We are debt slaves. We are paying debts from borrowing done in our names, without our consent for the most part. But rather than get a bill in the mail, the interest is built into every good and service we buy. We are the embodiment of debt because the cost is paid by the very lifeblood of the consumer, earned over a strictly limited time called a life. We live on a prison planet.
It's sad how difficult things have become in this recessive economy. I was wondering how to utilize some money I had. I used some of it for e-commerce business, but that sank. I'm thinking of how to protect my $150K-worth stock portfolio from decline, but haven't figured which way to go.
I do not disagree, there are strategies that could be put in place for solid gains regardless of economy or market condition, but such execution are usually carried out by investment experts or advisors with experience since the 08' crash.
I agree, that's the more reason I prefer my day to day investment decisions being guided by an advisor seeing that their entire skillset is built around going long and short at the same time both employing risk for its asymmetrical upside and laying off risk as a hedge against the inevitable downward turns, coupled with the exclusive information/analysis they have, it's near impossible to not out-perform, been using my advisor for over 2years+ and I've netted over 2.8million
@@Dantursi1 How can I participate in this? I sincerely aspire to establish a secure financlal future and am eager to participate. Who is the driving force behind your success?
Warren Buffett famously said about how to end the Fiscal Deficit saying that “I could end the deficit in 5 minutes. You just pass a law that says that anytime there is a deficit of more than 3% of GDP all sitting members of congress are ineligible for reelection.
If I mess up at my job I’d probably get chewed out and fired. The leaders of the greatest country in world mess up they say “it’s because of the left or right.” When did we start electing children in office? We need real leaders in office.
The U.S. economy relies on ongoing credit and debt generation for sustenance. The Federal Reserve is expected to increase the money supply, leading to further debt accumulation for the average American. Meanwhile, foreign nations continue to desire the U.S. dollar, despite their own economies facing significant challenges, some even worse than that of the U.S. This situation raises concerns about who will ultimately bear the consequences of these economic dynamics.
it gonna be a "too big to fail" moment, money will become worthless like in zimbabwe, and those who took big loans and bought real estate will become rich and those who saved diligently will pay for it and be wiped out
If the bank ends up not getting nack the 100$ you owe it's not as bad for them as if you owed them 100 million, because they know they won't get that back in a lifetime, so it ultimately ends up hurting them more in the long run.
Can anyone in this comments section recommend an actual good VPN? I’ve been hesitant to pull the trigger for this exact reason. Is Nord VPN good? Edit: dang, thanks for the replies, everyone!
The belief that the Federal Reserve would stop raising interest rates was the driving force behind the entire economic chaos. What should we do now that we have a situation where interest rates are crashing? At this point, how would you suggest that I safely allocate $300k?
Although the market is currently volatile, aren't the current valuations a result of the Federal Reserve's monetary policy and low interest rates? Therefore, my recommendation is that you consult a financial advisor who can give you entry and exit points for the shares that you are interested in.
Agreed, my portfolio is well-matched for every market season yielding 85% from early last year to date. I and my CFP are working on a 7 figure ballpark goal, tho this could take another year. IMO, financial advisors are the most sought-after professionals after doctors.
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
In 2008 banks traded mortgages thinking that they were safe assets. 401K's saw people shoving their retirements into the S&P 500 under the fallacy of "historic returns" despite the fact that today 7 companies make up 45% of the indexes' growth and 30% of its entire value. 18 year olds studied higher education and took on debt on the promise of a better job and larger salaries. And in 2022 Russia invaded Ukriane assuming they'd steam roll the country in 2 weeks. The world is built on the idea that something that held true 10 years ago will hold true in 10 years time...
It’s understandable people think like that. After all, before the industrial evolution things that were true 50 years before would still apply 50 years later for millennia. Stuff like that leave a biological mark
Banks knew the mortgages they were selling were risky assets in 2008, they had just deluded themselves into thinking that they had been able to reduce the risk to a manageable level and didn't bother contemplating systematic risk.
Household debt is very different from Federal debt which should be kept in mind. Also taxes do NOT fund public spending (except at a State or local level). The money is created and spent first and taxation (along with, more indirectly, interest rates) is a mechanism, at a federal level, to 1) delete money in circulation to keep the money supply in line with the productive capacity of a country's economy and prevent inflation 2) mandate a reason for the citizens of a country to carry that currency.
Isn’t that wrong? Fiscal policy, AKA, taxes and subsidies is not the mechanism that controls money supply, monetary policy is. Money supply is controlled by the federal reserve through monetary policy by buying (pumping money into the economy) or selling (taking money away from the economy)bonds and setting interest rates for other banks which should trickle down to the consumer. This however does not mean that they can fully control inflation. In contrast, fiscal policies such as taxes are not in the hand of the federal reserve, but in the hands of the government. As you can see those are 2 completely different institutions with different functions, as the federal reserve, like the central bank in any other country with good institutions, is fully independent from anyone else. I would be interested to know how taxation affects money supply.
@@Alexxxcasas616 When you tax the money out of the economy it goes back to the government's account at the central bank. The CB as creator of the currency has technically the ability to create infinite amounts of money. In reverse, that means money taxed out of the economy by the government and deposited at the account held with the CB goes up in the CB's infinite money supply - it disappears/vanishes/ceases to exist. You can compare it to a regular bank loan that's being repaid. Once the loan is repaid the previously (for the loan) created money ceases to exist. I hope that answers a little bit your question. If you wanna dive a little bit more into that topic look up Modern Monetary Theory.
Its impossible to solve, it would require drastic measures, and in a hyper individualistic country like the USA that wont win anyone any elections, in a collectivist society it would be easier to convince the people that hard times are coming.
Collectivist my ass, just stop spending everyone's money on nonsense, stop trying to import the third world as they are a net drain on resources, not an asset, and let the economy grow rather than overregulating it. And no, taxing "the rich" will not solve the debt. Even if we taxed them at 100% it wouldn't even begin to cover the massive budget.
$45B for rural high speed internet 3 years ago not one single person hooked up. And that’s just a small piece. Imagine just wasting $50B to produce nothing. No goods or serves just stolen tax dollars lost to nothing
The problem with politicians talking about cutting spending is they almost always mean taking important social safety nets from people and never cutting useless and expensive bureaucracy and asking why we spend nearly $1 trillion a year on a defense budget
The public is always trying to stay above zero, all loans though from banks as all debt is money, are trying to get back to zero from negative zero, unless new debt is being entered into there will be zero money entering the system, taxes are just a siphon so the dollars don't build up. Taxes literally make money disappear. it's like any loan, because we are a debt based society and all debts work off a principle of negative zero, once that debt hits somebody's account we call it money and that if all debts were paid back there would be zero money. This debt always being entered into means new money is always coming onto the market, taxes remove this money, and we are in between it entering and leaving with our energy and consumption. When loans are paid back, whether it be commercial or central bank debt, that money disappears, money does not build up, taxes remove money so the value of the dollar can be managed. Because we are a debt based economy and debt in the economy is called money, if the govt were in surplus 35 trillion it wouldn't be in our pockets it would be in theirs, debt is the pivot point on a see saw, on one side is us and the other side bankers who can print money. Debt for a household is not printed money, debt for the bank, central or commercial, is and is classed as debt but you hold it.
@@alancobbinthat's pure BS answer, better answer how is EU any worse than US, that's what I was asking, that's what is not pure BS like how someone is manipulating something, don't be such a sheep with aluminum hat and keep it objective
...nope. Not a sham; a _Racket._ Rackets are often disguised as legitimate endeavors, but involve fraud, _Extortion,_ bribery, threats, and violence. America forces other nations to trade their Real value (goods and services), for U.S. paper Fiat currency which is created out of thin air. .
I think it’s disgusting that a government that takes about half of your paycheck after you pay for income tax, sales tax, gas tax, property tax, excise, tax, total tax registration, tax title fees, etc. etc. does not have an abundance of wealth. And yet while property taxes went up services were cut at the same time so how can we give something like 100 countries tens or hundreds of millions of dollars while we’re paying $1 trillion alone in interest annually and putting it on the backs of the taxpayers, it’s criminal
The goal is to prevent further losses at home or promote growth that will benefit us as well. It's not out of the kindness of our hearts. In other words, we don't give enormous sums of money (large by government standards, so tens or hundreds of billions instead of millions) unless we expect to see some sort of return on it.
Taxes literally make money disappear. it's like any loan, because we are a debt based society and all debts work off a principle of negative zero, once that debt hits somebody's account we call it money and that if all debts were paid back there would be zero money. This debt always being entered into means new money is always coming onto the market, taxes remove this money, and we are in between it entering and leaving with our energy and consumption. When loans are paid back, whether it be commercial or central bank debt, that money disappears, money does not build up, taxes remove money so the value of the dollar can be managed. Because we are a debt based economy and debt in the economy is called money and they print it at a cost of around four cents per hundred dollars, if the govt were in surplus 35 trillion it wouldn't be in our pockets, debt is the pivot point on a see saw, on one side is us and the other side bankers who can print money. The public is always trying to stay above zero, all loans are trying to get back to zero from negative, unless new debt is being entered into there will be zero money entering the system, taxes are just a siphon so the dollars don't build up.
If the government took 50% of your wage, half of your wage would probably come from the government, I mean where does the government money go ? OK technically more than 50% must come from the government due to the budget deficit, so the situation is the opposite of what you tried to pretend.
100%. The government has a massive SPENDING problem and easily confuses most of the public (as is painfully evident in this comments section) by blaming how a small percent was spent by their political rivals. Half the comments to this video blame “corporate subsidies” without being able to define it, despite the fact the very premise is that the government is not taxing them, or taxing them at a lower rate, and only in extremely rare cases actually gives them any money. And in almost 100% of those cases, it’s in one of the Democratic Party lead “infrastructure” bills. The numbers are glaring obvious: social welfare spending (Medicaid, SS, et cetera) are the problem.
I’m gonna be a banker for Halloween. I’m gonna eat all my candy, eat all your candy and then I’m gonna convince the government that if i don’t get more candy, we will all starve
I was concerned about this at $9 trillion. That was a not too long ago. Back then, it was "one of the biggest issues of our time, affecting not only those in the US but everyone around the world." $36,000,000,000,000.00+ seems like the stuff of fiction.
@@nieturstill the US is in the top 10 and some above it are like Sudan, Japan, Greece… and the US’s deficit is in many trillions and none of them are paying such huge interest on their debt.
Money is not created. Debts are owed to someone and they are owed to the super rich. Someone is rolling in cash and they are not paying enough taxes to balance out the system.
Since 1980, the US has spent around *24 TRILLIONS* on the military ( that's just the official yearly military budget, not the additional expenses that aren't accounted for in that total ). Also since 1980, the US has spent around *13 TRILLIONS* on corporation subsidies ( not accounting military contracts ), fossil fuel subsidies and bank bailouts. Now you know where ALL of the debt ( and then some ) is coming from, an over bloated military budget ( handouts to military contractors ) and corporate socialism.
Thats really low for 44 years of military budget. Also comparing our economy to others, corporate subs are pretty low too. What are we suppose to do? Let everyone sub their industries and let ours die? No thanks
This has created a lot of hatred towards the US from all countries in the world. Those whom the US calls friends are close to the US only because they need protection or they are afraid of the US. In any case, out of 8 billion people, 7 billion hate the US and will not cry if the US drowns in the ocean.
@listohan The thing about military spending is that its terrible for the taxpayer because its impossible to measure its effects. Until you find out its worse for the taxpayer if you need a military and dont have it.
That’s factually wrong. The increase in debt is majority due to social programs, primarily socialized medicine. The average payer about to receive Medicaid/medicare has paid approximately 20% of their expected benefits. 80% are accrued liabilities that eventually land on the total debt line item for the federal government. That deficit dwarfs everything you mentioned. It is mathematically impossible to run a balanced budget in the U.S. without massive cuts to government welfare programs. Don’t show your ignorance by claiming SS and Medicare are “earned” when only a small portion is actually paid for and the rest is socialism.
Invest judiciously, keep a stop loss figure. Shuffle between debt and equity wherever the ratio goes too off your target. As for the target, I recommend a Ratio like this Debt % should be equal to your age in years. If you are 20, debt is 20%, reset in equity. If the market falls or rises drastically, your debt % will change, which you should rebalance to 20% and bring back equity to 80%. Thus you would have bought low or booked profit depending on if it was a crash or a bull run.
Starting early is simply the best way of getting ahead to build wealth , investing remains a priority . I learnt from my last year's experience , I am able to build a suitable life because I invested early ahead this time .
I totally agree; I am 66 years old, recently retired, with approximately $1.2 million in external retirement funds. I am debt free and have very little money in retirement funds compared to the total value of my portfolio over the past three years. To be honest, I didn't do all this alone, but with the help of a financial advisor. Having one is currently the best way to trade in the stock market, especially for people nearing retirement.
Is there any chance you could recommend who you work with? I've wanted to make this switch for a very long time now, but I've been very hesitant about. I'll appreciate any recommendation.
The problem with cutting spending is that politicians would only go after small potatoes that does not add much to the deficit and budget. They would never try and tackle and reform the out of control spending in defense, Social Security, Medicare and Medicaid.
The problem is bigger than the USA, elites operate gobally. Here in the UK Americans, Arabs, Russians and our own billionaires own alot of our stuff. From football to big land estates to houses. Plus we have the skeleton of a dead empire the elites have kept alive in order to create company and tax loopholes. The problem is it too easy to bribe a politician and too easy for an elite to run away to a more friendly nation when they are threatened with real justice. What we need is what people do not want and that is a gobal big brother with ethics in place that ensures exploitation is a thing of the past. The USA/Russia/China unfortunately keep alive the idea of empire building making it impossible for that to happen at the moment. Also, I don't know why people are against this. We have a police force, we have laws for common people and if someone wrongs us we expect big brother to help us get justice. We simply need the same thing for those who try be above the law.
Correct. The only spending that could truly be cut is military, and the only thing the conservative party wants to do is increase spending for the military, while the moderate party (lol) wants to continue to do the same. It's not a solution, it's a crutch until one of these two parties equates "military" as not the most important tool in the States shed. That being said, the true solution is to increase taxes, particularly, on the classes that aren't paying much taxes (the wealthy and corporations). I mean, we are in this mess because we decided to cut a large chunk of their taxes back decades ago now. Hilariously, people gloss over the 1980's.
@itsJoshW They need to also go after it's wealthy that hide their money in tax shelters abroad. If you claim your company is based in Ireland and pay Irish taxes then do your business in Ireland. If you want to benefit off of the American market and infrastructure then you pay American taxes.
I kinda disagree. National security is what give confidence to other countries to invest in to us which helps stimulate our economy. You could tax the rich at 100% and it still wouldn’t cover the 1.6 trillion dollars spent in social security every year.
It is not only a goverment debt crisis. All normal american households are in average deep in debt as well. The US lived way above their income for far too long, and it is going to cost them, one way or another. There is no way out of this without a lot of pain.
Exactly. People are saying that the Government can't default since they (The world) keep changing the rules, but that only works for the government. The rest will go bankrupt and lose everything. That would be enough to bring the government down and everyone else with us. I read somewhere that upwards of 30% of Americans have stopped paying some or all of their bills. If that's true, that's an even bigger crisis that is guaranteed to hurt more than a Recession. Nothing will be done until it's too late and it will be the ones the worst off paying the highest prices.
@@DarkPa1adin If you got guns and can defend it from the banks, then you can keep it. Tbh if we all took our guns to the banks, we could rewrite history
"Useless items" to cut are in the eye of the beholder. What exactly is "useless"? A national park? A military base in South Korea? Medicaid? NASA? Defense projects like the F-22? Maintenance of smaller civilian airports? Yeah. No one will ever agree on what is "useless" to cut.
@@franjkav Thata kinda the point, taxation without representation and central planning generally don't end well. Societies that do that tend to be worse than the societies that do.
@@starspaceschool587 The services we pay for likely closely resemble the collection of programs everyone would choose to support. Some would plow it all into the military. Some would give it all to grandma for her medical care. Both might throw a few nickels at NASA and Food stamps (which is what those tiny programs amount to...nickels.)
@@williamjacobs I highly doubt it. Plenty of people who claim to want these social programs never use their own money to support them. They are very generous but only with others people’s money and when it benefits them. Think two wolves and a sheep voting on what’s to eat for dinner. We need to protect people’s rights especially when other people want to take them.
@@obsidianjane4413 Tone down the optimism there. Our current leadership will sooner destroy everything than do the right thing or even anything close to the right thing. How many people in this country would sooner see it burn to ash than lift a single finger to save it? A shocking amount, unfortunately.
Let's not forget the Japan carry trade, which is still ongoing, and overnight SOFR rates trying to offset risks. It's getting to the point where large fund managers are selling their 10 year bonds to stock up on 5 year bonds, because their runway for funding has effectively been halved, so they have to abandon the long end of the curve for short duration yields in order to stay afloat. This is just the tip of the iceberg. Great video. Thanks for getting this important function of the economy into the hands of everyday people who are now learning how finance, money and the greater global economy works.
@@SimonTmte “sending away some old military equipment” You sound like you know a lot about this. Tell me more about how much one javelin missile costs.
@@SimonTmte in last year US sent 18 Billion dollars to certain country in middle east. That is in one year. That country now invading its neigbours so it will probably take more. around 100 Billion went to war in eastern europe in last few years. There are plenty of other countries that aid is sent to and its own military budget is humongous.
The problem is not the debt alone but the ratio. The solution is to grow the GDP by investing in the economy and infrastructure. The U.S. government needs to stop funding wars and subsidizing corporations.
Yes & no. A large legitimate problem is the military spending, of course, but that's not the actual reason why our debt kept ballooning. It kept increasing, and spiraled, due to wealth tax cuts. A simple solution without doing anything is just taxing the wealth class, then of course fear mongering & propaganda, and then the government would need to be a "government" and regulate business that try to punish consumers (you know, the thing the anti-monopoly law was suppose to protect you from). But yeah, we need to stop funding a genocide by Israel, I do agree there.
Little to none of your post makes sense. The vast majority of the debt problem is due to out of control social spending. The fact you only mentioned wars and corporate subsidies (which is so vague in practice to be almost meaningless) while leaving that fact out suggests your post is political more than informative.
@@SH57578 Out of control "social" spending is an absolutely nuts narrative, brought to you by the people that think you're an idiot because you didn't participate in ivy league schools. - About 46%, or 756 billion each year, is spent on the military, conservative party wants to increase this spending - Education is next at 9%, or 158 billion, "conservative" party wants to cut this spending - Healthcare is next 9%, or at 147 billion, "conservative" party, again, wants to cut this spending - VA Benefits at 6%, or at 107 billion, "conservative" party doesn't care about this spending - Administrative State at 5%, or 93 billion, "conservative" party wants to entirely remove this - Housing, at 5%, or 92 billion, "conservative" party blames this typically No need to go on, you should understand the point I'm getting at here. "cutting spending" on the lowest portioned areas won't change the 46% of the military spending, and moreover -- cutting taxes won't change that we spend almost a trillion, each year, just in national defense. We provide numerous subsidies to corporations and an enormous amount of which is in exchange for limited to no tax burden for the wealth class. The solution is to increase taxes and appropriately cut spending in allocations over spent -- such as military. A simple solution is to add new tax brackets that incorporate wealthier individuals, thus permitting that we collect a higher amount of money in taxes. In addition, we need people not of the age of 95, capable of creating and facilitating laws in a manner that removes and defines the alternative methods as illegal when attempting to bypass tax legislation, thus "your typical billionaire" is forced to pay appropriate tax. One major problem that exists within the Republican party today is framing. They're neo-liberalism is what got us into this mess, and instead of facing this, they use the rhetoric to fund alternative areas and cut more taxes on the donor or wealth classes. A good example would be the previous 2016 - 2020 era, wherein the "solution" was to cut spending across the board on sectors that needed it (like education, healthcare, housing, etc) and reallocate that spending to "national defense", or otherwise not appropriately labeled: ICE. The wrong solution for cutting spending is to "blame the other 50%" and cut basic useful tools the "average american" uses to survive and what they pay taxes into to aid their daily lives; Veterns benefits, education, healthcare, housing subsidies and programs, etc. The appropriate solution is to "cut spending" for the allocation that uses almost all spending but has minimal return on the spending -- Military. All that being said: A solution to the deficit is to increase tax revenue. This will resolve the actual deficit we have put ourselves into. Cutting spending won't change the "debt" in our life time, or another life time. Cutting spending on the bottom 20% of spending will do nothing but take 300 years to catch up to the tax write offs we gave to billionaires. That's why "cutting spending" is a red haring. You don't cut spending in your own budget to pay off debt, you increase your income. Although the national deficit is a lot more complicated than that (not even touching GDP and the economy), it's sort of as simple as saying "Yeah, we're in this debt because we kept cutting taxes for people that take over 90% of the US Dollar, so we are truly in debt to them, not to the programs we fund".
In the 1990's, the federal debt was one of *the main issues* in American politics. Both main parties sought to pay it off through different methods. Now in the 2020's, neither political party even mentions it. The US government spends more money servicing interest on its debt than it does its military. Many EU and Asian nations are similar.
this subject right here is what gives me an insane amount of anxiety. sadly, I see too many people today who think we can print unlimited money, and they will be the downfall for the rest of us. its hard to have hope as a 22 year old, truly. this debt aint getting paid off by our parents or grandparents, itll be my generation and our kids generations. I try to sound the alarm bells with people my age, and they either dont understand or they flat out dont believe its true. its insane
There's a lot of misunderstanding around the debt. For one thing, we won't pay it and we don't have to. For another, we literally CAN print unlimited money. Not that we should or it's a good idea - obviously it will have consequences, many potentially quite bad. But it's absolutely possible to spend as much as we like. That's why it's important to focus on what we are spending on and how, not just the raw number. The raw number doesn't tell you anything about how that spending benefited or hurt the economy.
Government "debt" is private sector asset. You shouldn't be any more worried about inheriting government debt than you are about inheriting US dollars. Both are government IOU's and come from the same printer.
@@tiberiusalexander6339I mean, it’s clearly false that you can spend as much as you like as a country, there are consequences for overspending. Your gdp simply determines how much you can overspend before a sustainable limit is reached. People are starting to worry about the usa being close to that limit. If every government could spend as much as they like there’d be no poverty.
@luipaardprint There are consequences, sure, but that doesn't mean you can't do it. If the government really gets gung-ho about spending a lot of new money, I would probably expect some amount of inflation down the line as a result. But it's always mechanically sustainable in that you can always just keep issuing debt and spending more money. The only way that one can actually force the government to default is by literally dismantling or disabling the financial and monetary infrastructure on a significant level. For example, if our country was occupied by an invading power, or if much of the Eastern seaboard was outright destroyed by nukes or some other calamity. But we certainly can't just "run out of money" or funding. The example the original commenter gave was being unable to prosecute a war because you can't "fund" it; that's flat wrong. Like I said, there could be consequences like inflation. But I think World War II showed pretty conclusively that even fairly serious widespread economic problems and dislocations, like inflation or over employment, are a relatively easy price to pay when you are fighting an existential war. Imagine the government giving up halfway through the Pacific campaign because they ran out of money. Not ships, not shells, not sailors or marines or guns or salted pork. We haven't run out of any of the things you actually need to physically fight the war, we just ran out of some tax credits issued by the government itself. Does that sound logical? Of course not. Even back then the government could not "run out of money", or be unable to "fund" war. That whole perspective is based on some pretty thorough and pervasive misconceptions - like the idea that the money is somehow separate or distinct from the government, and that the government has to go out and "get" money whenever it wants to spend. The more you actually look at the system - both the modern system, and monetary systems throughout the long sweep of History - the more you realize just how obviously wrong this perspective is. Money takes many forms, but all throughout history the strongest and most widely accepted forms of money emerge as issuances of the most powerful states and governments in their historical context.
The private sector is de-leveraging debt, they're not borrowing and spending money. So, the government steps in and borrows and spends that money to keep the economy moving forward. Otherwise, you'd end up like the great stock market crash, and the great depression.
That is the only way to balance the economy. Cannot hold off the drop forever. Need to tax the super rich to balance them devouring the assets of the middle class.
@@mf-- I mean actually why can't it hold off forever? The government isn't limited in their spending capabilities and when they don't invest and still save there wouldn't be an inflation either. Look at Japan. What would need to happen so that everything collapses? Either the government stops spending or every investor starts to sell assets and stops saving (what they wouldn't do at once since it would devalue these very assets). So far, no one has been able to explain this to me convincingly...
The Simpsons predicted many things in this video: a Trillion Dollar Currency, the US going broke, they even predicted that Disney would end up owning Fox.
"The US can always pay its debts as long we can print money." Allen Greenspan. The inherent property of a currency is always subject to debasement as the money supply expands through credit. The national debt will never be paid off as there is not enough money in supply to do so.
"Printing money" is misleading given the fact that the vast, vast majority of financial transactions are done with intangible money, i.e. ledger sheet balance transfers. It's a phrase that should be abandoned for the sake of clarity. The Fed's money printing, in the literal sense, is a drop in the bucket and would stay that way with increased "money printing", i.e. creating money by loaning it into existence.
I think this is itself misleading, although I agree with your distaste for the specific phrase "printing money". And while the money created by the FED is indeed a minority of the broad money supply, I wouldn't call it a "drop in the bucket". Private bank credit is built off reserves, so although reserves are a small overall share, their importance is outsized.
@@tiberiusalexander6339 the banks create credit, only the government creates new money through the fed. And the vast majority of this money is created digitally so the phrase "money printing" is quite misleading
@@grimaffiliations3671 like I said in my comment, I agree that "money printing" is a bad label since it's mostly digital. And you're certainly right that most of the money is private bank credit. But that doesn't mean it's not money; it is. Heck, from a practical perspective, it's more like money than reserves for most of us, since we can spend bank credit but not reserves.
That’s unfortunately not happening because corporations put the politicians there and the Supreme Court’s decision to allow unlimited corporate spending in politics solidified that.
If the debt ceiling held, maybe it would've been kept. All it did was allow the fiscal hawks to ring up a string of defeats. It was political masochism to pretend we had a debt ceiling when we didn't. Revenues cover 66% of government service. Not defaulting would require 33% cuts in everything. EVERYTHING. When the MAGA/ Tea Party newbie idiots were given lollipops and had it explained they'd cut every senior citizen's Social Security check by a third if they didn't raise the debt ceiling, they caved. They always did. They always would. Pretending made them look bad. Cutting 33% in a single digit inflation environment would cause a recession within a month. People tend to get upset about recessions.
The financial sector is essentially untaxed. Private Equity is a huge tax dodge. These are really the only segments of the economy that can be taxed. American workers pay medicare and social security taxes which accounts for the majority of the federal budget. This is on top of income taxes. So their effective rate is very high.
Well you can FORGET asking the middle class to bail out the country with higher taxes. For one, the middle class is pretty much dead. It's just the owner (capitalist) and worker (slave) class left. So show this video to the owner class because the latter has nothing left to give.
Besides the fact of it being immoral to charge one person more taxes than another, if the owner class pays more in taxes then how will they pay the worker class? You think the worker class is poor now, try charging the owner class more taxes and you’ll find out what real poverty is pretty quickly.
@@elishariedlinger559"it is immoral to tax one person more than another" 😂😂😂😂😂 I guess the entire world is immoral, because almost every country uses progressive tax rates. Do you think parents are being immoral when they tell the oldest sibling to let the youngest have a turn?
@@EarlofSedgewick Just because the entire world does something does not make it right. If everyone ate their neighbors, would it all of the sudden be ok to eat your neighbors? If everyone else jumps off a cliff should you go and jump off a cliff? As far as siblings, there is nothing wrong with having siblings share something so that both brothers get some time with the item. There is nothing immoral about sharing an item that you own. And there is nothing wrong with parents teaching their children to share items they own.
@@grimkahn3775 I am defending what's right. I don't care if someone is an elite or not. Besides that, it is the elites that hire everyone else. Maybe not directly, but indirectly. If the government takes too much of their money then they will not be able to hire as many and it will hurt the whole economy. The best way to get more tax money is to create an environment where the economy can grow and with that growth, the government gets a piece. Economies are stifled when there is too much tax or too much regulations, etc. If too much taxes on normal people hurts the economy, how much more is the economy hurt when we take too much taxes from the elite?
Tax companies! Why is that never spoken about? Pretty sure back when the GDP:Debt ratio was stable, companies were paying A LOT more in Taxes than they do now.
@@ericfromeng Governments dictate how companies do business. Tax Companies and Pass laws that prevent companies from passing it on. Like we did before all the Conservatives ripped them out of our law books.
This is a leftist talking point based on nothing. Corporate taxes have been a small percentage of overall revenue for a long time. It’s always been citizens that pay most of it, and for obvious reasons to people with a modicum of understanding about economics. 100% of Corporations are owned by people. If private, by the founders and small group of investors. If public, by thousands or millions of shareholders. Regardless, the company’s lower profits due to higher taxes directly impact the owners. There is no difference if you tax people or the company. And if your reaction is “but I’m a poor person with an average income and no investments”, I suggest using your brain and ask yourself where your pay check comes from. If all companies have lower profits due to higher taxes, what do you think that’s going to do for your wages? They go down. The bulk of the U.S. stock market is owned by people with retirement accounts. And for god’s sake don’t look like an idiot and say blackrock owns the stock market.
@@halliwedgeyou are utterly clueless on this topic. Order them not to pass on higher costs? That’s patently absurd. Do you have even the slightest clue how the real world functions? You probably believe rent control and price fixing are great policies.
@@Life-Is-A-Meme-t5h Judging from how fascistic it's getting around here, I'd say we learned a lot from Germany in the past. We just learned the wrong lessons.
@@TheMusicalFruit what do you mean fascistic? I mentioned about Germany’s past just on how they kept printing money to the point their Franks became worthless.
Great episode! The U.S. debt crisis is a crucial issue that impacts everyone globally. I appreciate the deep dive into the causes and solutions, especially the potential positive outcomes like attracting safe haven flows, fiscal stimulus, and boosting export competitiveness. Though there are still negative outcomes, it’s important we focus on how proactive measures can lead to a more stable economy for all!
You didn't talk about BRICS role like it doesn't exist. countries shifting to local currency trades. in the past economic boom, dollar was linked to gold. now there is no back also
If a problem affects everyone, then it's not a problem because rich people will make it go away. The real problems are the ones that only affect one class.
Correct. Unfortunately, even if the US economy collapses, the wealthy will still be wealthy, so it wouldn't affect them. I think the worst part is that this deficit exists due to them getting more, and more, tax breaks. With inflation and without taking military into account, spending hasn't changed that drastically over the past 40 years. What's changed is the amount of money the US receives in taxes, and the decline in exports (due to the world moving away from oil over time). One part of that solution is to increase exports by shifting toward products that are needed in the modern world -- - Green energy (electric, solar, plant oils etc) rather than crude oil refinery (on the way out) - Chip manufacturing -- We need to fund Intel Fabrications, require AMD & nVidia to create a US Fabrication with Intel, to which we compete with TSMC (USSMC instead, US Semiconductor manufacturing company) With both of those comes additional manufacturing required, thus it'll jump start additional manufacturing allocations that would contribute to increasing the overall export. But that's the catch. One party understands this (democrats), the other party doesn't care (republican) and wants to make money in the short term. That 'short term' goal increases wealth for the wealth class over a small period of time, but could potentially collapse the economy over the long term. But it wouldn't matter, because to them, it makes them money. While the one party understands this, they also aren't doing anything more to alleviate the major problems, thus we're left in a stalemate. Unless that one party is "always in power", the solution won't ever happen, thus it wouldn't matter if we did 'the green new deal' or not, because it wouldn't solve the problem with the next 4-8 years, that could just be 'wiped away'. Meanwhile, it's harder to do that with taxes.
The rich people are indeed linked to the stability of their money flows, but they are choosing a different path. The time of risk investment is long over, and they've been shifting their money into turmoil-safe assets such as land and houses. This is a slow shift that's been happening for years, and it says the rich are hedging against a decade of global economic depression. Such an event won't affect their lifestyle much. It's more likely to make the wealth gap even harsher, as they'll be able to reap assets of desparate sell-offs for cheap.
@@edgedg When there are no limits on greed. This makes me think there's going to be another revolutionary war and the new country will have laws against infinite wealth accumulation. Their kids will look back on us like we were the savages. I just hope we wake up and skip the bloody part.
As a Canadian who pays pretty close attention to US politics, i must say that their political discourse it asinine compared to ours. Their politicians are constantly putting up a smokescreen of issues that are extremely minor in the grand scheme, (abortion, gun control, etc) while never talking about the real issues because their political parties aren't actually that different. Meanwhile, in Canada the debt, govt spending, and money printing is being hammered constantly as the main issue and root of the majority of the countries issues.
Talking about gun control seems at least somewhat relevant here: how many middle schools get classrooms full of kids executed in Canada on a yearly basis? Because that happens on a depressingly consistent schedule here. And for the record, if you think Canada is "perfect" well PAL I've got a whole bunch of friends who also live there & they would vehemently disagree. No country is perfect, America is just exceptionally visible in regards to its imperfections. We're all getting f*cked by the ruling class. Just because it's under a different flag doesn't make it any better or worse.
Reminder that a majority of US debt came from indefinite tax cuts for the rich and corporations. We had a trade deficit in the early 2000s until the bush tax cuts and the wars.
@@starspaceschool587 this is why basic social economics classes should be mandated...the US goverment loses a huge percentage of revenue on tax cuts for the rich and corporations. This is because the longer the tax cuts go on, the more revenue is lost in paying down expenditures the government has to make, including the debt. Hence the debt gets larger. Meanwhile the money being hoarded not being paid into the system gets larger. Hence the widening gap between the rich and lower classes. There is a reason that is happening and it's not because those guys up top suddenly started being more productive than everyone else like you and me. Same deal with social security funding. There is a hard limit on the amount of money that needs to be paid into it the higher the income ladder. Aka someone who is a billionare puts in as much as someone who works 9 to 5 at Wal-Mart over their lifetime which obviously is unsustainable. Which leads to the obvious conclusion... The problem isn't "spending", it's what is being spent and who isn't paying their dues.
@@MrInuhanyou123 they certainly should be and it looks like you should be the first to sign up. Because when taxes were cut the government saw a huge increase in revenue. In addition when a rich person keeps more money they grow their wealth more causing yet even more taxes while the government just squanders the money. Also a billionaire will almost certainly pay more into social security than someone who works at Walmart. Not to mention on the social security wages that are paid due to the people they employ. The only way they wouldn’t is if they never paid themselves a wage. The problem is clearly spending because despite record repeated record revenue the government keeps getting record debt. It’s like a household that keeps getting huge raises but raises their lifestyle even more.
In the 50s, income above $2 million was taxed at 95%. Supposedly this was during our "most prosperous time" economically. Now the top tax rate is like 38%, and even then, it's practically 0%, because we have since written the tax code directly for the wealthiest of Americans, expecting the rest of us to pick up the slack. If the wealthy did their part to help this country, there'd be no crisis to face. But they'll always be the first on the lifeboats abandoning ship.
@@TheMoney_Blueprint Wealth from capital gains is taxed lower than wealth earned from a wage. The tax code is definitely rigged in favor of the wealthiest people. To believe otherwise is delusional. You should stop bootlicking and understand that it’s a big club and you ain’t in it.
Rich people always leaves home country to settle their business in tax heaven country. Even they know home country is gonna revive again till that time they have choice to go anywhere as they looted hard earned money from their middle class employee.
My main concern is how to survive all of these financial and political crises, especially in light of the US political power scuffle. The government has really called things more difficult for its citizens,but l thank God I'm favoured with $86,000 every 2 weeks! I can now give back to the locals in my community and also support God's work and the church without waiting for the government.God bless America.
4:38 - this graph is key. If debt is currently at 120% of GDP (i.e. 20% EXCESS than what it can produce in a year), then government bonds have crossed into the territory of "just trust me bro - I'll pay you back one day, I promise". The next question is obvious "so when are you gonna pay me?" and the US has to pay out BEFORE some tiny trigger event causes all the bond holders collectively to panic and crash everything. So why is it bad to pay with BRRRR printed money? Coz anyone who's getting paid out would feel like they're being cheated - you were promised 10 gold coins but you're getting 10 silver coins - it's still 10 coins just worth less now coz BRRR directly causes inflation. Hence people want out BEFORE it gets to this stage. You think these people are gonna say "Oh, let me try investing in US bonds one more time."?
Finally people are starting to talk about this, it is unsustainable. The only way to actually pay it off now is through guess what? Inflation! This is the exact situation to what happened in Weimar Germany to pay off their enormous debts.
"If America can't pay its debts it will effect every single one of us". Yes, but that is unlikely bc they will pay the debt. Its the paying the debt, THAT is what will also effect every single one of us. The chances of the US not paying their debt is essentially 00. The chances of having rampant inflation is essentially 100%. The consequences will be 'worse' if we dont pay the debt. So we will pay the debt, but that will have consequences too... inflation. Its that line you used in the video around the 1:00 minute mark and u say "if America cant pay its debts it will effect every single one of us" that made me want to comment. BC there are also massive consequences if we DO pay the debt, and that is the much more likely outcome imo. Turning the printer on vs economic apocalypse means they turn the printer on
The issuing isn't just paying debt but the fact that they are accumulating debt at a exponential rate, way beyond the small amount (in comparison to the size of the accumulated debt) they are paying back. Similar thing is happening in the UK and probably other western nations as well. The consequences of a out of control spiralling debt can and will be disastrous.
@@Saif0412 More debt is fine if you can coerce more countries into holding dollars just to feel safe. It's a two-sided strategy. Just gets harder when they have literally any other option available.
Modern monetary theory (MMT) is a macroeconomic theory that suggests that governments can spend without financial constraints as long as they are the sovereign issuer of their own currency. MMT is based on the idea that governments can print as much money as they need, and that their budgets should not be limited by the same concerns as a household budget.
The US government debt is on an exponential free fall and the only way to pay that debt is to keep printing . Hyper inflation is coming , housing crash , a recession and a possible depression too. i think is time investors redirected their focus to the equities market cause despite the severe bear market, I am aware of certain investors that have earned over $365,000.
The stock market is no different, to maintain such profit, you need to have some in-depth knowledge on the market, prioritize patience and a long-term perspective most importantly consider financial advisory for informed buying and selling decisions.
A lot of folks downplay the role of advlsors until being burnt by their own emotions. I remember couple summers back, after my lengthy divorce, I needed a good boost to help my business stay afloat, hence I researched for licensed advisors and came across someone of utmost qualifications. She's helped grow my reserve notwithstanding inflation, from $275k to $850k.
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
My CFA Carol Vivian Constable a renowned figure in her line of work. I recommend researching her credentials further. She has many years of experience and is a valuable resource for anyone looking to navigate the financial market.
Thank you for sharing, I must say, Carol appears to be quite knowledgeable. After coming across her web page, I went through her resume and it was quite impressive.
Because 3rd world countries are suppressed by western countries in order to be exploited just like how Europeans colonized and controlled Africa. Basically a modern version of colonialism
They say that taxes fund government expenditure. But this is illogical, how do the people/businesses get the money to pay the tax in the first play if the government does not spend it into existence/circulation?
9:36 "many people don't know this, but the US bond market is actually larger than the stock market. so it's probably the most vital part of the global economy. 15:04 if the US can't pay it's debt, US bonds would crash, and bond interest rates begin to skyrocket. firstly, the shock of a US bond crash would drive global markets into panic, the largest economy is too broke to pay back it's investors. investors may pull out of everything all together and just go for the safest options : comodities, gold, bonds of another country, who knows. 16:07 "so how could US rates going up cause inflation in other countries? it become somewhat of a currency war, if a country doesn't move their interest rate in respond to the US rate shooting up, investors might take their money to the US markets to take advantage of higher returns, and this will depreciate the value of local currency, causing inflation. in summary this can cause an increase in interest rates around the world, causing inflation in other countries. that's high mortgages, and other loans for global businesses and everyone.
I love your videos on financial topics. They are great insights for many people in a complex, and mostly boring topic for many. Please keep them coming - they are great, very educational and contain amazing visuals and animations.
21:58: I plan on implementing such reforms. Cutting wasteful spending, closing all tax loopholes and slashing the defence budget are all a very good start.
I would say, maintain the current defense budget with a 2 year stipulation that they need to reduce their own budget by...25% to start? That would let the people doing the jobs figure out where to cut the fat out first. Less scrambling and issues within the military that way. I agree with the tax reforms, especially for the ultra rich hiding money away from the economy. I would also suggest making bribes for ALL elected officials (Politicians, judges, police officers) to be made wholly illegal with mandatory federal prison time. Also wording is important so they can't just decide to make those positions no longer elected.
@@CassandraY The ones doing the jobs might be informed better but that doesn't mean their incentives are aligned to cut where it's the best for the military. Bribes are already illegal.
@@nietur Bribes are not illegal. Supreme Court Justice Clarence Thomas has been very vocal how he has to take bribes since the pay for his job doesn't pay enough. And companies buying legislation (i.e. Bribing Politicians) has been legal since the 70's when the Supreme Court decided that that particular action was covered by the First Amendment. And my comment regarding the military also including the phrase 'To Start'. That means, give them the chance to recoup some of that money before just slashing the budget willy nilly. It also has the added benefit of informing the military that things are going to change and that this is their chance to be apart of that conversation rather than just being told what was decided without them.
Taking money from people smart enough to amass billions and giving it to people dumb enough to waste trillions is a bad plan. Not to mention even if you tax them at 100% it still doesn’t pay for government spending. We have a spending problem not a tax problem.
3:50 Here‘s already the main issue of the video. The Government is not a normal person nor company. It does not necessarily need taxpayer money to have any money. It can create it and the US is especially resilient to inflation ad the US Dollar is the worlds reserve currency
Where does the money come from? The Fed, aka, the government. The government DOES NOT need taxes to pay for things the government needs to pay for. It's not like people are lining up at the Fed to take out money. The government spends the money first on infrastructure projects and other operating expenses. The money the government spends goes to the public. Taxes are the way the government takes money out of circulation. No one ever asks what would happen if the entire US debt was paid off? I'll tell you. That would be the end of the US economy. All the US debt accounts for all the money in circulation and savings and investment accounts. Please do a deep dive (honestly) on MMT and its explanation of how the economy works and why the debt clock is actually the US Savings Clock.
"The money the government spends goes to the public. Taxes are the way the government takes money out of circulation." You're contradicting. The government doesn't take money out of circulation by taxation. The U.S. government spends tax money, and spends even more. The argument isn't about "the entire US debt being paid off". It's about the excessive, unsustainable, unaffordable level of debt, which means overspending.
MMT is not economics. It is the recipe for hyperinflation. Presenting MMT as a valid economic theory means that your understanding of economics only applies to one country.
@@davidanalyst671 “MMT is not economics. It is the recipe for hyperinflation.” Not only is that false, it’s an inversion of what proponents of MMT say: “The first part of the answer [to the question of what MMT would tell us to do if inflation ever became a problem] reminds people that the goal is to fend off inflation before it becomes a problem-i.e. the MMT framework aims to promote price stability. The second part of the answer addresses the question of how to deal with inflation after prices begin to accelerate.” As for MMT applying to one country: “That is wrong. MMT is a framework (or a lens) that can be used to analyze the policy options available to governments under any monetary regime. It is a *general analytical framework* …” _See_ “How Do You Solve A Problem Like Inflation?”
MMT is pure bullshit and should not be considered a part of economics at all. It deserves to sit in the category of "how can we fool people who want to sound intelligent when they make bullshit arguments for greater spending?"
Well, i do have my reservations about the economic crisis. Wall Street pitched so-called quality stocks with high profitability and low debt, as a kind of insurance against whatever the economy might throw at you. Quality stocks have underperformed the S&P500 this year, My $650K portfolio is down by approximately 20%, any recommendations to scale up my ROI before retirement will be highly appreciated.
It's a delicate season now, so you can do little or nothing on your own. Hence I will suggest you get yourself a professional that can provide you with entry and exit points on the securities you focus on.
Very true! I've been able to scale from $350K to $650K this red season because my FA figured out Defensive strategies to protect my portfolio and profit from this roller coaster market.
Is there any chance you could recommend who you work with? I've wanted to make this switch for a very long time now, but I've been very hesitant about. I'll appreciate any recommendation.
There are a handful of experts in the field. I've experimented with a few over the past years, but I've stuck with ‘’Aileen Gertrude Tippy’’ for about five years now, and her performance has been consistently impressive. She’s quite known in her field, look-her up.
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 $80K stock portfolio against declining?
It's a good idea to seek advice at the moment, unless you're an expert yourself. As someone who runs a service business and sells products on eBay, I can tell you that the economy is struggling and many people are struggling financially.
It's a good idea to seek advice at the moment, unless you're an expert yourself. As someone who runs a service business and sells products on eBay, I can tell you that the economy is struggling and many people are struggling financially.
I have a female advisor named Melissa Terri Swayne I recommend researching her. To be very honest, I'm glad I decided to let someone handle expanding my finances even though I almost didn't think I should.
The U.S. economy can actually get better if only the govt can start making better decisions for the sake of it's citizens, cos' they've really made life more difficult for its residents. Hyperinflation has left the less haves bearing the brunt of the burden. Its already eating into my entire $620k retirement portfolio. Like where else can we invest our money with less risks?
Just get a financial planner straight up! personally, I would invest in etf and also love investing in individual stocks. yes it’s riskier but I'm comfortable in my financial environment.
I agree. Exactly why I now work with one. A lot of folks downplay the role of advisors until being burnt by their emotions, no offense. I remember some years back, during the covid-outbreak, I needed a good boost to stay afloat, hence researched for advisors and thankfully came across one with grit. As of today, my cash reserve has yielded from $350k to nearly $1m
Certainly, there are a handful of experts in the field. I've experimented with a few over the past years, but I've stuck with *Izella Annette Anderson* for about five years now, and her performance has been consistently impressive.She’s quite known in her field, look-her up.
Thanks for the advice. The search for your coach was simple. I investigated her well before using her services. Considering her résumé, she appears competent.
![Lp. Сердце Вселенной #60 РОЖДЕНИЕ ЛОЛОЛОШКИ [Финал] • Майнкрафт](http://i.ytimg.com/vi/YoR0pAV9FVQ/mqdefault.jpg)
We are debt slaves. We are paying debts from borrowing done in our names, without our consent for the most part. But rather than get a bill in the mail, the interest is built into every good and service we buy. We are the embodiment of debt because the cost is paid by the very lifeblood of the consumer, earned over a strictly limited time called a life. We live on a prison planet.
It's sad how difficult things have become in this recessive economy. I was wondering how to utilize some money I had. I used some of it for e-commerce business, but that sank. I'm thinking of how to protect my $150K-worth stock portfolio from decline, but haven't figured which way to go.
I do not disagree, there are strategies that could be put in place for solid gains regardless of economy or market condition, but such execution are usually carried out by investment experts or advisors with experience since the 08' crash.
I agree, that's the more reason I prefer my day to day investment decisions being guided by an advisor seeing that their entire skillset is built around going long and short at the same time both employing risk for its asymmetrical upside and laying off risk as a hedge against the inevitable downward turns, coupled with the exclusive information/analysis they have, it's near impossible to not out-perform, been using my advisor for over 2years+ and I've netted over 2.8million
@@Dantursi1 How can I participate in this? I sincerely aspire to establish a secure financlal future and am eager to participate. Who is the driving force behind your success?
Annette Christine Conte is the licensed advisor I use. Just search the name. You’d find necessary details to work with to set up an appointment.
Warren Buffett famously said about how to end the Fiscal Deficit saying that
“I could end the deficit in 5 minutes. You just pass a law that says that anytime there is a deficit of more than 3% of GDP all sitting members of congress are ineligible for reelection.
Very Correct, These people just need power but no responsibilities....
In Australia "One Nation" suggested no pay rises until the debt is paid off.
Labor, Liberals, Nationals and the Green voted against it.
If I mess up at my job I’d probably get chewed out and fired. The leaders of the greatest country in world mess up they say “it’s because of the left or right.” When did we start electing children in office? We need real leaders in office.
We need real people and not puppets.
"Greatest country" 😂😂😂
what do u expect dude, they literally doing genocide and getting away with it.
Thats already a low that should not be okay, but here we are.
@@ThePlaceboEffect10 American Exceptionalism is one hell of a drug
Then stop voting for children.
The U.S. economy relies on ongoing credit and debt generation for sustenance. The Federal Reserve is expected to increase the money supply, leading to further debt accumulation for the average American. Meanwhile, foreign nations continue to desire the U.S. dollar, despite their own economies facing significant challenges, some even worse than that of the U.S. This situation raises concerns about who will ultimately bear the consequences of these economic dynamics.
I've been looking to get one, but have been kind of relaxed about it. Could you recommend your advisor? I'll be happy to use some help.
I just looked her up on the web and I would say she really has an impressive background in investing. I will write her an email shortly.
Actually smart countries don't want US dollar anymore nor US debt . They want gold. Smart investors too. So the dollar is toast
fed is running the biggest ponzi and has not yet crashed 😂
@agmhelena7266 because most people are stupid and don't understand how the system operates. Yes it is a ponzi scheme
it gonna be a "too big to fail" moment, money will become worthless like in zimbabwe, and those who took big loans and bought real estate will become rich and those who saved diligently will pay for it and be wiped out
Classic saying, "If you owe the bank a hundred dollars, that’s your problem. If you owe the bank a million dollars, that’s the bank’s problem."
The US is the bank.
Each Penny should spend for Israel. Then only the US could grow.
I don’t get it ?
If the bank ends up not getting nack the 100$ you owe it's not as bad for them as if you owed them 100 million, because they know they won't get that back in a lifetime, so it ultimately ends up hurting them more in the long run.
@@lyrabonbon5931 I have an idea 😢
Aura owns Pango Group. Pango Group owns a couple shady VPNs. For that reason, I would stay away from Aura.
All VPNs are scams
How do you define a "Shady VPN"?
@@heyFlorentin ones that collect your data and sell it to third parties i'd pressume
Can anyone in this comments section recommend an actual good VPN? I’ve been hesitant to pull the trigger for this exact reason. Is Nord VPN good?
Edit: dang, thanks for the replies, everyone!
@ImGairBair proton vpn and mullvad vpn , these are the best and trustworthy, nordvpn is a bit questionable
The belief that the Federal Reserve would stop raising interest rates was the driving force behind the entire economic chaos. What should we do now that we have a situation where interest rates are crashing? At this point, how would you suggest that I safely allocate $300k?
Although the market is currently volatile, aren't the current valuations a result of the Federal Reserve's monetary policy and low interest rates? Therefore, my recommendation is that you consult a financial advisor who can give you entry and exit points for the shares that you are interested in.
Agreed, my portfolio is well-matched for every market season yielding 85% from early last year to date. I and my CFP are working on a 7 figure ballpark goal, tho this could take another year. IMO, financial advisors are the most sought-after professionals after doctors.
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
'Rebecca Nassar Dunne’ is the manager I use. Just research the name. You'd find necessary details to set up an appointment.
In 2008 banks traded mortgages thinking that they were safe assets.
401K's saw people shoving their retirements into the S&P 500 under the fallacy of "historic returns" despite the fact that today 7 companies make up 45% of the indexes' growth and 30% of its entire value.
18 year olds studied higher education and took on debt on the promise of a better job and larger salaries.
And in 2022 Russia invaded Ukriane assuming they'd steam roll the country in 2 weeks.
The world is built on the idea that something that held true 10 years ago will hold true in 10 years time...
It’s understandable people think like that. After all, before the industrial evolution things that were true 50 years before would still apply 50 years later for millennia. Stuff like that leave a biological mark
Those of us who do football betting know a lot about historical results.
@@Alexander-yb1zc Golden comment
Banks knew the mortgages they were selling were risky assets in 2008, they had just deluded themselves into thinking that they had been able to reduce the risk to a manageable level and didn't bother contemplating systematic risk.
are you saying its better for people to pick individual stocks over ETFs? why not play the lottery at that point?
"Such a thing only happens on the timescale of decades, rather than years"
Ohoho, watch out the Fed is going to take that personally. Prophetic
Household debt is very different from Federal debt which should be kept in mind. Also taxes do NOT fund public spending (except at a State or local level). The money is created and spent first and taxation (along with, more indirectly, interest rates) is a mechanism, at a federal level, to 1) delete money in circulation to keep the money supply in line with the productive capacity of a country's economy and prevent inflation 2) mandate a reason for the citizens of a country to carry that currency.
Finally a voice of reason this mess of BS information! 🙌
what are social security and defnese then? they are not public spending?
Isn’t that wrong? Fiscal policy, AKA, taxes and subsidies is not the mechanism that controls money supply, monetary policy is.
Money supply is controlled by the federal reserve through monetary policy by buying (pumping money into the economy) or selling (taking money away from the economy)bonds and setting interest rates for other banks which should trickle down to the consumer. This however does not mean that they can fully control inflation.
In contrast, fiscal policies such as taxes are not in the hand of the federal reserve, but in the hands of the government.
As you can see those are 2 completely different institutions with different functions, as the federal reserve, like the central bank in any other country with good institutions, is fully independent from anyone else.
I would be interested to know how taxation affects money supply.
@@Alexxxcasas616 When you tax the money out of the economy it goes back to the government's account at the central bank. The CB as creator of the currency has technically the ability to create infinite amounts of money. In reverse, that means money taxed out of the economy by the government and deposited at the account held with the CB goes up in the CB's infinite money supply - it disappears/vanishes/ceases to exist. You can compare it to a regular bank loan that's being repaid. Once the loan is repaid the previously (for the loan) created money ceases to exist.
I hope that answers a little bit your question. If you wanna dive a little bit more into that topic look up Modern Monetary Theory.
Its impossible to solve, it would require drastic measures, and in a hyper individualistic country like the USA that wont win anyone any elections, in a collectivist society it would be easier to convince the people that hard times are coming.
The 5 percent fixed incomes are a safe bet. Save your cash for when the market actually shows sign of recovery or better still seek professional help.
Collectivist my ass, just stop spending everyone's money on nonsense, stop trying to import the third world as they are a net drain on resources, not an asset, and let the economy grow rather than overregulating it. And no, taxing "the rich" will not solve the debt. Even if we taxed them at 100% it wouldn't even begin to cover the massive budget.
God these bots are insufferable
@MarvelMouldin Wrong comment thread bot
Lol😂@@NickyBlue99
The amount of government waste and lack of accountability is mind boggling. From the bottom to the top.
Well, it won't be them paying for the consequences, that's why.
Certain religions have never had any sense of accountability. You're asking too much from people that still live in the BC times.
Including the graft that is constantly going on. The tax money we pay has become their own personal kitty, to take money from to get rich.
$45B for rural high speed internet 3 years ago not one single person hooked up.
And that’s just a small piece. Imagine just wasting $50B to produce nothing. No goods or serves just stolen tax dollars lost to nothing
Govt call it Simple Payment Error. Normal person says it's corruption.
The problem with politicians talking about cutting spending is they almost always mean taking important social safety nets from people and never cutting useless and expensive bureaucracy and asking why we spend nearly $1 trillion a year on a defense budget
While the Pentagon has failed their 7th audit in a row… but don’t question that. “WhAt AbOuT oUr SaFtEy”
Also in the same breath I they talk about cutting taxes 🤨
We really grew up to inherit debt and a dying planet lmao
The planet is fine
But the bonds will also be inherited, so whats the problem ? OK the planet, that is a big deal.
The public is always trying to stay above zero, all loans though from banks as all debt is money, are trying to get back to zero from negative zero, unless new debt is being entered into there will be zero money entering the system, taxes are just a siphon so the dollars don't build up.
Taxes literally make money disappear. it's like any loan, because we are a debt based society and all debts work off a principle of negative zero, once that debt hits somebody's account we call it money and that if all debts were paid back there would be zero money.
This debt always being entered into means new money is always coming onto the market, taxes remove this money, and we are in between it entering and leaving with our energy and consumption. When loans are paid back, whether it be commercial or central bank debt, that money disappears, money does not build up, taxes remove money so the value of the dollar can be managed.
Because we are a debt based economy and debt in the economy is called money, if the govt were in surplus 35 trillion it wouldn't be in our pockets it would be in theirs, debt is the pivot point on a see saw, on one side is us and the other side bankers who can print money.
Debt for a household is not printed money, debt for the bank, central or commercial, is and is classed as debt but you hold it.
No you made it this way because you are too weak.
The hostile to human life planet, yes, that's a worry. The debt, no that's of no concern at all. #Finding_the_Money
The debt crisis will only get worse as political parties continue to buy votes. Each party continues to promise more and more money. It must collapse.
Glad you dont live in Europe. Here it is awful
@@A-BYTE94is it? How is it worse than US? Do you even watch any news at all? Like really doesn't matter what news
@@lazymassyes because all news is never ever manipulated and designed to keep you and I living in fear is it ?
Buy GOLD! BUY AMMO! physical assets and hard assets do not go to zero! All fiat currencies in all of human history always meet their end!
@@alancobbinthat's pure BS answer, better answer how is EU any worse than US, that's what I was asking, that's what is not pure BS like how someone is manipulating something, don't be such a sheep with aluminum hat and keep it objective
Every empire collapses with corruption
The whole system is a sham
We are all in this sham system so it's no more a sham 🤷
Study Bitcoin
...nope. Not a sham; a _Racket._ Rackets are often disguised as legitimate endeavors, but involve fraud, _Extortion,_ bribery, threats, and violence. America forces other nations to trade their Real value (goods and services), for U.S. paper Fiat currency which is created out of thin air. .
'Sham' a word we are all too familiar with here in kenya.
Yup, I know crypo bros and grifters have given crypto a bad wrap. But honestly it's the only way to stop the clowns in government from fucking shit up
I think it’s disgusting that a government that takes about half of your paycheck after you pay for income tax, sales tax, gas tax, property tax, excise, tax, total tax registration, tax title fees, etc. etc. does not have an abundance of wealth. And yet while property taxes went up services were cut at the same time so how can we give something like 100 countries tens or hundreds of millions of dollars while we’re paying $1 trillion alone in interest annually and putting it on the backs of the taxpayers, it’s criminal
The goal is to prevent further losses at home or promote growth that will benefit us as well. It's not out of the kindness of our hearts. In other words, we don't give enormous sums of money (large by government standards, so tens or hundreds of billions instead of millions) unless we expect to see some sort of return on it.
Taxes literally make money disappear. it's like any loan, because we are a debt based society and all debts work off a principle of negative zero, once that debt hits somebody's account we call it money and that if all debts were paid back there would be zero money.
This debt always being entered into means new money is always coming onto the market, taxes remove this money, and we are in between it entering and leaving with our energy and consumption. When loans are paid back, whether it be commercial or central bank debt, that money disappears, money does not build up, taxes remove money so the value of the dollar can be managed.
Because we are a debt based economy and debt in the economy is called money and they print it at a cost of around four cents per hundred dollars, if the govt were in surplus 35 trillion it wouldn't be in our pockets, debt is the pivot point on a see saw, on one side is us and the other side bankers who can print money.
The public is always trying to stay above zero, all loans are trying to get back to zero from negative, unless new debt is being entered into there will be zero money entering the system, taxes are just a siphon so the dollars don't build up.
If the government took 50% of your wage, half of your wage would probably come from the government, I mean where does the government money go ? OK technically more than 50% must come from the government due to the budget deficit, so the situation is the opposite of what you tried to pretend.
@@apolloaerospace7773 The government does take half your wage, how much in income tax and how much in taxes like fuel taxes etc?
100%. The government has a massive SPENDING problem and easily confuses most of the public (as is painfully evident in this comments section) by blaming how a small percent was spent by their political rivals. Half the comments to this video blame “corporate subsidies” without being able to define it, despite the fact the very premise is that the government is not taxing them, or taxing them at a lower rate, and only in extremely rare cases actually gives them any money. And in almost 100% of those cases, it’s in one of the Democratic Party lead “infrastructure” bills. The numbers are glaring obvious: social welfare spending (Medicaid, SS, et cetera) are the problem.
I’m gonna be a banker for Halloween. I’m gonna eat all my candy, eat all your candy and then I’m gonna convince the government that if i don’t get more candy, we will all starve
I was concerned about this at $9 trillion. That was a not too long ago. Back then, it was "one of the biggest issues of our time, affecting not only those in the US but everyone around the world."
$36,000,000,000,000.00+ seems like the stuff of fiction.
rather look at debt/GDP and even then, it's the world reserve currency, not just USA reserve currency.
the fact that you typed out those 0s is stuff of fiction for me. I don't even know how many 0s there are in a billion.
@@nieturstill the US is in the top 10 and some above it are like Sudan, Japan, Greece… and the US’s deficit is in many trillions and none of them are paying such huge interest on their debt.
@@ridleyroid9060 nine zeros in a billion and 12 in a trillion.
Money is not created. Debts are owed to someone and they are owed to the super rich. Someone is rolling in cash and they are not paying enough taxes to balance out the system.
Since 1980, the US has spent around *24 TRILLIONS* on the military ( that's just the official yearly military budget, not the additional expenses that aren't accounted for in that total ). Also since 1980, the US has spent around *13 TRILLIONS* on corporation subsidies ( not accounting military contracts ), fossil fuel subsidies and bank bailouts. Now you know where ALL of the debt ( and then some ) is coming from, an over bloated military budget ( handouts to military contractors ) and corporate socialism.
Thats really low for 44 years of military budget. Also comparing our economy to others, corporate subs are pretty low too. What are we suppose to do? Let everyone sub their industries and let ours die? No thanks
And what did military operations return?
This has created a lot of hatred towards the US from all countries in the world. Those whom the US calls friends are close to the US only because they need protection or they are afraid of the US. In any case, out of 8 billion people, 7 billion hate the US and will not cry if the US drowns in the ocean.
@listohan The thing about military spending is that its terrible for the taxpayer because its impossible to measure its effects. Until you find out its worse for the taxpayer if you need a military and dont have it.
That’s factually wrong. The increase in debt is majority due to social programs, primarily socialized medicine. The average payer about to receive Medicaid/medicare has paid approximately 20% of their expected benefits. 80% are accrued liabilities that eventually land on the total debt line item for the federal government. That deficit dwarfs everything you mentioned. It is mathematically impossible to run a balanced budget in the U.S. without massive cuts to government welfare programs. Don’t show your ignorance by claiming SS and Medicare are “earned” when only a small portion is actually paid for and the rest is socialism.
Invest judiciously, keep a stop loss figure. Shuffle between debt and equity wherever the ratio goes too off your target. As for the target, I recommend a Ratio like this Debt % should be equal to your age in years. If you are 20, debt is 20%, reset in equity. If the market falls or rises drastically, your debt % will change, which you should rebalance to 20% and bring back equity to 80%. Thus you would have bought low or booked profit depending on if it was a crash or a bull run.
Starting early is simply the best way of getting ahead to build wealth , investing remains a priority . I learnt from my last year's experience , I am able to build a suitable life because I invested early ahead this time .
I totally agree; I am 66 years old, recently retired, with approximately $1.2 million in external retirement funds. I am debt free and have very little money in retirement funds compared to the total value of my portfolio over the past three years. To be honest, I didn't do all this alone, but with the help of a financial advisor. Having one is currently the best way to trade in the stock market, especially for people nearing retirement.
Is there any chance you could recommend who you work with? I've wanted to make this switch for a very long time now, but I've been very hesitant about. I'll appreciate any recommendation.
She appears to be well-educated and well-read. I ran a Google search on her name and came across her website; thank you for sharing.
The problem with cutting spending is that politicians would only go after small potatoes that does not add much to the deficit and budget. They would never try and tackle and reform the out of control spending in defense, Social Security, Medicare and Medicaid.
The problem is bigger than the USA, elites operate gobally. Here in the UK Americans, Arabs, Russians and our own billionaires own alot of our stuff. From football to big land estates to houses. Plus we have the skeleton of a dead empire the elites have kept alive in order to create company and tax loopholes. The problem is it too easy to bribe a politician and too easy for an elite to run away to a more friendly nation when they are threatened with real justice. What we need is what people do not want and that is a gobal big brother with ethics in place that ensures exploitation is a thing of the past. The USA/Russia/China unfortunately keep alive the idea of empire building making it impossible for that to happen at the moment.
Also, I don't know why people are against this. We have a police force, we have laws for common people and if someone wrongs us we expect big brother to help us get justice. We simply need the same thing for those who try be above the law.
Correct. The only spending that could truly be cut is military, and the only thing the conservative party wants to do is increase spending for the military, while the moderate party (lol) wants to continue to do the same. It's not a solution, it's a crutch until one of these two parties equates "military" as not the most important tool in the States shed.
That being said, the true solution is to increase taxes, particularly, on the classes that aren't paying much taxes (the wealthy and corporations).
I mean, we are in this mess because we decided to cut a large chunk of their taxes back decades ago now. Hilariously, people gloss over the 1980's.
@itsJoshW They need to also go after it's wealthy that hide their money in tax shelters abroad. If you claim your company is based in Ireland and pay Irish taxes then do your business in Ireland. If you want to benefit off of the American market and infrastructure then you pay American taxes.
I kinda disagree. National security is what give confidence to other countries to invest in to us which helps stimulate our economy.
You could tax the rich at 100% and it still wouldn’t cover the 1.6 trillion dollars spent in social security every year.
We pay into social security in our working years. It’s not a charitable free money the gov’t gives us in our old age.
It is not only a goverment debt crisis. All normal american households are in average deep in debt as well. The US lived way above their income for far too long, and it is going to cost them, one way or another. There is no way out of this without a lot of pain.
Exactly. People are saying that the Government can't default since they (The world) keep changing the rules, but that only works for the government. The rest will go bankrupt and lose everything. That would be enough to bring the government down and everyone else with us. I read somewhere that upwards of 30% of Americans have stopped paying some or all of their bills. If that's true, that's an even bigger crisis that is guaranteed to hurt more than a Recession. Nothing will be done until it's too late and it will be the ones the worst off paying the highest prices.
If I buy a $1m house because of my AAA credit rating, but I am unable to pay back, what will happen to my house?
Rug pull on the dollar (Middle class) when they introduce the CBDC by the start of next year.
@@DarkPa1adin If you got guns and can defend it from the banks, then you can keep it. Tbh if we all took our guns to the banks, we could rewrite history
@@Swiplys The banks don't just have a stash of $100 million, the currency is mostly digital.
"Useless items" to cut are in the eye of the beholder. What exactly is "useless"?
A national park? A military base in South Korea? Medicaid? NASA? Defense projects like the F-22? Maintenance of smaller civilian airports?
Yeah. No one will ever agree on what is "useless" to cut.
Give me the choice what to spend my money on when I file my taxes. You will see a lot of programs disappear.
@@starspaceschool587that’s why you don’t have a choice. You live in society
@@franjkav Thata kinda the point, taxation without representation and central planning generally don't end well.
Societies that do that tend to be worse than the societies that do.
@@starspaceschool587 The services we pay for likely closely resemble the collection of programs everyone would choose to support. Some would plow it all into the military. Some would give it all to grandma for her medical care. Both might throw a few nickels at NASA and Food stamps (which is what those tiny programs amount to...nickels.)
@@williamjacobs I highly doubt it. Plenty of people who claim to want these social programs never use their own money to support them. They are very generous but only with others people’s money and when it benefits them.
Think two wolves and a sheep voting on what’s to eat for dinner. We need to protect people’s rights especially when other people want to take them.
They’re choosing hyperinflation.
Sadly since we are at this point due to political will, I don't think much will be done. America only acts when things become a crisis.
And find a way to pass the blame onto anyone that isn't in charge of it all.
And then will try everything else first before the right thing.
@@obsidianjane4413 Tone down the optimism there. Our current leadership will sooner destroy everything than do the right thing or even anything close to the right thing. How many people in this country would sooner see it burn to ash than lift a single finger to save it? A shocking amount, unfortunately.
@@CassandraY Doomer bot.
@@obsidianjane4413Can you please explain that comment?
Let's not forget the Japan carry trade, which is still ongoing, and overnight SOFR rates trying to offset risks. It's getting to the point where large fund managers are selling their 10 year bonds to stock up on 5 year bonds, because their runway for funding has effectively been halved, so they have to abandon the long end of the curve for short duration yields in order to stay afloat. This is just the tip of the iceberg.
Great video. Thanks for getting this important function of the economy into the hands of everyday people who are now learning how finance, money and the greater global economy works.
"Currently there is no war to fund"
I beg your pardon?
Sending away some old military equipment isn't exactly what's gonna tank anyone's economy
@@SimonTmte “sending away some old military equipment”
You sound like you know a lot about this. Tell me more about how much one javelin missile costs.
there is no world war to fund…yet
@@SimonTmte in last year US sent 18 Billion dollars to certain country in middle east. That is in one year. That country now invading its neigbours so it will probably take more. around 100 Billion went to war in eastern europe in last few years. There are plenty of other countries that aid is sent to and its own military budget is humongous.
@@Royaleoake World War 2 and The War in Ukraine aren't even close cost wise. Relax.
We're getting to Kurzgesagt levels of existential dread
don't worry
You have money? Buy some stocks, all good.
@nietur so basically the little money you have left, your going to gamble it by buying stocks
@@nietur stocks in useless companies like Tesla?
@@nietur 🤡
Doom, doom, doom, doom, and gloom!
The problem is not the debt alone but the ratio. The solution is to grow the GDP by investing in the economy and infrastructure. The U.S. government needs to stop funding wars and subsidizing corporations.
Yes & no. A large legitimate problem is the military spending, of course, but that's not the actual reason why our debt kept ballooning. It kept increasing, and spiraled, due to wealth tax cuts. A simple solution without doing anything is just taxing the wealth class, then of course fear mongering & propaganda, and then the government would need to be a "government" and regulate business that try to punish consumers (you know, the thing the anti-monopoly law was suppose to protect you from).
But yeah, we need to stop funding a genocide by Israel, I do agree there.
Little to none of your post makes sense. The vast majority of the debt problem is due to out of control social spending. The fact you only mentioned wars and corporate subsidies (which is so vague in practice to be almost meaningless) while leaving that fact out suggests your post is political more than informative.
Too big to grow out of. The only possibility of lowering this debt is to do what the US has already done in the past, inflate it away.
Its an empire in decline. The military is what's left to hold to power.
@@SH57578 Out of control "social" spending is an absolutely nuts narrative, brought to you by the people that think you're an idiot because you didn't participate in ivy league schools.
- About 46%, or 756 billion each year, is spent on the military, conservative party wants to increase this spending
- Education is next at 9%, or 158 billion, "conservative" party wants to cut this spending
- Healthcare is next 9%, or at 147 billion, "conservative" party, again, wants to cut this spending
- VA Benefits at 6%, or at 107 billion, "conservative" party doesn't care about this spending
- Administrative State at 5%, or 93 billion, "conservative" party wants to entirely remove this
- Housing, at 5%, or 92 billion, "conservative" party blames this typically
No need to go on, you should understand the point I'm getting at here. "cutting spending" on the lowest portioned areas won't change the 46% of the military spending, and moreover -- cutting taxes won't change that we spend almost a trillion, each year, just in national defense. We provide numerous subsidies to corporations and an enormous amount of which is in exchange for limited to no tax burden for the wealth class.
The solution is to increase taxes and appropriately cut spending in allocations over spent -- such as military.
A simple solution is to add new tax brackets that incorporate wealthier individuals, thus permitting that we collect a higher amount of money in taxes. In addition, we need people not of the age of 95, capable of creating and facilitating laws in a manner that removes and defines the alternative methods as illegal when attempting to bypass tax legislation, thus "your typical billionaire" is forced to pay appropriate tax.
One major problem that exists within the Republican party today is framing. They're neo-liberalism is what got us into this mess, and instead of facing this, they use the rhetoric to fund alternative areas and cut more taxes on the donor or wealth classes. A good example would be the previous 2016 - 2020 era, wherein the "solution" was to cut spending across the board on sectors that needed it (like education, healthcare, housing, etc) and reallocate that spending to "national defense", or otherwise not appropriately labeled: ICE.
The wrong solution for cutting spending is to "blame the other 50%" and cut basic useful tools the "average american" uses to survive and what they pay taxes into to aid their daily lives; Veterns benefits, education, healthcare, housing subsidies and programs, etc.
The appropriate solution is to "cut spending" for the allocation that uses almost all spending but has minimal return on the spending -- Military.
All that being said: A solution to the deficit is to increase tax revenue. This will resolve the actual deficit we have put ourselves into. Cutting spending won't change the "debt" in our life time, or another life time. Cutting spending on the bottom 20% of spending will do nothing but take 300 years to catch up to the tax write offs we gave to billionaires.
That's why "cutting spending" is a red haring. You don't cut spending in your own budget to pay off debt, you increase your income. Although the national deficit is a lot more complicated than that (not even touching GDP and the economy), it's sort of as simple as saying "Yeah, we're in this debt because we kept cutting taxes for people that take over 90% of the US Dollar, so we are truly in debt to them, not to the programs we fund".
ponzi scheme at its finest
ponzi schemes dont pay out
In the 1990's, the federal debt was one of *the main issues* in American politics. Both main parties sought to pay it off through different methods.
Now in the 2020's, neither political party even mentions it. The US government spends more money servicing interest on its debt than it does its military. Many EU and Asian nations are similar.
this subject right here is what gives me an insane amount of anxiety. sadly, I see too many people today who think we can print unlimited money, and they will be the downfall for the rest of us. its hard to have hope as a 22 year old, truly. this debt aint getting paid off by our parents or grandparents, itll be my generation and our kids generations. I try to sound the alarm bells with people my age, and they either dont understand or they flat out dont believe its true. its insane
There's a lot of misunderstanding around the debt. For one thing, we won't pay it and we don't have to. For another, we literally CAN print unlimited money. Not that we should or it's a good idea - obviously it will have consequences, many potentially quite bad. But it's absolutely possible to spend as much as we like. That's why it's important to focus on what we are spending on and how, not just the raw number. The raw number doesn't tell you anything about how that spending benefited or hurt the economy.
@@tiberiusalexander6339 I'm relieved to see someone else in the comments that gets it.
Government "debt" is private sector asset. You shouldn't be any more worried about inheriting government debt than you are about inheriting US dollars. Both are government IOU's and come from the same printer.
@@tiberiusalexander6339I mean, it’s clearly false that you can spend as much as you like as a country, there are consequences for overspending. Your gdp simply determines how much you can overspend before a sustainable limit is reached. People are starting to worry about the usa being close to that limit.
If every government could spend as much as they like there’d be no poverty.
@luipaardprint There are consequences, sure, but that doesn't mean you can't do it. If the government really gets gung-ho about spending a lot of new money, I would probably expect some amount of inflation down the line as a result. But it's always mechanically sustainable in that you can always just keep issuing debt and spending more money. The only way that one can actually force the government to default is by literally dismantling or disabling the financial and monetary infrastructure on a significant level. For example, if our country was occupied by an invading power, or if much of the Eastern seaboard was outright destroyed by nukes or some other calamity. But we certainly can't just "run out of money" or funding. The example the original commenter gave was being unable to prosecute a war because you can't "fund" it; that's flat wrong. Like I said, there could be consequences like inflation. But I think World War II showed pretty conclusively that even fairly serious widespread economic problems and dislocations, like inflation or over employment, are a relatively easy price to pay when you are fighting an existential war. Imagine the government giving up halfway through the Pacific campaign because they ran out of money. Not ships, not shells, not sailors or marines or guns or salted pork. We haven't run out of any of the things you actually need to physically fight the war, we just ran out of some tax credits issued by the government itself. Does that sound logical? Of course not. Even back then the government could not "run out of money", or be unable to "fund" war. That whole perspective is based on some pretty thorough and pervasive misconceptions - like the idea that the money is somehow separate or distinct from the government, and that the government has to go out and "get" money whenever it wants to spend. The more you actually look at the system - both the modern system, and monetary systems throughout the long sweep of History - the more you realize just how obviously wrong this perspective is. Money takes many forms, but all throughout history the strongest and most widely accepted forms of money emerge as issuances of the most powerful states and governments in their historical context.
It's good to know that all this debt is going toward good causes such as funding endless wars overseas. 🤗
😢
We don’t send money. They are supplied with old stock and new stock manufactured in the us
Thanks!
The private sector is de-leveraging debt, they're not borrowing and spending money. So, the government steps in and borrows and spends that money to keep the economy moving forward. Otherwise, you'd end up like the great stock market crash, and the great depression.
this.
this
That is the only way to balance the economy. Cannot hold off the drop forever. Need to tax the super rich to balance them devouring the assets of the middle class.
@@mf-- I mean actually why can't it hold off forever? The government isn't limited in their spending capabilities and when they don't invest and still save there wouldn't be an inflation either. Look at Japan. What would need to happen so that everything collapses? Either the government stops spending or every investor starts to sell assets and stops saving (what they wouldn't do at once since it would devalue these very assets). So far, no one has been able to explain this to me convincingly...
But I agree that the super sich must be taxed.
The Simpsons predicted many things in this video: a Trillion Dollar Currency, the US going broke, they even predicted that Disney would end up owning Fox.
"The US can always pay its debts as long we can print money." Allen Greenspan.
The inherent property of a currency is always subject to debasement as the money supply expands through credit.
The national debt will never be paid off as there is not enough money in supply to do so.
"Printing money" is misleading given the fact that the vast, vast majority of financial transactions are done with intangible money, i.e. ledger sheet balance transfers. It's a phrase that should be abandoned for the sake of clarity. The Fed's money printing, in the literal sense, is a drop in the bucket and would stay that way with increased "money printing", i.e. creating money by loaning it into existence.
The alternative is pressing a button which is how it happens. But it doesn't tell the whole story.
I think this is itself misleading, although I agree with your distaste for the specific phrase "printing money". And while the money created by the FED is indeed a minority of the broad money supply, I wouldn't call it a "drop in the bucket". Private bank credit is built off reserves, so although reserves are a small overall share, their importance is outsized.
@@KojiCT It does
@@tiberiusalexander6339 the banks create credit, only the government creates new money through the fed. And the vast majority of this money is created digitally so the phrase "money printing" is quite misleading
@@grimaffiliations3671 like I said in my comment, I agree that "money printing" is a bad label since it's mostly digital. And you're certainly right that most of the money is private bank credit. But that doesn't mean it's not money; it is. Heck, from a practical perspective, it's more like money than reserves for most of us, since we can spend bank credit but not reserves.
Money is made-up and we live in a time where there is no accountability. Nothing will happen. The status quo always prevails
history rhymes, most change is slow
sadly, yes. change will come but not in our lifetime.
@@roryasrorri701 Economists like Simon Hunt say the dollar won't make it past 2025 and Peter Schiff warns people to convert their dollars to Gold
Taxing corporations and making them pay their fair share is where the money is not taxing the working class.
That’s unfortunately not happening because corporations put the politicians there and the Supreme Court’s decision to allow unlimited corporate spending in politics solidified that.
Anyone remember maybe a year ago they ditched the idea of a "debt ceiling" ? Now they don't even have to ask Congress to spend money.
If the debt ceiling held, maybe it would've been kept. All it did was allow the fiscal hawks to ring up a string of defeats. It was political masochism to pretend we had a debt ceiling when we didn't. Revenues cover 66% of government service. Not defaulting would require 33% cuts in everything. EVERYTHING. When the MAGA/ Tea Party newbie idiots were given lollipops and had it explained they'd cut every senior citizen's Social Security check by a third if they didn't raise the debt ceiling, they caved. They always did. They always would. Pretending made them look bad. Cutting 33% in a single digit inflation environment would cause a recession within a month. People tend to get upset about recessions.
The financial sector is essentially untaxed. Private Equity is a huge tax dodge. These are really the only segments of the economy that can be taxed. American workers pay medicare and social security taxes which accounts for the majority of the federal budget. This is on top of income taxes. So their effective rate is very high.
Well you can FORGET asking the middle class to bail out the country with higher taxes. For one, the middle class is pretty much dead. It's just the owner (capitalist) and worker (slave) class left.
So show this video to the owner class because the latter has nothing left to give.
Besides the fact of it being immoral to charge one person more taxes than another, if the owner class pays more in taxes then how will they pay the worker class? You think the worker class is poor now, try charging the owner class more taxes and you’ll find out what real poverty is pretty quickly.
@@elishariedlinger559"it is immoral to tax one person more than another"
😂😂😂😂😂 I guess the entire world is immoral, because almost every country uses progressive tax rates. Do you think parents are being immoral when they tell the oldest sibling to let the youngest have a turn?
@@EarlofSedgewick Just because the entire world does something does not make it right. If everyone ate their neighbors, would it all of the sudden be ok to eat your neighbors? If everyone else jumps off a cliff should you go and jump off a cliff?
As far as siblings, there is nothing wrong with having siblings share something so that both brothers get some time with the item. There is nothing immoral about sharing an item that you own. And there is nothing wrong with parents teaching their children to share items they own.
@@elishariedlinger559If you're gonna defend the corporate elite class you should at LEAST be getting paid for it.
@@grimkahn3775 I am defending what's right. I don't care if someone is an elite or not. Besides that, it is the elites that hire everyone else. Maybe not directly, but indirectly. If the government takes too much of their money then they will not be able to hire as many and it will hurt the whole economy.
The best way to get more tax money is to create an environment where the economy can grow and with that growth, the government gets a piece. Economies are stifled when there is too much tax or too much regulations, etc. If too much taxes on normal people hurts the economy, how much more is the economy hurt when we take too much taxes from the elite?
Tax companies! Why is that never spoken about? Pretty sure back when the GDP:Debt ratio was stable, companies were paying A LOT more in Taxes than they do now.
That's why I want kamala to win despite hating her
How much extra tax income would this produce and why would this not just get passed on to the already struggling American consumers?
@@ericfromeng Governments dictate how companies do business. Tax Companies and Pass laws that prevent companies from passing it on. Like we did before all the Conservatives ripped them out of our law books.
This is a leftist talking point based on nothing. Corporate taxes have been a small percentage of overall revenue for a long time. It’s always been citizens that pay most of it, and for obvious reasons to people with a modicum of understanding about economics. 100% of Corporations are owned by people. If private, by the founders and small group of investors. If public, by thousands or millions of shareholders. Regardless, the company’s lower profits due to higher taxes directly impact the owners. There is no difference if you tax people or the company. And if your reaction is “but I’m a poor person with an average income and no investments”, I suggest using your brain and ask yourself where your pay check comes from. If all companies have lower profits due to higher taxes, what do you think that’s going to do for your wages? They go down. The bulk of the U.S. stock market is owned by people with retirement accounts. And for god’s sake don’t look like an idiot and say blackrock owns the stock market.
@@halliwedgeyou are utterly clueless on this topic. Order them not to pass on higher costs? That’s patently absurd. Do you have even the slightest clue how the real world functions? You probably believe rent control and price fixing are great policies.
Say the line Jerome:
Money printer goes burrrr 😂
Inflation go brrrrrrr 🤡
@@LaSombraa seriously, have we not learned anything from Germany in the past????
We're just repeating history at this point.
@@Life-Is-A-Meme-t5h Judging from how fascistic it's getting around here, I'd say we learned a lot from Germany in the past. We just learned the wrong lessons.
@@TheMusicalFruit what do you mean fascistic? I mentioned about Germany’s past just on how they kept printing money to the point their Franks became worthless.
my dude Jerome would go down to history as the most famous fed chairman thanks to all the printing memes
Great episode! The U.S. debt crisis is a crucial issue that impacts everyone globally. I appreciate the deep dive into the causes and solutions, especially the potential positive outcomes like attracting safe haven flows, fiscal stimulus, and boosting export competitiveness. Though there are still negative outcomes, it’s important we focus on how proactive measures can lead to a more stable economy for all!
You didn't talk about BRICS role like it doesn't exist. countries shifting to local currency trades.
in the past economic boom, dollar was linked to gold. now there is no back also
He didn't talk about it because brics is an irrelevant nothing burger.
They are old, they don't care about what could happen 20 years from now
Bruh you are so smart. thank you for breaking this down. also shoutout to the editors, animators and music balancing. A++
Glad to see you get so far and grow so much man. Keep up the great work, love the quality of content and depth to your research
Fake alarm
@@A-BYTE94 fake alarm? Tf that supposed to mean?
@@stephenrobinson1944that he answers every comment on this video with pure BS
Pretty sure these companies that get "hacked" just received an offer they couldn't refuse from a data broker.
Thank you, really good summarum!
If a problem affects everyone, then it's not a problem because rich people will make it go away. The real problems are the ones that only affect one class.
Correct. Unfortunately, even if the US economy collapses, the wealthy will still be wealthy, so it wouldn't affect them. I think the worst part is that this deficit exists due to them getting more, and more, tax breaks. With inflation and without taking military into account, spending hasn't changed that drastically over the past 40 years. What's changed is the amount of money the US receives in taxes, and the decline in exports (due to the world moving away from oil over time).
One part of that solution is to increase exports by shifting toward products that are needed in the modern world --
- Green energy (electric, solar, plant oils etc) rather than crude oil refinery (on the way out)
- Chip manufacturing -- We need to fund Intel Fabrications, require AMD & nVidia to create a US Fabrication with Intel, to which we compete with TSMC (USSMC instead, US Semiconductor manufacturing company)
With both of those comes additional manufacturing required, thus it'll jump start additional manufacturing allocations that would contribute to increasing the overall export.
But that's the catch. One party understands this (democrats), the other party doesn't care (republican) and wants to make money in the short term. That 'short term' goal increases wealth for the wealth class over a small period of time, but could potentially collapse the economy over the long term. But it wouldn't matter, because to them, it makes them money.
While the one party understands this, they also aren't doing anything more to alleviate the major problems, thus we're left in a stalemate. Unless that one party is "always in power", the solution won't ever happen, thus it wouldn't matter if we did 'the green new deal' or not, because it wouldn't solve the problem with the next 4-8 years, that could just be 'wiped away'.
Meanwhile, it's harder to do that with taxes.
reminder that their yachts and planes aren't impossible to find
The rich people are indeed linked to the stability of their money flows, but they are choosing a different path. The time of risk investment is long over, and they've been shifting their money into turmoil-safe assets such as land and houses. This is a slow shift that's been happening for years, and it says the rich are hedging against a decade of global economic depression. Such an event won't affect their lifestyle much. It's more likely to make the wealth gap even harsher, as they'll be able to reap assets of desparate sell-offs for cheap.
@@edgedg When there are no limits on greed. This makes me think there's going to be another revolutionary war and the new country will have laws against infinite wealth accumulation. Their kids will look back on us like we were the savages. I just hope we wake up and skip the bloody part.
As a Canadian who pays pretty close attention to US politics, i must say that their political discourse it asinine compared to ours. Their politicians are constantly putting up a smokescreen of issues that are extremely minor in the grand scheme, (abortion, gun control, etc) while never talking about the real issues because their political parties aren't actually that different.
Meanwhile, in Canada the debt, govt spending, and money printing is being hammered constantly as the main issue and root of the majority of the countries issues.
Talking about gun control seems at least somewhat relevant here: how many middle schools get classrooms full of kids executed in Canada on a yearly basis? Because that happens on a depressingly consistent schedule here.
And for the record, if you think Canada is "perfect" well PAL I've got a whole bunch of friends who also live there & they would vehemently disagree.
No country is perfect, America is just exceptionally visible in regards to its imperfections.
We're all getting f*cked by the ruling class. Just because it's under a different flag doesn't make it any better or worse.
I've been watching you for years now and I'm a Computer Scientist but I absolutely love your economics videos, please do more!!
Reminder that a majority of US debt came from indefinite tax cuts for the rich and corporations. We had a trade deficit in the early 2000s until the bush tax cuts and the wars.
Debt comes from overspending not from taxes.
@@starspaceschool587 this is why basic social economics classes should be mandated...the US goverment loses a huge percentage of revenue on tax cuts for the rich and corporations. This is because the longer the tax cuts go on, the more revenue is lost in paying down expenditures the government has to make, including the debt. Hence the debt gets larger.
Meanwhile the money being hoarded not being paid into the system gets larger. Hence the widening gap between the rich and lower classes. There is a reason that is happening and it's not because those guys up top suddenly started being more productive than everyone else like you and me.
Same deal with social security funding. There is a hard limit on the amount of money that needs to be paid into it the higher the income ladder. Aka someone who is a billionare puts in as much as someone who works 9 to 5 at Wal-Mart over their lifetime which obviously is unsustainable. Which leads to the obvious conclusion...
The problem isn't "spending", it's what is being spent and who isn't paying their dues.
@@MrInuhanyou123 they certainly should be and it looks like you should be the first to sign up. Because when taxes were cut the government saw a huge increase in revenue.
In addition when a rich person keeps more money they grow their wealth more causing yet even more taxes while the government just squanders the money.
Also a billionaire will almost certainly pay more into social security than someone who works at Walmart. Not to mention on the social security wages that are paid due to the people they employ. The only way they wouldn’t is if they never paid themselves a wage.
The problem is clearly spending because despite record repeated record revenue the government keeps getting record debt. It’s like a household that keeps getting huge raises but raises their lifestyle even more.
@@starspaceschool587second part is completely wrong. The wealthy horde money and it’s bad for society.
In the 50s, income above $2 million was taxed at 95%. Supposedly this was during our "most prosperous time" economically.
Now the top tax rate is like 38%, and even then, it's practically 0%, because we have since written the tax code directly for the wealthiest of Americans, expecting the rest of us to pick up the slack.
If the wealthy did their part to help this country, there'd be no crisis to face. But they'll always be the first on the lifeboats abandoning ship.
Pretty much.
Everything you’ve written is fundamentally wrong
@@TheMoney_Blueprint Wealth from capital gains is taxed lower than wealth earned from a wage. The tax code is definitely rigged in favor of the wealthiest people. To believe otherwise is delusional. You should stop bootlicking and understand that it’s a big club and you ain’t in it.
Rich people always leaves home country to settle their business in tax heaven country. Even they know home country is gonna revive again till that time they have choice to go anywhere as they looted hard earned money from their middle class employee.
@@combinedstudy6427 rich people are not looting anyone. People willingly accepts jobs with the according wage, it’s a mutual agreement
Thank you for your highly informative, dispassionate, and rational discussion of this issue.
My main concern is how to survive all of these financial and political crises, especially in light of the US political power scuffle. The government has really called things more difficult for its citizens,but l thank God I'm favoured with $86,000 every 2 weeks! I can now give back to the locals in my community and also support God's work and the church without waiting for the government.God bless America.
Excuse me for real?, how is that ? I have been struggling financially. How was that possible?
What is it you do?
Oh, yeah. I was able to achieve that with the help of my coach /Mrs Sandra Maria Ferraguti❤️❤️❤️❤️❤️❤️
She's a licensed broker and successful
entrepreneur from the state.
Her top-notch guidance and expertise on
digital market changed the game for me.
4:38 - this graph is key. If debt is currently at 120% of GDP (i.e. 20% EXCESS than what it can produce in a year), then government bonds have crossed into the territory of "just trust me bro - I'll pay you back one day, I promise".
The next question is obvious "so when are you gonna pay me?" and the US has to pay out BEFORE some tiny trigger event causes all the bond holders collectively to panic and crash everything.
So why is it bad to pay with BRRRR printed money? Coz anyone who's getting paid out would feel like they're being cheated - you were promised 10 gold coins but you're getting 10 silver coins - it's still 10 coins just worth less now coz BRRR directly causes inflation. Hence people want out BEFORE it gets to this stage.
You think these people are gonna say "Oh, let me try investing in US bonds one more time."?
The key is you create wars that devalue other countries' currency while inflating ur debt away, they will still buy ur bond
Finally people are starting to talk about this, it is unsustainable. The only way to actually pay it off now is through guess what? Inflation! This is the exact situation to what happened in Weimar Germany to pay off their enormous debts.
"If America can't pay its debts it will effect every single one of us". Yes, but that is unlikely bc they will pay the debt. Its the paying the debt, THAT is what will also effect every single one of us. The chances of the US not paying their debt is essentially 00. The chances of having rampant inflation is essentially 100%. The consequences will be 'worse' if we dont pay the debt. So we will pay the debt, but that will have consequences too... inflation. Its that line you used in the video around the 1:00 minute mark and u say "if America cant pay its debts it will effect every single one of us" that made me want to comment. BC there are also massive consequences if we DO pay the debt, and that is the much more likely outcome imo. Turning the printer on vs economic apocalypse means they turn the printer on
The issuing isn't just paying debt but the fact that they are accumulating debt at a exponential rate, way beyond the small amount (in comparison to the size of the accumulated debt) they are paying back. Similar thing is happening in the UK and probably other western nations as well. The consequences of a out of control spiralling debt can and will be disastrous.
Agreed. It all comes down to how fast we make that printer run. The faster we print, the more pain we'll feel.
@@Saif0412 More debt is fine if you can coerce more countries into holding dollars just to feel safe. It's a two-sided strategy. Just gets harder when they have literally any other option available.
@@ducodarling other countries are holding dollars as long as the dollar is relatively stable.
If this goes, so does the incentive to hold dollars.
The real issue is that the only way to try repaying the debt will be with massive inflation.
At the expense of citizens. Nope, that won't work.
the way to repay is fiscal restraint and getting 7 million non-working abled-bodied people working again to produce more wealth in the economy.
Deflation.
@@mrb152in Europe even worse
@@mrb152 raise the wage...
30 fucking years I've been warned that the default is coming. I'm numb to it.
Even a broken clock is right twice a day.
Not that long dude.
All other countries on the face of the planet will default before the US does. Everybody wants the US dollar, everybody needs to lend to the US.
Yeah it is coming bro they weren't wrong just cuz it hasn't happened yet
Modern monetary theory (MMT) is a macroeconomic theory that suggests that governments can spend without financial constraints as long as they are the sovereign issuer of their own currency. MMT is based on the idea that governments can print as much money as they need, and that their budgets should not be limited by the same concerns as a household budget.
The US government debt is on an exponential free fall and the only way to pay that debt is to keep printing . Hyper inflation is coming , housing crash , a recession and a possible depression too. i think is time investors redirected their focus to the equities market cause despite the severe bear market, I am aware of certain investors that have earned over $365,000.
The stock market is no different, to maintain such profit, you need to have some in-depth knowledge on the market, prioritize patience and a long-term perspective most importantly consider financial advisory for informed buying and selling decisions.
A lot of folks downplay the role of advlsors until being burnt by their own emotions. I remember couple summers back, after my lengthy divorce, I needed a good boost to help my business stay afloat, hence I researched for licensed advisors and came across someone of utmost qualifications. She's helped grow my reserve notwithstanding inflation, from $275k to $850k.
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
My CFA Carol Vivian Constable a renowned figure in her line of work. I recommend researching her credentials further. She has many years of experience and is a valuable resource for anyone looking to navigate the financial market.
Thank you for sharing, I must say, Carol appears to be quite knowledgeable. After coming across her web page, I went through her resume and it was quite impressive.
Dude for some reason I get so excited seeing you release a new video, voice is so relaxing and the music 😌.
You’re setting the bar so high with these videos! Amazing work, I’m always excited to see what you’ll come up with next!
1:02 If America can't pay it debt, then yea, how the hell me in a third world country can. This is scary.
They just don't want to pay 🤢
Debt service costs are lower than in 80s
Debt service cost down principal higher
Because 3rd world countries are suppressed by western countries in order to be exploited just like how Europeans colonized and controlled Africa. Basically a modern version of colonialism
This not only worrying statistic either number people becoming homeless in 2024 is rising at faster rate than ever before.
at 1:40 you should make it clear that you want to advertise so we can FF it... it is quite annoying.
They say that taxes fund government expenditure. But this is illogical, how do the people/businesses get the money to pay the tax in the first play if the government does not spend it into existence/circulation?
Banks create it thru credit
9:36 "many people don't know this, but the US bond market is actually larger than the stock market. so it's probably the most vital part of the global economy.
15:04 if the US can't pay it's debt, US bonds would crash, and bond interest rates begin to skyrocket. firstly, the shock of a US bond crash would drive global markets into panic, the largest economy is too broke to pay back it's investors. investors may pull out of everything all together and just go for the safest options : comodities, gold, bonds of another country, who knows.
16:07 "so how could US rates going up cause inflation in other countries? it become somewhat of a currency war, if a country doesn't move their interest rate in respond to the US rate shooting up, investors might take their money to the US markets to take advantage of higher returns, and this will depreciate the value of local currency, causing inflation. in summary this can cause an increase in interest rates around the world, causing inflation in other countries. that's high mortgages, and other loans for global businesses and everyone.
I love your videos on financial topics. They are great insights for many people in a complex, and mostly boring topic for many. Please keep them coming - they are great, very educational and contain amazing visuals and animations.
"What happend to you china, you used to be cool" "Ok you pay later LATER"
"That's almost the gdp of Switzerland".... so what you're saying is we need to invade Switzerland 😂
Today I lost my phone on the street while biking in Poland. Some random girl chase me and gave me back my phone. Poland is a great country! ❤
21:58: I plan on implementing such reforms. Cutting wasteful spending, closing all tax loopholes and slashing the defence budget are all a very good start.
I would say, maintain the current defense budget with a 2 year stipulation that they need to reduce their own budget by...25% to start? That would let the people doing the jobs figure out where to cut the fat out first. Less scrambling and issues within the military that way. I agree with the tax reforms, especially for the ultra rich hiding money away from the economy. I would also suggest making bribes for ALL elected officials (Politicians, judges, police officers) to be made wholly illegal with mandatory federal prison time. Also wording is important so they can't just decide to make those positions no longer elected.
@@CassandraY Duly noted.
@@adamcheklat7387 Then you have my vote!
@@CassandraY The ones doing the jobs might be informed better but that doesn't mean their incentives are aligned to cut where it's the best for the military. Bribes are already illegal.
@@nietur Bribes are not illegal. Supreme Court Justice Clarence Thomas has been very vocal how he has to take bribes since the pay for his job doesn't pay enough. And companies buying legislation (i.e. Bribing Politicians) has been legal since the 70's when the Supreme Court decided that that particular action was covered by the First Amendment. And my comment regarding the military also including the phrase 'To Start'. That means, give them the chance to recoup some of that money before just slashing the budget willy nilly. It also has the added benefit of informing the military that things are going to change and that this is their chance to be apart of that conversation rather than just being told what was decided without them.
If the US military complex and proxy wars didn't exist, this wouldn't be a big issue.
Rather than controlling debt, economists should find a way to control politicians raising debts. Else root cause will keep repeating.
0:25 Each American should just have one kid and make them earn $484k each. Easy.
Austerity is not the answer. Dtart taxing the rich properly. Nobody needs billions.
Taking money from people smart enough to amass billions and giving it to people dumb enough to waste trillions is a bad plan.
Not to mention even if you tax them at 100% it still doesn’t pay for government spending.
We have a spending problem not a tax problem.
Thanks for another nugget of insight, Dagogo!
20:52 idiocracy was a documentary
It's not a sovereign debt crisis. It's more of a "balance sheet recession" problem.
i know what a balance sheet recession is, but you are wrong, this is a sovereign debt crisis.
Love this! feels like people dont talk about this enough
Fear mongering
As long as the bond market agrees with you then you are probably right. The bond vigilantes will want a higher return on Americas shit debt.
it has always been a disaster, nothing will change
Fake alarm
3:50 Here‘s already the main issue of the video. The Government is not a normal person nor company. It does not necessarily need taxpayer money to have any money. It can create it and the US is especially resilient to inflation ad the US Dollar is the worlds reserve currency
They create it by issuing Treasury bonds and bank lending. Who buys the Treasuries, who gets the loans?
"We seriously need to stop over-spending and fix our national debt crisis."
*Sends billions upon billions to Israel*
Leftist talking about stop sending money to Israel while ignoring US sending money to Ukraine and letting Illegal Immigrants in their country 😂
And cut EVERY 3-letter agency by AT LEAT 80 and the DOD by at least 50%!
@@HolyMacaroni-i8e Insane delusion
printing more money is the WORST option
Where does the money come from? The Fed, aka, the government. The government DOES NOT need taxes to pay for things the government needs to pay for. It's not like people are lining up at the Fed to take out money. The government spends the money first on infrastructure projects and other operating expenses. The money the government spends goes to the public. Taxes are the way the government takes money out of circulation.
No one ever asks what would happen if the entire US debt was paid off? I'll tell you. That would be the end of the US economy. All the US debt accounts for all the money in circulation and savings and investment accounts.
Please do a deep dive (honestly) on MMT and its explanation of how the economy works and why the debt clock is actually the US Savings Clock.
"The money the government spends goes to the public. Taxes are the way the government takes money out of circulation." You're contradicting. The government doesn't take money out of circulation by taxation. The U.S. government spends tax money, and spends even more.
The argument isn't about "the entire US debt being paid off". It's about the excessive, unsustainable, unaffordable level of debt, which means overspending.
You're ignoring MMT, the government is not like an individual who can go bankrupt.
MMT is not economics. It is the recipe for hyperinflation. Presenting MMT as a valid economic theory means that your understanding of economics only applies to one country.
@@davidanalyst671 “MMT is not economics. It is the recipe for hyperinflation.”
Not only is that false, it’s an inversion of what proponents of MMT say: “The first part of the answer [to the question of what MMT would tell us to do if inflation ever became a problem] reminds people that the goal is to fend off inflation before it becomes a problem-i.e. the MMT framework aims to promote price stability. The second part of the answer addresses the question of how to deal with inflation after prices begin to accelerate.”
As for MMT applying to one country:
“That is wrong. MMT is a framework (or a lens) that can be used to analyze the policy options available to governments under any monetary regime. It is a *general analytical framework* …”
_See_ “How Do You Solve A Problem Like Inflation?”
MMT is pure bullshit and should not be considered a part of economics at all. It deserves to sit in the category of "how can we fool people who want to sound intelligent when they make bullshit arguments for greater spending?"
Well, i do have my reservations about the economic crisis. Wall Street pitched so-called quality stocks with high profitability and low debt, as a kind of insurance against whatever the economy might throw at you. Quality stocks have underperformed the S&P500 this year, My $650K portfolio is down by approximately 20%, any recommendations to scale up my ROI before retirement will be highly appreciated.
It's a delicate season now, so you can do little or nothing on your own. Hence I will suggest you get yourself a professional that can provide you with entry and exit points on the securities you focus on.
Very true! I've been able to scale from $350K to $650K this red season because my FA figured out Defensive strategies to protect my portfolio and profit from this roller coaster market.
Is there any chance you could recommend who you work with? I've wanted to make this switch for a very long time now, but I've been very hesitant about. I'll appreciate any recommendation.
There are a handful of experts in the field. I've experimented with a few over the past years, but I've stuck with ‘’Aileen Gertrude Tippy’’ for about five years now, and her performance has been consistently impressive. She’s quite known in her field, look-her up.
Thanks a lot for this suggestion. I needed this myself, I looked her up, and I have sent her an email. I hope she gets back to me soon.
10/10 would watch again
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 $80K stock portfolio against declining?
It's a good idea to seek advice at the moment, unless you're an expert yourself. As someone who runs a service business and sells products on eBay, I can tell you that the economy is struggling and many people are struggling financially.
It's a good idea to seek advice at the moment, unless you're an expert yourself. As someone who runs a service business and sells products on eBay, I can tell you that the economy is struggling and many people are struggling financially.
please who is the consultant that assist you with your investment and if you don't mind, how do I get in touch with them?
I have a female advisor named Melissa Terri Swayne I recommend researching her. To be very honest, I'm glad I decided to let someone handle expanding my finances even though I almost didn't think I should.
She appears to be well-educated and well-read. I ran an online search on her name and came across her website; thank you for sharing.
The U.S. economy can actually get better if only the govt can start making better decisions for the sake of it's citizens, cos' they've really made life more difficult for its residents. Hyperinflation has left the less haves bearing the brunt of the burden. Its already eating into my entire $620k retirement portfolio. Like where else can we invest our money with less risks?
Just get a financial planner straight up! personally, I would invest in etf and also love investing in individual stocks. yes it’s riskier but I'm comfortable in my financial environment.
I agree. Exactly why I now work with one. A lot of folks downplay the role of advisors until being burnt by their emotions, no offense. I remember some years back, during the covid-outbreak, I needed a good boost to stay afloat, hence researched for advisors and thankfully came across one with grit. As of today, my cash reserve has yielded from $350k to nearly $1m
Mind if I ask you to recommend this particular coach you using their service? Seems you've figured it all out.
Certainly, there are a handful of experts in the field. I've experimented with a few over the past years, but I've stuck with *Izella Annette Anderson* for about five years now, and her performance has been consistently impressive.She’s quite known in her field, look-her up.
Thanks for the advice. The search for your coach was simple. I investigated her well before using her services. Considering her résumé, she appears competent.