Yep! It was really horrible but not unexpected that both the left and the right criticized Trump vociferously for something he understood just fine and almost no one in any news venue — including all the financial ones — comprehended at all.
Even the first commenter on the linked post has no clue, stating “But isn’t that like paying off your old debt on a low-interest credit card by borrowing more money on a different high-interest card?”
NO. FUCKING NO. Repeat after me kids: fiat money is not like your checking account or your credit card. The federal budget is not like your bank account. It just isn’t, never will be, can’t be, won’t be. Ever. Yes, ever. Give it up and shut up about it.
In fact, not a single commenter in the post understood at all — and this is not controversial. This is how bond markets work. This is how sovereign debt works. There is no other way. This is just how it is, period. There is no debate. The commenters (and 99% of the financial press and 100% of everyone else) is just plain wrong. And have no clue.
Note: Trump’s plan isn’t actually a good one, precisely, but there is nothing technically wrong with it. He said nothing incorrect. But he doesn’t control the Fed and probably never will (even if president), so it would not likely be put in place.
But Trump understands 100% how bonds and their markets function (and the US monetary system) and almost no one else does. (I’m quite certain from her statements that Hillary Clinton does not, but then again no other presidential candidate including Bernie Sanders does, either.)