Trump Just Said Something about the U.S. Debt that Nobody Wants to Say… And It’s Got Some Americans Very, Very Worried…
By Peter Reagan
Our nation’s president-elect is a businessman who understands debt. In fact, he calls himself “The King of Debt.” So when he talks about the mountain of U.S. debt (currently over $19 trillion!) it pays to listen.
To keep the government running, the U.S. must keep borrowing at faster and faster rates. And, in order for this to be possible, interest rates MUST remain low.
This is why Trump has publicly said that he’s in favor of continuing the Fed’s low interest rate policies, telling CNBC earlier this year that without them, “We’re going to have some very major problems.”
How Might President Trump Handle the U.S. Debt?
According to Trump from a few months ago, he’d do the same as his predecessors: Print more money.
“People said I want to go and buy debt and default on debt… these people are crazy. This is the United States government… You never have to default because you print the money…”
Printing more money can postpone a national debt crisis – if interest rates remain low. But if rates go up, Trump knows there will be only TWO options:
Option #1: Washington defaults on its debt.
Option #2: The Fed creates massive amounts of money to repay the debt, thereby hyper inflating (and rapidly devaluing) the U.S. dollar.
It’s a Catch-22 because neither option will be good for Americans.
What Trump’s Statements Mean for Gold
Look, in the coming months, Trump will be forced to deal with the U.S. debt – soon to be $20 trillion.
And if the U.S. defaults on the debt or tries to hyper-inflate its way out of the problem, it’s going to make gold extremely attractive to the American public as a way to preserve savings.
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It’s only a ‘secret’ to those that voted for Hillary.
The U.S. debt is going to be either Trump’s biggest victory or biggest defeat. He was left a stink bomb in the White House toilets.
There is a third option, but I have seen anyone mention.
Create dollars that are debt-free. (not the debt-money that we currently use)
Of course, he might get assassinated by the bankers for suggesting such a thing.
^^BINGO^^
He has the option to create up to 300 million right now in US Notes. He could also order the restarting of mass production of dollar coins halted by Obama, Biden and Geithner. He could push Congress to create higher demonination coins ($2/5/10/20). He could also push congress to increase the 300 million USN’s to a higher amount and replace FRN’s with them. https://www.law.cornell.edu/uscode/text/31/5115
https://www.federalreserve.gov/faqs/currency_12773.htm
That has been tried before: See Germany in 1920, or more recently – Angola, Argentina, Belarus, Bolivia, Brazil, Bosnia, Bulgaria, Ecuador, Georgia, Madagascar, Mexico, Nicaragua, Peru, Poland, Romania, Russia, Turkey, Ukraine, Yugoslavia, Zaire and Zimbabwe.
To take Zimbabwe as an example, in the summer of 2008 inflation reached 231,000,000%, so milk (instead of 1$) was worth $231Million!
They made a hundred trillion dollar banknote because no one would accept cash!
Yes, if you just print money willie nilly, debt based or not, your monetary system will go to shit faster than the gov can spend it. If this new money was paid out as payment for wages and bank credit sent to .gov to balance that transaction. Then if .gov would find some fucking discipline they could take that bank credit and pay off T-bills coming due and retire some of the national debt.
Option #4:
STIFF THE FED
#DrainTheSwamp then #StiffTheFed LOL
He can NEVER make ‘Murica great again as long as we have central bank created fiat money. NEVER! They entire country……every individual…..every business (save one)……and every government from local to state to federal is ENSLAVED to the debt created by the fucking central bankers.
Oh, this is gonna get rich! A bunch of retards discussing economics!
I’m getting the popcorn for this one!
Simple question: Is this a matter of Macro or Micro-economics?
Betcha even that one will have you all stumped.
Greetings,
The only thing Trump has to fear is deflation. Hear me out.
For reasons I’m not going to address here, nations tend to get the financial calamity that hurts them the most. Weimar Germany got hyperinflation because Germans were productive people that saved for the future. Inflation destroyed the savers and made production a lot more difficult because people did not want to trade finished goods for worthless paper.
Venezuela hyperinflation, should it come to the USA, would be a blessing to people drowning in debt. Imagine if you could pay off your home, car, credit card debts and students loans for what it cost to buy a cup of coffee? Property taxes would become very difficult to collect because home values would always lag behind the rate of inflation. It would be hard to fund big government with worthless paper. People with productive assets could jump right into the barter economy as one could always round up some worthless paper to appease the ever shrinking tax monster. No, they’ll drop nuclear bombs on every city in America before they allow that to happen.
With us, we’re gonna get what we got in the Great Depression and that is Deflation. The quickest way to destroy everything is to mess with the velocity of money. See, Americans are now almost 13 trillion in debt and if the velocity of money conveyor belt slows down then it will be impossible to service that debt. If this happens then the banks and the tax collector will own everything though even that could spin out of control as Armageddon derivative bombs take out the financial sector.
Attempting to keep the velocity of money conveyor belt moving is why we have zero interest rates and the lending of money to anyone that can fog a mirror.