Well, we're just gonna make it sound smaller later. Million used to be a large number, then comes billions, and now trillions. Sooner or later we're gonna see zillions and the other ones that follow
@@havfun9048 Your argument is provably wrong. Average inflation rate of US is not bigger than the debt to GDP growth US has. That effectively means, debt is growing even when adjusted for inflation. Also, at least on paper, US government has little monetary control over the interest rates. Finally, if you were to have a higher inflation rate, the amount of interest you pay on the debt would rise proportionally. People are not lending money to the US just to see the money they borrowed gets eroded by inflation.
It's not a problem until it is. Everyone will say the debt isn't a big deal until the straw comes that breaks the camels back, and everyone will wonder how everyone could be so stupid and let it happen. Absolute classic.
@@WildsDreams45 Facts man so true, it's unlikely USA will be the superpower in like 500-1000 years from now but question is who's the new superpowers, I say China
@@user-zMobileChanne China, then India. Just based on the present and future population numbers multiplied by GDP growth per year. Still, China will eventually have its GDP peak and then stagnate due to low birthrates, while the US population and economy might still get larger due to more immigrant-friendly politics unless this wave of Trumpism stays and replaces the old status quo. Maybe even the African Union can someday be a key player if that project ever goes anywhere as the ECC and its successor EU did. Now the African Union looks more like dictators that have different interests and not like a real proposal to replace nation-states with political, economic, and social union.
The Clinton Administration had budget surpluses during the years 1998-2001. In other words, the government was actually paying the debt down during those years. That's why you can see a dip in the national debt at 0:02 just before the year 2004 on the x-axis.
All these issues stem from an economy grappling with uncertainties, including housing problems, foreclosures, global fluctuations, and the aftermath of the pandemic, leading to instability. Rising inflation, sluggish growth, and trade disruptions demand urgent attention from all sectors to restore stability and stimulate growth.
With $420,000 in retirement savings, diversifying into assets that historically perform well during inflationary periods, such as Treasury Inflation-Protected Securities (TIPS), commodities, or foreign currency assets, might help protect against potential dollar depreciation. Exploring options like global real estate, diversified foreign bonds, or high-quality international equities may also offer a hedge against a declining dollar and inflationary risks .
With my demanding job, I lack time for investment analysis. For seven years, a fiduciary has managed my portfolio, adapting to market conditions, enabling successful navigation and informed decisions. Consider a similar approach.
this is definitely considerable! think you could suggest any professional/advisors i can get on the phone with? i'm in dire need of proper portfolio allocation
Thanks, I looked her up on Google and was very impressed by her credentials. I reached out because I need all the help I can get. I've scheduled a phone call with her.
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Only God knows how much grateful i am. After so much struggles I now own a new house and my family is happy once again everything is finally falling into place!!
Same here waking up every 14th of each month to 210,000 dollars it’s a blessing to I and my family… I can now retire knowing that I have a steady income❤️Big gratitude to Ms Evelyn Vera
After I raised up to 325k trading with her I bought a new House and a car here in the states 🇺🇸🇺🇸 also paid for my son's surgery (Oscar). Glory to God.shalom.
@@louisvl10we got off the gold standard also fun fact: we stole most of frances gold they kept here in ww2. They sent a destroyer to NYC to threaten to get it back
In short - the world having the USD as a reserve currency allowed America to print more money and allowed the fiscal irresponsibility to continue. And that’s the reason for cryptocurrencies and BRICS.
The US federal government creates money. How do you think the primary monetary base expands? The stupid part is that we call it national debt and literally pay entities to temporarily hold back spending their money for no real reason. But you are correct in one way. The people do pay it... Inflation.
Since the debt crisis could unleash carnage on the stock market leading to economic downturns. We need to be prepared for potential market volatility. how can I secure my $600K stock portfolio against declining?
@@derrickholfman2 Concentrate on two main objectives. First, keep yourself safe by knowing when to sell stocks in order to limit losses and maximize gains. Second, get ready to benefit from market changes. I advise consulting a coach or other professional for advice.
I talk a lot about how important it is to have an advisor.This kept me afloat and increased my $450,000 portfolio by 48% in just 4 months.They have strategies that are tailored to your long-term goals and your desired financial situation.
I never liked the debt, I don't see the point, i get that it can make a lot of growth happen, but at the same time, you can use that interest money yourself to boost growth in the future rather than paying off others. All this debt does is make inflation higher and reduce the value of their currency which for an average person that is bad. The argument was used here that it makes the dollar circulate more but you can make that same argument if you have a surplus of money and make other countries indebted to you kinda of what China is doing.
Youre conflating personal debt with national debt, theyre completely different and does not work the same way at all. Debt does not cause inflation. Surplus money does not drive growth. Debt allows investment to growth as soon as the need arises rather than waiting for a surplus. How is China relevant? China also has debt, thats how countries work, they need debt to fund growth. National debt is different from personal debt.
@winzyl9546 of course debt drives inflation, it was explained right here how they pay the interest by printing more money. That leads to inflation straight up. Is not 1 to 1 affected but it's like one of those phrases "all roads lead to Rome". Eventually the debt will be higher than the GDP, and print more money. If I am wrong about then please tell me what exactly is causing inflation other than the government spending more money than they have?
@@21preend42I think you are confusing without how government debt really works. Government debt is on the whole safe to invest in. If you are an investor the advantage of government debt is even though you probably won't get a massive pay out at the end you will be pretty safe in that you will get a return at the end and when they do get a return they use that money to invest in further stuff. Contrast this with a company. The company might go bust, their product may not take off. It's risky, yeah you might get a bigger pay out at the end but you also run the risk of losing everything. The issue ultimately comes down to when governments can't make payments. Then you are in trouble.
@@pgpython well you said it : "The issue ultimately comes down to when governments can't make payments. " I am not confusing anything, the reason why the government doesn't go bust which by the way they can, its called default and everyone is talking about, they can print more money which causes inflation. A company can't print more money to pay their debt. Btw US printed more than 3 trillion dollar in 2020 and its because of DEBT ! mostly because of Covid. IF US was making a surplus and had spare money to deal with the pandemic, there wouldn't be any inflation at all. Inflation ultimately is affecting us consumers who have to pay more for the same stuff because the government always borrows money and when they can't pay , they take a little bit from YOUR money to pay it. It's essentially a TAX on you.
@@princemc35 Because of the size of its economy the us basically directs the economy of the entire world, the subprimes mortgage crisis was a good example of that, the greed of the venture capitalists caused a worldwide financial crisis whose effects are still being felt today as some parts of the world never really recovered. Debt especially works with government bonds, when you buy bonds, you buy a country's debt and the country promises to pay it back with interest and that's how debt is (very basically) made. The US has an advantage, the US dollar is used as the world's reserve currency meaning every country needs to buy US dollars to conduct trade with commercial partners. What this means is that the rest of the world, because of their dependency on the US dollar as a mean of exchange finances directly the debt of the USA. So if the US financial system fails or slows the entire world will feel those effects.
@@rikavid This is exactly the reason the why the BRICS wants to dedollarize. China and other nations bailed out US in 2008. www.federalreserve.gov/pubs/ifdp/2012/1041/ifdp1041.htm See what thanks they got They don't want to bail out again this nation that does not know how to control its expenses and pay its debts
If the us government defaults then everyone will feel it, that’s true. But the us will still feel it the most as the days of the dollar as the global reserve currency will be over.
@@princemc35 вы буквально сделали доллар США международной валютой. Если экономика США коллапсирует (как экономика СССР, в 80ые, например), то плохо будет всей планете, и везде будет экономический кризис
the more you depend on someone, the worse off you are if that someone can't help anymore. America vs the rest of the world. and only fools put all their eggs in one basket.
The government doesn't have to pay off it's debt because if it did it would print more money devaluing the dollar and furthering the debt. So add 35 trillion to 35 more trillion to pay off the debt and you double the debt by paying off said debt. Most of the debt goes into the American economy as well, to build roads, bridges, etc.
Interest payments past few years are a bit misleading as there was a recent uptick in interest rates. Social security and medicare are problems but can be solved with reforms and good immigration policy.
Because its not suppose to have zero debt. Countries are not like people, countries need debt to fund infrastructure. Most of that debt is owned by the citizens themselves, some by foreign investors. The only time you should be worried about government debt is when they cant repay it. US bond is the most sought after bond because it is considered the safest investment, it will always be repaid no matter what.
What happens when the US is not sought after? It may look like that can never happen, but that is rather foolish as things change and they never stay the same forever.
It doesn't help and you are right, but they want to put in the tariffs which it will offset it, basically, give the people more money but products will be more expensive, domestic products will likely be the same. So overall maybe a positive outcome .
7:02 - Please don't do charts like this. This chart makes 126% look like it's over 3x larger than 106%, which it emphatically is not. There's enough misinformation in the world already.
The most ironic thing about this are a couple of facts many people refuse to acknowledge If you care about the deficit (you really shouldn't ...but if you do) It started blowing up when Reagan cut taxes and regulation which lead companies to start the ballooning CEO salaries and the hobbling of unions diminished the power of workers The financial crisis started the seeds of Trumpism because the stimulus was way too small. It bailed out the banks that caused it and did very little for the people losing their homes. The reason it was too small? Republicans. They suddenly found deficit religion as they do anytime a Democrat is President. In fact every time Congress tries to fund programs, reduce prices (for drugs and other places where gouging takes place), or to build infrastructure, it is either blocked (filibustered) or thoroughly watered down to the point it doesn't do as much as it should. The debt ceiling...is a Republican creation with the Gramm Rudman Act. It was a reaction to keep Democrats from spending money the economy needs. It's now weaponized by...you guessed it, Republicans. They have stood in the way of working people for decades, yet now working people vote for them. They have no clue, and this time will be no different.
@@Bacon2000. ...but he increased military spending so it isn't false. If you take away social security and medicare, Obama reduced the deficit. You don't get to ignore spending you think should not count
Don't forget how our GDP went from being based on industry to being made up of various forms of unproductive rent seeking; real estate rents, fees, fines, overdrafts, and interest on consumer debt.
After I raised up to 325k trading with her I bought a new House and a car here in the states 🇺🇸🇺🇸 also paid for my son's surgery (Oscar). Glory to God.shalom.
50 trillion here we come! Actually, why stop at 50; that's rookie numbers. 100 trilly baaaaaby. Then one Morbillion. And then everything resets.... right?
This is ridiculous, yet big corporations say a job will bring new economic revenue, that is inaccurate because a economy control by same businesses will lead to economy to higher debt. The only way is creating innovation methology jobs that bring sustainable use and is backed up by industry experts and Academics research industries experts.
Lol, this guy is so optimistic and naive it's almost funny. Of course the US won't pay its debt. It'll either grow into it or inflate it away. The issue is inflating it away. It's not the 1970s anymore and a huge bout of localized american inflation deflating the real value of the debt is sure to hinder the US dollar as the reserve currency, making the problem worse and worse as other currencies acquire value and american terms of trade decline. Sure, that would be a global crisis, but with the epicenter in the US where the largest effects would be felt. Furthermore, that would nearly as a default, kill all confidence in the USD. The day that happens the great advantage of having the world's reserve currency then becomes an absolutely managed liability and dollars flood back in, in an inflationary period nonetheless.
Paying off debt does NOT hurt the economy, because that money went somewhere, to a person, who is going to spend or invest it in something. In addition to the money freed up in the economy, now the interest payments ALSO go down, freeing up even more money. The idea that we HAVE to spend this money to keep the economy going is absurd, and just wrong.
The net debt is smaller because approximately $7.5 trillion is intra-governmental debt. The remainder is largely owned by Americans and U.S. corporations. It’s still startlingly undisciplined, inflationary, and provocative to would-be conspiracy theorists, doomers, and geopolitical rivals that resent U.S. hegemony. But, there really isn’t a credible alternative reserve currency or capital markets system that doesn’t bring with it even more downside risk. That’s not to say that there won’t be in the future, which should behoove the U.S. to get its fiscal house in order.
Tax cut is good in Canada, our debts mostly avoidable. Even if no cuts on spending, natural resources exports could help. US tax cuts may stimulate economic growth, but long term issues on debt is ballooning. Plus, US debts are way beyond anything can pay. If American default its debts again. May forcing everyone to reconsider US dollars as financial reserves.
"If the debts cannot be paid, they will not be paid" -- Michael Hudson. I think capitalists are children, trying to get infinite gains from a finite world, and behaving monstrously in the process.
“Trickle down economics” there’s also a name for a horse with wings, a peaceful horse with a huge horn on its head and a gigantic monster that could only be killed by a snake haired woman’s head turning it into the world’s biggest statue. Doesn’t mean it’s real.
Even if you’re comparing government debt to personal debt that credit scoring companies incentivize you to have some debt meaning it would actually somewhat hurt you to have 0% debt
Really, it's the fact that Government Debt is literally money itself, and it denotes the very obligation that defines what a government does whatsoever. To think about it in terms more close to home, think of a corporation, what is it? A corporation is just a tautological debt on a piece of paper that there is an entity which owes its net assets to its shareholders. Saying that a corporation should "pay off all of its shares" is the same thing as saying that that corporation should stop existing, because the corporation is just a tautological debt to its shareholders, that's all it is. A government is basically the same thing, except its shares are called "currency". But it's the same problem. In the same way that a corporation is a promise that is rendered meaningless without shares to direct that promise, a government is a promise that is rendered meaningless without currency to direct that promise.
@@TheRepublicOfUngeriamy point was that even as a private individual that you’re worse off having 0% debt. I don’t agree with MMT and more with the Austrian school and the Chicagoan schools of economics but I get what you’re saying. I was just saying that having 0% debt as being good has no real basis in reality even as an individual
What would happen if Trump ( by changing the government system) refused to accept the debt. It would be the end of American dollar dominance in the world as well as a need to pull military assets from international critical points. So scary when corporate minds and resources can influence a government that should be guided by “ social contract “.
It's interesting because you're right-ensuring everyone pays the taxes they're due would certainly help, but the broader solution might lie in a balance of higher revenue (from taxes) and more disciplined federal spending. On one hand, more efficient tax collection and closing loopholes would bring in significant funding to cover essential programs and reduce the deficit. On the other hand, cutting unnecessary federal spending would ensure the government lives within its means and prevents runaway debt. The challenge, though, is implementing this in a way that's fair and sustainable. Raising taxes too aggressively can stifle economic growth or disproportionately impact middle and lower-income households. Meanwhile, cutting spending risks underfunding vital services like education, infrastructure, and healthcare. It's a delicate balance that requires careful planning and political will-which, unfortunately, isn't always easy to find. The real challenge lies in achieving bipartisan support for such measures. Too often, political parties focus on singular issues, neglecting to inform and unite the voter base on the broader picture. This creates a stalemate where meaningful reforms are delayed. Yet, this is not impossible-Jamaica provides an inspiring example. Through severe austerity measures and a bipartisan commitment to reducing debt, the nation has demonstrated that disciplined governance can work, provided both sides prioritize long-term stability over short-term gains, regardless of which party is in power.
The majority (>80%) of net taxes are paid by top 20% of the population. Rich people actually do contribute more to the revenue than they spend. Now if you're talking billionaires and multimillionares, then that's a seperate story. The more politically we'll connected they are the less taxes they pay (think bezos, gates, nealy all politicians, etc.). A good way to know if a billionaire/multimillionaire is well connected is to see if they advocate for more taxes. Because at they end of the day their tax rates wont increase, but the less well connected rich people will have to pay more in taxes. Meaning those well connected rich people can consolidate more power and influence. As for corporations it depends. The ones that spend the most on political campaigns (think amazon, and pretty much most silicon valley companies, and the big oil companies, and pretty much entiretyof big media companies) benefit the most from regulatory capture and tax breaks/exemptions. As a result they end up contributing less to revenue, while smaller corporations gets squeezed dry. Tl;dr rich people as a whole do pay a lot, but not all individual rich people do. Same goes for corporations. And increased taxes/regulations usually target the wrong type of rich people (people who alreadyare net contributors).
@@sasi5841 You’ve laid out the issue with clarity and nuance-well said. The disproportionate influence of the ultra-wealthy and politically connected corporations is a major barrier to a fairer system. It’s not just about raising or lowering taxes but addressing how loopholes, exemptions, and lobbying perpetuate an unequal playing field. Regulatory capture is particularly insidious because it masquerades as necessary oversight while entrenching the dominance of the biggest players. Small businesses and less-connected wealthy individuals, as you mentioned, often pay the price, quite literally, in higher effective tax rates or stifling regulations that don’t apply equally to everyone. The key challenge is creating tax policies and regulations that close these loopholes while fostering fairness and accountability-policies that don’t punish genuine contributors but ensure that those benefiting the most also bear their fair share of responsibility. The political will to tackle these issues head-on, however, remains elusive, largely because the ones benefiting have a vested interest in maintaining the status quo. It’s not just a tax issue; it’s about power dynamics and ensuring that policies truly serve the public good rather than entrenching privilege. This requires a much more informed electorate and leaders willing to prioritize systemic reform over political expediency.
"without the USD" lower quality of life? That's the biggest horse shit I've ever heard!🤣🤣🤣Why do you think sound money existed like gold, silver and bitcoin?🤡🤡🤡
Owed to taxpayers in the form of retirement and healthcare funding. If the government can't pay these that will be a disaster. It sounds on the surface like us taxpayers owing moves to themselves, but I don't think that's what it's like.
@Apodeipnon U.S. Taxpayers, U.S. Corporations, and the Government can lower the National Debt by coming to settlements in the form of a Domestic Debt Forgiveness Act/ U.S. Citizens Government Debt Forgiveness Package.
I think a better question would be "What if the US just said it wont repay international debt". We might not get loaned more money but really other than tax reform so that it had to balance its own books would putting a cap on how much any entity could be owed really be bad?
Lol you think there will be no consequences for thug talk ? No pay people will stop work, your water and bread won't come to your home, you going back stone age.
Conservatives when politicians try to make plans to help society: "that'll increase the debt and deficit! We can't afford to do it" Conservatives passing tax cuts costing trillions of dollars: 😄
It's easy to say that the debt doesnt have to be repay, if it was like that it wouldn't be called debt, most of this debt need to be repaid in the next few decades.
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Who signed for that debt. Why it should be my problem? Who controls the central banks?
us companies, banks, citizens, international institutions, Japan, China, uk, eu and many more other countries (especially gulf States) heck us exports debt in exchange of political capital to other countries
Interesting viewpoint. But does any reputable person backs up your claims, especially the "if US wasnt in debt, it would destablize world economy, thats why US would never pay back its debt fully"?
Not to worry, major climate tipping point start popping around 2030, so most will, be looking for food and, less will care for investments, it's going to be a horrible future.
Correct, finally someone with brain here. Debt is good at these levels, specially with the size and dynamics of the US economy… it will goes down, then goes up… then goes down again and goes up… the cycle will never end.
@@user-tr1zj This is completely backwards. We never ever print money to pay The Debt, we simply go into more debt when we print money and we go out of debt when we destroy money. The net deficit, therefore, is just how much more money we printed than we destroyed via federal taxes. The Debt is literally just a series of accounting identities tied to particular reserves and treasuries.
@@TheRepublicOfUngeria even by your logic, you can't possibly destroy/tax that much money each year without causing a financial catastrophe, especially with interest payments approaching $1 trillion annually
A nation needs to borrow money to function but I’d imagine a small nation could do that. The only time the US has had no debt was during the presidency of Andrew Jackson
More a stupid thing really. This is one thing the general just does not understand. Like for example. We talk about countries with a lot of debt like the USA. However in terms of debt to gdp Japan makes the USA blush. This all being said. Here's a question. Which countries are net debtor vs creditor? Well the funny thing is, Japan Is a net creditor. I. E. Assets minus liabilities is positive. That's wild right? In fact Japan holds a net 22k per citizen. By contrast Norway is 130k and the Swiss are 75k. Not compar to the USA at 48k per capita. Here's the question though. Which economy is better off? The answer might surprise you in that it's not actually the debt or credit that makes a nation better. If you use debt for certain things it's a net benefit. For example if the USA takes out debt that saves them in cost in future or increases revenue? Is that good? When we think about national debt we shouldn't think about household debt. The question is what currency is your debt in first and foremost. If your debt is denominated in YOUR currency, congrats, you got your creditor by the balls. The whole saying of owe the credit card company 100k it's your ass, owe them 10 billion, it is theirs. When a debt is in your own currency you can quite literally pay it off tomorrow if you wanted to. The issue is the secondary impacts wouldn't be good.
@@Donthaveacowbrawhy should nations have to take our debt in the first place though. I understand a small island nation needing to take out a loan for improvements, but the US government is massive. It should be able to self fund essentially any endeavor without needing to issue debt and generate a cash flow for some investor. Why can’t the US just prudently fund what is most beneficial with the resources at its disposal, which are vast?
I remember when every country agreed to forgive Iraqs national debt, Japan and everyone were committing billions after Saddams death but the Iranians kind of sabotaged the whole deal. We should forgive one anothers debt.
there's literally no country on the surface of earth that will ever forgive any us debt because it is too large, like Japan holds an insane amount of debt and it is something that gives them leverage over us, same for China and UK, us isn't Iraq debt forgiveness is a pipe dream
You can’t solve this in 4 years, matter of fact when countries heavily in debt engage in austerity the debt to gdp shoots up even higher until it reaches a stable point and then starts slowly decreasing. The USA now is on the same situation Italy was in 2011, Trump can cut spending and start the process but no matter what he does the USA debt to gdp will surpass 130% in the next 4 years. FYI being the one who starts the austerity measures is political suicide, that’s why in Italy it was a technocratic government who did it, not a political party in particular. I doubt Trump will actually cut spending or increase taxes.
@@blueeyedpunk It’s impossible, you can’t cut spending and/or raise taxes without touching the average person. Trust me my country has been implementing austerity policies since 2011 when we were exactly where the USA is now at 120% debt to gdp (I’m Italian).
You fail to mention the effects of government waste. We could cut spending on hundreds of billions if not trillions and still provide better quality government services.
Yeah... here's the thing, companies get away with some absurd price gouging when the government is buying from them. This is especially a problem for the military, all of the stuff they have is worth a good bit less than what they paid for it in actuality.
Inflation isn't a good or bad thing inherently. If a big Mac coated 450 dollars, but you earn proportionally more, then the point is moot. Go back to the 1800s and congrats you can get bread for a couple cents. However you earn proportionally far less. While we certainly have major issues around inflation of prices of necessary things like housing, Healthcare, education and food, inflation isn't necessarily a bad thing.
@@Donthaveacowbra Inflation is bad, the only "people" who gain something from it are companies and government by essentially screwing over the working class.
Because taxes are what give that debt value in the first place. The only significant use value of reserves is that they pay taxes. And since everyone has to pay taxes, directly or by proxy through renting, everyone has a demand for USD.
Ok, he talks about ballooning interest. Interest to who? The Federal Reserve. That would be owing yourself interest. Yes it could be bond holders, but the Fed routinely buys up bonds to add currency to the system absorbing any additional interest, or that interest enters the economy and promotes growth (if you want to bring up China, well, it is very much in their interest to hold onto those bonds and keep their currency undervalued). Point being that when you hear anyone on TH-cam comparing the flow of currency (it isn't a 'budget') to you or your families budget, buying a car, or something that will burden generations to come, it's time to click off to your next video because the person explaining it actually needs it explained to them. They don't understand how it works at all. All in all though, this video isn't that bad.
@@AnotherPointOfView944 but they invest it right back into bods because they are net exporters and in the case of China, it keeps their currency competitive
@@eliadbu ...and it will snow at some point in Miami. The point is that no one can identify that point and hundreds have tried and failed because it can't be done. I can only tell you we are not even close.
The US debt is a huge part of the USD money supply. If there wasn't this debt, USD couldn't be the world reserve currency and the bonds couldn't be used as assets.
I’m curious how much deflation there would be if the US debt were paid off. It has to be staggering given how much of the money supply would be pulled to pay off the debt. Most people don’t realize that deflation is worse for the economy than inflation.
@ this is where you’re wrong, you see the financial system in all Muslim countries is copy past from your western countries (aftermaths of colonization), the whole financial system of the whole world is ungodly. You may find ‘Muslim” individuals but there’s no country in the world that practices real Islamic law. Maybe just in name.
For now the amount of debt is manageable for the size and dynamic of the economy, unfortunately people don’t understand economics, ignore many facts and just write a baseless opinion. Many videos like this one are part of the problem.
It took 200 years for the US national debt to reach 1 trillion dollars. And now it adds 1 trillion in around 5 months. Talk about an exponential curve
Well, we're just gonna make it sound smaller later. Million used to be a large number, then comes billions, and now trillions. Sooner or later we're gonna see zillions and the other ones that follow
True bro so true
Inflation my ninja
The price of a dollar went further than now so it takes more money due to like of buting power
@@havfun9048 Your argument is provably wrong. Average inflation rate of US is not bigger than the debt to GDP growth US has. That effectively means, debt is growing even when adjusted for inflation. Also, at least on paper, US government has little monetary control over the interest rates. Finally, if you were to have a higher inflation rate, the amount of interest you pay on the debt would rise proportionally. People are not lending money to the US just to see the money they borrowed gets eroded by inflation.
It's not a problem until it is. Everyone will say the debt isn't a big deal until the straw comes that breaks the camels back, and everyone will wonder how everyone could be so stupid and let it happen. Absolute classic.
Empires usually last around 250-300 years so I would say it's time for the sun to set.
Apparently, the country is 248 years old.
@@WildsDreams45
Facts man so true, it's unlikely USA will be the superpower in like 500-1000 years from now but question is who's the new superpowers, I say China
@@user-zMobileChanne it'll be either China or India, or more likely both and we'll have a new cold war akin to the US's and the USSR's relationship
@@user-zMobileChanne China, then India. Just based on the present and future population numbers multiplied by GDP growth per year. Still, China will eventually have its GDP peak and then stagnate due to low birthrates, while the US population and economy might still get larger due to more immigrant-friendly politics unless this wave of Trumpism stays and replaces the old status quo. Maybe even the African Union can someday be a key player if that project ever goes anywhere as the ECC and its successor EU did. Now the African Union looks more like dictators that have different interests and not like a real proposal to replace nation-states with political, economic, and social union.
It is already over 36 trillion dollars.
Wasn't it 35 trillion
@@user-zMobileChanne it increases a trillion per 5/6 months......
And growing. TikTok
The Clinton Administration had budget surpluses during the years 1998-2001. In other words, the government was actually paying the debt down during those years. That's why you can see a dip in the national debt at 0:02 just before the year 2004 on the x-axis.
Clinton manipulated data, among other things.
All these issues stem from an economy grappling with uncertainties, including housing problems, foreclosures, global fluctuations, and the aftermath of the pandemic, leading to instability. Rising inflation, sluggish growth, and trade disruptions demand urgent attention from all sectors to restore stability and stimulate growth.
With $420,000 in retirement savings, diversifying into assets that historically perform well during inflationary periods, such as Treasury Inflation-Protected Securities (TIPS), commodities, or foreign currency assets, might help protect against potential dollar depreciation. Exploring options like global real estate, diversified foreign bonds, or high-quality international equities may also offer a hedge against a declining dollar and inflationary risks .
With my demanding job, I lack time for investment analysis. For seven years, a fiduciary has managed my portfolio, adapting to market conditions, enabling successful navigation and informed decisions.
Consider a similar approach.
this is definitely considerable! think you could suggest any professional/advisors i can get on the phone with? i'm in dire need of proper portfolio allocation
Jennafer Beaver Turner is the licensed advisor I use.
Just research the name. You'd find necessary details to work with to set up an appointment
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It's the second time the USA will not pay it's debt.
The first was made official in 1971, if you don't know.
WTF Happened In 1971?
@@louisvl10we got off the gold standard also fun fact: we stole most of frances gold they kept here in ww2. They sent a destroyer to NYC to threaten to get it back
source? @@l-jerszy-l
@@l-jerszy-l And did France get it's gold back? First time I read about such upfront US thievery involving precious metals from an ally.
@@l-jerszy-l There isnt enough gold to back the world's economy. I hope that helps.
In short - the world having the USD as a reserve currency allowed America to print more money and allowed the fiscal irresponsibility to continue.
And that’s the reason for cryptocurrencies and BRICS.
The US federal government creates money. How do you think the primary monetary base expands? The stupid part is that we call it national debt and literally pay entities to temporarily hold back spending their money for no real reason.
But you are correct in one way. The people do pay it... Inflation.
Since the debt crisis could unleash carnage on the stock market leading to economic downturns. We need to be prepared for potential market volatility. how can I secure my $600K stock portfolio against declining?
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I think everyone knows that, the question is WHEN, US officially default
I never liked the debt, I don't see the point, i get that it can make a lot of growth happen, but at the same time, you can use that interest money yourself to boost growth in the future rather than paying off others. All this debt does is make inflation higher and reduce the value of their currency which for an average person that is bad. The argument was used here that it makes the dollar circulate more but you can make that same argument if you have a surplus of money and make other countries indebted to you kinda of what China is doing.
Youre conflating personal debt with national debt, theyre completely different and does not work the same way at all.
Debt does not cause inflation.
Surplus money does not drive growth. Debt allows investment to growth as soon as the need arises rather than waiting for a surplus.
How is China relevant? China also has debt, thats how countries work, they need debt to fund growth. National debt is different from personal debt.
@@winzyl9546 Even personal debt is a good thing if the person gets a return on their investments.
@winzyl9546 of course debt drives inflation, it was explained right here how they pay the interest by printing more money. That leads to inflation straight up. Is not 1 to 1 affected but it's like one of those phrases "all roads lead to Rome". Eventually the debt will be higher than the GDP, and print more money.
If I am wrong about then please tell me what exactly is causing inflation other than the government spending more money than they have?
@@21preend42I think you are confusing without how government debt really works. Government debt is on the whole safe to invest in. If you are an investor the advantage of government debt is even though you probably won't get a massive pay out at the end you will be pretty safe in that you will get a return at the end and when they do get a return they use that money to invest in further stuff. Contrast this with a company. The company might go bust, their product may not take off. It's risky, yeah you might get a bigger pay out at the end but you also run the risk of losing everything.
The issue ultimately comes down to when governments can't make payments. Then you are in trouble.
@@pgpython well you said it : "The issue ultimately comes down to when governments can't make payments. "
I am not confusing anything, the reason why the government doesn't go bust which by the way they can, its called default and everyone is talking about, they can print more money which causes inflation. A company can't print more money to pay their debt.
Btw US printed more than 3 trillion dollar in 2020 and its because of DEBT ! mostly because of Covid. IF US was making a surplus and had spare money to deal with the pandemic, there wouldn't be any inflation at all.
Inflation ultimately is affecting us consumers who have to pay more for the same stuff because the government always borrows money and when they can't pay , they take a little bit from YOUR money to pay it. It's essentially a TAX on you.
It's kind of everybody else's problem at this point.
How so?
I know it is but I forgot the reason
@@princemc35 Because of the size of its economy the us basically directs the economy of the entire world, the subprimes mortgage crisis was a good example of that, the greed of the venture capitalists caused a worldwide financial crisis whose effects are still being felt today as some parts of the world never really recovered. Debt especially works with government bonds, when you buy bonds, you buy a country's debt and the country promises to pay it back with interest and that's how debt is (very basically) made. The US has an advantage, the US dollar is used as the world's reserve currency meaning every country needs to buy US dollars to conduct trade with commercial partners. What this means is that the rest of the world, because of their dependency on the US dollar as a mean of exchange finances directly the debt of the USA. So if the US financial system fails or slows the entire world will feel those effects.
@@rikavid This is exactly the reason the why the BRICS wants to dedollarize.
China and other nations bailed out US in 2008.
www.federalreserve.gov/pubs/ifdp/2012/1041/ifdp1041.htm
See what thanks they got
They don't want to bail out again this nation that does not know how to control its expenses and pay its debts
If the us government defaults then everyone will feel it, that’s true. But the us will still feel it the most as the days of the dollar as the global reserve currency will be over.
@@princemc35 вы буквально сделали доллар США международной валютой. Если экономика США коллапсирует (как экономика СССР, в 80ые, например), то плохо будет всей планете, и везде будет экономический кризис
Too many homeless people living in the streets. Apartment/homes way to expensive.
Good luck 🤞
Not because they’re poor from no jobs, they have drug/ mental issues
If they're that far in debt their money should be worthless.
the more you depend on someone, the worse off you are if that someone can't help anymore. America vs the rest of the world. and only fools put all their eggs in one basket.
Beside Europe that's totally entangled with US debt every other country in the world is trying to stay away from US debt amarguedon.
@@robymaru03 yeah that's why BRICS exist
The government doesn't have to pay off it's debt because if it did it would print more money devaluing the dollar and furthering the debt. So add 35 trillion to 35 more trillion to pay off the debt and you double the debt by paying off said debt.
Most of the debt goes into the American economy as well, to build roads, bridges, etc.
Not how they would pay off the debt….
How did we accumulate the last 2 decades? Exactly, print more money like you said..... Guess who benefit from all this? The rich will get richer.
@@cncrim1 we spent money is how we accumulated the debt.
Build up the military you mean .
Interest payments past few years are a bit misleading as there was a recent uptick in interest rates. Social security and medicare are problems but can be solved with reforms and good immigration policy.
Because its not suppose to have zero debt. Countries are not like people, countries need debt to fund infrastructure.
Most of that debt is owned by the citizens themselves, some by foreign investors.
The only time you should be worried about government debt is when they cant repay it. US bond is the most sought after bond because it is considered the safest investment, it will always be repaid no matter what.
every ponzi scheme looked great for certain amount of time.
What happens when the US is not sought after? It may look like that can never happen, but that is rather foolish as things change and they never stay the same forever.
Republican tax breaks for the rich sure doesn't help.
Nor does Democrats' welfare programs
Everyone get tax breaks
@@blueeyedpunkthe tax breaks that the bottom half of the country get pale in comparison to what the top few percentage points get
It doesn't help and you are right, but they want to put in the tariffs which it will offset it, basically, give the people more money but products will be more expensive, domestic products will likely be the same. So overall maybe a positive outcome .
Democrat tax breaks fro the rich sure don't seem to help either
7:02 - Please don't do charts like this. This chart makes 126% look like it's over 3x larger than 106%, which it emphatically is not. There's enough misinformation in the world already.
The most ironic thing about this are a couple of facts many people refuse to acknowledge
If you care about the deficit (you really shouldn't ...but if you do)
It started blowing up when Reagan cut taxes and regulation which lead companies to start the ballooning CEO salaries and the hobbling of unions diminished the power of workers
The financial crisis started the seeds of Trumpism because the stimulus was way too small. It bailed out the banks that caused it and did very little for the people losing their homes. The reason it was too small? Republicans. They suddenly found deficit religion as they do anytime a Democrat is President. In fact
every time Congress tries to fund programs, reduce prices (for drugs and other places where gouging takes place), or to build infrastructure, it is either blocked (filibustered) or thoroughly watered down to the point it doesn't do as much as it should.
The debt ceiling...is a Republican creation with the Gramm Rudman Act. It was a reaction to keep Democrats from spending money the economy needs. It's now weaponized by...you guessed it, Republicans. They have stood in the way of working people for decades, yet now working people vote for them. They have no clue, and this time will be no different.
this is false, If you ignore the increase in military spending caused by the cold war, Regan actually reduced the deficit
@@Bacon2000. I am a billionaire if you ignore the lack of seven digits.
@@Bacon2000. ...but he increased military spending so it isn't false. If you take away social security and medicare, Obama reduced the deficit. You don't get to ignore spending you think should not count
@@TheRepublicOfUngeria If my grandmother has wheels, she would have been a bike.
Don't forget how our GDP went from being based on industry to being made up of various forms of unproductive rent seeking; real estate rents, fees, fines, overdrafts, and interest on consumer debt.
Is this why our credit tanks when we pay off debt?
South African saying our😂 1:40
Debt of the world, taxes on Americans... Truly Cristian 😂
Yeah WWJD, take on the world’s debt….
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50 trillion here we come!
Actually, why stop at 50; that's rookie numbers.
100 trilly baaaaaby. Then one Morbillion.
And then everything resets.... right?
This is ridiculous, yet big corporations say a job will bring new economic revenue, that is inaccurate because a economy control by same businesses will lead to economy to higher debt. The only way is creating innovation methology jobs that bring sustainable use and is backed up by industry experts and Academics research industries experts.
Lol, this guy is so optimistic and naive it's almost funny.
Of course the US won't pay its debt. It'll either grow into it or inflate it away.
The issue is inflating it away. It's not the 1970s anymore and a huge bout of localized american inflation deflating the real value of the debt is sure to hinder the US dollar as the reserve currency, making the problem worse and worse as other currencies acquire value and american terms of trade decline.
Sure, that would be a global crisis, but with the epicenter in the US where the largest effects would be felt.
Furthermore, that would nearly as a default, kill all confidence in the USD. The day that happens the great advantage of having the world's reserve currency then becomes an absolutely managed liability and dollars flood back in, in an inflationary period nonetheless.
Great Video, I’m sure Trump is gonna turn things right around. 😅
Paying off debt does NOT hurt the economy, because that money went somewhere, to a person, who is going to spend or invest it in something. In addition to the money freed up in the economy, now the interest payments ALSO go down, freeing up even more money. The idea that we HAVE to spend this money to keep the economy going is absurd, and just wrong.
The net debt is smaller because approximately $7.5 trillion is intra-governmental debt. The remainder is largely owned by Americans and U.S. corporations. It’s still startlingly undisciplined, inflationary, and provocative to would-be conspiracy theorists, doomers, and geopolitical rivals that resent U.S. hegemony. But, there really isn’t a credible alternative reserve currency or capital markets system that doesn’t bring with it even more downside risk. That’s not to say that there won’t be in the future, which should behoove the U.S. to get its fiscal house in order.
That's why countries worldwide are moving towards dedollarization. The world is sick of subsidizing America's debts.
Tax cut is good in Canada, our debts mostly avoidable. Even if no cuts on spending, natural resources exports could help. US tax cuts may stimulate economic growth, but long term issues on debt is ballooning. Plus, US debts are way beyond anything can pay. If American default its debts again. May forcing everyone to reconsider US dollars as financial reserves.
America is like the Titanic. Too big to turn, too slow to react, in denial about sinking, and there aren't enough life boats for everyone.
It’s not… you should read about economics.
@@hugopennmir just let the foreign commenters think whatever they want. They have no idea what its like here
What are you even talking about?
@@hugopennmir economics is absolute joke
@@basil6864funny, when a ship is sinking, people standing on the banks have much better view😂
"If the debts cannot be paid, they will not be paid" -- Michael Hudson. I think capitalists are children, trying to get infinite gains from a finite world, and behaving monstrously in the process.
Triple down economics ? It is trickle down economics brother
tbh at this point the US is tripling down on its economy
“Trickle down economics” there’s also a name for a horse with wings, a peaceful horse with a huge horn on its head and a gigantic monster that could only be killed by a snake haired woman’s head turning it into the world’s biggest statue. Doesn’t mean it’s real.
Even if you’re comparing government debt to personal debt that credit scoring companies incentivize you to have some debt meaning it would actually somewhat hurt you to have 0% debt
Really, it's the fact that Government Debt is literally money itself, and it denotes the very obligation that defines what a government does whatsoever. To think about it in terms more close to home, think of a corporation, what is it? A corporation is just a tautological debt on a piece of paper that there is an entity which owes its net assets to its shareholders. Saying that a corporation should "pay off all of its shares" is the same thing as saying that that corporation should stop existing, because the corporation is just a tautological debt to its shareholders, that's all it is. A government is basically the same thing, except its shares are called "currency". But it's the same problem. In the same way that a corporation is a promise that is rendered meaningless without shares to direct that promise, a government is a promise that is rendered meaningless without currency to direct that promise.
@@TheRepublicOfUngeriamy point was that even as a private individual that you’re worse off having 0% debt. I don’t agree with MMT and more with the Austrian school and the Chicagoan schools of economics but I get what you’re saying. I was just saying that having 0% debt as being good has no real basis in reality even as an individual
What would happen if Trump ( by changing the government system) refused to accept the debt.
It would be the end of American dollar dominance in the world as well as a need to pull military assets from international critical points.
So scary when corporate minds and resources can influence a government that should be guided by “ social contract “.
Trump Will save us 😂
9:42 the us has delayed payment on interest many times in its history, in 1790, 1861,1933,1979.
If everyone, including companies and rich people, paid the taxes they are due, I bet it'd help a looooot with government funding. In every country....
It's interesting because you're right-ensuring everyone pays the taxes they're due would certainly help, but the broader solution might lie in a balance of higher revenue (from taxes) and more disciplined federal spending. On one hand, more efficient tax collection and closing loopholes would bring in significant funding to cover essential programs and reduce the deficit. On the other hand, cutting unnecessary federal spending would ensure the government lives within its means and prevents runaway debt.
The challenge, though, is implementing this in a way that's fair and sustainable. Raising taxes too aggressively can stifle economic growth or disproportionately impact middle and lower-income households. Meanwhile, cutting spending risks underfunding vital services like education, infrastructure, and healthcare. It's a delicate balance that requires careful planning and political will-which, unfortunately, isn't always easy to find.
The real challenge lies in achieving bipartisan support for such measures. Too often, political parties focus on singular issues, neglecting to inform and unite the voter base on the broader picture. This creates a stalemate where meaningful reforms are delayed. Yet, this is not impossible-Jamaica provides an inspiring example. Through severe austerity measures and a bipartisan commitment to reducing debt, the nation has demonstrated that disciplined governance can work, provided both sides prioritize long-term stability over short-term gains, regardless of which party is in power.
@@rushanewilson8487 I mean alot of these programs are already underfunded as is.
The majority (>80%) of net taxes are paid by top 20% of the population. Rich people actually do contribute more to the revenue than they spend. Now if you're talking billionaires and multimillionares, then that's a seperate story. The more politically we'll connected they are the less taxes they pay (think bezos, gates, nealy all politicians, etc.). A good way to know if a billionaire/multimillionaire is well connected is to see if they advocate for more taxes. Because at they end of the day their tax rates wont increase, but the less well connected rich people will have to pay more in taxes. Meaning those well connected rich people can consolidate more power and influence.
As for corporations it depends. The ones that spend the most on political campaigns (think amazon, and pretty much most silicon valley companies, and the big oil companies, and pretty much entiretyof big media companies) benefit the most from regulatory capture and tax breaks/exemptions. As a result they end up contributing less to revenue, while smaller corporations gets squeezed dry.
Tl;dr rich people as a whole do pay a lot, but not all individual rich people do. Same goes for corporations. And increased taxes/regulations usually target the wrong type of rich people (people who alreadyare net contributors).
@@sasi5841 You’ve laid out the issue with clarity and nuance-well said. The disproportionate influence of the ultra-wealthy and politically connected corporations is a major barrier to a fairer system. It’s not just about raising or lowering taxes but addressing how loopholes, exemptions, and lobbying perpetuate an unequal playing field.
Regulatory capture is particularly insidious because it masquerades as necessary oversight while entrenching the dominance of the biggest players. Small businesses and less-connected wealthy individuals, as you mentioned, often pay the price, quite literally, in higher effective tax rates or stifling regulations that don’t apply equally to everyone.
The key challenge is creating tax policies and regulations that close these loopholes while fostering fairness and accountability-policies that don’t punish genuine contributors but ensure that those benefiting the most also bear their fair share of responsibility. The political will to tackle these issues head-on, however, remains elusive, largely because the ones benefiting have a vested interest in maintaining the status quo.
It’s not just a tax issue; it’s about power dynamics and ensuring that policies truly serve the public good rather than entrenching privilege. This requires a much more informed electorate and leaders willing to prioritize systemic reform over political expediency.
We need government efficiency and we need to cancel business deductions and depreciation. It incentivizes hugely wasteful spending by businesses.
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$20.6 Trillion Dollars of the U.S. National Debt is owed to U.S. Taxpayers and U.S. Corporations.
Makes no difference, it’s still owed.
If anything it’s worse because your own people might not get the money owed.
Owed to taxpayers in the form of retirement and healthcare funding. If the government can't pay these that will be a disaster. It sounds on the surface like us taxpayers owing moves to themselves, but I don't think that's what it's like.
@Apodeipnon Mostly, it is just that. It's broken down in PowerPoint format on M.I.I. On TH-cam by typing @Mii-yd1es.
@Apodeipnon U.S. Taxpayers, U.S. Corporations, and the Government can lower the National Debt by coming to settlements in the form of a Domestic Debt Forgiveness Act/ U.S. Citizens Government Debt Forgiveness Package.
I think a better question would be "What if the US just said it wont repay international debt". We might not get loaned more money but really other than tax reform so that it had to balance its own books would putting a cap on how much any entity could be owed really be bad?
Lol you think there will be no consequences for thug talk ? No pay people will stop work, your water and bread won't come to your home, you going back stone age.
Conservatives when politicians try to make plans to help society: "that'll increase the debt and deficit! We can't afford to do it"
Conservatives passing tax cuts costing trillions of dollars: 😄
The thing is the percentage of tax going on interest is getting obscene
It's easy to say that the debt doesnt have to be repay, if it was like that it wouldn't be called debt, most of this debt need to be repaid in the next few decades.
Who signed for that debt. Why it should be my problem?
Who controls the central banks?
Debt to whom?
Would be interesting to know what would happen if China would sell all it's US debt.
High interest rates. And the reaction to that is... quantitative easing, the FED can just buy it
@@nietur And increase inflation
@@erickanter a higher interest rate is deflationary
And asset ratio, productivity ratio, and what the debt actually paid for, productive or non productive debt
It seems like a thing only in America would have this problem.
Welp, time for that $200 dollar bill!
What is the debt be in 10 years?
Who does the USA own money to ?
Its creditors, the bond holders, some are banks (even american ones), some are private citizens, some are countries, some are NGOs...
The USA owes money to the USA.
us companies, banks, citizens, international institutions, Japan, China, uk, eu and many more other countries (especially gulf States) heck us exports debt in exchange of political capital to other countries
not the USA but the US government
you're welcome
a country isn't a person, it can't take on debt 🤣🤣🤣
A Brits, said, "Our Country" ?!?
You're -- England, when the United State of American become the British's Country ?
Pls explain.
Brakes on both us and other countries
Thank God im not american
The US was in a depression prior to WW11
Was a large scale industrial nation after WW2. No superpower nation can stay prosperous without internal production industry sustainability
Getting a home sounds like a good idea with a fixed payments. Payments are easier to make woth hyper inflation.
look up what hyperinflation means
@nietur i know what it means. What is your point? The Fed is going to keep printing money and the problem is getting exponentially worse
@@CoolCalmCoop Will your employer approve of weekly or daily wage increases just to keep pace with inflation?
@@gregorymalchuk272 of course not. But what else can we do? Keeping cash is not the move?
@@CoolCalmCoop I'm responding to your original comment. House payments don't get easier if your employer isn't keeping your wages up with inflation.
Ah yes, the country that thinks it's God's gift.
Interesting viewpoint. But does any reputable person backs up your claims, especially the "if US wasnt in debt, it would destablize world economy, thats why US would never pay back its debt fully"?
Not to worry, major climate tipping point start popping around 2030, so most will, be looking for food and, less will care for investments, it's going to be a horrible future.
For the algorythm
So is inflation is another Count.
Er balance
The dollar dominance is the real reason why the debt may not matter.
Exactly
dominance allows you to print money to pay the debt so you'll never default, but it isn't without consequence: the inflation will be terrible
Correct, finally someone with brain here. Debt is good at these levels, specially with the size and dynamics of the US economy… it will goes down, then goes up… then goes down again and goes up… the cycle will never end.
@@user-tr1zj This is completely backwards. We never ever print money to pay The Debt, we simply go into more debt when we print money and we go out of debt when we destroy money. The net deficit, therefore, is just how much more money we printed than we destroyed via federal taxes. The Debt is literally just a series of accounting identities tied to particular reserves and treasuries.
@@TheRepublicOfUngeria even by your logic, you can't possibly destroy/tax that much money each year without causing a financial catastrophe, especially with interest payments approaching $1 trillion annually
cancel it😂
Empire collapse when?
Pay debt with new debt, just like ponzi
What will happen if a nation has zero debt is it a good thing or a bad thing
A nation needs to borrow money to function but I’d imagine a small nation could do that. The only time the US has had no debt was during the presidency of Andrew Jackson
More a stupid thing really. This is one thing the general just does not understand. Like for example. We talk about countries with a lot of debt like the USA. However in terms of debt to gdp Japan makes the USA blush. This all being said. Here's a question. Which countries are net debtor vs creditor? Well the funny thing is, Japan Is a net creditor. I. E. Assets minus liabilities is positive. That's wild right? In fact Japan holds a net 22k per citizen. By contrast Norway is 130k and the Swiss are 75k. Not compar to the USA at 48k per capita. Here's the question though. Which economy is better off? The answer might surprise you in that it's not actually the debt or credit that makes a nation better. If you use debt for certain things it's a net benefit. For example if the USA takes out debt that saves them in cost in future or increases revenue? Is that good? When we think about national debt we shouldn't think about household debt. The question is what currency is your debt in first and foremost. If your debt is denominated in YOUR currency, congrats, you got your creditor by the balls. The whole saying of owe the credit card company 100k it's your ass, owe them 10 billion, it is theirs. When a debt is in your own currency you can quite literally pay it off tomorrow if you wanted to. The issue is the secondary impacts wouldn't be good.
Bad. It would mean zero public investment and no growth - the economy would grind to a halt.
Norway has a sovereign wealth fund that is worth like 100k for every citizen in Norway.
@@Donthaveacowbrawhy should nations have to take our debt in the first place though. I understand a small island nation needing to take out a loan for improvements, but the US government is massive. It should be able to self fund essentially any endeavor without needing to issue debt and generate a cash flow for some investor. Why can’t the US just prudently fund what is most beneficial with the resources at its disposal, which are vast?
Trump is gonna fuck up our debt even more bro
BRUH
I remember when every country agreed to forgive Iraqs national debt, Japan and everyone were committing billions after Saddams death but the Iranians kind of sabotaged the whole deal. We should forgive one anothers debt.
there's literally no country on the surface of earth that will ever forgive any us debt because it is too large, like Japan holds an insane amount of debt and it is something that gives them leverage over us, same for China and UK, us isn't Iraq debt forgiveness is a pipe dream
Lol will trump solve this? (Before trump bots come I neither care for trump nor Harris)
You can’t solve this in 4 years, matter of fact when countries heavily in debt engage in austerity the debt to gdp shoots up even higher until it reaches a stable point and then starts slowly decreasing.
The USA now is on the same situation Italy was in 2011, Trump can cut spending and start the process but no matter what he does the USA debt to gdp will surpass 130% in the next 4 years.
FYI being the one who starts the austerity measures is political suicide, that’s why in Italy it was a technocratic government who did it, not a political party in particular. I doubt Trump will actually cut spending or increase taxes.
He will give it a good try. TBH I think he's the only who might be able solve this or at least lay the grounds for doing it.
There are different knobs that can be turned. But doing it without hurting the average person is the real issue
@@blueeyedpunkhe has no economic plan to solve this
@@blueeyedpunk It’s impossible, you can’t cut spending and/or raise taxes without touching the average person. Trust me my country has been implementing austerity policies since 2011 when we were exactly where the USA is now at 120% debt to gdp (I’m Italian).
You fail to mention the effects of government waste. We could cut spending on hundreds of billions if not trillions and still provide better quality government services.
Yeah... here's the thing, companies get away with some absurd price gouging when the government is buying from them. This is especially a problem for the military, all of the stuff they have is worth a good bit less than what they paid for it in actuality.
@The-Singularity-X01 Exactly, $90k for a bag of bolts is insane, makes you wonder where else the government spends like this
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😱Sounds familiar, I have heard her name on several occasions.. and both her success stories in the wall Street journal!
Keep inflating away. Soon 450.00 dollar BigMac.
It Takes Money To Make Money 💲
Inflation isn't a good or bad thing inherently. If a big Mac coated 450 dollars, but you earn proportionally more, then the point is moot. Go back to the 1800s and congrats you can get bread for a couple cents. However you earn proportionally far less. While we certainly have major issues around inflation of prices of necessary things like housing, Healthcare, education and food, inflation isn't necessarily a bad thing.
inflation is bad, in that wealth gap is increasing.
@@Donthaveacowbra it's quite clear the cost of living is far outpacing wage and productivity growth
@@Donthaveacowbra Inflation is bad, the only "people" who gain something from it are companies and government by essentially screwing over the working class.
If the amount of debt doesn't matter, why do I have to pay taxes?
Because taxes are what give that debt value in the first place. The only significant use value of reserves is that they pay taxes. And since everyone has to pay taxes, directly or by proxy through renting, everyone has a demand for USD.
Many Americans stopped paying taxes. Many know it’s a scam.
You cheated your way to growth..... not great
Ok, he talks about ballooning interest. Interest to who? The Federal Reserve. That would be owing yourself interest. Yes it could be bond holders, but the Fed routinely buys up bonds to add currency to the system absorbing any additional interest, or that interest enters the economy and promotes growth (if you want to bring up China, well, it is very much in their interest to hold onto those bonds and keep their currency undervalued). Point being that when you hear anyone on TH-cam comparing the flow of currency (it isn't a 'budget') to you or your families budget, buying a car, or something that will burden generations to come, it's time to click off to your next video because the person explaining it actually needs it explained to them. They don't understand how it works at all. All in all though, this video isn't that bad.
To whoever holds the bonds. The fed is just one of the holders.
External countries also hold US bonds, including Japan, China and Europe, to name a few. So interest gets paid to them.
@@AnotherPointOfView944 but they invest it right back into bods because they are net exporters and in the case of China, it keeps their currency competitive
@@scpatl4now as long as the status quo persist yes it will sustain, but as he said it can come to a point that it won't.
@@eliadbu ...and it will snow at some point in Miami. The point is that no one can identify that point and hundreds have tried and failed because it can't be done. I can only tell you we are not even close.
The US debt is a huge part of the USD money supply. If there wasn't this debt, USD couldn't be the world reserve currency and the bonds couldn't be used as assets.
I’m curious how much deflation there would be if the US debt were paid off. It has to be staggering given how much of the money supply would be pulled to pay off the debt. Most people don’t realize that deflation is worse for the economy than inflation.
It's going to be glorious when the US debt becomes unmanageable. Shame I probably won't be around to see.
who cares
when iou $100 - it is my problem
when iou $10,000,000 - it is ur problem!!!
Personal debt is not the same as national debt. Grow up.
usa does not have a high military spending,they are actualy lower then some countryes
916 billion US dollars is high and the highest absolute amount of any country
bull
Interest is Islam is one of the greatest no no’s.
which is why non-oil based islamic countries have no growth
@ this is where you’re wrong, you see the financial system in all Muslim countries is copy past from your western countries (aftermaths of colonization), the whole financial system of the whole world is ungodly. You may find ‘Muslim” individuals but there’s no country in the world that practices real Islamic law. Maybe just in name.
For now the amount of debt is manageable for the size and dynamic of the economy, unfortunately people don’t understand economics, ignore many facts and just write a baseless opinion. Many videos like this one are part of the problem.
Bitcoin fixes this
you can create a token with a fixed supply that fixes this within 10 minutes
@@nietur have fun staying poor
@@Curling_Rack I have 100 Bito LEAPs, you noob
FIRST Comment 💯
delete this
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first
WHY DOCNHA DELETE THIS ❓️
The Republican are responsible
Who cares
We have to save Israel Americans will be ok (Lindsay garam)
😂