Implode-o-Meter News - Donald Trump just threatened to cause an unprecedented global financial crisis

In an interview Thursday on CNBC,Â Donald Trump broke with tired clichÃ©s about the evils of federal debt accumulation. "I am the king of debt," he said. "I love debt. I love playing with it." But he replaced fearmongering about debt with an even more alarming notion -- a bankruptcy of the United States federal government that would incinerate the world economy.
"I would borrow, knowing that if the economy crashed, you could make a deal," Trump said. "And if the economy was good, it was good. So therefore, you can't lose."
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The government doesn't work like [a business]. Right now, people and companies all around the world treat US government bonds as the least risky financial asset in the universe. If the government defaults and banks fail as a result, the government needs to clean up the mess. And if risk-free federal bonds turn out to be risky, then every other financial asset becomes riskier. The interest rate charged on state and local government debt, on corporate debt, and on home loans will spike. Savings will evaporate, and liquidity will vanish as everyone tries to hold on to their cash until they can figure out what's going on.

Hilarious -- The Donald has gotten closer to speaking the truth here than anyone else, but doesn't seem quite to grasp how intentionally breaking this "taboo" could cause the illusion that keeps the monetary order chugging right along to prematurely implode.

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Donald Trump just threatened to cause an unprecedented global financial crisis