Take the Deal, Donald

Donald Trump hints that U.S. debt might be renegotiated. I’ve got a better idea. I’ve been imploring the Obama administration to issue super-long term debt, 50 or 100-year bonds. Both The Wall Street Journal and Investors Business Daily have published my plea. Today I’m delighted to report that – Ireland has decided to follow my advice. Not the U.S., but formerly bankrupt Ireland locked in 100-year euro-bonds at y648a measly rate of 2.35 percent. In my forthcoming book The Price of Prosperity, I argue that politicians cheat our children and grandchildren by focusing on short-term finance. Federal debt rolls over and re-adjusts every 5 years. Our debt burden will jump by trillions of dollars when interest rates eventually return to “normal” levels. Trump should pledge to lock in debt at today’s puny rates. It would be the greatest deal since Pope Julius got Michelangelo to paint his ceiling.

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