July 17, 2019 03:12 AM RSS

Rebel Yell: Who's More Dangerous? Donald Trump or Kim Jong-un

  • | James DiGeorgia
  • 05/10/2016 08:06 PM
Rebel Yell: Who's More Dangerous? Donald Trump or Kim Jong-un

The temperaments and political strategies of Donald Trump, and North Korea's Kim Jong-Un are remarkably similar.

Kim Jong-Un believes his country needs a strong man, a dictator to govern. He routinely ignores economic and present day reality. He delivers fiery, blustery speeches, demands and edicts to the world warning and threatening the consequences if his tirades are not taken seriously. Kim's speeches demean and insults his enemies with the grace and style of a 11 year old bully.

Kim's insistence however on building a nuclear weapons and ballistic missile program could put him in the position to murder millions of people and disrupt the world's economy.

Donald Trump in an interview with ABC's This Week's George Stephanopoulos affirmed his belief that he would be able to reduce the national debt by persuading creditors to accept a "haircut" on that debt, in which case U.S. creditors like China would be repaid less than the face value of U.S. Treasury bills, notes and bonds. The suggestion is that a Trump administration might repay only $80 of a $100 bond to the bond's holder.

Referring to his business history...

"I've borrowed knowing that you can pay back with discounts," he said. "I would borrow knowing that if the economy crashed, you could make a deal."

Clearly, Trump implied that if he were President of the United States he would be willing to default on the U.S. national debt and force debtors to accept payment on a discounted basis. It's the same exact approach to debt used by North Korea's Kim Jong-Un. North Korea is notorious for not repaying its debts. When China sends food loaded to the isolated state on trains, North Korea keeps the trains.

Trump insisted this point during his interview with George Stephanopoulos and went into great length on his view that defaulting on the national debt would not hurt full faith and credit of the United States. The reaction world-wide was instantaneous.

The suggestion that Trump would be willing to default on the national debt which is widely viewed the safest available investments in the world drew condemnation from financial and government leaders around the world. While not the equivalent of using nuclear weapons, the net result would have the same catastrophic effect on the world's economy.

A U.S. debt default would like trigger an economic meltdown fare worse than what we experienced in the wake of the 2008-2009 financial crisis. The simple threat of a U.S. debt default on its debt turned the world's financial markets.
Most rational and educated economists will attest to the fact that the idea of investors' receiving less than they were promised by the most powerful government in the world would dramatically increase interest rates in the U.S. and set off a global recession/depression.

Donald Trump managed to make matters worse Monday by suggesting instead of defaulting on the debt and discounting the monies owed to U.S. creditors he could instead just print more money!

Monday following his Sunday interview with Stephanopoulos, Trump gave an interview on CNN's "New Day," Trump reacting to the backlash to his willingness to default on the U.S. national debt, that the United States would never default obligations because it printed money: saying "you never have to default because you print the money, I hate to tell you”.

"One of the ways in which government debt is very different from privately held debt is that governments that control their own currencies, such as the U.S. government and the U.S. dollar, have the power to print money at will."
Make no mistake about it printing money, turning on the printing presses to relieve the national debt, would be disastrous. It would precipitate a huge wave of inflation, causing prices to rise very quickly and wreaking havoc not only U.S but the world economy.

A catastrophic decision to default on the U.S. National Debt could have the unforeseen consequences including a third World War. As a result, it's a fair question, “Who's more dangerous Donald Trump or Kim Jong-Un?”

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