Whatever their differences on line-item details, though, Mulvaney and the president-elect have at least one major thing in common: an alarming openness to defaulting on the federal debt.
As you may recall, during the campaign Trump repeatedly flirted with the idea of defaulting on U.S. debt obligations. In a CNBC interview in May, he suggested that his experience in offloading private debt would translate nicely to federal obligations. That is, he’d simply persuade the country’s creditors to accept less than full payment.
“I would borrow knowing that if the economy crashed you could make a deal,” he said.
When the financial press freaked out, he walked back the language — only to revive it a month later.
Mulvaney has also questioned the need to preserve the country’s sterling reputation as a borrower.
The Full Story (December 20, 2016)
See also.
As you may recall, during the campaign Trump repeatedly flirted with the idea of defaulting on U.S. debt obligations. In a CNBC interview in May, he suggested that his experience in offloading private debt would translate nicely to federal obligations. That is, he’d simply persuade the country’s creditors to accept less than full payment.
“I would borrow knowing that if the economy crashed you could make a deal,” he said.
When the financial press freaked out, he walked back the language — only to revive it a month later.
Mulvaney has also questioned the need to preserve the country’s sterling reputation as a borrower.
The Full Story (December 20, 2016)
See also.
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