Why is the US in so much debt and does it matter? | Counting the Cost
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- Опубліковано 29 чер 2024
- The US is more than $34 trillion dollars in debt. That's almost equal to its entire gross domestic product (GDP).
The figure is bigger than any other nation's debt, but does that matter when Washington issues the world's leading reserve currency?
A new report by an independent fiscal watchdog is now sounding the alarm among financial experts.
The Congressional Budget Office says by 2034 debt is expected to hit 122 percent of GDP, that would be the highest level ever recorded, barring changes in tax and spending policies.
"Swiftnomics" - Does Taylor Swift have a big economic impact?
Will Greece's six-day work schedule work?
00:00 - U.S. debt is ballooning
12:11 - “Swiftnomics’: Taylor Swift’s economic impact
20:26 - Africa’s cocoa farmers turn to rubber
23:37 - Greece’s six-day work week
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@ohmakure4716
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If the US has such huge debts why are the same imf and worldbank credit ratings applied to them? Double standards
Because they are under central bank Authority
Because 80% of the debt is held by Americans and American companies, not foreign investors...
@@joshbodert-co1xgyep only 5.4T is owned by foreign nations
@@joshbodert-co1xg I think there is difference, foreign entities borrow dollars, hence they have to payback to the US .
US borrowed its own dollars from its own central bank. They can print their own money, to create a constant flow. The loan keeps on increasing but its just a number, payback isnt crucial.
If payback was crucial would they go for war in Afganistan, Iraq, Syria, Israel, and Ukraine?
They keep on pushing the loan bar up and keep on spending. As long as the in(printing) and out of cash is in their hands, they can go on. (I am aware about inflation, but that too is relative)
They are just fooling other nations with concept of ‘dollar debt’
,.;'#@
nations are sick of imported inflation again and again (because of U$$D Over-Printing), disrupting their economic growth...
while us enjoy their spending spree without feeling guilty/shame for the world...
in addition, nations are also de-risking their reserves from being looted/sanctioned by us.
world-wide de-dollarization is inevitable and imminent, or is it?
It's actually 34.9 trillion dollars and paying 1.6 trillion in interest and still rising by the end of 2028. America debt will be at 45 trillion dollars and paying 2 trillion dollars in interest, so yeah, America has reached it end just like Britain did
USA solve debt problem by print paper money to pay back mean it will become paper no value this is your risk that will be managed it is not USA’ s risk
Pardon me but the budget goes to warmongering NOT social spending. Please, get that right.
They will increase the taxes on the working class and let the rich slide as usual.
Plain truth isn't allowed in the media
@@idilhussein-ui5bdnope they just going to print more money and increase the debt until somebody calls them out. Its ridiculous.
@@idilhussein-ui5bd The working class is already living in trailer parks or under bridges because they can't afford to pay rent anymore!
Pay tax from what?
Inflation is a form of invisible tax on consumers
Remember when empires get to the point where spending is bigger than revenues?
Its all been planned, devaluation off paper money benefits government, everything will cost more, then everyone will pay more tax...
I remember reading this story before. The only question is how long will it take for them to reach the bottom.
this can continue for a while. decay will take time but rest assured...the evil empire will fall
Currency debasement and the next is you know what lol
@@TheStonesQT93 This was a very good job of reporting on the issue. It is a problem for the US but worrying about defaulting on the debt is just hyperbole. The debt to GDP ratio was 119% in 1946, and the US still managed to bring it down to 31% in 1981. And that shouldn't be confused with the US paying down that debt, because overall federal debt grew from $253 billion to $998 billion over that period of time.
If a country like the US solves this problem with reduced spending you just get economic recession. The US needs to grow itself out of this problem. The federal debt is growing by about 5% annually, which is the same rate of GDP growth over the past decade (2.1% after inflation). So the current deficit appear very manageable given the country's current economic strength.
Why do people still work for this toilet paper? We need a new form of currency they cant corrupt
What do you work for?
They work for it because it is the global reserve currency and within the US the only legal tender that everyone uses
we need a new form of politics and economics.
Don't have a choice
Digital dollar
China doesn’t own that much US debt anymore. They have been selling and not buying new T-Bills anymore. That’s why Yellen was in China begging the Chinese to buy US debts.
The Chinese government still holds a little more than a trillion dollars worth of US Treasury bonds at any given time, directly and by proxy.
Is that statement true ? Or evidence that you're saying because if not , it means it's a bluff...😂
@@kumarj4693China used to be number 1 holder US bonds but since China has no faith in its relationship with the US and rampant US sinophobia, they are slowly selling its holdings of US treasury bonds. Japan is now number 1 holder of US treasuries.
China is the biggest creditor in the world right now. It can afford to sell paper US treasuries and buy more gold.
@@junielesparas8018 No longer that high now, nearly half from before
Spot on bro 😎
Otherwise Blinken wouldn’t visit China that much! Begging for money to fund their infrastructure programs! End of story
I just wish Mastercard can do the same for me on my debt. I’ll keep borrowing money to pay off my debt. This way I will never have to spend my own money.
Just a "slight" overspending in "defense," hahahahaha.
U.S national debts will reach at least $60T in the next 10 years not $50T.
@@Kingofthehill84 And...?
@@joshbodert-co1xg
In capitalism system everything needs money to survives once the system collapse everyone's screwed only the one with money survives.
@@Kingofthehill84 I'm still not seeing what your point is. 80% of American debt is owed to Americans...
@@joshbodert-co1xg
That's the problem though meaning 80% of Americans will become homeless overnight 😆 🤣
America has to sell new debt to pay off new debt. If there are no buyers, watch out.
America invented a scam. It's called monitizing the debt. The USA prints new money to buy it's own debt.
hope the world does not rush to dump the dollar.
BRICS is already trading without dollars to avoid US Debt.
@@d47rk guess you haven't followed BRICS
They will order their tributary vassal states in Germany, Japan, SK to buy their bonds and they will gladly oblige.
US dollar is declining as a reserve currency they should worry
I really thought you took the financial thing seriously until you got to the Taylor Swift part of it ...
Seriously, why is she so overrated? Is the west suffering from celebrity worship syndrome? It's like a religious cult
Someone has paid them to mentioned Taylor Swift 😅😂
Same here - I tuned out after the interview with the economist from the UK.
|}{)(*
nations are sick of imported inflation again and again (because of U$$D Over-Printing), disrupting their economic growth...
while us enjoy their spending spree without feeling guilty/shame for the world...
in addition, nations are also de-risking their reserves from being looted/sanctioned by us.
world-wide de-dollarization is inevitable and imminent, or is it?
It matters because BRICS no longer depends on the dollar for trade. Now half the world's trade doesn't require owning dollar debt.
We need to fix that
@@tclinn2909 we need a multipolar world comprised of neutral and or non-aligned states
As of last years figures the dollar still accounted for 80% of trading globally. Many exchanges brics nations are on one side of are still made in dollars. The dollars use internationally will fall in the future but very slowly
This is what happens when the rich and big corporation pay virtually no tax and are heavily subsidized. This is a bit of gaslighting. Medicare is not an entitlement. Every American pays into through payroll deductions. Japanese debt to GDP is far higher.
The whole western free world is broke. Rich in debt.
Don't worry , the U S will have the lost decade it bestowed on the Japs.
the japanese yen is freefalling due to the huge debt which they cannot refinance. so whats your point?
Japanese debt is mostly internal. It has one of the large foreign assets. It has hardly any foreign debt. The position of the USA is the opposite. Its foreign debt is about 39 Trillion Dollars. It has another 35 Trillion Dollars of Domestic debt. Plus it has another about 35 Trillion Dollars of debt for unaccounted medicare claims, Pensions etc.
Not true. Government spending is why we are here. 3 Trilion annually on entitlement spending. Bad fiscal and monetary policies on both sides of the aisle.
The difference: Japan huge debt , low interest. US huge debt, high interest (by comparison).
And Japanese debts are owned by Japanese. It can be repayed as long as Japan keeps productions. The US is another story, many wonders how the US can pay back the debts.
@@merrychase9744 Why refi when there is almost no interest.
@@merrychase9744 Currency collapse is not entirely because of low interest, which has been low for years yet no collapse. Yen collapsing now is because of pressure from high interest bearing foreign currencies. Clearly, Japan cannot raise interest to stop banks from dumping Yens in favor of other currencies, due to its high debt.
Defense spending is the problem, period, "no contest."
Defense spending pales in comparision to entitlement programs like SS and Medicare.
@@DistrustHumanz Yes, we wish ...
Calling it “defense” when America starts every war in the last 50 years worldwide should be called the “war department”.
And it is the only part of the govt that keeps failing audits which makes it even worse.
@@DistrustHumanzSpoken like a true Uniparty Neo Liberal. Blame the working class who actually pay into these programs when they are taxed like crazy.
If the ICC has no Power to Enforce the Law against Netanyahu...because of the USA, who will hold the USA accountable for any defaults🤔? Itself?
It will self-destruct itself.
work more days, get paid more. Ok, but then what would you do with all that money? There's no time to enjoy it. Oh and then you just die eventually. What an existence.
The US defaulted on its debt during Nixon. It can happen again.
How convinient that US can export its debt
When other countries exchange their US treasuries for gold, the debt or excess US dollar flows back into the US market. This reverses the export of inflation to the world since the dollar was depegged from gold. Eventually, the USA will be hit by hyperinflation, and the perception of this will accelerate the dumping of US debt for other safer assets like gold. Just ask yourself this question: Let's say the USA decides to resolve the debt issue. How are they going to do it? What can they do? When you look at all the possible outcomes, you realize the impossible.
It's already happened tomatoes in save way cost $3.99 per lbs. I brought 6 for 8 dollars.
Big Mac set is 18 usd!
Thank God the World has Brics...more ethical
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Yes, and they will add a zero to gold, and when gold is at 23k and the Dow is at 23k we can rise again
⚠️🇺🇸⚠️ So if the USA can print more money....WHY DO WE NEED TO PAY TAXES?!
Because inflation would hit 10000% without collecting taxes. Are you really that dense?
Because the 100 USD bill itself is worthless for you as it's printed for government spendings, but you have to pay the 25% of interest to the feds!
The weight on the people is ever increasing as 25% of the US GDP goes to welfare and 25% goes to the military, 25% goes to the feds to pay off interest!
Only 25% is left for all other things necessary such as education, healthcare, infrastructure, public transport, government costs such as salaries, insurances etc.
The moment they print money that 100 is already gone and has no return!
@@rf2048 You don't have to ask if seymorefact4333 is really that dense. He/she is obviously that dense.
USA doesnt print money. Federal reserve does, and they are owned by private cartels
😂😂😂
This guy has no clue of how us debt is effecting all of our finances
That why BRICKS come into the pic. More and more countries wanting to join BRICKS.
The US national debt is one of the most misunderstood issues. National debts are not meant to be paid off and can't never be paid off. In fact it'll keep going up and up almost forever. One day very soon it'll cross a $100 trillion. It's sustainable as long as GDP also keeps up
You are so so Wrong. How do you think the British Empire went bankrupt?
Cause when they got together with the French and attacked Egypt in the Sinai crisis the US government led by Eisenhower ordered US bankers to call out their debts that they accumulated in WWII through the lend and lease program.
Since they couldn't pay back were thrown under the bus.
As a result they couldn't afford their empire anymore and had to decolonize all their colonies.
If people lose confidence in your ability to pay your debt they will sell off your bonds and demand their money back. Then you won't be able to service your debt anymore and your yields will become too expensive.
Then there is the interest on the debt.
The interest on the US is going to be the biggest expense in the federal budget by next decade.
More than medicare, defense, medic aid, social security all of which are already underfunded.
This money being used to pay interest payments is money that should have been used in infrastructure, education, health care and other things.
This will mean massive cuts to everything, Austerity, unemployment, collapse in infrastructure and social services, lower economic development and lower standards of living.
Much of the GDP is based on war spending and printing too much money.. There is hardly any productivity or manufacturing happening.. Rich who owns asset get richer day by day and the rest 90% of people have less savings and grappling with inflation .. Higher for longer rate to counter inflation is killing other countries and it won't be long before other countries start dumping the US treasuries to support their own currencies.. Inflationary depression is on the way.. US has to resort to cut spending and increase tax and increase interest rate to survive, but sadly none of the politicians like this and will continue the path of fiscal spending until the dollar get toasted.
@@danwelterweight4137 One day the US just gona default on the national debt. Bank bail ins, interest rates can go up then. Reset needed!
The US can no longer fund chaos and conflicts if it has a large debt crisis. Make it happen.
Americas economy : Print more money
Well... instead of causing trouble overseas, use that money to modernize infrastructure and the well-being of its citizens in the USA. That will make USA more competitive and perhaps even work with the global community.
More competitive with whom exactly? The US has maintained the worlds largest economy since the 1800s not to mention still dominating Future tech like AI
@@seanthe100 That is seriously debatable. It may have been for the last 100 years, not the last 200. And USA is in denial about losing its grip on modern world and its influence.
American dolar is a commodity and its value is based on demand.
As long can sell that means has demand.
Not when they confiscate the bonds of countries who bought their debt treasury bonds.
He is wrong the largest expenditure is the military and giving tax cuts to rich people through loopholes in the current tax code. It’s known as buy borrow and death. So ending those tax cut will not result in more money in the country’s coffers
No it's not. It's social security and Medicare.
@@danwelterweight4137 It's the military and all the millions of dollars it wastes in lost money, equipment, and weapons left in other countries. There was waste of 778 billion out of the 916 billion budget going to defense contractors. Social Security is funded through the taxpayers' payroll contributions and if Congress would stop using the money for its endless wars then it would be solvent. Congress takes 2.9 trillion dollars out of Social Security annually. So if the biggest expenditure is SS why is Congress able to borrow money from its coffers annually and cry that its becoming insolvent?
The 2024 Defense Budget is $825B
Social Security is $1.3T
Medicare is $1.0T
technically, US will not default on its debt; but the USD used to replace the debt will be worth a tiny fraction of the initial purchase price of the USD bond.
10 mins of this is a Taylor Swift Concert promotional advertisement 😂😂😂😂😂
Since 9June24, Saudi have abandoned the Agreement since 1974 printing US$ for Saudi Oil, as though the oil is US's. Now no longer,it's disastrous for US$ and the economy
Big number = scary. If government spending is the cause of inflation, why is japan, the country with the highest debt to GDP ratio experiencing deflation and Argentina, who just eviscerated their government spending still experiencing outrageous levels of inflation? This model of understanding inflation appears to have absolutely no predictive capabilities and seems entirely inconsistent with reality.
Japan owns most of that money to itself.
Japan debt is debt is $9.2 Trillion.
Japan can afford the interest payments on that debt.
That is nothing compared to the US $34 Trillion today soon to be $50 Trillion by next decade
Thank God for Brics. Waay better and waaay more ethical
This irrelevant argument of bankruptcy needs to stop. The issue is market confidence.
Great Economist, been drinking the cool aid.
Tax the rich!
They keep on cutting taxes for corporations, and wonder why they cannot pay its debt.
There's no happy ending in sight
spiralling debt trap.. just like a credit card debt...but its ok right?
The US should borrow a leaf from Portugal economy on how they managed to get out of debt trap
Well, I make 2000 a month, owe 38 million in credit cards. Banks want their money. Any Suggestions?
Excellent Presentation!!! Where can I obtain a copy of this US Congressional Budget Report you talk about in this Presentation?
The US is printing money 😉
I really hope it will. We will still be on time to see the emergence of People's Republic of America, the worst nightmare of Fortune 500.
This so-called "director" has as mere knowledge as an undergraduate student. How could $34Trillions debt isn't equal to a disaster? And by using Japan as an example even undermines his statement. Look at Japan's economic situation and their currency now! They are nearly bankrupt and most perilous since WWII.
When was the last time Taylor Swift released an album? Her popularity is unbelievable
The debt will be forgiven because economics in the 21st century is different from in the past.
The US owes her own institutions most of this debt and other countries like China and Japan have serious issues too and no one really talks about them because it doesn't really matter.
It depends how you define default. If you mean they can’t repay you, then no, they print money, they can always pay you back.
If you mean you will be able to buy less with the money they give you back, then yes, they have already defaulted
US will ultimately need to make a choice between default or monetisation of its debt by massively printing money. Either case would led to a massive loss of purchasing power for US Treasury holders.
If it mattered, it would have mattered decades ago.
Now that oil can be bought with different currency’s, the dollar should have already collapsed. But nothing happened so again it does not matter
Well, it just confiscated land from Indigenous people, Northern Mexico (paying chump change for it at gunpoint), Puerto Rico, and others. If it can acquire land by legislating it to be its land, why can't it just declare that it's debt is null and void? Or do something like that?
America is 34trilly in the hole and Taylor swift is an economic force, fascinating situation
Keep sending those 💲💲💲 to Ukraine.
Most of Japan's debt is owned by domestic investors where as nearly half of US debt is owned by foreign investors
It will now matter that the petrodollar contract with the Saudis has ended.
The combined State and Federal Tax burden is already at 50% on U.S. Taxpayers. Not sure where the $$ is going to come from to pay down this Debt. The Govt. cant just keep raising Taxes and squeezing Business for more Taxes and fees.
Thankyou
Japan currently struggle with its currency due to lack of tools to protect their currency. US already warned Japan not to sell US Treasury to buy Japanese Yen, what tool left available for Japan Central Bank? Sell more Samurai bond to attract international interests or increase its interest rate .
As a country, how best would you protect yourself? As a head of state for each country, you need to address this to your nation immediately, and come up with solutions peculiar to your needs! This is your time bomb ready to explode anytime.
The faster you move away from USD the better you are. USA can kick the problem down the road, but you cannot.
If your leaders don't address this soon then prepare yourself to face the financial difficulties ahead!
This applies to everyone, including me!
There is no way they can pay it back. The interest payments are already choking their budget. It is still increasing.
1:06 is it me? US GDP is 25.4T; 34T debt make it 134%, NOT “almost equal to its entire GDP”.
China and Japan both have a higher debt ratio than the US so what exactly is the point. China has a declining economy a Japan’s economy has been stagnant for 2 decades. These people don’t seem to know much and I highly doubt the government allows the debt to keep getting so high because of the payments. It only got so high because of covid.
The US can 'afford' this huge debt since their economy and population is growing at a faster pace compared to other countries like UK, Japan and Italy. USA's economic prospects are simply better.
Sounds like you’re hoping for a green card.
Also 80% of the debt is owned by American investors...the government is mostly in debt to its own people, not foreign entities.
@@NoFrillz-G ? Quite a rude and unfounded comment. Have a nice day 👍
No. The US has defaulted on her debts several times before. Their solution revolves around printing more money, further making the US dollar worthless. Some studies even suggest that the paper on which the US one dollar is being printed on, is more expensive than the one dollar bill.
PORKFOOT was the news story of the year.
Government overspending, plain and simple and yes it matters.
No need to worry about the US debt...as long as the US dollar remains the world's reserve currency. But if that ends, all bets are off. It is past the point of no return. When new borrowings go to unproductive but necessary expenditures (interest, military, government spending), the price is reducing standards of living for future generations.
US: On the way to 120% debt to GDP by 2030 ??? It is already 123% NOW in mid-2024.
6:40 "Japan has twice as much debt as the US..." But then they have as much foreign asset as their debt. Funny enough Japan (and not China as many many think) is the world's biggest US creditor with U$1.08 trillion in US treasures. Although everybody knows Japan will never sell them for they're effectively "the unofficial 51st state of the US." (something I hear a lot on Japanese media since forever, or, at least for 30 years I've been here.)
15:50 it’s so weird because she can’t sing. I’m sure she’s a great person though! With a beautiful heart.
Not long now and the world will be free from aggression.
The more proper question is “In debt to whom”??
Mark Steyn talked about in 2011 on BBC hard talk
US Debt is expected to rise to ~200 Trillions by 2050 with daily interest payment of ~33 Billions.
It doesnt matter how much US debt there is. As long as their printers keep working they can just print as many USD as required.
Stop depending on Social Security or Medicare
Lowkey Greece need them extra days after what they been through
The guest is talking nonsense when he said that US can print money hence will not default.
If that is the case, then print 10 trillions every month. US citizens will all be wealthy in no time.
Are the nations with heavy debt (greater than 100% GDP) finding ways to make other nations with saving through wars (lending military loans, selling military hardware, seizing sovereign funds, forfeiting foreigner assets, engaging in war indirectly or directly or covertly) to pay its debt?
we the people follow all these politicians these people who say they have the plan. politician/corporate ceo/law is a trinity of control
Inland Revenue Service now eyes on Taylor Swift tax returns for extra funds?
West game must end
As long as world money is USD, then it doesn’t matter!!
Won’t default. They will print more and rise the Inflation worldwide
It is awesome to print 🖨 money 💰 to buy real things from all over the world 🌎...🤑
Popcorn anyone😂🎉
At this point now they should default on their debts
Austerity doesn't work..look at Britain..a decade of decline.. Stopping thinking US economy is a the household budget.. As long US is growing and able service debt... They can keep increasing.. as long spending is deploying resources and growing the economy
No, they can just print more money, which is a different problem...
It's the US, the debt analysis is quick and short. Not much to say about it. It's the Almighty US, it will rebound. Nothing can stop the US from staying the ONLY WORLD Superpower. This is a matter of Destiny. Isn't it ?
Why.. Why.... America don't have reserve of gold, still can printer money. If very unfair to another country....
Irresponsible spending by governments catering to the irreconcilable public demands of more spending and less taxes will ruin any country eventually, no matter how rich it is. That's just common sense.
The biggest underground military base costing hundred billions is in????????? .
What about QE which was not capital injection but money creation?
Debt calculation matters on the ability to repay. It doesn't matter for US as they have the ability and it also internal.