Trump Says Some Treasury Notes May Not Be Real

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9. Trump was talking about this back in 2016.

(Fiscal Times, May, 2016) "Trump Would Risk 'Full Faith and Credit of the US’"

"Trump proposed that the US could reduce its national debt by pressuring creditors to accept less than full payment on Treasury securities."

"To clarify, Trump is suggesting that the US Treasury threaten to renege on its promise to pay investors the full amount they are owed on the bills, notes and bonds the government sells when it issues or rolls over its debts."

"This is an inexpressibly awful idea, and the fact that it came out of the mouth of a man who looks to be a major party presidential candidate is really amazing in at least two major ways."

"First is the ignorance it implies about how the debt markets work. US Treasury securities are the closest thing in the world to a risk-free asset. The assumption that the Treasury Department will pay its obligations on time and in full is precisely why the United States can borrow at extremely low rates, and is why they make up part of investment portfolios around the globe."

https://www.thefiscaltimes.com/2016/05/06/Trump-Would-Risk-Full-Faith-and-Credit-US