“Obama out of his depth” says Trump!

President Barack Obama is out of his depth when it comes to negotiating a way out of the debt ceiling crisis, according to billionaire developer Donald Trump.

And Republican negotiators hold all the cards in the talks, he adds. They are in a no-lose situation where they can either extract a great deal from the administration, or they can delay a decision so the president has to take his unpopular stance up again just before the election.

The only thing the GOP negotiators can do wrong is make concessions just to get a deal through Congress, he said. “Obama’s totally lost,” Trump said. “He’s obviously not somebody who’s made a lot of deals in his life. “The man is not a man who makes deals. The one deal he made was Obamacare and that’s a  disaster for the country.”

Trump was speaking just a week before Treasury Secretary Timothy Geithner’s August 2 deadline day, which he said is not an important date.

Trump said the president is trying to scare people when he talks about a possible default if a deal is not reached by then. “The administration doesn’t want this dialogue to go on much longer because it hurts Obama.

“Look at his popularity. It’s going way down. People are saying he’s got no control over the situation, he’s got no control over the economy, he’s got no control over the country and he’s the president. This is turning out to be Jimmy Carter-esque.”

But the August 2, date is meaningless, he said. “Monday of this week, everything was supposed to crash in Asia and it didn’t,” said the Trump, who earlier this year mulled running for the Republican nomination for president.
“It was supposed to crash throughout the world but it didn’t.

“That threat is highly overblown, and August 2 is no longer the date. There’s plenty of funds to keep it going quite a bit longer. That’s just a date that Geithner came up with mysteriously, so August 2 is not a real threat at all.”

He said Rep. John Boehner and other GOP negotiators are on the right track when it comes to dealing with the debt and deficit crises. “Right now he’s doing fine, but he’s got to stay the course. He cannot fold. This is the time to make a great deal for the country.”

And that deal, he said, should include a repeal of the president’s healthcare initiative, which he said will do untold damage to the economy if it is ever fully implemented.

“It would be a great time to get rid of the really terrible thing called Obamacare,” Trump said. “It’s going to cost tremendous amounts of jobs. I know people that are going to close their businesses over Obamacare, so in the mix, they really should start thinking about getting rid of Obamacare.”

He agreed with Republicans that the most important thing in any final deal is to cut federal spending. “if you don’t cut expenses, we’ll never be in a position to be a great country again.“

“The Republicans are on the right track, I only hope that they continue on this track. They have to get the 100 percent deal because they have all the cards. If they don’t get the100 percent deal, they should delay it or not make a deal at all.”

He said the Republicans are in such a powerful position in the debt ceiling talks that they should either make a great deal or not make one at all. But he warned, “If you make a great deal, Obama’s actually going to end up being much tougher to beat in an election.

The option, he said, would be to delay everything for up to a year. “If that happens, Obama cannot be re-elected.”

Trump claimed the debt crisis battle had turned America into “a laughing stock all over the world,” and now it’s for the Republicans to do a deal to “bring the country back to the greatness it once had.”

But he said the long-running talks will not necessarily lead to a massive stock market sell-off as has been claimed. “Nothing is inevitable,” he said. “If the right deal is made, you’ll have a big uptick on Wall Street.

 

Advertisements

The IMF Warns US to lift its’ Debt!

The IMF is telling the US to raise its’ Debt, only because we sponsor them in a big way. The IMF receives Billions from US government coffers, so why not cry out that we must do something drastic, and in-effectual without controlling spending!

The International Monetary Fund on Monday warned the United States to lift its debt ceiling swiftly for the sake of the US and global economy.

But, with US politicians battling over a plan to slash the deficit, the IMF executive board called on authorities to only gradually reduce spending, to avert “a disruptive loss in fiscal credibility.” “The federal debt ceiling should be raised expeditiously to avoid a severe shock to the US economy and world financial markets,” IMF economists said in a report on the US economy.

Executive directors called for the US to gradually unwind the extraordinary support provided the economy to deal with the 2008-2009 financial and economic crisis. “Spillovers from credible and gradual fiscal consolidation are limited,” it said, while those from a loss of confidence in US debt sustainability “are universally large and negative.”

A downgrade on the United States’s top-rated sovereign debt, which ratings agencies have warned could happen amid the political impasse, would reflect deep troubles in the US financial system.

 The IMF has told US authorities that “it’s worth (fiscal) consolidation, even if it has some negative short-run effects, because the alternative… is so complex, so difficult that it’s better not to go there,” Rodrigo Valdez, a senior IMF adviser, said in a conference call with reporters.

Another IMF official, Gian-Maria Milesi-Ferretti, told reporters that other countries were concerned about the risk of a “loss of confidence in the US and hence an abrupt and large depreciation of the dollar accompanied by disruptions in international financial markets.”

Democratic and Republican lawmakers were in negotiations Monday trying to break a prolonged deadlock over raising the government’s $14.3 trillion borrowing cap, linked to a long-term plan to reduce a swollen budget deficit.

US President Barack Obama’s administration and top lawmakers failed over the weekend to reach a deal to save the world’s richest country from a disastrous default on its debt on August 2.

The government hit the debt limit in mid-May but has used spending and accounting adjustments, as well as higher-than-expected tax receipts, to continue operations.

There was little sign of an emerging consensus Monday, with Republicans who lead the House of Representatives and Democrats who control the Senate set to push rival plans. Republicans have opposed Democratic proposals to raise taxes.

 The IMF economists criticized rival deficit-reduction plans proposed by the Obama administration and the Republican majority in the House of Representatives, citing the economy’s tepid recovery two years after the official end of severe recession.

 “The official deficit reduction proposals could be too front-loaded given the cyclical weakness and, at the same time, insufficient to stabilize the debt by mid-decade,” they said in an annual review of the world’s biggest economy.

 The IMF projected public debt at 99.0 percent of gross domestic product this year, rising to a ratio of 103.0 percent in 2012, higher than its June estimates.

 “A politically backed medium-term framework that raises revenues and addresses long-term expenditure pressures should be the cornerstone of fiscal stabilization,” it said.

 “The strategy should include entitlement reforms, including additional savings in health care, as well as revenue increases, including by reducing tax expenditures,” the Washington-based institution said in a separate statement on the executive board’s discussions of the review.

 The IMF recommended that the US deficit reduction plan include “as many specific measures as possible,” and noted that clearly specified medium-term fiscal objectives were “essential.”