Thread: Trump just exposed America's dirty little secret: Schiff

Trump just exposed America's dirty little secret: Schiff
Amanda Diaz | @CNBCDiaz
1 Hour Ago CNBC.com
May 8, 2016

Presumptive Republican presidential nominee Donald Trump just revealed an inconvenient truth about U.S. debt, the outspoken and often controversial Peter Schiff told CNBC in a recent interview.

Last week, Trump joined CNBC's "Squawk Box" last week to discuss a wide range of topics including U.S. debt, interest rates and replacing Fed Chair Janet Yellen. It was Trump's comments about potentially renegotiating the more than $19 trillion in U.S. debt and the sensitivity surrounding higher interest rates that raised eyebrows.

While some observers argued that Trump's approach could be tantamount to a debt default, Schiff told CNBC the GOP nominee was fundamentally correct in his observation.

"Trump just admitted on CNBC that America has too much debt to afford a rate hike, and that he wants our creditors to accept less than 100 cents on their Treasuries," the Euro Pacific Capital CEO explained on CNBC's "Futures Now" last week. "In other words, Trump knows a U.S. government default is inevitable."

Last year, the widespread belief that the Federal Reserve would tighten monetary policy unsettled markets. Recently, soft economic data and turmoil around the globe have softened expectations of a rate hike. Still, Schiff said an eventual rate hike could leave the world's largest economy exposed to a growing risk.

"If rates go up, refinancing [debt] doesn't help. The only thing that helps is restructuring," said Schiff, who compared the situation to the crisis in Puerto Rico.

The commonwealth "can't pay because they are broke, well math applies on the main land just like it applies in Puerto Rico, we can't pay either," he said. "And if interest rates go up Donald Trump is right, we have no choice than to tell our creditors they are taking a big haircut," he added.

Schiff has long been opposed to the Fed's so-called easy money policies. He insists that rather than helping the economic backdrop, the excess liquidity has created fragile asset bubbles so fragile that may send the U.S. spiraling into a recession worse than what occurred during the financial crisis.

"[Trump] recognizes that we have a bubble and he wants to make America great again," Schiff said, adding that of all the candidates he has the best understanding of how bad the problems are.

"To get great again we need to recreate what made us great in the first place, and so we're going to have to let interest rates go up," Schiff added. "A big part of that is admitting that we aren't going to be able to re-pay the debt."


http://www.cnbc.com/2016/05/08/trump...et-schiff.html

Trump is right again!

Little Stupid Paulie Boy from Wisconsin:

You are an idiot, a moron, an egomaniac of incomprehensible stature, iced in arrogance and delusional self-worth that makes a normal person's head spin. You must immediately step down as Chairman of the Republican National Convention. House Republicans, you must recall or vacate his chair as Speaker and select a new one. Wisconsin's First Congressional District, please consider the fact that your guy has been Chairman of the Budget Committee, and as such has done nothing to reduce the debt, balance the budget, increase jobs, wages or quality of life in the United States. Instead he has sponsored and promoted the TPP to suck more jobs out of the country, wrote an OP-Ed for the Wall Street Journal with Ted Cruz to promote the TPP treason agreement, whines on behalf of illegal aliens instead of citizens, pushes for more immigration and attacks the Republican Front-runner and now Presumptive Nominee for his "tone".

Let me tell you about "tone". There is no way to say in nice words, "we're in a bubble", "politicians are stupid and incompetent", Mexican illegal aliens are criminals, rapists, drug-runners, Foreign Muslims are plotting heinous crimes against our people infiltrating our country as "refugess". There is no nice way to say the truth when the truth is ugly.

The American People are in trouble, deep trouble. There is no nice way to say it and there is no nice way to tell them who got them in this mess. This is a dirty mess right now, and fixing it starts with telling the truth about how we got here, illegal immigration, free trade treason agreements, over-spending by not bidding spending correctly, passing Omnibus Budgets in election years in a day to fund re-election campaigns, there is no pretty politically correct way to say these things and lay blame where it belongs so we can remove the trouble-makers, purge the traitors, and replace them with honest, decent Americans who want to fix our country.

Trump is the most competent Presidential candidate we've had in my life-time. Listen to him, vote for him, give him a resounding landslide victory at every turn, so our other politicians and the world know: This is the Americans, not just Donald Trump. This is US taking back control of our country so we can fix it.

Ah...I guess you don't like him. I agree.