Summary
Trump recently suggested the U.S. national debt might be inflated by fraudulent treasury payments, raising concerns among economists and financial experts.
Nobel laureate Paul Krugman warned that both Trump and Elon Musk have a history of not paying debts and that “if markets even suspect that this habit will extend to Treasuries, God help us.”
The White House quickly walked back Trump’s remarks, but the clarification seemed unconvincing.
Critics argue this incident shows Trump’s lack of understanding of financial and economic fundamentals.
Nobel laureate Paul Krugman warned that both Trump and Elon Musk have a history of not paying debts and that “if markets even suspect that this habit will extend to Treasuries, God help us.”
If any god were willing to help us a meteor would have taken out D.C. on inauguration day.
In his first term the sky turned blood red and rained ashes while a deadly plague ripped through the streets of America, you’d think the people looking for Messages from God might have taken the hint
I’m sure most of us have already seen this. But it feels relevant here. And maybe it’ll be someone’s first time.
King Trump does not understand the concept of paying debts, always equates it to being stolen from.
So ofcourse he will try to weasel himself out of paying debts, that he’ll tank the US credibility on the financial markets will be declared someone else’s fault.
A trump never pays his debts.
Contrary to popular belief that’s not actually house of trumps words. Their words are:
“I dont take responsibility at all.”
I propose that the White House be the president, instead of Trump.
I propose that the White House be the president, instead of
TrumpElon.I would vote for Sheldon Whitehouse (D-RI), if for no other reason than to hear reporters talk about the “Whitehouse White House”.
The archive page of that senator if he were president would be:
https://whitehousewhitehouse.archives.gov/ https://www.whitehouselibrary.gov/
“We’re even looking at Treasuries,” the Republican said. “There could be a problem — you’ve been reading about that, with Treasuries and that could be an interesting problem.”
For some reason, the president went on to add, “It could be that a lot of those things don’t count. In other words, that some of that stuff that we’re finding is very fraudulent, therefore maybe we have less debt than we thought.”
His comments were, for all intents and purposes, gibberish. But more importantly, they were also potentially dangerous.
“For those not familiar with how financial markets work, US Treasuries are the ultimate safe asset, used as collateral for everything,” economist Paul Krugman explained. “Even a hint that some Treasuries might not be honored could bring everything to a screeching halt.”
Much of the economy only works because people believe in it. The UK had an economic crisis in 2022 when Liz Truss, Prime Minister for 50 days, passed a budget so terrible it tanked their stock market.
The budget included enormous tax cuts for the highest tax brackets, resulting in a £60 billion budget deficit, all while there was a cost of living crisis for the UK’s poorest. UK stocks plummeted so much over the thought that the Prime Minster had no idea how to manage the economy that it caused “safe” investments, like retirement funds, to start failing. The UK central bank stepped in and said they’d print money in order to keep safe investments liquid which likely stopped the UK from experiencing a great depression. Liz Truss resigned because of the fallout.
It’s not an exaggeration to say that Trump hinting that the government might not honour their debts could collapse the economy.
Critics argue this incident shows Trump’s lack of understanding fundamentals.
How, how do you bankrupt a business whose whole model is: Person enters with money -> person leaves with no money.
This incident shows trumpi’s fundamental lack of understanding. FTFY.
I included the big word at the end to confuse trump.
Tht could be 0n repeat the nex 4 years, like ly longer.
I mean dude already trying to stop public debts which are supposed to be constitutionally protected. So not a surprise to see that.
