The entire army of slimy Debt Doomsday propagandists and corporatists are out attacking Trump now, full bore on his CORRECT claim that the U.S. can never default because it controls its own currency.
Trump is good at defending himself and beating back criticism and personal attack. In fact he usually crushes his foes, but this is not like fighting 16 stiff and charisma-challenged political hacks or, a corporate media that everybody knows is biased.
This is a slick, well-oiled machine that peddles a sick religion that they've gotten most people to believe in. Trump may not have the skills to beat this back; we can see that from some of his confusing and contradicting statements.
Here's a new attack today from Obama's former top economist, Austan Goolsbee
“Treasuries are the opposite of junk bonds,” Goolsbee said. “It’s the safest asset on the planet. Whenever anything goes wrong, money floods into Treasuries and actually our interest rates go down when there’s a crisis. To propose anything that would threaten that is, it sounds extreme... It really doesn’t make any sense.”
Here's the problem with what Goolsbee's saying.
Implied in this is that he thinks the market sets rates. It doesn't.
There's a total lack of understanding that the Fed can support its rate forever. It can buy Treasuries infinitely if it has to.
Then he goes on to say that Trump would start three trade wars. A lot of people are saying this. How do they know? Nobody knows this. The countries that Trump has informally targeted---China, Japan, Mexico--might want to make a deal.
That's what he's looking to do. It won't come to a trade war, and even if it does the intent was to create jobs in America. We can produce what we consume abroad. Maybe it would cost a little more, but if incomes rise then it's all the same.
Rich people buy from expensive stores. Why? Because the quality is better and they can afford it.