Will the bankruptcy king default on the federal debt?

[octoberlib]

Trump’s OMB pick seems poised to ignite a worldwide financial crisis
By Catherine Rampell Opinion writer December 19 at 7:45 PM

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.
He ran for Congress promising to never raise the country’s debt ceiling, and he has mostly kept to that pledge. Since taking office in January 2011, he has voted against (ultimately successful) legislation to raise this ceiling four times. He also publicly questioned whether failing to raise the ceiling would be such a bad thing, and whether it would necessitate defaulting on our debt.

To be clear: It would, and it would.

https://www.washingtonpost.com/opinions/trumps-omb-pick-seems-poised-to-ignite-a-worldwide-financial-crisis/2016/12/19/6d3190c8-c631-11e6-85b5-76616a33048d_story.html?hpid=hp_no-name_opinion-card-d%3Ahomepage%2Fstory&utm_term=.5dd3b7517ee7#comments

[liberal N proud]

1. His past would say yes

[Dave Starsky]

2. ...

[Igel]

3. I doubt it.

On the other hand, in the event of a crash this is merely what most wanted for Greece when it had its crash--why be beholden to the megabanks when the country's a-hurtin'?

It pays to remember part of the context that a lot of these kinds of posts should make clear: He may have been speaking to an audience that was present, but this, his hacking comments, and more than a few others have as their primary audience the PRC. Just as those who decried not having bankers take a haircut on Greek securities weren't talking to pensions and individuals security holders but, well, to the bankers.

[Yo_Mama_Been_Loggin]

4. K&R

[sarcasmo]

5. First Orange Julius and his cronies have to loot your 401K.