How To Spot The Next Debt Crisis
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- Опубліковано 2 жов 2024
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The US economy is under a crushing debt burden. Total debt in the US economy is more than 350% of GDP. Everyone knows that this level of debt is completely unsustainable and that a debt crisis is inevitable. But what most people don’t know is what the next debt crisis will look like or how to see it coming.
In this video, I will dive deep into the US debt situation and explain where the problem areas are and how this may impact the US economy.
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DISCLAIMER: This video does not provide investment or economic advice and is not professional advice (legal, accounting, tax). The owner of this content is not an investment advisor. Any securities, trading, or market discussion is incidental and solely for entertainment. Nothing herein shall constitute a recommendation, investment advice, or an opinion on suitability. The information in this video is provided as of its initial release date. The owner of this video expressly disclaims all representations or warranties of accuracy. The owner of this video claims all intellectual property rights, including copyrights, of and related to this video.
I'd love to see an analysis of how different business sectors (e.g. construction, defense, retail sales, pharma, etc) are performing relative to the amount they spend lobbying DC.
Bottle of Jack Daniels meet your house member , member of Congress meet J.D.!
I'd love to see people who lobby in jail. :)
Believe research showed the average lobbying ROI is 400% (no estimate done of roi in bodies)
Now that will be interesting
Government could just eat all of the debt
Amazing how there's always a crisis coming just around the corner.
All times of the year, every year.
Fear sells.
It's the only selling point that Republicans have.
That's capitalism for you
@@ChiefMasterGuru Very true. Here is my view: "Men, Randy Millhouse has been doing everything right. Saving, investing, working hard, and being a good neighbor. Now, WE NEED TO CLAW BACK THAT MONEY SOMEHOW! I know, let's raise interest rates, let's crash the stock market, let's devalue his home."
Your videos are great, but do you ever do reviews of your older videos and discuss what you got right and where you might have gone wrong? Would be really cool to see!
yes pls!!!
Great comment!
Of course he won't! There is no recession. Housing will not crash, it will get more expensive. The video that needs to be made is the one that educates people to move their careers into a better position monetarily. But too many people find that boring because they are lazy and won't go back to college or do anything extra to better their lives. Less clicks.
@@randymillhouse791why do you think there will be no recession in the near future?
@@trappart9209 There may be, I don't care because I earn in the top 6% in my county, no debt, and I save over $100K each year while investments grow. Gas prices, inflation, etc. has no effect on me. I can retire now if I choose. People, in general, do not save and live way beyond their means. That is what the manager of my bank said of all of her customers, me being the ONLY exception at her branch. It is not hard to do well in the USA. It is sad that so many choose not to.
So, socializing losses by shifting debt to the government, while profits remain privatized, is bad.
It's horrible and it baffles me that nothing gets done. I guess politicians that wants to change things gets voted out or getting payed tons of money not to change anything . Lobbyism should really be illegal - It's legal corruption
I am from the future. Yes. But they keep doing it.
Very interesting analysis. This makes me think since corporate america has a very strong grip on consumer needs, and a high shareholder demand to maintain profits, When the economy slows down and profits dwindle, the corporate response would be to cut expenses and raise prices. They can get away with raising prices because they have a monopoly on the food supply, energy supply and general consumables. While the fed is trying to bring down inflation, they will be fighting against the corporate demand for high level profits (the 11% indicated in the video).
This makes me think that inflation is going to be persistent.
I think this is a big part of the reason the fed is increasing interest rates so quickly, and has committed to continuing the interest rate hikes. While large companies have regional monopolies, smaller companies are going to get hit with interest rate hikes in a massive way. A wave of small business bankruptcies will ripple through the economy and destroy the large business sector, as they no longer have the ability to make large profit margins and continue to sell as many products as before, because of high unemployment. The small business sector makes up a large portion of the business sector, so even a 2% bankruptcy rate will crush the business sector and the banking sector. The fed has signaled that unemployment is the key indicator for when they're going to ease off the interest rate hikes.
Second, is the fact that large companies are also overleveraged. High interest rates are going to destroy corporate profits. Large companies are going to have to start quickly sacrificing profits to pay down their debt, or they're going to see those profit margins evaporate through huge interest payments. Either way, those profit margins are coming down. The interest rate hikes are making sure of that. I think the only companies that aren't going to see massive profit rate reductions are companies like Apple, who already have a huge bank account that could fund their company for years.
However, that touches on the third way that profit margins are coming down: fewer sales in items with large up front purchases. We're already seeing that in the custom PC market, and Apple has already slashed sales predictions. Consumers just aren't buying the new expensive products in large numbers, since most of them have been priced out of the market. We'll see something similar happen throughout other large ticket items like cars, homes, and other luxury purchases, as everyone with enough income to afford the current overpriced costs has already spent their money. Inflation of things like food and gas will also decrease the amount people have available to pay for larger items, which means fewer large purchases as budgets are stretched thin. While food companies are likely to be making record profits for a short time, that comes at the expense of the entire rest of the business sector.
The only alternative method for companies like Apple to maintain profit margins is to cut jobs to reduce costs. Unfortunately, that still doesn't fix the entire business sector, since that will increase unemployment, which will kill the economy and cut business profit margins anyways. It all comes down to one simple truth: You can't magically create more money without side effects, so the record profits companies have had must come at the expense of something else, and the rest of the economy is struggling under the weight of record business profits. The downturn of business profit margins is inevitable. The only question is which companies will crash and burn, which companies will survive the upcoming corporate crunch, and how much the rest of the economy will suffer to feed the corporate machine. I think the fed is betting on a short but sharp recession that fixes things, instead of a long sustained struggle.
Wow great analysis. Good to know what to look for in the business sector. Bankruptcies will be rife. I believe a lot of these will be related to housing as most of the mega housing conglomerates are highly levered.
Also tech!
The big publicly traded homebuilders like DHI and NVR aren't as leveraged as you might think. Most of them could withstand a 30% haircut on the value of their inventories without going bust. No doubt their stock prices would get hammered as earnings and book values were hit, but bankruptcy would be unlikely. Some of the smaller builders, that's a different story. Not investment advice, do your own research.
@@garretthayes5859 agree with you. I dont think the big builders are going to go bankrupt this round. They will just build smaller homes that keep volume up - which will pull prices of the bigger existing homes down to earth.
I believe all the REIT funds will be in trouble in this cycle. A lot of home
Owners are renting instead of selling, thats putting huge downward pressure on rental prices. If they fall back to pre-pandemic levels, a lot of these reits will no longer be profitable and liquidate their inventory. Not to mention the imploding cmbs market
The production value is getting even better, great work. I recommend adding an end card to stall the last 5 seconds. That way your call to action cards don't block your last graph in the video.
Do you know what software is making those dynamic plots?
@@gogogaga9970 I'd guess after effects or devinci resolve fusion
Its been coming every year since 2008. I see a video like this weekly. Someone's going to be right one day.
Understanding personal finances and investing will most likely lead to greater financial independence. By being knowledgeable about money and investing, individuals can make informed decisions about how to save, spend, and invest their money. A trader made over $350k in this recession influenced market
Stocks are pretty unstable at the moment, but if you do the right math, you should be just fine. Bloomberg and other finance media have been recording cases of folks gaining over 250k just in a matter of weeks/couple months, so I think there are a-lot of wealth transfer in this downtime if you know where to look.
The best course of action if you lack market knowledge is to ask a consultant or investing coach for guidance or assistance. Speaking with a consultant helped me stay afloat in the market and grow my portfolio to about 65% since January, even though I know it sounds obvious or generic. I believe that is the most effective way to enter the business at the moment.
@@hunter-bourke21 Do you mind sharing info on the adviser who assisted you?
Definitely! All of this happened in less than a year after *Gertrude Margaret Quinto* told me what to do. I started with less than $100,000, and now I'm about 17,000 short of having a quarter million dollars.
Thanks, I just googled her I'm really impressed with her credentials. I reached out to her since I need all the assistance I can get.
You cited the paper by Reinhart and Rogoff, the result of which was misleading because of their own error in the calculation. Sad that this never gets corrected and this paper keeps getting cited
Excellent presentation. Businesses know this and it's why you are already seeing the biggest companies with mass layoffs
How is the Household sector decreasing their debt burden when homes are so over priced and people are taking out huge mortgages to buy small 1500 sqft homes?
Someone correct me but i think i read somewhere that most of the housing market growth has been from high paid workers in tech, older people buying second homes, and investment properties. I know the share of homes owned by institutional investors has gone up considerably. A lot less first-time home buyers out there who are usually the ones taking on mortgages.
And credit card debt is exploding higher.
@@triot2127 I guess yeah if those folks didn't need to take out loans to buy the houses?.. that would make sense. Thanks for responding, I'm trying to understand all this stuff!
2:02 I’m going with counting the debt as both a debt and an asset- I believe that is illegal for individuals/corps double entry bookkeeping but it’s super cool for governments worldwide.
I would be interested in seeing further analysis of the business sector. For example, which of the 11 sectors of the s&p 500 are most highly levered?
The day am gonna go off-grid is getting closer.
Wondering what you need to prepare for an off grid life...
I wonder if two banks collapsing in a week and Yellen printing money for bail outs would be considered a debt crisis?
Not exactly a debt crisis, but an increase in the money supply, which effects inflation
@@RottingFarmsTVThe Federal Reserve prints and loans out that money to the government. So if there is a increase in money supply, that means the government just took out another loan going deeper into debt.
so crony capitalism with government handouts to corporations is becoming a problem....yeah actually makes a lot of sense.
Thanks for the high quality analysis! I like how you choose a few specific things to look at and then focus on them instead of trying to integrate so much info that your thesis becomes less focused.
The private sector could keep up if we trust busted all the monopolies to hell and back, implemented universal unions and promoted worker corporatives
Even unions wouldnt be needed if the Government and Big corporations werent becoming the same thing every day.
I do see corporations deleveraging recently due to higher interest rates. Basically ultra low interest rates since the 2008 crisis made it cheap for government and corporations to get into debt. Higher rates is making them pay it down-at least in the corporate world.
It does seems that finally Washington is talking about reducing deficits too. Basically higher interest rates lowers debt.
Japan governent debt is what? 250% of GDP, but it is still running OK. Japan has set a precedence for western countries to follow.
The visual presentation is outstanding. The concepts and theories are well articulated as expected now from EPB.
My contrarian position, with respect only to government debt, and the governments welfare dependent children - The U.S. Business sector - is this:
In reality _This_ Government (unlike all other governments in the world), *_Has no 'Actual' Debt._* By hard definition, The Global Exchange Currency Issuer can not have an actual debt, in that it is able to service whatever its contrived debt is by simply conjuring up more of its own currency to service the debt.
To evidence this *FACT:* Just yesterday;
the "CBO projected the US will *ADD $19 Trillion* to the national debt in the next decade." and that
"Debt held by the *public* is projected to reach 118% of GDP by 2033"
Thus, somewhere in the neighborhood of $50 Trillion+ in Government debt within 10 years. But that so-called debt is an artificial construct. Yes, as America conjures up more currency, the value is diluted...BUT... that dilution is absorbed by all of the other Countries that are forced to use the U$D as currency to trade between each other. The nonsense that other nations will abandon the U$D is utter lunacy. These nations won't abandon the U$D, and not because the U.S. is some finically stable bastion of goodness, just the opposite. The U.S. defends its Global Exchange Currency position with the might of its military. If any Nation attempts to use another currency, or create another currency not sanctioned by the U.S. - The U.S. has proven over and over again in just the past50 years that such an action will prove fatal to the offending nations civilian women and children.
So this is a great video, but at the end of the day I submit no serious conclusions or financial forecast can be drawn from it.
But the military is run by woke losers now and they can barely target a balloon
The conclusion should be the opposite. A single military defeat slashes the effective size of the us economy. That's precarity, not security.
Except there is a group of countries already creating a new currency: china, Russia, India, ...
And groups of countries are already not using the currency to purchase oil: Russia, China, Saudia Arabia, and more.
@@derrickmcdermed7621 Saudi Arabia is only "talking about" using another currency. But the others you mentioned, ...and Iran are trading _Some_ oil denominated in other currencies.
Problem is Oil only accounts for approximately 3% of global GDP. The "Global South", perhaps led by BRICS, would need to band together to establish a viable - *and Defendable* - alternative to the U$D.
@@shotelco there is very little GDP to brag about without affordable oil
I keep seeing these videos "Yup, It's Coming" for years now, but the question is "When"?
Fun fact: There isn't enough fiat in the world to pay off all of the debts. It's literally *impossible*.
Thank you for the great video.
The business sector is a major field, which areas are particularly affected or need attention?
I follow many channels on finance. You, sir, are the best.
The trouble with those studies is they primarily focus on non-reserve currency countries. It works very differently for the reserve currency country.
it's actually worse for reserve currency countries as the imbalances can be greater and go for a longer period of time making the inevitable pop of the bubble that much stronger. In other words, countries like the US simply have more rope to hang themselves with.
@@askeladd60 I agree with you, but that “more rope” can last 50-100+ years of extra time before the pop. As long as we still have the strongest military, we’re likely not anywhere near the end.
@@davebarbetta the USD world's reserve currency status has already given the US at least an extra 10 years of rope. Any other country with the gigantic current account deficits the US has been running over the last decade would have already faced a solvency crisis. The US military is a non-factor frankly, once the market comes with the terms the US is not able to service its debts and don't have the economic mean to finance its armed forces, it's pretty much game over for the US as the leading world power and I think that is likely to happen within the next 5-10 years.
Great video as always. Good job!
You nailed it dude! I can't believe how much corporate debt is rated just one step from junk. I have always said a 100% debt-to-income ratio is the "line in the sand". Why? Because if your income grows at prevailing inflation/interest rates then you can increase your debt by the prevailing inflation/interest rate in order to maintain the one-to-one ratio. This means, as long as your debt ratio is below 100%, you have the emergency ability to borrow to pay your interest payment on your debt. However, as soon as you exceed the 100% ratio, you no longer have this gap stopping ability and are most certainly going down for the count as soon as you hit a bump in the financial road. Great video. Keep it up.
The real debt crisis is here. For decades the US government has been able to deficit spend without consequences because we had sufficient surplus labor for the economy to absorb debt without deficits creating inflation or requiring additional taxation. We could create the illusion that deficits didn't matter through a combination of deferred spending and debt deflation. Now that the labor force has stopped growing and retirees increasingly need to spend their savings and their retirement benefits, the ability of the government to deficit spend endlessly without creating inflation or crushing the economy with taxes is now disappearing. Enjoy!
Another words our economy is ruined by boomers and idiots.
Hello, it’s August 2023. No crisis yet.
"sector" doesn't even sound like a real word anymore after watching this :D
another great video. well done
I hope this isn't a doomer echo chamber and we transition to I told you so later this year
Ok now. How do I prepare for the inevitable crisis?
I would think that interest payments are more important than total debt. The past decade allowed for high debt with low interest. Now rates go up, and so must premiums. This could be bad
Terribly repetitive and light on forward looking info. In 2008 crisis, debt shifted from households and banks to businesses and the government. Repeat this statement 20 times you'll have 90% of this video.
What is missing is any depth on what the government debt crisis in the US could look like. Also missing is how and when to detect the business de leveraging and what that would look like (except for a single trivially obvious statement about bankruptcy wave of over-leveraged businesses).
Here's the thing, the US government can print all the USD it needs to pay its debt. Furthermore, the government can engage policies similar to Japan's to protect businesses for decades.
So ya, it will look different than the 2008 crisis, but how?
at the end of the day, its down to those with property or children to defend it, fix it or live in it.
All of these videos are extremely depressing to watch as a young adult just starting his career, but thanks for posting because it needs to be said.
If you feel bad, consider the fact that two US Senators have reported clinical Depression, as they face the issue of dealing with a failing economy?
The Policy that Paulson and Bernanke used to delay the 2008 crash, was to promote Credit Card distribution, that shifted the cash to Plastic, but ran Consumer Debt up even more.
It has become extremely difficult to fix now.
Get ready to find some Farm Job so you can eat......
I don't think its something you as a young adult should worry a ton about. What I recommend is finding a job that is essential. Even if it isn't the job of your dreams, but one that can work in a recession or even a depression. And be prepared to take advantage of said recession. Remember that when people don't have money and businesses get desperate, they will often times sell things at lower profit margins or even at a loss if its a delaying tactic. For example mass housing foreclosure means you can get an affordable houses. Or even other assets that you can build up that you can get while its low. Its not going to hurt those just starting out as badly as those who have been in the game for a while. Its easier to start your career working at a fast food restaurant than it is going to a career in fast food from a high paying job.
And on top of that, those who have been saving for retirement and are just about to retire may find that the money they saved over many years has essentially lost half of its value and now despite being 60-80 years of age, they have to work to survive.
Try shit until you find something you enjoy doing, do it well and if you manage to get old and Humanity has not decomposed any worse than it has so far, you can look back and say that you actually lived.......Good Luck
Reinhart and Rogoff based their 2010 paper on an Excel model that contained a formula error which, when corrected, changed the 0.1% decline in real GDP they reported to 2.2% growth. To their credit, Reinhart and Rogoff later conceded this point. The fact they chose to include data from only 20 countries, and that they weighted the countries equally (putting New Zealand (population ~5 million) on equal footing with the United States (~330 million), Japan (~125 million), Germany (~83 million), etc.) brings the reliability of their results into question.
Totally. I can't believe this guy doesn't know this. The whole study was discredited, and so now is this whole clip here.
Oligarchs gonna have to start paying. The 37% top tax bracket can't last. 1970 and prior to avoid deficits, they had to go where the money is at... and today top 20% income earners take on over 53% of total yearly income. While the bottom 40% only take incombined just about 12% of total yearly income.
So the oligarchs are going to have to start paying that 70% to 90% brackets... it's where most of the money is located. You could tax 100% the lower brackets... but that still wouldn't produce enough net balance to quickly or pay off the deficit.
Money = debt. More government debt = more money = inflation. Corporate bankrupcy = bad debtt = less debt = deflationary.
US government debt has tripled since the GFC. We’ll never see another balanced budget again and debt will continue to grow until a major crisis occurs.
A quick look at Fed Government tax revenue shows that if our glorious representatives could dial back spending to just 2019 levels, our budget would be balanced. That of course isn't going to happen. We could then grow our way out of this.
Sounds like a sovereign debt crisis is coming. Time for gold and silver.
It's actually not that hard to see where it'll be hit the hardest, look at every company with huge amounts of debt and look at banks
The banks which gave the most consumer /commercial loans relative to their current valuation and earnings will suffer significantly more when the crisis does come, and in that event 2 things will happen, they'll either go under or be bailed out but in both situations they'll be hit really hard in their valuations.
The other ones are companies with the really high debt to earnings and /or valuation, when the crisis comes and their earnings are negative they'll default which means the same situation with the banks, either bail out or bankruptcy.
This is a debt cycle, if you even want to do it on the personal level u can, look at which of the friends or neighbors that have the highest debt and you'll see them selling their Houses in a few months.
Is it better to be bullish or bearish on US Treasuries in the next recession taking into account that government is overdebted?
6:10 Didn't a little Italian guy come up with a term for that in the 1930s?
Global Depression on the way.
The deductive conclusions that I can draw from this, is that it wont be the housing market that collapses this time around like 2008. Since the FED and Businesses took on the debt, it will be a BUSINESS crisis.
Now for inferentials: Businesses will have to lower target margins to keep from going out of business. To do this, they will have to lower spending by layoffs, downsizing, or decreasing wages. This will create a bigger unemployment or consumer debt problem. Companies with too high of Debt/income ratio will go outright bankrupt if they cannot continue to access money from the government. The government will have to take on more debt to take care of the newly unemployed. They will also have to raise corporate taxes to offset this debt, but will have made no progress on actually decreasing their debt/income ratio, and the FED might also suffer from lost tax revenue, which might push their debt/income ratio higher. From this point, it seems like a hot potato of transferring debt back and forth until something foundational breaks.
Globally, it seems like every country has much higher debt, greater populations, and greater supply issues. So there is technically nowhere to run. This means war/famine/revolution and ultimately depopulation.
"Everybody knows" is a TERRIBLE logical attempt. Yikes.
Among the most interesting and informative economic videos available on the internet.
I think your general argument is quite weak. You're saying that since in 2007 a high level of household debt caused a banking crisis, we should also assume that a high public debt is likely to cause another crisis. The difference is that households cannot print money and can default on their loans, which caused the crisis. The state will always be able to pay is debt since all it has to do is credit some money into its creditors accounts. Money is a zero sum game, for someone to hold some savings, someone has to hold a corresponding debt. Saving is good for an individual, but as a system it's impossible to be all in a saving position. I'm also wondering what's the relevance of the debt to GDP ratio. Isn't it just an arbitrary number? It's not like we're borrowing from the production of this year to repay the debt we contracted in the past.
What should I do with excess 10k. Ppl are saying gold, others saying crypto.... others saying the stock is on sale right now. buy low. What are ppls thoughts
This reminds me of exactly why the 1st Republic in South Korea failed. The government spent too much money on institutions complacent on giving them loans without much profit. Take all that U.S. aid out and they were left to die by the masses. It took a dictator who first wanted to oust the ultra rich to realize through his economists that the country needed a reform. Decades later and the country went from mud roads/thatched roofs to concrete highways/skyscrapers.
Government debt can only go so far in carrying that which is not profitable. China had to sell their non-performing loans to foreign countries in their reform and it worked wonders.
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We can thank Obama for the doubling of our national debt. Just spent his way out of a sluggish recovery that lurks still today. Worse now.
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Can you make videos on possible improvements to the economy? For example, this is very informative but how does government deleverage itself?
Wow, everybody is speaking about crysis, sell everything now and wait fot 5 years of disaster coming
banking sector debt are deposits. their assets are loans. kindly revise your point.
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Bro is been three months since you posted this. No crisis.
Thank you for explaining to in plain English that money is not real and we are so unbelievably screwed it's not even funny
So the Govt & Business sector will pass the tab back to the Household & Banking sector?
Wait so if all three are around the same damn debt then how the hell does everyone keep borrowing money?? something ain't adding up whatsoever bro
Omg he's quoting rogoffs paper. Facepalm
it's like the knew for sure this was going to happen in the 2008 but decided it was all fine.
Meanwhile in Australia, housing debt is at 118% :)
Either the FED hikes more aggressively and countless companies implode as their cost to service debt skyrockets... or the FED dove soars and these companies implode as inflation destroy's their customers ability to purchase their product or service. Take your pick.
Destroy all useless companies with rate hikes. It's time for society to distribute resources more efficiently. There are too many people doing nothing at work.
Why is everyone pointing this out now? This has been coming for awhile now.
Thanks for making it so easy to understand that even I get it
When will you be a guest at CNBC?
Hmm, wired way to combine percentage based graphs
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Covid capitalist bailout
Disliked 4 lying
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Market analysis is like astrology but for dudes!
This is the best channel on UA-cam.
How about if the federal home loan bank board needs a bailout and the federal reserve buys their bonds thus allowing the fed to silently bailout itself and getting a hold of the legacy treasury debt with the proceeds? I can't wait to see YELLEN's dagger go thru POWELL 's plans in the end!
HOW CAN WE FIND OUT ABOUT THE SILENT MARK TO FANTASY THE FED IS ALLOWING TO OCCUR!
so does this imply that business is using high debt to reduce their tax rate?
Would someone please check this thought ?
The debt to GDP levels of household?consumer debt are being calculated in tandem with inflated asset prices. What will happen when the inevitable repricing comes in and asset prices fall? I postulate that the household and even banking sectors are actually very leveraged but are partly obscured by asset price inflation.
Is this possible or am I missing some calculation correction ?
can you post the sources for your data?
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So how do we fix this? Increase taxes, decrease corporate profits, and pay off their debts?
Taxes barely even pay for the federal debt or any debt at all once so ever infact there isnt even enough fiat on this Earth to pay off the debts of the government. It doesnt matter what they do if they cant axe government spending. A long term government shutdown may be nessisary and austerity measures.
Hmmm....higher government debt, higher business sector debt and and no way to grow out of it due to deteriorating demographics. Time to play defence. And as long as CBDC's don't replace physical cash (making persistent negative interest rates possible, making it in turn mathematically possible to decrease debt, decrease GDP, while still increase GDP per capita), get some gold as well.
Suppose the Treasury and the FED are wise enough to technologically enforce anonymity/privacy with regard to CBDC's? If not, people will massively start to adopt Bitcoin.
Is there any good defense of the high level of debt the US currently has? Some Keynesian theory?
I would move completely into brass and cash
Go for it. At a 5% inflation rate your cash will be halved in value within ten years. You might need a single bullet soon thereafter.
One flaw here, you are not including federal government debt owned by the social security trust fund. This is flawed accounting on the government's part and it still counts as debt. As outlays exceed inlays + coupon payments + debt maturation amounts, the social security trust fund will be forced to sell US treasuries on the open market. If that occurs, the debt they own becomes very real. The amount of federal government debt is currently over 120% relative to GDP if total debt is counted.
Very good explanation of concepts that I've struggled with. Now that US consumer debt figures have been released for Q1, it seems the tides have turned in that sector with record numbers showing increasing debt. With a Government debt default looming, things are not looking good at the moment.
Who gets the debt? Who holds the hot potato? Who takes the risk? Who gets the pension? Unborn children are sold into income tax debt slavery. This is an abomination. We need to free the children from debt slavery. Who will agree to that? Inflation means net worth and saving shrink. This is a problem. Also, children are grossly under paid and unable to save at 50% less in wages than in 1966. Wages are too low. We need a reset. Who will take the hit?
Lots of correlation, no proof of causation tho.
We have monetary diabetes
Great presentation. People need to learn how to spend less, earn more and then save those new earnings.
Can anyone recommend a Canadian macroeconomic perspective? This guy is God tier and great for overall, but I'm looking for something more relevant to canada.
I know some of these words.
How do you trade this?
Trying to finish getting out of debt this year.
Can't wait for thousands a month in disposable income to start saving and investing.
Trying to get to $1 million invested before my daughter hits college and $2 million by the time she graduates college.
At that point I would be capable of retiring early and monetizing my hobbies.
Nice dude. What are some things you are doing that are aiding your debt free journey?
Excellent as always .....