is the idea that he can retire them at their par value rather than at the market.
If he does that, he is thinking like a Trump company operator, which welches on outstanding debts that are inconvenient to it. If the US does that, the entire global economy will melt down, as that would be the end of the full faith and credit of the US. It would be as easy to raise funds from the credit market as it is for Argentina.
So since this would be nuts, what this means is that the Fed would actually have to purchase the bonds at their market value. Their market value is connected to market interest rates. So higher yielding bonds are higher priced, in order to reduce the rates they pay out to market rates for Treasuries. In other words, you've be replacing old bonds for new ones without making any difference at all.
The idea that Trump knows anything, even about subjects he pretends he has expertise in, is ludicrous. He is an empty hole. All he knows about is how to call his attorneys who know how to help him not pay for the things he has purchased. He represents the rotten core of unregulated capitalism. He should be banned from running companies of any kind.
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