Michael Maiello's picture

    Trump-o-Nomics or, How To Bully China

    Okay, this is a brilliant reveal of the Donald Trump worldview which is, really, that a big borrower has all the power in the world, assuming people want to get paid back. Discussing how, as president, he would force China to handle the problem of North Korea, he says:

    "We are holding China up," he added. "They're taking so much money. They're draining our country, and they're toying with us with North Korea. China should do it. They say they can't, they 'don't have that power.' They're toying with our politicians, who don't know what they're doing."

    China owns about $1 trillion worth of U.S. Treasury bonds (I'm assuming this is after the about $200 billion it reportedly sold during the fourth quarter of 2015.  Look, it's fine.  I never bought into the idea that China owning U.S. Treasuries actually gives it any leverage over the U.S. government. They buy and sell these bonds according to their own currency needs, after all. But this is Donald Trump, we're talking about.

    Donald Trump's business strategy has a few steps:

    1) Inherit money.

    2) Borrow more.

    3) Squeeze your lenders by threatening not to pay them ever if they don't either come up with more money or extend your payment period.

    It's worked out so well for him that he's going to do it to China!

    Trump: All we do is give you money!

    China: Um... you owe us a trillion dollars.

    Trump: Exactly!  You're welcome! Now do me a favor for a change.




    That might actually be his plan.

    Lesson: Trump's lenders should have had nuclear weapons.

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