Trump: Not Paying Debt Obligation To China Would Hurt The "Sanctity" Of The U.S. Dollar | Video | RealClearPolitics

Trump: Not Paying Debt Obligation To China Would Hurt The "Sanctity" Of The U.S. Dollar

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President Donald Trump said not servicing the United States' debt obligation to China would hurt the "sanctity" of the U.S. dollar. Trump touted that the country can borrow at a zero-percent interest rate and the dollar remained strong. He called it a "rough game" and said there are other ways to hurt China economically such as the use of tariffs.

"You know, you say oh gee, you owe us, we owe you a certain amount of money; we're going to keep it. But when you start playing that game, you're really hurting the sanctity, the importance of the greatest currency on earth. But we can do it in other ways. We can do it with tariffs. We can do it other ways even beyond that without having to play that game. That's a rough game," Trump said.

JEFF MASON, REUTERS: Mr. President, would you consider having the United States not pay its debt obligations to China as punishment for the virus?

PRESIDENT DONALD TRUMP: Well, I can do it differently. I can do the same thing but even for more money just by putting on tariffs. So I don't have to do that. You know, it's approximately $1 trillion, a little bit more as I understand it, $1 trillion. But we can do that in a, I think probably a little bit of a more forthright manner. You start playing those games, and that's tough. You know, we have the dollar to protect. We want to protect the sanctity of the dollar, the importance of the dollar. It's the greatest currency in the history of the world. It's become stronger. We have a very strong dollar. That's why we're borrowing at zero, zero interest rate.

You know, with all of the stimulus that we're talking about, we're--that sounds good, though, General, doesn't it? We're paying zero interest, so essentially right around zero, but zero. And you want to protect--it's a very good question. You know, you say oh gee, you owe us--we owe you a certain amount of money; we're going to keep it. But when you start playing that game, you're really hurting the sanctity, the importance of the greatest currency on earth. But we can do it in other ways. We can do it with tariffs. We can do it other ways even beyond that without having to play that game. That's a rough game.



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