Donald Trump is proving to be, not just a little ignorant on the economy, but downright dangerously stupid when it comes to economic matters. The latest edition seemed to come last Thursday when he floated the idea of creditors taking a reduction in the face value of their debt or defaulting on the national debt. As if that wasn't bad enough, he tried to clarify the first botched idea today by suggesting a second disastrous economic plan straight out of post-WWI Germany. Trump declared himself the 'King of Debt' and apparently wants America to join in his debt-laden kingdom.
Trump's comment Thursday that immediately drew deserved scrutiny from experts was:
I would borrow, knowing that if the economy crashed, you could make a deal.
Translation: he's going to pay back less than he borrowed. This idea was called "stupid", "irresponsible", "ridiculous" and even "treason" and justifiably so since it would amount to an economic disaster for the United States. MarketWatch described the absurd thinking of Trump on this brilliantly:
It’s incomprehensible that, decades after Trump began to go through bankruptcies, debt restructurings and the like, he hasn’t figured out that those deals ended with him being stripped of control of assets he spent years trying to build up.
Yes, his creditors wrote down debt at the Plaza Hotel. They also booted him out. Yes, his creditors restructured and wrote down debt at Trump’s casino companies, and he hasn’t controlled them in years. Same thing at his giant Riverside South development on Manhattan’s West Side. It’s why Trump would have been better off putting Dad’s dough in an index fund way back when.
Mr. Trump, your creditors reduced your debt in order to get you to go away. Did you miss that?
Instead of spending a few days realizing his mistake and trying to prepare himself to be a responsible leader, he tried to say he was misquoted and then pitched a plan just as idiotic as the first. Speaking with CNN, he stated:
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