I heard a brief sound bite today that said Mr. Trump wants to negotiate the USA Debt. It isn't exactly bankruptcy, it creates fluidity for the debt holder. It is similar to what the Fed did with Quantitative Easing.
That is my interpretation, of course there are no plans that I read; it was a sound bite.
But, the ONLY way I see anything like that happening is if there is an understanding between the debt holder and the USA government to reduce the debt owed in exchange for A LARGE PAYMENT.
I don't see any reasonable way to do it though. The USA has a national DEFICIT every year. Now, in the case of Bill Clinton's surplus there could be wiggle room to negotiate a larger payment.
But, if there wasn't a large cash payment I don't know any country that would be interested in renegotiating the amount of monies owed. A large cash payment has inherent advantages a debt owner would weigh to it's merit. The merit of accepting a large cash payment vs upholding the entire debt owed over time. It would be negotiable as long as both parties sees the advantage.
The other aspect is that Japan, which holds a considerable amount of the USA debt, would be able to negotiate their own debt if they were provided a large cash payment.
I think it is unreasonable to consider it as a reality. There is not enough tax income into the USA treasury to even approach such a concept.
I would love it if North Korea would disarm from it's nuclear weapons to become the FOURTH country on that chart with ever growing GDP in peace.
April 15, 2016
By Charles Riley
...Data from the Treasury Department (click here) released Wednesday show that Japan owned $1.2244 trillion worth of U.S. government securities at the end of February, compared to $1.2237 trillion for China.
Both countries unloaded U.S. debt during the month of January, but China sold more, making Japan the top U.S. creditor for the first time since the financial crisis.
The Treasury data should be taken with a grain of salt: Transactions carried out by other nations on behalf of China and Japan aren't included, making the final tally more of an educated guess....
That is my interpretation, of course there are no plans that I read; it was a sound bite.
But, the ONLY way I see anything like that happening is if there is an understanding between the debt holder and the USA government to reduce the debt owed in exchange for A LARGE PAYMENT.
I don't see any reasonable way to do it though. The USA has a national DEFICIT every year. Now, in the case of Bill Clinton's surplus there could be wiggle room to negotiate a larger payment.
But, if there wasn't a large cash payment I don't know any country that would be interested in renegotiating the amount of monies owed. A large cash payment has inherent advantages a debt owner would weigh to it's merit. The merit of accepting a large cash payment vs upholding the entire debt owed over time. It would be negotiable as long as both parties sees the advantage.
The other aspect is that Japan, which holds a considerable amount of the USA debt, would be able to negotiate their own debt if they were provided a large cash payment.
I think it is unreasonable to consider it as a reality. There is not enough tax income into the USA treasury to even approach such a concept.
I would love it if North Korea would disarm from it's nuclear weapons to become the FOURTH country on that chart with ever growing GDP in peace.
April 15, 2016
By Charles Riley
...Data from the Treasury Department (click here) released Wednesday show that Japan owned $1.2244 trillion worth of U.S. government securities at the end of February, compared to $1.2237 trillion for China.
Both countries unloaded U.S. debt during the month of January, but China sold more, making Japan the top U.S. creditor for the first time since the financial crisis.
The Treasury data should be taken with a grain of salt: Transactions carried out by other nations on behalf of China and Japan aren't included, making the final tally more of an educated guess....
