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.
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.
I propose that the White House be the president, instead of Trump.
I propose that the White House be the president, instead of
TrumpElon.
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.
“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.”
