For those of you who say that there’s no way Donald Trump could be a worse president than Hillary Clinton, I put before you this story:
Asked whether the United States needed to pay its debts in full, or whether he could negotiate a partial repayment, Mr. Trump told the cable network CNBC, “I would borrow, knowing that if the economy crashed, you could make a deal.”
He added, “And if the economy was good, it was good. So, therefore, you can’t lose.”
Such remarks by a major presidential candidate have no modern precedent. The United States government is able to borrow money at very low interest rates because Treasury securities are regarded as a safe investment, and any cracks in investor confidence have a long history of costing American taxpayers a lot of money.
Experts also described Mr. Trump’s vaguely sketched proposal as fanciful, saying there was no reason to think America’s creditors would accept anything less than 100 cents on the dollar, regardless of Mr. Trump’s deal-making prowess…
Pressed to elaborate on his remarks, Mr. Trump did appear to step back. He said that he was not suggesting a default, but instead that the government could seek to repurchase debt for less than the face value of the securities. The government, in other words, would seek to repay less money than it borrowed.
Such a process can apparently can work that way for businesses. But the United States is not a business:
The United States simply cannot pursue a similar strategy. The government runs an annual deficit, so it must borrow to retire existing debt. Any measures that would reduce the value of the existing debt, making it cheaper to repurchase, would increase the cost of issuing new debt. Such a threat also could undermine the stability of global financial markets.
Trump’s business acumen is often touted as being good preparation for the presidency. But I have never thought that argument makes much sense, particularly if the candidate’s experience is limited to business. Business requires a different skill set and a different knowledge base, as well as being a different context with different rules and different forms of power . But far far more importantly and specifically, Trump appears to lack even the humility to understand what knowledge he lacks, and narcissists are not known for hiring knowledgeable people to take up the slack, or for taking their advice (example: Barack Obama).
I find statements like that one from Trump frightening, and it was supposedly in his field of expertise.
Here’s another take on Trump’s statements. Not good.
Right now I observe two types of Trump supporters. The first group wanted him to be the nominee from the start, or at the very least jumped on board before he became the only man standing. I would call them the enthusiasts. Then there are the reluctant ones who are willing to vote for him since he appears to be the nominee, but plan to vote with one hand holding their noses closed and/or with barf bags at the ready. Their main goal is to stop Hillary Clinton. I particularly sympathize with that second group, because it’s possible that one day I might join their numbers.
But I ask both groups whether stories such as the one above give them pause. It certainly gives me pause. Trump’s response seems to be an error of such magnitude that it’s hard to excuse or explain. Nor is this sort of thing the only time he’s said something that shows a similar lack of judgment. Add to this Trump’s character problems and you get a man who could do a great deal of damage, perhaps even more than his opponent.
A while back quite a few people were arguing that there’s no need to worry, because if Trump gets really dangerous then we can count on Congress to impeach him, because Democrats and Republicans would join in. I have to say that what I’ve seen so far doesn’t persuade me that that’s so. What I see a great deal of among politicians on the right is a failure of courage and a refusal to stand up for principles, an aligning with power for power’s sake as well as a fear of being a target of Trump’s lying, accusatory invective. I don’t have much faith in the presence of enough profiles in courage in Congress to make a difference.
[NOTE: The Weekly Standard is trying to drum up enthusiasm for an as-yet-unnamed third party candidate, much like a player to be named later. It’s something I’ve never even considered in any previous election. But I wonder whether the special circumstances of 2016—when both candidates are heartily and widely disliked, even in their own parties—could favor such a third-party run.
I’ll add that I have no independent way of evaluating whether Trump’s proposal as described above is as bad as they say, because my grasp of the economics of it is shaky. But I find the arguments that it could be disastrous pretty persuasive. If you disagree, I’d be curious to hear why.]

