The problem with the U.S. debt ceiling negotiations
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- Опубліковано 20 вер 2024
- Part 1: The problem with the U.S. #debtceiling negotiations. Stay tuned for part 2 on what the U.S. needs to do. #nationaldebt #principles #raydalio #shorts
Watch Part 2 here: • What should the U.S. d...
The problem is this is already known.
It's not incompetence, it's intentional.
300 billion USD is more than enough to protect the USA. 500 billion saved immediately.
But you can't save money if you run an empire and keep 800 military babies around the globe.
That's why their slogan is build back better .
You can't build back until after you tear it down first !
Yes yall get it 👏🏾 it's all designed. There is no stopping what's already set in place.
Haha very true I was looking for this comment.
Now I'm feeling like we're living in a TV show 😅
We will have that collapse around the same time we go organic with food production.
I understand. It's like when my girlfriend kept using her credit card to buy stuff she couldn't afford and it kept piling up debt. She couldn't control herself and I wanted her to cut back and start paying it off. Bottom line: I am single agian
TRUMPS YOUR GIRLFRIEND
Is that to say get out of the US ?😂
Smart man! 😆 🤣
Too bad I can’t get a divorce with moving out of the house!
😂
I recently inherited almost $500k. I REALLY need to make this money work for me, and not just disappear over time. All roads have pointed to the equity market of some sort which is a good idea buh where else should I put money besides the equity/stock market?
Consider hiring financial advisors, estate planners or tax experts. They can provide specialized knowledge and help you navigate complex financial decisions.
Speaking with an advisor helped me stay afloat in the market and grow my portfolio to about 65% since January 2022, This helped me stay afloat and improve my portfolio of $450k in months.They have strategies that are specifically suited to your long-term objectives and financial aspirations.
My partner’s been considering going the same route, could you share more info please on the advisor that guides you
I started out with a financial advisor called *Sharon Louise Count* Her honest approach gives me complete ownership and control of my positions, and her rates are incredibly affordable given my ROI. However, do your due diligence before contacting a financial advisor.
This reference seems valid.. Just looked up her full name on my browser and found her webpage without sweat, over 10 years of experience is certainly striking! very much appreciate this
Equity in a house will likely be tapped into via a HELOC or straight sale. I believe if they sell, many will go back to renting. And housing supply will inevitably rise. So you can borrow against your home. Do I just keep waiting for a housing crash with my $2 million in liquid assets or shift my attention to the stock market?
Ray is like the grandpa everyone should have or at least a Yoda once in your life.
Please run for presidency Ray!
its all apart of the plan for a reset... ray knows that lol
If he becomes president, it'll be like having Xi Jingping in the whitehouse.
@@seniorsergeanttomcroydon6401
At this point. That doesnt sound like a bad idea. America is a dumpster fire and the politicians are just adding wood, papaer and gasoline to it🤦♂️
@@seniorsergeanttomcroydon6401 yes he is so pro ccp that guy is a joke.
Why in the world would he want to do that?
we simply have too much unproductive debt. there is no way out without extreme pain
If every dollar is spent like it supposed to there wouldn’t be debt.
😆 🤣 that's no fun!
Then stop making proxy wars & manufacturing weapons to sell
Too late... already $32 Trillion debt which US can never pay back.
@@mandrews1245 file bankruptcy chapter 7? 🤣 🤣
Military spending - Nuff said.
Military defence is only about 10% of the yearly expenditure, our tax dollars are more than enough to cover it
They could sell those 40% of abandoned government buildings and sell the real estate
That’s great but the problem is 20x larger than that. The income and expenses are mismatched. US has to raise taxes or cut spending out be forced to eventually by economic pressure.
@@LiveWell6 it's both collect taxes and lower spending together to rid us of the debt.
Collect taxes, lower spending below revenue, owner finance real estate for farm, ranch, forestry, mineral use, to pay down principle, add supply, lower cost, export product at higher profit to pay down debt, protect our intellectual property and charge a premium for usage to pay down debt, write down debt to debtors in exchange for product at a favorable exchange rate to reduce debt principal, cut support for nations who are not on the same wavelength and pay towards principle debt…i mean we literally have every option on the planet at our disposal but our leaders are influenced to choose to spend more than we make.. atleast we could over spend on investments with returns like incentives for high tax producing businesses
Would love a video going more into the details of each scenario 🙌🏼
Thanks for sharing 👍🏼
I would love to join your Masterclass and learn from you 😊.
Ray is right on.
The debt is the problem, but it's already done
There's no fixing it.
Spending money that they don't have should be a crime!
How do you "fix" a politician from spending other people's money? Hold them accountable for every penny! Regular people are put into prison for misappropriation of funds. Politicians should be the first into prison and charged with treason. I don't care if they are state or federal level leaders.
Much of that spending allocation was during a balanced budget. Trump tax loopholes for billionaires unbalanced the budget. I’m conservative and like low taxes but let’s be real here. Our side needs to compromise. Not just theirs. We tend to cut taxes for rich people, without a plan to pay for them, then as the billionaire class gets wealthier, we complain that single moms and disabled veterans are moochers.🤣🤡
The politicians did this, vote responsibly
As long as the top dogs of both parties spend 90% of their time playing politics and fighting each other this « problem » won’t go away. It really doesn’t take a genius to fix this « problem » !
Good morning Ray... somebody wise once said... 'Neither a lender nor a borrower be.'
The US needs to stop giving huge tax breaks to people who don't need it. That would go a long what toward balancing things.
WRONG. Spending more than it earns is the issue and the only issue that caused this, and continuing the problem.
Taxes aren’t the problem. The government is the problem. Giving the government more money only exacerbates the issue . Stop voting democrat while you are at it
The problem is not tax revenue. The problem is that the US Govt is a spoiled child who doesnt know the value of money. They are burning it left and right, taxpayer money that goes out the window.
Ha! They would just spend the extra money.
It would mean not running deficits
The problem with massive debt is the interest. Rates have recently tripled. We are paying nearly 20% of our entire federal budget in interest alone and that’s up from 3% in 2019. This unsustainable.
Obama spent 8 years cutting the deficit in half. Trump doubled it in 4. And now the "fiscal conservatives" are crying foul for the debt they ran up.
Why would our politicians stop using the credit card what they know they will never have to pay the bill.
This is equivalent to giving more alcohol to an alcoholic. Time for financial sobriety!
32 trillion is unfixable 😢.
@@misschicka2831
I often wonder about global correction/reset and if that is an option. As much as I'd d like to keep all my beans, I don't want to see my grandkids drafted to die in a war and I may be willing to chew on financial pain in the name of peace. As long as I'm capable of working, the pareto distribution will most likely apply and I'm on the winning side.
Some people are saying that the only way to fix it is to burn it down. I agree! They are never going to cut spending unless they are forced to do it. If we wait and we end up with a debt crisis problem and social problem. It will be much worse.
U r already in crisis
What exactly does burn it down mean. Nice phrase but that isn’t a plan.
@@LiveWell6 some think the best way forward is to remove all threats from success. Others think that if progress is to be made it is ok to introduce a little chaos into the system. It isn’t a plan so much as an approach to problem solving.
Burning it down is a risk because it may grow back even worse. The Founders gave us the manual to keeping govt from growing out of control, we simply chose to ignore it, and we'll probably do it again even if it burns to the ground.
@@inigomontoya6075 that could be a generational difference in viewpoints. But the worst that could happen already has happened. The world was told that the US Treasury market is a Ponzi scheme where “unless we get in new money in the way of investors; we won’t be able to pay the people who loaned us money in the past.” The world can’t put the U.S. in jail like Bernard Madoff, but they can lose confidence in their investments. Thank you President Biden 🥳
Just imagine how great America and the world would be if you served as president. I’m from the U.K. and I say America needs you. You could do so much good service for humanity
Ray's da man
Well said, I agree that we need to stop spending money we don’t have.
Too many politicians. That’s the problem.
The US needs to liquidate more of its assets. Printing money will not keep you floating for long.
Agree, and printing money in these days would fuel the inflation as well, so it is not even an option. And it was printing money that got us this high inflation in the first place.
Printing money gives Americans the belief they are rich again.... and all is well now.
They need to liquidate their military to China
Like what? A few Nimitz class ships, the strategic oil reserve or the entire contents of Fort Knox?
Ain't gonna change nothing!
Increasing taxes will. Go back in history and see US tax rates in 40s-80s and then compare / look at US Debt in those years. It's not like High taxes stopped people from being rich but it kept the government solvent and the US was a creditor nation not a debtor nation like we are now. (Now what the government spends the money on is a different discussion).
It's infuriating that our politicians won't do anything about this. They should be charged with treason.
Thanks Ray. Your a class act. ✌
The debt cannot be paid. There is a reason the budget has had deficits every single year since Nixxon took the US (and the rest of the world) off the gold standard. For every dollar created, there is an additionnal percentage of interest. So if you took all the currency created and paid the debt with it, there would still be a huge amount of the debt left. This system is unsustainable, and will need to be changed. You cannot operate by creating currency on a whim with nothing tangible to back it up. This experiment has been running for 52 years and I believe it is about to come to a brutal end.
As of May 23, 2023, The debt ceiling issue and lack of resolution shows the irresponsibility of our U.S . Government officials
I'm tired of everybody saying that all federal spending is social welfare. Department of Interior is not welfare, department of transportation is not welfare, department of defense is not welfare, especially Office of Personnel Management is not welfare payments. Reduce saleries for all federal employees that earn more than $90,000 a year.
That is like a penny you found on the floor
You forgot about the 700 *BILLION* We just gave to our Military.
Oh and also UKRAINE
🤣🤣
Delete FBI, DEA, and all funding to public education .
@@georgeklein6078 What I listed accounts for 2 Trillion. That's hardly a penny. It was just an example, I didn't list H.U.D., Dept of Agriculture, Education, or Dept of Justice. All other spending that is also not welfare. Each and everyone could be cut including the saleries I mentioned, and not one Social Security payment would need to be touched.
@@kevmoful I certainly wouldn't abolish the departments, but yes, everyone of those should be cut for a balanced budget, especially saleries above $90,000 a year. I would support mandated salary cuts to education institutions that recieve federal aid. No employee shall earn more than $100,000 a year.
Cut defense spending in Half.
Pentagon has not passed an audit since 2010.
Then take those funds and put them in our General fund.
These people purely see a debt ceiling as an opportunity to flex political power and get a bit more swinging their way. What Ray is saying literally wouldnt even make sense to them
I believe that all this flexing does is go against the interest of the nation and places uncertainty of the us dollar as a reserve currency, giving more faith to a new reserve currency such as the BRICS dollar.
It's unpatriotic and threats the global position of the nation.
I would like to hear in this short video a solution to solve that problem from Dalio rather than just "we have a problem".
"Spending than what we're earning" is the culture of modern societies!
Ray would be the best president ever... Ray 2024!
You can see the frustration in Ray’s eyes that in the impending competition with China, team America is governed by the special Ed team.
How do you see this? What if the bidens are in cohorts with China?
What if the hybrid adoption of bitcoin was the answer for Ray?
Why do they ignore new options?
A balanced budget is impossible at this point. The world allowed us to promise free stuff to Americans without honestly taxing us for that stuff. Instead, politicians relied upon the federal reserve to make up the difference between tax revenue and government spending.
The pain is coming if you rely on daddy government to pay your bills.
#theyllblamecapitalism
Part of the problem comes from giving tax cuts to the wealthiest among us while expecting the working poor to take up the slack.
Idea: structure the next Federal budget so we have a surplus that is used to pay off existing debts.
True we need handle this now so it never happens again not put a bandaid on it and let the next president deal with it. The ceiling is there for a reason
I didn't understand what happens if debt ceiling is kept on increasing or if there is no debt ceiling at all ? Kindly clarify, thanks in advance
..
The biggest issue the US have is having the Reserve Bank and the government borrowing money from the RB and paying interest on the borrowed money. The debt ceiling is a tool and a way to track the amount of money released in the economy.
I’ve always like the budget idea that you can cut 1% of the federal budget in consecutive years and have a balanced budget in like 5-6 years
The problem is the existence of a debt ceiling. Control spending, not borrowing.
Increase the debt ceiling
Focus the debt we take on (plus the debt where in now) into systems that creates jobs and production of goods that can be sold to other countries
Get rid of unnecessary spending
Live like this for the next 20 years or till our financial system is readjusted
lol. time to wake up from LALA land
Either our Tax Revenue has to match our spending, or they must cut spending, namely military, in order to match our tax revenue, its that simple.
This man just explained how deficit works. Sadly, half of the people watching this were probably shocked.
Great stuff!
The time to act on spending is *NOT* while writing the check to pay your Mastercard. You *MUST* pay your debts.
Shows true genius by. acknowledging the truly obvious. He told us nothing we don't already know
Ray please set up a meeting in Washington..to many know it alls...they need someone to school them on this subject..
100% agree this is by design now we are on track for hyper inflation and economic catastrophe… sure people will get paid, but there money is going to be worth nothing. What’s better getting nothing or getting something that is worth nothing
Go run for President Mr.Dalio, sir.
The problem is that you don't understand what 'the debt' is. The debt is your net savings.
. Raise interest rates drastically. For those who wants lower interest rates need a good reason for ability to repay. Banks who gives bad loans gets additional penalty by the government and higher interest rates for banks who wants bailouts.
You are right 👍👍
Just cut the military spending. Problem solved!
You’re clueless.
Even if we cut it down to $200 billion it still wouldn’t cover have of the $2 trillion over revenue shortfall.
You're wrong simpleton.
Actually that doesn’t solve it
It will do VERY little
When billionaires start paying taxes the debt problem becomes a non-issue.
We're 25 trillion in debt. Taking all assets of Billionaires wouldn't even dent this debt one bit
@@ebenudeh2101 thats not true.... and the debt doesnt really matter, as republicans show over and over. Money is a social relationship built on trust... and when 60+% of population lives paycheck to paycheck while others are billionaires not paying taxes... that trust is being broken
@@corriemathiowetz2135 if you were to take the wealth of every billionaire in the world not just the us based billionaires it would only amount to 4.5 trillion. If you took the wealth of everyone with 100 million+ you would still only get maybe 6 trillion at most.
Try NOT paying your mortgage or credit card debt, your auto loan or electric bill, and see what happens. You are paying back what you already spent or goods and services you already used. You have to pay the debt you accumulated or default and lose your property, services, and credit. Pay the debt and then work on raise what is earned by taxing the super rich and corporations their fair share. Then restructure the budget. For example, the military was given an 'extra' 800 billion last year. That money could be used elsewhere, for vets, for health care, roads, etc. OR, we could just reduce the budget by that 800 billion. The problem is that many people think the government just prints money if they need it. They don't see the correlation between taxes and infrastructure, health care, or military/police protection.
we are currently at a very low point in the US big cycle Ray.
Not enough taxes, simply. But rich people in USA are very used to not pay to keep a healthy society
Rich people are hoarders. They spend less and mostly storing in assets n stocks
and thanks to trump's 21% cut from 35% for the rich
The problem lies within credit itself. Credit is not money and Money is not wealth. It measures it. Credit has unevenly distributed set of rules dividing and creating classes we all know today.
Credit Can only do one thing: it steals real wealth produced in the present when the class who has their own set of rules which allows them to never paying it back.
The main problem is the billionaires are getting away with not paying their fair share of taxes. That is the whole problem.
We already have both. Unless normal fight back nothing will change
Ray, how about a video on the US debt restructuring?
The IS does not have to default on debt. There is enough tax revenue to service the debt. However expenses ( on wind energy, subsidies.....) must be cut.
Because They need immediate solution. Your solutions take long to see effects
The government does not EARN anything. It takes.
...spending more than we're earning...AND... charging the inflation tax to those that are earning, stealing the excess productive effort in the process.
The problem is the amount we spend on war.
And in social programs to buy democrat votes
The reality is that this cannot be fixed. Government spending is part of GDP, so if they cut spending they will inevitably cause a recession. The government must maintain its spending and stimulus until the economy begins to grow independently of public stimulus. But this has not happened since 2008, so if the US wants to remain competitive with China, it needs to maintain public spending, but in the long run this will cause de-dollarization and a debt crisis. It's checkmate for American dominance.
The debt ceiling is how much money the US can borrow to pay bills it has ALREADY incurred. Any refusal to raise the debt ceiling that doesn’t acknowledge this fact is done in bad faith and should not be taken seriously.
The problem is greed - the elites who control the US govt need more money for weapons and wars to maintain dominance militarily and financially at the expense of the society
The system is broken. How do we fix it?
take down traders for a start. those parasites make us poor.
The U.S. Federal Government is not like a household or a business. Federal government red ink is black ink on the ledgers in the private sector. It's a problem that people look at Federal government debt as bad as if it were a user of currency instead of the originator. Spending more than earning is a problem for users of the currency. Since becoming a fiat currency the thinking in this country hasn't changed.
This problem been a long time coming
It's pretty bad when the government itself cannot balance the budget😢. I personally hear of so much government waste!! The Stimulus and PPL was not handled properly! Don't know if it's true but I heard even some prisoners received Stimulus checks🤔. People received PPL loans that didn't even have businesses 😮. With things going on with Russia and China we cannot afford to slack with our military. I was under the impression we were electing competent government officials....in all offices...capacities😢. This is just ridiculous! And the fact this conversation will come up again 🤨😵💫
Somehow the rich own more than 50% of wealth, yet on crisis the poor pay price.
Our capitol also the financial institution. Beside the federal reserve and the treasures department and 3 brand governments represent for financial institution
We could easily earn more than we spend. All that would need to be done is resetting corporate tax rates to pre 2018, or better yet pre 1970. Things would truly be Great Again for the average working citizen in short order. Its a simple math equation, we are seriously conned and distracted from the simple fact that they dont pay their share.
Minor problems we deal different. The big problems require workers must know stuff.
We should end most "not-for-profit" tax exemptions, and make sure every person and business pay their share.
It will stop when We The People stand up and stop it.
We need somebody with this type of rationality in office to figure this stuff out. Right now, both sides seem to be borderline or completely incompetent.
Wise words.
I did not live in mansion. They are the once told us cut back spending. While for them to live in mansion.
What would it happen to the smaller machines when the biggest machine does work and is inefficient?
We dont spend too much, we waste too much. Mostly on defense. Everyone knows that defense contractors are gouging the government, and politicians won't do anything about out of fear the other side will use it against them.
they raise now close to 80 times to avoid a collapse & benefit w al steet - your hedge fund didnt mind then and doesnt care now - thanks for making jnj your #4 pick too - real sustainable - glad "NO ONE" got hurt by them
The problem is nobody talks about who is the debt holder.
The PROBLEM:Reps keep cutting our revenue (IRS intake)so that there donators can have that money they don’t need, except the amount they give the reps to keep doing it what they r told to do by those donors!
Break that cycle, problem fixed! We have a surplus to do good!
@principlesbyraydalio What is the solution? How do you propose to restructure? We know the problem but how are we supposed to solve it?
I could not agree more
the system will collapse if they don't stop spending more than they are earning (federal income)
Ray for President!
We don't have a spending problem, we have a taxing problem, caused by The Former Guy.
We’re just punting this ball down the field so that future generations can deal with the economic collapse.
Finally! Someone said it.
100% Ray! Love your work, I wish you’d run government… someone with some financial common sense, this spending is ridiculous! Government is so inefficient!
If this problem isn’t solved, every single incumbent, regardless of political party, should be voted out of office. Playing Russia roulette with jobs and our hard earned savings. If mayors and city council members ran the country, this would have been taken care months ago.
Americans don't have the fortitude to vote out bad incumbents. And certainly not vote for anyone who will cut their benefits.