Trump hints about defaulting on national debt

Donald Trump first achieved national fame in 1987 with a bestselling book titled The Art of the Deal, which created an enduring false impression that Trump was good at making deals. In fact, the secret to Trump’s initial financial success—and also to his many subsequent financial failures—is Trump’s propensity not to make deals, but to break them. A better title would have been The Art of the Stiff.

On Sunday, Trump hinted that the United States might renege on some of the $36.22 trillion that it owes on the national debt. Speaking to reporters Sunday on Air Force One about Elon Musk’s review of government spending, Trump said:

“For those not familiar with how financial markets work,” Paul Krugman later explained on BlueSky, “U.S. Treasuries are the ultimate safe asset, used as collateral for everything. Even a hint that some Treasuries might not be honored could bring everything to a screeching halt.”

https://newrepublic.com/article/191367/trump-treasury-default-bond-market