U.S. not considering canceling debt held by China - Trump adviser

[Judi Lynn]

Source: Reuters

APRIL 30, 2020 / 10:07 PM / UPDATED 2 HOURS AGO

WASHINGTON (Reuters) - President Donald Trump’s top economic adviser said on Thursday the administration was not considering cancelling some debt held by China as a way to strike at Beijing for perceived shortfalls in its candidness on the coronavirus pandemic.

The Washington Post, citing two people with knowledge of internal discussions, reported on Thursday that some administration officials had discussed the idea.

“The full faith and credit of U.S. debt obligations is sacrosanct. Period. Full stop,” White House economic adviser Larry Kudlow told Reuters.

“Similarly is the reserve currency status of the U.S. dollar,” Kudlow said. “The story’s completely wrong.”

Read more: https://in.reuters.com/article/health-coronavirus-usa-china/u-s-not-considering-canceling-debt-held-by-china-trump-adviser-idINKBN22D49U?rpc=401&

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[marble falls]

1. Kudlow better have his resume updated. Trump never takes any insane notion "off the table".

[TexasTowelie]

2. Imagine the global economic turmoil

if Deadbeat Donnie went through with such a plan? No other nation would invest in US securities afterwards which means that we could no longer finance our budget deficits.

[Judi Lynn]

3. I hadn't grasped that part, yet. Of course, you're right! Amazing. They can't think that far ahead!

I was stuck on thinking they are floating the idea, to see if any of their criminally insane supporters think it's a good idea!

[MosheFeingold]

20. If you could get the Swiss

Germans, English, and Japanese to play ball, too.

It wouldn't be a bad idea, any more.

The Communist Party of China screwed the world over. Set off the economic and personal damage against the debt and give it to the victims.

[TomCADem]

4. If the U.S. Defaulted on the Debt, Then Interest Rates Would Go Up

So, somewhat surprised that anyone from the Trump administration would get that.

[sandensea]

5. Plus, it would jeopardize the dollar's standing as the world's favored currency.

This, as you know, is our biggest real asset as a nation.

Without the ability to issue virtually endless dollars on demand (such is everyone's faith in them), and with our systemic deficits, we'd soon face an Argentine-like situation.

[duforsure]

8. Plus they have many more ways they could retaliate back

By stopping manufacturing many goods there at a much lower costs, which would cause disruptions of goods and much higher costs. They also could dump bonds or other things hurting the dollar and our economy too. trumps repeatedly done things hurting China , so why would they want him re-elected again over someone stable. trumps a serial liar, and no country can trust this corrupt puppet of putins.

[LudwigPastorius]

6. Trump is insane.

That the United States (he, in this case) is even considering an option of defaulting on some Treasury bonds is likely to stick a fatal dagger into the stock market and our reeling economy.

Shit will hit the fan tomorrow.

[dalton99a]

7. Just do it. The effects would be instant and catastrophic

A financial and economic disaster for the U.S. that would take decades to recover from

[Scarsdale]

9. Has Larry been

snorting blow AGAIN? Guess he was quite the coke addict in his heyday. Where did tRump find this gang of incompetent aides and ass kissers? All second rate con artists, just like him. Maybe someone could wake up Wilbur Ross, parade him around on TV, without him falling asleep?

[Walleye]

10. Just about as good an idea as injecting bleach and drinking disinfectant

[beachbumbob]

11. one of the most absurd statements of so many, US does not "cancel" debt issues without HUGE

ramifications. trump keeps proving how incompetent he and his mouth are.

[DrToast]

12. The donor class wouldn't stand for it

I knew it would be walked back.

It’s economically dangerous to even hint at it.

[Squinch]

13. Shit. That means we are.

[Roy Rolling]

14. Bankruptcy Donald

It’s his “art of the deal”—stiff creditors who lend you money.

He a moron. China has a collection agency.

[dalton99a]

17. +1. Bankruptcy is his real middle name

[robbob]

15. tRump is testing the waters...

...before reneging on his own dept to China. Sending up a trial balloon, if you will...

[truthisfreedom]

16. Deadbeat Donnie is just the man to do it.

And leave America with only one resource... Deutschebank backed by Russian oligarchs.

[dreamland]

18. What do you think China would do if they knew we won't pay?

If someone owes me money and is going to turn deadbeat on me, I'd get as much of the loan money back as quick as I can. I won't be surprised that other countries may think twice about buying our debt in the future. What have we become?

[roamer65]

19. No need to cancel it.

We are going to devalue the dollar.

[TexasTowelie]

21. aka the Zimbabwe plan.

Keep printing money until it's worthless.