Monday, May 9, 2016

So He's Supposed to be Good At This? (Part 2 the Sequel)

Okay Finance 080 because Finance 101 is too hard for some people.

“’This is the United States government. First of all, you never have to default because you print the money. I hate to tell you. So there’s never a default. But the point is it was reported in the New York Times incorrectly,’ he said, referring to a critical Times article that ran on Friday.”
When you own a legal printing press running it just to pay your bills is how you default. One more time in large cheerful letters:

Devaluation = Default

So what the great business man is proposing is to borrow massive amounts of money, spend it all on "infrastructure" then when the Keynesian economics fail to work we turn the world's(including our) reserve currency into toilet paper. 
So you're a money manager in charge of buying government bonds, your job is to get the most profit for the least risk that you can. Do you pay more or less for a 10 year treasury just from these statements from a major political party's presumptive nominee? You're someone who has done the right thing and put 15% of your income back so that you can retire with dignity. Does this make you feel like you have done the wise thing? You've studied the history of hyper-inflation. Does this make you nervous?

5 comments:

  1. Trump will be the next president. I also think he's the white man's Obama. IMO. Its just Amazing how many times the same people will allow themselves to be taken in by the same scam.---Ray

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    1. There are parallels to be made, and apparently people will.

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  2. All he did was state what was indisputably true and what has been the national policy of the USA since before our revolution. It is how the Obama administration has spent a trillion dollars more every year than they raised in revenues. Why is Trump foolish for saying out loud what is an observable fact?

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  3. YA know at this point of the game I would vote for Mickey Mouse if he gave political correctness the middle finger AND told me he was going to increase welfare, government spending and my taxes while doing it. As long as he did something about political correctness all the rest would still be worth it.

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    1. Sadly you don't seem to be alone on that sentiment. I'd hoped for more, but after holding my nose in the last election I swore I wouldn't hold it that much again, this would take putting my nose in a vice. Too bad, there were a few options that had a real chance of actually hurting the Marxfem agenda in substantial ways. As always I hope that I'm wrong about Trump, but I sure don't think I am.

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