The first mainstream media story of the inevitable US debt default…

This is from the “but Sapphire, you can’t do dat…” department.  Peter Schiff and Donald Trump agree that default on our national debt may be required.

 

Kingfish is “entitled” just like too many citizens feel entitled.

Schiff prefers to call it “restructuring” rather than default, although he also uses the “d” word.  But the reality is that our national debt is so huge with no possibility that the rate of increase will decline.  Even worse, the current rock bottom interest rates cannot be maintained forever.  Once rates start their upward march, we will see our national debt increase at an exponential rate that will not be sustainable for long.

Something will need to be done, and the sooner the better.

HERE is the CNBC story.  The video of Peter Schiff laying out the problem and required solution is below:

I can hear Hillary now:  “There goes Donald , saying ridiculous things again.  We will never have to default.  We can keep raising our debt ceiling forever.  As long as I have anything to do with it, we will continue to kick the can down the road. It doesn’t matter.  [now squealing] What difference at this point does it make?” 

But Sapphire, you can’t do dat!

Here is the difference:  The longer the inevitable is put off, the worse it will be for all Americans.  No politician wants to be in office when the inevitable happens.  Only a non-politician like Trump will have the courage to do what is necessary to enhance our prosperity.  Trump and Schiff realize that as long as the burgeoning national debt albatross is hanging around America’s neck, prosperity will not be possible and decline will be our lot. 

All other candidates would prefer to ignore the problem until our economy suffers an unavoidable,uncontrolled, terrible collapse.

Here is more from Zero Hedge, this time with Trump clarifying his earlier comments about “restructuring” and “default.

And, for your listening enjoyment, here is Tennessee Ernie Ford.  Except instead of “company store” in the lyrics, substitute “China.”