Trump Says Fed ‘Boneheads’ Should Cut Interest Rates to Zero ‘Or Less,’ U.S. Should Refinance Debt
September 11th, 2019As I was driving through town yesterday afternoon, I saw a bug eyed crazy dude on the side of the road. He was wearing a blanket and frantically babbling to the sky.
That’s about the level we’re at with the suggestion that the U.S. national debt could be refinanced.
Although…
I remember a conversation with my dad about twenty years ago. I was talking about the national debt, how it could never be paid back and how it would keep snowballing until it couldn’t anymore.
Dad’s response was something along the lines of: Simple. The president cancels the debt. The U.S. military has a lot of nuclear missiles and bombers and submarines. Let anyone who wants to collect try it. They were stupid enough to lend money to a country with that kind of firepower—that’s their fuckin’ problem. Fuck ’em.
I laughed and said, “Ok dad, sounds good.”
Then I played this song for dad. It became one of his favorites.
Maybe this could serve as the theme song for how America handles its finances when the debt charade finally breaks down.
F yez all, F yez all, F yez all
Via: CNBC:
President Donald Trump on Wednesday continued his verbal assault on the Federal Reserve, which he blames for slowing the economy, tweeting that the central bank should cut interest rates to zero or even set negative interest rates. The president also called Fed officials “boneheads” in the tweet.
“The Federal Reserve should get our interest rates down to ZERO, or less, and we should then start to refinance our debt. INTEREST COST COULD BE BROUGHT WAY DOWN, while at the same time substantially lengthening the term,” he said.
…
During a CNBC interview in May 2016, Trump said that if the economy turned south, he would try to get creditors to accept partial payment on U.S. debt.
“I would borrow, knowing that if the economy crashed, you could make a deal,” he said then.
His idea was that the U.S. would pay less than face value on the Treasury debt it issues to cover the burgeoning budget deficit.