have been recessions/depressions every 6-8 years in American history and almost every one of them ended just fine with the government doing little or nothing to intervene. If that policy worked so well for hundreds of years...why change it now?
 
Please, correct me if I'm wrong, I've done very little research into economics (the whole thing kind of baffles me), but wouldn't adding significantly more dollars to the existing pool simply water down the currency and drive up inflation?
 
Please, correct me if I'm wrong, I've done very little research into economics (the whole thing kind of baffles me), but wouldn't adding significantly more dollars to the existing pool simply water down the currency and drive up inflation?

Well, when dollars enter the economy, they are generally spent in (or given to people who will spend it in short order), which elicits new production. So you aren't just increasing the denominator, you are also increasing the numerator. Plus you have multipliers - secondary and tertiary spending of the same dollars, which also elicits new production. So there is no reason to think that prices would go up.
 
We're all still waiting for you to explain to us why we can't "print" money to pay debt. Or should you just say "good day" and abandon another thread? Don't start talking about some other country. Don't use your typical logical fallacies of bad correlation. Just tell us why trump's statement is incorrect. Just walk us thru the steps of what is actually stopping us?

Don't say "massive inflation" because that's not an answer. Even we allow you to suspend disbelief and imagine all of the resource constraints that would require that to be true, we'd still be paying the debt, inflated currency or otherwise.

Don't say "confidence" - because if all you have is feelings then you've got no "statistics/proof" either.

P.S. Trump is an idiot, but the sun shines on even dogs butt sometimes.

I've explain this in other topics.

US Government doesn't have control over what the public calls "Dollars". They are actually Federal Reserve Notes. The Federal Reserve Bank(s) control the supply and issue all of the currency in the form of what is currently the "dollar". That means the US Government can't print money to pay debt, it has to ISSUE debt to get money (it's account credited at the Fed).

Here is the catch, many will never understand or are too ignorant to understand, for the US Government (as it's states in the Constitution) to take control of printing and controlling the money supply, it would have to technically default as it's changing the terms of the agreement on Bonds and other Obligations from Federal Reserve Note to a new US dollar. Then there is also a question on how the Government will value the new US dollar against a Federal Reserve Note. If that exchange rate is crap like US Government saying a Federal Reserve Note is only worth 70% of the new US dollar, that again would be a default on it's obligation. So having the US Government being the issuer of a currency doesn't change the fact $18t is owed in Federal Reserve Notes and that debt can't be retired without technically defaulting in a new currency issuer.

Oh and inflation is a form of default as well. ;)

It took Eurozone 25 years to issue Euros. It started as EUA (European Unit of Accounting) then to ECU (European Currency Unit), In 1999 the Euro was officially adopted but Euros were not put into circulation until 2002. It won't be 2022 until ALL transactions will be exclusively in Euros in the Eurozone. In Germany, Deutsche Marks are still used.
 
It seems to be liberal "policy" to understand how things actually work, while it is conservative policy to imagine things work in the way you would like them to work.

Its conservative policy to trust in things that have been proven to work (capitalism). Its liberal policy to try and force things to work the way they want them to (socialism).
 
One can only hope that he realizes that it is a truism that has very little to do with real life. There are actually people that think this means a country can borrow with impunity.
Why else do you think he wants to lower the federal debt? Why he is afraid of inflationary fiat? To gain crossover votes as a Conservative might say? Inflationary fiat is bad for Trump's business as well as bad for every American.
 
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Well, when dollars enter the economy, they are generally spent in (or given to people who will spend it in short order), which elicits new production. So you aren't just increasing the denominator, you are also increasing the numerator. Plus you have multipliers - secondary and tertiary spending of the same dollars, which also elicits new production. So there is no reason to think that prices would go up.

They did though, about 20% since 2006. Have wages and economic growth kept up?
 
You do realize that since 2007, between the Fed and the federal government that over $12 trillion (with a 't') has been simply created to try and stimulate the economy (through deficits, QE's and toxic asset purchases)? And this was all at record low interest rates. And still the economy is stagnant and there is zero proof that had the government not done anything and just let the economy fix itself that the economy would not be far better off by now.

There have been recessions/depressions every 6-8 years in American history and almost every one of them ended just fine with the government doing little or nothing to intervene. If that policy worked so well for hundreds of years...why change it now?
through deficits
That have been shrinking and have been targeted at pet projects/etc, all while you ignore the massive output gap/lost demand in relation to the deficits.
No negative affects.
toxic asset purchases
And?
And this was all at record low interest rates. And still the economy is stagnant
Yeah, central banks are running out of options, it's why we're looking towards fiscal policy.
zero proof that had the government not done anything
LOL? What? This was the largest crisis since the great depression. Unemployment skyrocketed, people lost homes, desperately deleveraged. Your almost absurd claim that had the government done nothing we would be fine is absolute lunacy. (Thank god for automatic stabilizers.)
There have been recessions/depressions every 6-8 years in American history
Yes, and before the government responded with monetary/fiscal policy, they were longer, more brutal, and happened more often. You never want to mention that.
If that policy worked so well for hundreds of years...why change it now?
Because it didn't work well for the unemployed, the poor, the people who lost everything..
 
Please, correct me if I'm wrong, I've done very little research into economics (the whole thing kind of baffles me), but wouldn't adding significantly more dollars to the existing pool simply water down the currency and drive up inflation?
Explain that to John from Cleveland.
 
They did though, about 20% since 2006. Have wages and economic growth kept up?
Yeah. What was the price of beef in 2006? And now? Gas in 2006 then now? Eggs in 2006 then now? Health care insurance in 2006 then now? We have debilitating inflation in the US, folks, even though the federal government is positing an almost non-existent inflationary rate.

To jonny5's point: Wages haven't perceptively gone up to coincide with the increase of the printing of moola by the government. Economic growth hasn't perceptively gone up to reflect the increase of printing of moola by the government. In essence while wages and economic growth stayed the same, economic growth and wages HAVE DECLINED over that period of increased printing of moola by the government.
 
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