Even though Josh Brown of the Reformed Broker leans ‘left’, I agree stiffing treasury bond holders, hurting America’s credit worthiness and causing a multitude of problems in the process, is a bad idea:
The whole world runs on the premise that US debt is risk-free in terms of return of principal, backed up by our status as the world’s reserve currency and the enforcement of the US Navy, Army, Air Force and Marine Corps. You can mess with just about anything else you want, but you can’t mess with that. Ted Cruz tried in 2011 2013 and we should have deported him on the spot. This is a no-go zone for dilettantes and ideologues.
Trump’s solution would cause far more problems than it would solve, similar to those who opposed the bank bailouts in 2008, which would have made things worse had the bailouts not happened.
Rather than defaulting on the debt, a better solution is to cut entitlement spending, including healthcare spending.
Trump needs to understand the the economy and debt holders should not be pawns in an ideological war. Leave them out of it.