Quote:
Originally Posted by pwnsall
what do you think this phrase means?
The debt ceiling is the limit of debt the U.S. Treasury is allowed to issue, i.e., to how much the U.S. Treasury is legally allowed to borrow. We somewhat routinely meet the debt ceiling and Congress, virtually every time, immediately votes to raise the debt ceiling in order to facilitate this debt service. This is because if the United States does not borrow, it is unable to meet its repayment demands and this, in turn, risks destabilizing the domestic and world economies.
We have never defaulted, though the Republicans at least twice recently threatened to tank the economy by refusing to raise the debt ceiling without concessions from the Democrats.
I believe it is a dead certainty that Trump will incur obligations to new federal anti-immigrant and deportation employees, and domestic expenditures related thereto, of such magnitude that the Treasury will be unable, extraordinary measure or otherwise, to meet those obligations. We will begin defaulting, for the first time ever, on debts payable by the U.S. Treasury. That is a cascading problem.
There appears to be no other way Trump could possibly finance his government, as best I can piece it together from his idiot statements about his "policy" plans. Given his last crack at a tax plan, which would basically increase the deficit $10trilly without factoring in military expenditures that are unforeseeable right now, and without factoring in his deport-11M-people plan, there's no chance of those debts being paid without default. The debt ceiling would need to move an enormous amount to allow for the mandatory borrowing Trump will have to engage in to pay for his dumb platform.
By the way, I note that the debt issued by a Trump presidency would have to pay significantly better than current U.S. bonds, etc. None of this is unforeseeable to an investor, or to the world.