We prefer an orderly resolution to the debt crisis and we're moving in that direction. But the most important thing is that the deal we reach with creditors is sustainable.
We owe the government taxes. We owe our creditors interest. What do these powers owe us?
No one will lend at a negative interest rate; potential creditors will simply choose to hold cash, which pays zero nominal interest.
We borrow 40 cents out of every dollar that we spend. We borrow most of it from countries like China. They have become major creditors of the United States and have more power over our economy than we want them to. So dealing with this is not only the right thing economically, it's certainly right from a moral viewpoint.
Massive debts owed to foreign creditors weaken our global influence and threaten high inflation and steep tax increases for our children and grandchildren.
We only have a Plan A. The acceptance and full implementation of the existing plan, the so-called Plan A, is the best solution for Greece, for the euro zone and also for creditors and holders.
In a world awash in debt, power shifts to creditors.
If you have a debt issue or credit card issue, start dealing with it. If you have a tax issue, don't just say, 'I'm not going to file.' There are ways to deal with these things, but you must communicate with your creditors, whether it's a credit card company or tax department.
Garnishments tend to happen when people hide from their debts and stop making even minimum payments. Eventually, creditors sell the debt to a collection agency.
The best companies with the strongest credit ratings borrow like the United States: on a non-prioritized basis. This means that in the event of a default, all of their debts are of equal priority because lenders and creditors believe default is highly unlikely. And they spend considerable effort maintaining this status.
