alt Hacker NewsYes and no. As a headline "I reduced $7t of foreign debt" is pretty good. The plan appears to be to invite people to Mar a Lago and offer to trade the existing debt for new instruments out in the never-never.
Domestic debt might not be such a big deal? Who is coming to collect?
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So the full faith and credit of the US Treasury is thrown away just like that?
No one collects the debt. It’s just redeeming treasury bonds. If they are no longer good then the sub prime crisis is going to look like a minor economic wrinkle.
> As a headline "I reduced $7t of foreign debt" is pretty good.
Nobody cares about the big numbers when the wallets are empty.
> Domestic debt might not be such a big deal? Who is coming to collect?
Old people with retirement needs. A lot of that debt is borrowed from SS surpluses in the past, and now the system is actually in deficit (so needs what it lent out back and then some). I’m all for screwing over boomers, psychologically I’ve convinced myself they are responsible for Trump and this mess (not entirely true, but the boomers as a generation messed things up for us before Trump was president, anyways).
So the argument is that we crashed the economy but at least we screwed foreigners over and not just social security?