[ExI] Repudiating the national debt/was Re: A Nobel Prize ​winner on Trump

Dan TheBookMan danust2012 at gmail.com
Wed May 11 17:57:16 UTC 2016

On May 11, 2016, at 10:41 AM, Rafal Smigrodzki <rafal.smigrodzki at gmail.com> wrote:
>> On Wed, May 11, 2016 at 1:31 PM, John Clark <johnkclark at gmail.com> wrote:
>> (about Ted Cruz)
>> ​By trying to default on the national debt and collapse the world economy. ​
> ### Another Mother Jones story?

I'm no fan of Trump, Cruz, or any Republicans (or Democrats or Krugman for that matter), but I do not believe repudiating the US (or any other) national debt would collapse the world economy. It would definitely shake it up and cause a lot of pain, but I believe that would be over quickly -- depending on what else happens. I'm not being snarky here either. If the basic policy were repudiate and don't try to make any further radical changes (in the direction of more interventions, that is), I think the pain and confusion would be over rather quickly -- maybe in under two years.

One positive effect such repudiation would have is making lenders more wary of lending to nation states in the first place, especially to First World ones with massive mercantilist apparatuses.


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