Trump’s suggestion of a partial default on US debt would
quickly bring about the demise of the dollar standard:
Cohen notes –
“Even the hint of a
default would jeopardize the government’s credit rating and raise the cost of
future borrowing. Treasury bond prices would tank and in the end taxpayers
would be saddled with even higher debt-service payments.
Worse, the dollar’s role as
an international currency would be jeopardized, which in turn would severely
impair America’s superpower standing.”
Related:
http://www.bloomberg.com/view/articles/2016-05-16/memo-to-trump-u-s-debt-shall-not-be-questioned