by Peter Schiff, CEO of Euro Pacific Capital
On a lengthy interview on CNBC this morning, Donald Trump, the now presumptive Republican nominee, looked back on his business history to lay the groundwork to what he would do as President. He came as close as any major presidential contender to saying that America’s formula for economic recovery might involve repaying our creditors less than what we owe. This is a major development that should be rewriting the playbook on Wall Street and call into question the risk-free nature of U.S. Treasuries.
Despite his public image as a premiere pitchman, marketeer, and builder of some of the world’s most heavily gilded residential properties, Donald Trump owes his business success to his ability to walk into a roomful of people to whom he owes money and, through the use of threats, promises, bluster, and hardball negotiations, convince them to accept less than what he owes.