"You know, inflation. Certain levels of inflation will also pay off that debt very rapidly. Very rapidly," he told TIME in an interview published Thursday, after the outlet pointed out has grown by about $11 trillion over his five years in office. In response, Trump first blamed Joe Biden, then the Fed, then hinted at a plan he wouldn't share.
"I know I'm the best in the world," Trump said. "The best - I don't want to tell you what those means are, but you can pay off the debt through other means. But the one thing that you can do is pay it off through growth, and we've never had growth like this."
Nick Giambruno spelled out the mechanics in July: financial repression, where the government keeps interest rates below inflation and the difference quietly moves wealth from savers to the Treasury. With 9% inflation and 4% rates, he noted, that's a 5% transfer every year, and it compounds.
...and this is a good thing for who?
For those short the cuck buck.
You wouldn't understand. He's playing 4D chess. He's the best in the world.
If he's strictly talking about money supply growth, then he's not wrong. They should just do the stupid Krugman plan and mint a $40T coin to give their creditors.
Something tells me Krugman wouldn't be happy if Trump is the one minting the $40T coin
Literally only 2 options
Bitcoin is now as accessible and distributed as one could hope for, keeps the new money out of houses etc
Foreign fiats eat most of the rest via stablecoin exports
Patriots in control
To have inflation high enough to reduce the US national debt burden would require interest rates at an equally higher level.
That means even higher fiscal deficits and even more US government expenditure directed toward paying the interest cost on the $40T.
That means insolvency - default.
Already nobody wants to buy USTs...with the government printing money to buy them to artificially suppress the interest rate.
Trump is cynical manipulative sociopath feathering his own nest while enshittifying the petrodollar empire and serving the dictates of the Zionist war criminals and their Greater Israel Project.
These are the end times of the petrodollar empire.
Trump is the emperor with no Interceptors to cover his bluff and bluster.
Default is just a restructuring event. The military stiil exists and the government owns more than enough Bitcoin to keep paying them.
Patriots are ready for hyperbitcoinization. It's the communists who will be confused and scrambling.
Default is shameful failure to pay your debts.
Yes it leads to restructuring- on the terms dictated by the creditors.
The Zionists are already demanding you advance their Greater Israel Project, depleting what little remaining international credibility you had left.
The end of the petrodollar empire is nigh and you should be preparing for generations of shame, humiliation and penury.
So far you remain in the first stage of shock and trauma - denial.
Or we can pay it with Iran's oil supply.
Lol you haven't even secured the Venezuelan oil yet.
Trumps getting trashed in the mid terms.
The Zionist puppet petrodollar kleptocracy is on its last legs.
Globally state capital combined with free markets is looking to triumph over the crony capitalists.
I mean we all know that's where it is going so why not be honest about it.
Where is it going?
Default?
weeell well, well! He's not wrong.
Except that much higher inflation will force higher UST coupon rates or even higher levels of money printing to buy them to suppress the coupon rate below what a free market would set them at, as already the US government cannot afford to let UST rates operate according to a free market.
Higher inflation and interest rates rapidly compound the nominal amount of the debt.
Default can probably be held off until Trump exits the building but probably not long beyond that.
Trump is Ideocracy made real...including many economically illiterate observers buying the trashy Trumpian rationalizations.
Well... he's not wrong
I know. He is more open about this stuff than most politicians.
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https://m.stacker.news/159881