Zimbabwe is the better example. 

But yeah, Trump's economic plan will be a boon for those companies that are trying to scare people into buying gold.

Haven't we been printing money when we need it for many, many years?
I don't think this is something that is new but in this political news cycle
Trump says it and bang.... headline news. 

Some old news on printing money!

Former Chairman of the Federal Reserve Alan Greenspan explains how the United States can pay down the debt. By printing money. Transcript:
 
David Gregory, moderator of "Meet The Press" on NBC: "Are U.S. treasury bonds still safe to invest in?"

Alan Greenspan, Former Chairman of the Federal Reserve: "Very much so. This is not an issue of credit rating, the United States can pay any debt it has because we can always print money to do that. So, there is zero probability of default."

Last edited by Common Sense (5/09/2016 12:41 pm)

TheLagerLad wrote:

Common Sense wrote:

Haven't we been printing money when we need it for many, many years?
I don't think this is something that is new but in this political news cycle
Trump says it and bang.... headline news. 

Some old news on printing money!

Former Chairman of the Federal Reserve Alan Greenspan explains how the United States can pay down the debt. By printing money. Transcript:
 
David Gregory, moderator of "Meet The Press" on NBC: "Are U.S. treasury bonds still safe to invest in?"

Alan Greenspan, Former Chairman of the Federal Reserve: "Very much so. This is not an issue of credit rating, the United States can pay any debt it has because we can always print money to do that. So, there is zero probability of default."

Of course you could pay down as much of the debt as you want by printing money. 

And you can throw the entire global economy into turmoil and make it so the U.S. isn't the safest place for investors to park their money. 

 
 

Correct. 

And, Greenspan's statement was just as stupid as Trump's has been. Greenspan was trying to assuage the general public about the credit downgrade, but it does not make it as has been pointed out (history confirms it BTW) a correct idea (to just print money to pay off the debt). IF it was a good idea we would have done it years ago. To actually do this would give all US bondholders themselves a severe haircut and would cause hyperinflation. 

Rather than discussing this ridiculous proposition is how we can get to come closer to balancing the budget without decimating existing programs and services. 

THAT is the discussion that needs to be had. 



 

Some more on Mr Trump's disastrous remarks on possibly renegotiating our debt. 

Donald Trump tries to clean up economic comments

http://www.cnn.com/2016/05/09/politics/donald-trump-2016-campaign-clean-up/index.html

Trump, the wheeler-dealer knows a lot about defaults and re-doing negotiations BUT HE FORGOT that doing that with sovereign debt (Treasuries) will impact almost EVERYONE !  

From the article below 

If you think defaulting on Treasurys would only hurt the Chinese, think again

Who owns the most U.S. Treasury bonds? China? Japan? Saudi Arabia?

The answer is: None of the above.It’s us. We Americans own almost $5 trillion in Treasury bonds all told. That’s more than twice as much as China, Japan and all the oil exporting countries put together.

And so when Donald Trump monkeys with the U.S. government debt, as he has in two interviews in the past few days, this isn’t just a matter of abstract economics or of sticking it to foreigners.It’s about threatening to take your personal 401(k) out into the back yard and beat it, as they say, “like a rented mule.”

Opinion: Donald Trump just threatened your 401(k)

http://www.marketwatch.com/story/trump-just-threatened-your-401k-2016-05-10
 

Last edited by tennyson (5/10/2016 7:40 am)