Likely impact of Trump proposal for US debt: soaring rates

WASHINGTON (AP) — In the event that the U.S. economy crashed, Donald Trump has floated a recovery plan based on his own experience with corporate bankruptcy: Pay America’s creditors less than full value on the U.S. Treasurys they hold.  Experts see it as a reckless idea that would send interest rates soaring, derail economic growth and undermine confidence in the world’s most trusted financial asset.  The presumptive Republican presidential nominee suggested in a phone interview Thursday with CNBC that he would stimulate growth through borrowing. If trouble arose, he added, he could get investors to accept reduced payments for their Treasury holdings. Read article