r/WallStreetbetsELITE • u/Timalakeseinai • Mar 04 '25
Discussion Guys, I think Trump's plan is defaulting on US debt.
Ok hear me out.
The US has a spiralling debt. Trump is well known in his industry for defaulting ( the guy even managed to bankrupt casinos)
So, how do you get ready for defaulting?
First, you need to get the public ready that those that hold your debt are the bad guys. ( China, Canada the EU etc)
Then you start making ridiculous claims about other people owing ou (Ukraine owes us $500B, we are paying for Europe's and Canada defence and taken advanced off, China is ripping us etc ) so you do not have to pay them back that much. You can say that the debt is less because of fraud etc
https://www.reuters.com/markets/us/trump-says-us-might-have-less-debt-than-thought-2025-02-09/
So even if we don't pay the guys, they are bad guys and screw them (that sorts some of the guys that would complain that we screw our allies. You cannot screw you allies if you don't have any)
Then you say that defaulting is not too bad
https://abcnews.go.com/Politics/debt-ceiling-trump-default/story?id=116955286
What happens when you default? Well, you have to balance the books. How to do it? By cutting government expenditure.
- Social security and government employees (they are already lowering that cost via Musk's agency)
-Defence ( already announced huge defence cuts)
- Health ( cutting Medicaid and Medicare)
And you can not easily import stuff ( Getting that ready via tariffs)
Ok, but what about military threats? Let's make Russia our friend, they do not own any US debt anyhow
Guys, I think that's the master plan. Thoughts?
edit for grammar regards
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u/LiquidMantis144 Mar 04 '25
The master plan is to establish a "royalty" class that exists entirely outside and above the system. Afterall, government is of the poors, by the poors, and for the poors.
Trumps "master" plan is to play king and be as rich as elon.
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u/daddyneckbeard Mar 04 '25
yeah, this is how you make a real Oligarchy. This is what happened in Russia at the end of the Soviet Union. This moment is our 'peristroika' in the US. Asset prices will come on the market for pennies on the dollar. A small number of people are very short, and a small number of people and organizations will be able to take advantage of the bloodbath.
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u/MilitantlyWokePatrio Mar 04 '25 edited Mar 04 '25
I don't think so, because, not sure how well known this is, but most of the debt the government owes is just to Americans. A lot of it rich Americans.
Anyways, the Oligarch class has a huge interest in getting their treasury payments on time and in the full amount. And they are basically running the government right now (until we change that and we are building towards it).
But yeah, until then, I don't see that happening. But who knows, we were projected to grow at what, 4% if I'm getting the number right (might be 3) two months ago, Trump gets in office, now it's been revised to -3. Down from a-1.8 revision 5 days ago! Literally a 6 point swing by the ATL Fed in two months, and the revisions down might only be getting started! They might only be trying to quantify the cataclysmic and illegal attempts to halt government payments along with shuttering of agencies, so they might be underestimating the impact. 25% of our GDP is estimated as being from government spending if I'm not mistaken. And government spending has the highest multiplayer effect on GDP, because government spending, often in the form of things like veterans benefits, social security, etc, just gets passed back along through the economy, further stimulating jobs, stimulating demand, etc. So we may very well not be seeing the bottom for a few weeks, if not worse! And that's just seeing the bottom! Not hitting it. I haven't put too much mathematical analysis to it, but I don't think a 20% contraction, minimum, to GDP is unlikely with how things are going. Especially ebcause so much of our system relies on sygnery, efficiency, cooperation, that all combines to be greater than the individual parts. But now the parts are being pulled off.
And we haven't even started talking about what direct, specific effects certain shutterings will have, for example, shuttering USAID which I believe is responsible for some aid payments to AMERICAN farmers means an even more direct, higher multiplier effect, because that means that farmer is now likely going out of business, teh farm is getting closed down, that's an increase in unemployment, decreased demand for goods as there's less money in total available for spending given the unemployment. Anyways, there's so much to talk about on it, the bad economic news is like a iceberg, this is just a taste.
All of this which is to say, we have literally NEVER had this happen, where a leader in our country takes office and immediately the economic scene is not only chilled, but damn straight frosted, so our vision is completely cloudy and it's difficult to make any calls.
It also goes to show that the only ill quality of Trump's that matches his treason is his incompetence, as we see almost every single decision he makes is one that degrades the quality of life for Americans and further squeezes the working class, middle class, and, frankly, even the well off. The Oligarchs are squeezing everyone.
But circling back, we are on tectonic plates and riding the waves until we can calm the seas. Who knows what disaster is coming until then.
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u/cheshire-cats-grin Mar 04 '25
Its not just rich Americans- its also pension funds for normal people. Defaulting on debt may leave some of those in a serious hole.
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u/brought2light Mar 04 '25
They don't care about those people. How does it impact Peter Thiel, Musk, Bezos, and Trump's donors? That is ALL they care about.
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u/quipcow Mar 04 '25 edited Mar 04 '25
Thanks for the detailed reply.
Q for you-
I seem to remember there were fears around China owning a large percentage of our debt. And the possibility of them dumping said debt if they were inclined.
Is that still a concern?
Would that could cause major fallout in our markets if we keep escalating this trade war and they decided to retaliate?
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u/MilitantlyWokePatrio Mar 04 '25
Hm, right, I do remember hearing about that a lot, especially in the late 2000s. So under the same framework, the numbers I last recall was that like 90% of our debt is held internally? Not sure on the specific number, but it was a large chasm between internal debt and the next highest foreign debt holder, China. Maybe China peaking at 11% ownership? Point here being just to contextualize their size in the market, it's a small portion of the over all piece. And, doing some quick refreshing
So doing some quick refreshing with Chat GPT, so the accuracy is a bit lacking, but it says that number is currently around 3%, so a drop from that high in the late aughts.
Anyways, now with an idea of how much of our debt they have, the concern with "dumping debt" is it deflates the value of holding a bond. This would drive the price of bonds down as supply increased, and when the price of bonds go down, the yield of the bonds go up. So in theory, a mass dump of debt would make the yields of bonds go up, making it more difficult to finance the government debt payments (because the government would be paying higher yields).
With all that jargon out of the way, it's not really that big of a concern because of how small the amount is they own at this point, and any sale would be offset by other buyers potentially, and again, it's only about 3% if we take Chat's word for it which sourced Wikipedia. Additionally, this would also hurt their own foreign exchange reserves, so it wouldn't be in China's interest.
All that to say, even though it was a large talking point back then, even at it's peak (though I wasn't in the scene at the time), it's likely that "Chinese debt" was a fear tactic to some extent, at least how it got covered, and the reality is, particularly now perhaps as result of intentioanl Fed Govt policy as well, it's not really a concern in the broader scheme of things.
One last thing though, to touch on the "trade war" is that it certainly could be used as a waeapon in that. But again, the same issues would apply, but if the calculus became us just trying to hurt them (seems to be trumps idea of diplomacy) and them trying to hurt us, then it's more likely, even though it still wouldn't be that bad. Really, I think the biggest risk is in the circumstances around the debt is in the incompetent policy being pursued right now, because our biggest strength, or one of, is diversity. The US economy is so diverse, so many different industries, so much capital, we can absorb blows like a sudden dump. But with turmp frying our "economic capital" if you will from the of an "economic war" stand point, then actually something like a debt dump can become much more problematic. For example, with the betrayal to Europe, it's very conceivable (and we see it happening) that capital starts drying up in exchanges. Now, if our economies are less linked, now who is less interested in US assets? Europe, right, because why hold bonds if it isn't a reliable partner. So then we can start seeing, maybe it's not just China dumping debt, but coordinated, right. So the main risk is that this haphazard foolish ignorant and treasonous approach to our policy making isolates us and makes things that might otherwise not be so impactful, magnified.
But that seems like enough rambling! Cheers.
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u/quipcow Mar 04 '25
Thx, I completely agree.
It also seems like these trade wars real or implied, will kill our markets abroad. So even the tech globalists could be shunned when people buy their next phone, or whatever.
The U.S. brand is now tied to trump and that could sink us in so many ways..
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u/regular-cake Mar 05 '25
Yeah that's what people don't understand about USAID and all the other "welfare" programs. Even when the aid is going to other countries; in the form of food, meals, grain, powdered milk, or whatever it is, that is all being purchased or produced by American farmers or American companies. USAID spent $2 billion on things grown by American farmers.
Not to mention all the food stamps and free lunches that more than encourage Americans to buy things like milk, eggs, bread, and corn that is all grown by American farmers.
All these right-wing farmers that are complaining about "welfare queens" and free handouts don't realize that those programs are what help them and keep them afloat. And I haven't even mentioned the fucking billions of dollars farmers get in free handouts in the form of government subsidies. Farmers are the fucking welfare queens! And they pretty much all voted for the idiots that are going to put them out of business and buy up all their farms for pennies on the dollar.
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u/MilitantlyWokePatrio Mar 05 '25
Not only that, it's ALWAYS for our own benefit. I probably don't need to preach to you, but soft power, influence, connections, all for the cost of 1/1000 of a penny on the federal dollar, is extremely helpful for us in preventing wars for our troops, influencing events in other countries that align with us, and so on.
Anyways, we need to rebuild that system once we emerge from this storm of chaos. Doesn't have to be the same, in fact, this opportunity gives us the chance to make a system even better, and we will.
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u/badgerbert Mar 04 '25
Its been a while since uni, but wouldnt defaulting on the US debt mean that US Treasury Bonds kinda lose alot, if not all value?
And isnt the US Treasury Bond supposed to be the safest risk free investment in the world and the foundation of the world economy/financial markets?
If you default on that then I think things will go downhill fast and in a very bad way.
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u/shaunrundmc Mar 04 '25
The man that has bankrupted every business hes been involved with would bankrupt the US? who'd have thought?
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u/monadicperception Mar 04 '25
He’s not smart enough to have a plan. He’s as smart as an amoeba; he can only react to immediate stimuli.
Thanks, MAGA voters, for the dumbest mother fucker possible again in the most important job in the world.
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u/Ninevehenian Mar 04 '25
He's a bus, a vehicle. He carries the plans of many people.
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u/sofa_king_weetawded Mar 04 '25
Exactly, P2025 is the plans of many and is surprisingly complete. You really don't need to guess at the gameplan.
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u/blindwillie888 Mar 07 '25
Just the WEF trying to take over the world..no big deal.
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u/Therealchimmike Mar 04 '25
he's not running things. Heritage Foundation/Federalist Society/Project 2025 is making the decisions. They let him get up there and run his mouth, then behind closed doors they prop up his ego. But THEY are the ones who laid out the plan, and musk has been running it to a tee.
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u/TraditionalYear4928 Mar 04 '25
Reality TV president
We're cooked
Idiocracy was a historical documentary
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u/pencilcheck Mar 04 '25
just endure it until someone impeach him or when he makes a stupid move, then I hope it will bring elon and all his friends such as open ai CEO down as well and put them all to jail just like FTE Bankman-Fried
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u/faxanaduu Mar 04 '25
Ill cry and sleep like a baby for days while my port pumps. Impeach, convict, remove. When will this day of reckoning come to fruition?
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u/sofa_king_weetawded Mar 04 '25
If I had to guess, it is when DOGE fucks something up, either through incompetence or malice, and SSI payments stop going out.
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u/faxanaduu Mar 04 '25
Too many flash points, I'd say DOGE has fucked up a huge amount already from where im standing.
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u/augalicious Mar 04 '25
This is the correct answer. The amount of emails I’ve gotten from AARP has increased in both frequency and urgency over the last month. They know it’s coming and old folks are going to die in the streets while hedge funds snap up their soon-to-be-vacant properties for pennies on the dollar.
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u/NotTakenName1 Mar 04 '25
"Thanks, MAGA voters, for the dumbest mother fucker possible again in the most important job in the world."
... at the most important moment in time.
(bcause of climate change and the advent of AI)
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u/Ok_Reserve2627 Mar 04 '25
AI is a joke, though.
Terminator 2 is on everyone’s mind, but all we have are retarded chatbots because AI can literally only calculate contextual coherence on an unbelievably myopic scale versus even a luke warm IQ human.
When it writes code, it’s a horrific mess and unusable. When people make the pasta they get from it usable, they duplicate the ever living shit out of their code base which is a huge tech debt generator.
https://www.gitclear.com/ai_assistant_code_quality_2025_research
The models that have been fed “the total sum of human knowledge” still have issues doing “3 + 3,” and that’s not hyperbole. These models have to use a separate “math domain,” which means they have to write a fucking non AI calculator program for the LLM to use to be able to add two single digit numbers.
If China had planned for AI to roll out like it did, it’d be a huge gangbusters success, because it’s making a huge economy bubble lol the dot com burst, and we’re all gonna suffer over a bunch of technological meat beating marketing nonsense that every single know-nothing is shitting their pants about, while actual engineers are scratching their heads saying “several billion in data center costs used to net a lot lot more usefulness than” /movesArmsBroadly “this.”
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u/gibbonsgerg Mar 04 '25
He's dumb as a brick, but you can't discount him - he's being handled by some very bright people. You don't think he actually won every swing state do you? You don't think he's smart enough to rig them either, do you?
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u/Material_Variety_859 Mar 04 '25
The vast majority of US debt is owned by Americans. What the hell you talking about?
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u/ahernandez50 Mar 04 '25
He can decide not to acknowledge the debt of certain countries only. Easily.
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u/Ambitious_Reality974 Mar 04 '25
which would tell everyone in the world that holds us debt to never lend the US money again and would probably tank their credit rating to junk
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u/Bright-Scallin Mar 04 '25
Given everything that's happened in the last fucking month, how are you trying to reason that this isn't actually being discussed, or at least ignored, in the White House?
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u/sbaggers Mar 04 '25
Credit ratings companies are all US based and Trump attacked them when they downgraded/ put the US on watch during the last admin. I doubt they'll be quick to downgrade again. Everyone lacks a backbone
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u/RAISIN_BRAN_DINOSAUR Mar 04 '25
Doesn’t matter what the credit ratings agencies say they can’t force people to buy US debt
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u/sbaggers Mar 04 '25
Trump isn't that smart
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u/Dependent_Sign_399 Mar 04 '25
He's more like an old angry house cat. He's going to do things because he's going to do them and he doesn't give a shit about how the people around him think.
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u/alaoa Mar 04 '25
I think you need to look into Treasury Bond. Those are mostly owned by foreign entities.
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u/Pure_Performance_446 Mar 04 '25
Had a good laugh
Who would lose the most if America losses its credit rating and scares investors ? Billionaires
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u/Scary_Feature_5873 Mar 04 '25
Agree 100%. If a state default on its debt i wish him good luck in the future to attract any investors or te be lent money again. I would also assume that the defaulting would require the approval of the Congress.
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u/gibbonsgerg Mar 04 '25
Defaulting isn't a possibility under the Constitution. Congress cannot approve it. So if it happens, it happens out of Congress' control.
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u/Iain365 Mar 04 '25
Sorry to be that guy but it's owe not own.
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u/sofa_king_weetawded Mar 04 '25
Sorry to be that guy, but you missed a comma.
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u/UpbeatFix7299 Mar 04 '25
Most cynical possible opinion: Trump and all his mega rich flunky grifter buddies who only care about money want to turn us into Greece 15 years ago. This would benefit them somehow. The US borrowed $2 trillion last year. No one will lend us a penny if we default. This is basic shit. He would never do it intentionally
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u/azdcaz Mar 04 '25
I think he’s tanking the economy and markets to force the Fed to cut rates significantly. Also, high inflation helps reduce our debts, so he’s trying to raise inflation because he doesn’t give a fuck about poor people, only the deficit.
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u/hbgwine Mar 04 '25
I don’t know if that’s his strategy, but here is an interesting fact:
The Blue Whale, the largest mammal on earth, has an anus that stretches to 3.5 feet wide, thereby making it the second largest asshole on the planet.
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u/BoruIsMyKing Mar 04 '25
He is 100% a Russian asset.
That's the plan.
He hasn't a fucking clue what he's doing, he's just doing what he's told...or else!
The or else part, is exposing him as said asset.
None of his avtions benefit any Americans or anyone in the West. Only Russia.
Disunity is the goal.
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Mar 04 '25
He’s an Israeli asset first and foremost, I struggle to see why they’d allow Russia to absolutely destroy America
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u/Adventurous-Dingo-20 Mar 04 '25
Yea I believe it, absolutely nothing he’s done is to help anyone other than himself, tanking the economy is just for his amusement, he’s actually horrible at business he’s bankrupted about everything he’s touched
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u/gibbonsgerg Mar 04 '25
The constitution expressly forbids defaulting. Either we shred the constitution (meaning the USA is no more) or we print sufficient money to pay it off, probably triggering hyperinflation?
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u/Ok_Helicopter4276 Mar 05 '25
I think the OP is an idiot but some inflation does benefit the ability to pay down debts. The problem is you also need revenue to take advantage of that and massive layoffs and tax breaks for billionaires are the opposite of what’s needed because both steal tax revenue.
I’ve talked to some who think the market is already near the bottom which might be true for 3 more months but I believe they’re oblivious to the bigger picture that was made crystal clear by several recent diplomatic incidents.
Interest rates alone aren’t terrible. We had much higher rates in the 80’s, but the cost of living was way down as a percentage of income back then. We’re now in the end game that was set up by Reagan breaking the tax system and with these latest tax moves by the GOP it’s very dark days ahead.
Every republican in congress was fully exposed as unwilling to lift a finger to help the country - the bank vault is open and they’re hustling their friends in through the side door while telling the poors at the front their money is safe.
Trump’s corruption is so naked even the blind can see it, but Russian allegiances aside, every action taken by thIs administration has been obviously and blatantly dumping gas on the economic fire while trying to get everyone to believe the lie that gas puts out fires.
Everyone who understands how the system works knows that none of these moves have been good for the country or the world. We’re all just watching in real-time as the corruption and decay engulfs us.
Ironically the decision to create mass unemployment right out of the gate might just cause the perfect conditions for a regime change. But there will be a long period where the market is dead or completely frozen.
My best guess is a military coup will eventually happen that expels all non-career civil servants across the 3 branches of government, holds a mandatory election, stands up the replacement senate and house, tries to rewind the economy somehow, and then disbands. I think that will be the most effective and expedient course correction.
Then I think the next congress will implement a batch of constitutional amendments that will prevent a repeat of this in the future (kill corporate personhood, term limits for congress, restore the ban on congress owning stocks, fix taxation on the rich and corporations, and tighten up language of various existing clauses to ensure enforcement).
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u/gibbonsgerg Mar 05 '25
That would be a far preferable scenario to even another week of this regime. Somehow, though, I think too many people actually believe gas puts out fires. More accurately, I think they want it all to burn, since too many people have absolutely nothing, and hence nothing to lose.
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u/Therealchimmike Mar 04 '25
Fiat banks will fail. FDIC? Won't exist. All our deposits would evaporate. Stock market, epic collapse. Corporations nationwide and even across the planet shut their doors/go bankrupt immediately. Hundreds of millions unemployed.
Even crypto would collapse.
I mean, look at crypto's response to dipwad's tariffs. his BS $500m crypto announcement yesterday wasn't enough to overcome the results of his buffoonery.
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u/Gold_Map_236 Mar 04 '25
For the good of the nation and world: trump needs to be removed from office.
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Mar 04 '25
They haven't actually cut any expenditures though. The proposed budget passed by the house is still going to create a deficit of more than $2 trillion. We are still on track to add $19 to $20 trillion to the national debt over the next 10 years.
They cut funding for social programs, fired thousands of employees, canceled contracts, and are eliminating regulations that protect workers and the environment. But instead of saving taxpayers money from those cuts, they just spent it on other things.
And then the government will be losing $4.5 trillion in revenue from tax cuts for those making more than $360,000 per year.
We are probably heading into a very deep recession if not eventual economic collapse. We are already paying $1 trillion in interest on our debt. That is going to continue to grow.
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u/12togo1904 Mar 04 '25
It seems to me - all of the proposed theories lead to the same conclusion- the general american public gets screwed and we become a 3rd world country.
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u/unclechuuu Mar 04 '25
The largest holder of American debt is the American people. This would be dumb as hell. Please stop trying to act like Donald is some uber genius, 4d chess player, or master negotiator. Donald can’t even read. The guy can’t manage his way out of a paper sack. He is not intentionally trying his management style is leading us to bankruptcy, loss of international role, and isolation. We are all going to suffer unless someone steps up to curve his power.
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u/blofeldfinger Mar 04 '25
To all Americans - check which countries defaulted on their debt and how it worked out.
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u/Luddites_Unite Mar 04 '25
In his first term he had some people around him who tried to rein him in (mattis, tillerson and some like them) but this time it seems like those people either steered clear or were kept away.
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u/Needaboutreefiddy Mar 04 '25
LOL trump doesn't plan anything, he doesn't even have concepts of a plan here. He does what he thinks is good in the moment which is normally batshit insane because he is extremely deluded. There's no positive endgame here dudes
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u/DoxBurger Mar 04 '25
I seriously came to same conclusion last week. Elons probably pushing this. Also Trump has defaulted at least 6 times (bankruptcies)
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u/Steve_Dobbs_69 Mar 04 '25 edited Mar 04 '25
I thought they were just trying to turn 2 Trillion a year worth of tax money into the crypto reserve, then launder it all through pump and dump schemes over time.
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u/YouSeeWhatYouWant Mar 04 '25
ITT Morons that think sovereign debt works even remotely like their credit cards.
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u/quizno Mar 04 '25
Maybe there’s a video of a pigeon playing chess and you can tell us about the pigeon’s strategy.
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u/12togo1904 Mar 04 '25
No intent to hijack the convo 😬. I am a single mom/disabled vet with a small savings. Should I convert it to Canadian or Euro travelers checks right now to maintain some value before they crash the dollar? Please forgive my lack of financial education.
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u/IllVagrant Mar 04 '25 edited Mar 04 '25
Social security pays for itself. Every person pays into it all their working life, so there's no debt there. The problem is these political chodes keep borrowing from it. It doesn't make sense to cut it, just stop borrowing against it. Basically, cutting social security would be akin to the politicians robbing every citizen blind and telling us it was somehow our own fault the money's gone and that we should betray everyone's trust and sense of security by scrapping it altogether. This will massively increase unrest while doing nothing for our debt.
They could cut every government job we have, and it won't be enough to ease our debt. And it's already been demonstrated that there are a lot more highly important and necessary jobs than these morons anticipated. Cutting government spending this way has been a very public, and very embarrassing losing battle, and even then the math still doesn't work out to make any sense in continuing to do so.
Defense will never be cut. It's the key to our hegemonic (and thus economic) power. We'd be screwing ourselves pretty hard by doing this.
Russia will use us but offer nothing in return as payback for how we treated them in the 90's after the USSR fell. We made a lot of promises and delivered on none of them, and let Russia flail. Revenge for that has literally been Putin's sole reason for living since he was put in charge. People really need to study history. This is exactly the situation he'd been staining his bedsheets over for 30 years.
Cutting medicare/medicaid won't put a dent in our debt. The number of people seeking medical services will plummet, and the medical industry will cry foul and beg for subsidies to counter all their losses. This happens every single time someone proposes these kinds of cuts. This is why Obamacare never died despite everyone whining about it.
This is all par for the course as far as a "throw the same shit at the wall we've already tried so long as we avoid raising taxes" master plan goes. What you're seeing is a doubling down on political theater, not a genuine effort to stave off the nation from defaulting. Trump is doing the same old shit that's been attempted only louder and more obnoxious.
If anything, the oligarchs are just preparing a planned collapse. Last time the US was in this position, the rich were strong-armed into a 90% tax rate in order to avoid widespread civil unrest. This time, they want to reconstruct the US on their terms. They've anticipated this for decades. Trump/Elon/MAGA are just a loud distraction from what's really going on behind closed doors.
The big question is if they even know HOW to reconstruct things on their terms. It might be way more expensive and difficult to try and build whatever technocracy people keep talking about and keeping the existing infrastructure will likely be cheap, but also means admitting that the horseshit they've been spewing all these years was indeed horseshit. If anything, the rich will bail out the country (the same as having just paid their damn taxes) but they'll spin things like they're the heroes somehow.
TL;DR The problem with the US is that we are a dog with a ball in its mouth. We want the ball to be thrown but don't want to let it go either. Corporations, politicians, oligarchs, etc all got what they wanted from the government, and it was all very expensive, but now no one wants to pay back into it, not even to keep things going. However, everyone is also afraid that our collapse might end up being violent and even more expensive than our current peace.
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u/KernunQc7 Mar 04 '25
Interesting speculation, but defaulting will never not be bad and a disaster.
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u/Roaring50s Mar 04 '25
It means all the rich people can come in and buy everything on the cheap. I agree they are doing it on purpose because they don’t actually care about Americans - they care about getting richer.
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u/manikwolf19 Mar 04 '25
Defaulting on debt has always worked for him in the past
That's a scary thought lol
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u/Betelgeuse-2024 Mar 04 '25
I do think Trump just do things without thinking, he doesn't know what he's doing which is equally disturbing.
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u/InternationalError69 Mar 04 '25
Just like his business, he is planning on filing chapter 13 for the country
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u/Dizzy_Bridge_794 Mar 04 '25
It would destroy the finance sector entirely and put us in a depression.
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u/lastcall83 Mar 04 '25
💯 Only he won't default. He'll mint $1T coins with his face on them and then just use them to pay off the debt. It'll be the same as default, but with $1T coins with his face on them.
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u/Time_Many6155 Mar 05 '25
Foreign countries own 24% of US debt... That means 76% of it is held by US individuals and organisations.. You want all those bonds to be suddenly worthless? What happens when we need to borrow even more money?.. A bit like when your meth addicted Brother in law just "needs a few bucks to tide him over".. Ain't happening is it? Thats why the US will never default.. Dear God at least I hope not!
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u/Franvisco_d_Anconia Mar 05 '25
The guy even managed to bankrupt casinos? If you’re so smart at running gabbling why don’t you take over PENN? Their stock hasn’t gone anywhere
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u/WorkingPapaya4175 Mar 05 '25
We actually do cover a huge portion of the defense bill for Europe and Canada, so that’s not actually a ridiculous claim.
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u/Spright91 Mar 06 '25
I dont think there is a master plan. He just tries whichever policy he likes from whoever suggests it to him that day.
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u/Terrible-Salt2272 29d ago
Interesting read. You could add that installing a bitcoin reserve and "checking gold reserves" could also be part of such a plan. There where news that gold is transported back from uk in reasonable amounts.
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u/star744jets Mar 04 '25
Make no mistake : isolationism, tariffs barriers and geopolitical re-alignment with traditional enemies means war. The US will get more than what they bargained for.
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u/Under_Over_Thinker Mar 04 '25
A war with whom?
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u/star744jets Mar 04 '25
With the Free World . The US is under a kleptocratic and oligarchic administration. Not a democracy anymore since one rich guy bought the elections. You will soon feel the war in the form of hyperinflation, travel restrictions, massive shortages, spread of diseases and political riots. The US is now hated by everyone outside . Mark those words.
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u/NikiTrust Mar 04 '25
Any advice on how to prepare? I think you are correct in your assessment of Trumps plan.
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u/fatbunyip Mar 04 '25
While I don't think his plan is what you posted, I do think the US defaulting on its debt is a much higher possibility under trump.
He's already floated the idea that some US debt was "fraudulent" so it's not like he's not thinking about it.
If the US does default (even a technical default on a small amount of treasuries) balancing the budget will seem like a walk in the park compared to picking up the pieces from that.
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u/jakemoffsky Mar 04 '25
Lol there is no balancing the books if the government defaults. The banks collapse as much their assets will lose too much value too quickly, without bailouts (which aren't possible at that point) the average American loses everything and the union itself likely ends.