“You Never Have To Default Because You Print The Money”

Business and Finance

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According to Donald Trump. ” You never have to default because you print the money“. As the NYT notes:

“Asked on Thursday whether the United States needed to pay its debts in full, or whether he could negotiate a partial repayment, Mr. Trump told the cable network CNBC, “I would borrow, knowing that if the economy crashed, you could make a deal.”

Now some may take offense at this since someone or a government borrowing money and then not paying back may seem rather immoral but consider the following. “Such remarks by a major presidential candidate have no modern precedent. The United States government is able to borrow money at very low interest rates because Treasury securities are regarded as a safe investment, and any cracks in investor confidence have a long history of costing American taxpayers a lot of money.”

So it’s a confidence game. You borrow money and you pay back. Yea right! It’s not quite how the game is rigged folks. First off, printing money is very true. Since a government can print unlimited amounts of money, if only they owned the bank. But why print unlimited numbers of bills is the real question. Since in any given economy the numbers don’t lie. 1+1 =-2

Which brings us back to Donald Duck’s Trump’s statement.” I would borrow ..” Now as to why a government would  borrow is where the whole problems lies. Since any knowledgeable economist would surely agree. If you as a government borrow money instead of actually owning the money. Then your no better off than the common man. ( who by the way is heavily indebted because of the stupidity of monetary policies) So it goes to show you it’s all theatrics folks! A shell game.

Don’t be fooled. This economy will crash since it’s the inevitable consequences of printing money out of thin air. Because the mere fact of charging interests on borrowed money leaves to the eventual collapse of the greatest Ponzi scheme ever devised on mankind.

Richard Paul