I wouldn’t know that Greece debt and default can be an example that other countries should follow. Apparently it is. In the mind of US Presidential candidate Donald Trump. He came out with his “Big Plan for the Economy: Let’s make like Greece and default on the national debt.” or something like that.
Warning: This is not a joke! Today, May 9th is not April Fools Day!
Excerpts from an opinion article on Market Watch : “Donald Trump’s plan for the economy: Let’s copy Greece “
“The Donald has finally come out with his Big Plan for the Economy: Let’s make like Greece and default on the national debt. Put this on a cheap hat: Let’s Make Greece Great Again.
Speaking on CNBC on Thursday, Trump floated his plan to deal with the national debt: Ask creditors to take a haircut, or a reduction in the face value of their debt, which is a default, in exchange for … what exactly? Well, exactly nothing. But thinking has never been a prerequisite for speaking in Trumpland.
Reaction is as disbelieving as it was in 2011, when first-term Tea Party Florida congressman Ted Yoho called on the financial experience he amassed as a large-animal veterinarian to opine that it would be smart to default on the national debt to show bond markets we’re serious about getting our fiscal affairs in order.”
Of course, Donald Trump did not reveal exactly a Greek default plan as a tool to bring economy to growth.
“In the event that the U.S. economy crashed, Donald Trump has floated a recovery plan based on his own experience with corporate bankruptcy: Pay America’s creditors less than full value on the U.S. Treasurys they hold.
The presumptive Republican presidential nominee suggested in a phone interview Thursday with CNBC that he would stimulate growth through borrowing. If trouble arose, he added, he could get investors to accept reduced payments for their Treasury holdings.
Trump later clarified that comment to say he would offer to buy the bonds back at a discount from investors in hopes of refinancing them at lower rates.
“I would borrow, knowing that if the economy crashed, you could make a deal,” Trump told CNBC.
I have no idea whether Donald Trump is a better negotiator than George Papandreou, the Prime Minister who brought the IMF into the country and his successors. Businessman Trump can surely deal with investors better than any politician Greek or other nationality. It’s only that state debts are not corporate debts and have grave consequences for the masses of citizens.
On the other hand, why should a Market Watch author come up with a “Copy Greece” solution? Oh, that’s the easy, funny way, with every reader to have a direct association to the issue.
Here in Greece and inspired by thousands of Hollywood films, we tend to call anything exaggerated with a happy end like total catastrophe where the good guys win and turn the world into a safe, happy place as “Amerikania” = superficial approach American style.
Amerikania is also used to describe something exaggerated that displays bad taste… . Like a giant hamburger…
.. Like a giant WOW-Hamburger…
PS and if Trump has difficulties to understand I can explain it to him – we just need to agree on a one-time consultation fee. It’s hard to get fixed income when a country has defaulted on its debt, even 7 years after the bankruptcy…