May 13, 2016—Donald Trump, the business mogul and presidential hopeful has made the news once again for claiming to be the “king of debt” when discussing America’s national debt problem.
During a recent interview, Trump claimed that the United States will never have to default on debt “because you print the money.” His comments generated a lot of buzz, but in most cases, journalists and pundits alike missed the point as to why his comments actually made a lot of sense, considering printing money to solve the country’s problems is a common practice in all administrations.
During his latest Liberty Report video, Dr. Ron Paul and Liberty Report’s editor Chris Rossini sat down to discuss this and several other subjects for the Myth Busters! segment.
When asked to comment on Trump’s ideas regarding the money printing scheme and his plan to “discount the US debt,” Dr. Paul said:
“This is certainly the case that the decrease in the real debt occurs constantly because we constantly devalue our currency. And of course then we resort to blaming everybody else for manipulating their currency!
But our job in managing the world while we debase our currency gives us a lot of leverage. The average country can’t get away with this. But we can, we can discount the debt by literally printing the money. Not only is it automatic, but it’s never enough.
Our Federal Reserve and our government want to discount faster by having more inflation. They are not satisfied with 1.8 or 2 percent, but even though we are quite convinced that there’s more than that. But they want a lot more and when we do get a lot more they’re going to be unhappy with it. So they want to continue the discounting of the real debt.
But Trump argues the case that he can compare this to what he has done in business. And he’s not bashful about it, he says ‘well I had these businesses and [they ended up] in debt’ and they had to renegotiate with them so he was paying 6, 7, 8 percent maybe for some of those projects. And he wouldn’t necessarily back off and borrow less, he’d borrow more because he said that was no big deal to renegotiate. And he could make millions of dollars in a short period of time. Well, you know, a country can’t do that. You can’t renegotiate as if you were a private person.”
To watch the entire segment, here’s the full video:
Will Trump’s comments make the public learn more about the inflation problem? Sound off below!