Quote: 

"If interest rates go up, we can buyback debt at a discount if we are liquid enough as a country. People say I want to default on debt - these people are crazy. First of all you never have to default because you print the money I hate to tell you, so there is never a default. It was reported in the NYT that I want to default on debt - you know I am the king of debt, I love debt, but debt is tricky and its dangerous. But let me just tell you: if interest rates go up and bonds go down, you can buy debt - that's what I'm talking about. So here is the story, if we have an opportunity where interest rates go up and you can buy back debt at a discount. I always like to be able to do that if you can do that. That's all I was talking about, they have it like I'm going to go back to creditors and I am going to renegotiate or restructure debt. It's ridiculous."

 

 

 

Let's break down this quote:   So here is the story, if we have an opportunity where interest rates go up and you can buy back debt at a discount. 

 

That is a HUGE "IF".  Our debt is secured in treasury bonds.  We are not trading in bonds.  We are using the bonds to finance the government.  So a bond buy back does us no good.  It's still debt that we have to pay back.  The raised interest rates doesn't affect the fact that even if we get the discounted rate of the bond that it's still our debt we owe.  Any discount would be negligible if beneficial at all.  And again, the "IF factor...

 

The "IF" factor is that we are not liquid.  We run budgets at a deficit.  So we'd have to borrow more money to buy back the debt... OR as trump says...  We can print money to buy back the debt.

 

And again, that get's us into HUGE INFLATION!!!  LOL  I mean, dude, it's ridiculous.  He's the king of debt and bankruptcy and then getting rich again.  I'm not down with bankrupting the USA in order to figure out that he can then make us great again after he bankrupted the country.  

 

I'm not a huge finance guy, more of an accountant.  But I think I have this correct.  If anyone has expertise in finance, please chime in.

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