The US economy cannot survive without continuous credit and debt creation. The FED will print more money and the average American will go just that much further in debt. Meanwhile, foreigners lust for the greenback. Their economies are in worse condition than the US... if that's even possible. Someone is going to be left holding the bag...
Gold might crash in a liquidity crunch, but many precious metal holders are prepared for this and unlikely to be forced sellers. The paper market would tank and possibly collapse. Hearing from an experienced investor who has overcome adversity is motivating. It can be scary when your portfolio turns red, but if you've invested in strong companies, stick to your goals and continue growing them
It's often true that people underestimate the importance of financial advisors until they feel the negative effects of emotional decision-making. I remember a few summers ago, after a tough divorce, when I needed a boost for my struggling business. I researched and found a licensed advisor who diligently helped grow my reserves despite inflation. Consequently, my reserves increased from $275k to around $750k.
I see the rising interest rate as a very big problem, as more investors will definitely pull out more money from the Stock market. This might have worked when I was still invest-ing with a couple thousand dollars, but it is more difficult now to decide whether to pull out more than $365k from my port-folio. I know some inves-tors still make that despite the strong bear market. In wish I could pull that feat
I think the whole thing about holding stocks for long term will always apply. So I think you should get a quality broker who is able to analyze and pick stocks that will do well in the long term, else you will be in a long bear ride.
You have a very valid point, I started investing on my own and for a long time, the market was really ripping me off. I decided to hire a broker, even though I was skeptical at first, and I beat the market by more than 9%. I thought it was a fluke until it happened two years in a row, and so I’ve been sticking to investing via an analyst.
There are a handful of experts in the field. I've experimented with a few over the past years, but I've stuck with ‘’Melissa Elise Robinson for about five years now, and her performance has been consistently impressive. She’s quite known in her field, look-her up.
Yes, the petty bourgeois, the farmers and small business owners who receive much lip service from the right and are the most easily manipulated by fascists. “Look what they are doing to you” “you won’t have a country if you don’t fight like hell”
Which is why I think corporate tax should be zero. But then we need to change how we tax capital gains so that it is taxed exactly the same as earned income. There are loopholes where hedge funds make massive profits and no one pays any taxes on their investments. However, with a zero corporate tax rate I would implement a national sales tax, so that corporate buyouts and mergers would cost real money as they reduce competition and shield the corporation from paying any taxes. The national sales tax would apply to luxury goods and certain services as well as corporations trying to transfer money overseas or spent on stock buybacks, mergers and the like. Bill Gates can buy farmland but then Bill Gates would be subject to sales taxes on that purchase, where as now that money is shielded in tax loopholes and allows for massive amounts wealth to avoid any taxes.
The debt does not actually exist with a body for it to be paid back to. The money was printed with nothing behind it. It was INVENTED by plucking out of nothing, the interest is actually real, but to the central banks. The actual cost was absorbed in the labour of workers and at the same time the DEVALUATION of the dollar from 100% and now down to 6%. Next year 1% of the 1933 values. Gold has stayed the same value and you can see the dollar value against it. Defence spending is the major cost as it is to hold the world to blackmail with violent threats and hegemony. The world will not stand for it anymore.
@@bryantjenks3598 The Fed needs a strong dollar to keep inflation down. But the wise will keep an inflation hedge, like a rental home, available in America, just in case.
@bryantjenks3598 you shouldn't keep all your assets in any currency. Most advisors encourage you to invest at least 20% overseas for diversification and too help with currency fluctuations. People have been predicting the dollars fall for many years. It might happen, but I wouldn't be assuming it. India just came out this week saying despite being part of Brics, they still want to do foreign transactions in dollars and are not on board with Russia/China in moving off the dollar as the world's currency.
🤣 Your full share is 95% One, two- (One, two, three, four!) Let me tell you how it will be There's one for you, nineteen for me 'Cause I'm the taxman Yeah, I'm the taxman Should five percent appear too small Be thankful, I don't take it all 'Cause I'm the taxman Yeah, I'm the taxman (If you drive a car, car) I'll tax the street (If you try to sit, sit) I'll tax your seat (If you get too cold, cold) I'll tax the heat (If you take a walk, walk) I'll tax your feet Taxman!
@@ParisianThinker Every politician that created the debt needs to have their wealth confiscated. They lined their pockets at our expense. Most would label that as fraud.
I retired at 65 but waited till 68.5 years old to apply for social. For me, it was the right decision, because of the following: 1 - I'm in great health, fortunately. I guess a lifetime of healthy food and lots of exercising has helped with that. 2 -Good nightly sleep is critical to staying healthy. So, I wanted the social security to pay all the usual monthly expenses. That works great for me, since I'm frugal, so I don't carry debt. Low stress, better sleep. So, file later if low financial stress is something you do want in retirement. I am taking additional steps. I'll be leaving the US and moving my retirement to a less expensive country. That should help even more.
@@pumasheen Indeed, but so what ? That's how it works, tax is but a name, you can take it at different point in the economy (e.g. companies, customers, workers). The worker paid tax money you refer to can indeed only come from/through where it is made, i.e. the companies, that get their money however through customers (partly being other workers, partly other companies) that pay these companies partly with thus circular money, and partly customer debts. But where did all the money originally and gradually come from ? From the federal reserve(s) that print the money, and supply it to the companies through investments loans, injected as debts into the economy. This injection is not even a circle, this money does not come back to the FedRes (only the interest comes back, earned by companies and customers, creating inflation/amount of money, injected again back into the economy), so debts (and interest and inflation) remain, even increase. Hence we live in a never ending debt economy since we left our caves, and started using money instead of exchanging physical products.
@thomasboissy3560 well to be fair it's been a constant trend for 40 years where we alternate between a republican administration cutting taxes and a democrat (and often republican administration as well) expanding spending with the inevitable result that we are paying the lowest taxes in 100 years and the government is spending at record levels. The problem is that voters never want to make difficult choices, so they simply get what they vote for: the mirage of a free lunch.
Thing is after WW2 we could get away with higher corporate tax because out competition was bombed. Now we can’t compete with high corporate tax . Not an option.
no way will congress cut current social security benefits, too many voters, they will increase payroll taxes on those making more then 150-250K with no additional benefits to that group, they will get rid of the earnings limits (168K), they may increase the retirement age for those 25 years old or younger. They can can means test survivor/spousal benefits, there are many ways to fix the system
Means testing is horrible and should never be implemented. Think about two people who make the exact same amount every year. One buys new vehicles and fancy boats. The other saves money for retirement and lives below their means. Now they retire. One qualifies for SS but the other has saved to much money and no longer qualifies. In the end, one was rewarded for being financially irresponsible and the other is penalized for being responsible.
That is why gold price keeps going up. Other countries are not stupid and see that treasury bonds is worthless in the long term. So probably buying gold to insulate themselves.
Not so fast, Azul, corporate rates were higher because of the war, but the amount actually paid by corporations was way lower. Conflating the tax rate to what they paid is not honest. Try again! The fundamental assumption that the debt can't be paid is false also. We have to stop spending and promote actual growth. A combination of both, surrendering to we can't pay the debt, is not the way.
Agreed. But it does distribute that tax to the people that use those goods and services rather than everybody. And for any goods sold to foreign countries or citizens that passed through tax gets paid by them, not us.
@@pascalbruyere7108 you're kidding right? Corporate owners get to decide how to deal with a corporate tax. They can choose higher prices for customers, lower pay for employees, or fewer profits for themselves. Which do you think they will pick last?
What if we stopped giving money to Israel and Ukraine as opposed to taking away social security from people who paid into that system? Would that help?
I think the money they give to Israel has to be spent on U.S. made weapons. So the money really goes to U.S. companies to employ U.S. citizens. I don't think the money to Ukraine has the same stipulations.
Ukraine and Israel are test labs for US military weapons. Also the destructions of Ukraine and Israel are opportunities for US contractors to come in to rebuild. War is profitable, unfortunately.
You never look at the federal budget. Its 60 percent on social spending like housing, welfare, education, healthcare, food, etc. The healthcare and education are growing faster than anything else. That's waste on government administration.
Yellen directly objected to using low interest rates in 2021 to issue long term notes (30+ years) to finance Treasury debt. As she said, "Inflation is unlikely and transitory."
The US will inflate away its debt away. This is why you move away from the US dollar and into Bitcoin, real estate , and other hard assets. Sticky inflation is inevitable. Government will never spend less and they are trying to inflate our money at at least 2%. Debt will continue to explode.
Inflation also eats into the value of real assets. The land is still the same, but the value in inflated dollars cuts deeply into the preservation of capital. The costs to maintain real property, as well as property taxes, continue to rise with inflation, while capital gains taxes will take a big chunk through inflated land values.
Unless the right wing Wall Streeters are in power. Then they will spend billions funding Raytheon and talk about how great our economy is. Then when democrats are in power fixing a few things, t The financial slick talkers will have this here conversation and appeal to the petty bourgeoisie who are so easily manipulated. “ I love the uneducated “
Income taxes on the wealthy are much less than they were in 1981. Productivity and wages separated precipitously since 1981. Income from taxes of corporations is much less today than they contributed before 1981. The third-party medical insurers suck 30 -50% of the Health Care dollars spent in the US, yet the US won't change its system. We are the only wealthy country in the world that does not have a National Health Care system. We are only as lucky as we are because of our World Currency status. How do we fix it? Tax the Wealthy and Corporations much more. They are the reason for the deficit. Change how healthcare dollars are spent.
@@johannesswillery7855 Yes. Not enough to pay off the National Debt, but to drastically reduce the deficit, (the difference between what the US spends and what it takes in). Don't forget Corporate tax revenue and reduction of 30 to 50% of healthcare dollars spent.
@@DrDRE4391 The only way we will get healthcare costs down is to get seed oils, preservatives and ultra processed foods out of our diets. RFK Jr is talking about it.....
Raising taxes is not gonna fix it, the government will just spend the extra money. Look up the Graham Rudman act, was supposed to ensure a balanced budget by law. You see how that worked out!
Azul, love your videos. Have you taken a position on bitcoin yet? I may have missed it and if so I'm sorry. I'm long and I'm 62. Thanks for all you do!
Paul Ryan proposed a plan to reduce the debt over 8 years and was vilified, dismissed, and eventually not re-elected. Problem is human nature, especially in the U.S., when people are given gifts long enough, they eventually see it as their right to have this gift and will fight to keep it. It's essentially impossible to take benefits back so nothing will change
One healthcare solution. Allow Medicare / Medicaid users to use their coverage outside the U.S. Procedures that cost $50k in the U.S. can be done outside the U.S. for $10-20k. Mexico has many 5 star private Hospitals.
I’m curious what the US government considers “Other” as part of their budget? Could it be stimulus handouts (free money)? Housing and feeding all the illegal immigrants they let through the border? Funding foreign wars? Unemployment (of course its the new unemployed not the ones who were removed because their benefits ran out)? Or maybe they’re afraid to tell the public what it really is? Seriously what is in that category?
The problem is that it is politically popular to subsidize longevity. At some point, Americans will realize that they can no longer afford this luxury.
Raising taxes doesn't work. I believe once it goes above 20% in aggregate, people start making less. They're not incentivized to work harder for more money,
Becuase USD FIAT is a deflationary Note, the debt is easily repayed by increasing the supply. If the Debt was contracted to be payed in Gold than your argument is valid.
You realize their is no "social Security" box that you taxes get put into? When their was a surplus the government would use the funds to buy treasuries and now it is beginning to run in deficits. The government "money" is just an accounting ledger. This isn't new this has been the case for generations.
We need to both raise taxes and cut spending. Raising taxes doesn't always translate to more government revenue either, but it changes patterns. When taxes were high from WWII - 1970s, companies re-invested a lot of money in R&D and we had some of the greatest public/private partnerships ever which drove the space and arms race with the Soviets. As a spin-off gave us many of the affordable technical luxuries we enjoy today. We need to unlock more of the dynastic wealth that is held by the 1% or even 0.1%.
Exactly. Watching videos like these from different content creators, they only talk about cutting spending. They don’t mention raising taxes on the wealthy. Cutting taxes on the wealthy since the 80s is the reason why the national debt has gotten so high in the first place. Just roll tax rates back to what they once were
UA-cam made it really hard to watch this video but inserting 2 to 3 times more ads than I normally see. There were a couple of times a new ad popped up less than 30 seconds after the previous one ended Certainly not the fault of Azul but annoying. Maybe the UA-cam algorithm decided I am a sucker for this subject and is running an experiment to see how many ads I will put up with to watch it.
Personal finance strategies are based on our life expectancy. Our country has a longer lifespan and can carry debt much longer than a person. The strategies are different. That is not to say things haven't been abused.
Hi Azul, your spending data is 2022. This year, government interest payments are >> 1 bln USD i.e. twice the number you showed, and it is bigger than defence. The treasury now needs to raise new debt to pay interest. That is sick.
Problem isn’t a taxing issue, it’s a spending issue. We basically borrow money to give to foreign countries in aid. Remove subsidies for gas and electric, make every federal agency reduce expenses by 3 percent per year until they reduce spend where debt doesn’t continue to rise. Need to reverse the cycle to no longer have the debt growing
Just a real zero percent increase per year would be a big win, but the government fudges the numbers, when the government says they are reducing a budget by three percent that is a three percent cut in their projected growth.
We had to spend out of the pandemic. Every country did it. We’re recovering faster than any other country. So much waste in all branches of government. Both parties are equally responsible regardless of them always blaming the other ,when you look at the facts.
We absolutely did not need to spend ourselves out of the 'pandemic' which was not a pandemic by the normal definition of the word. The truth is out, there was no need, and the government had no legal authority, to suspend our constitutional rights, and we should not have accepted it. It was a massive scam that created an untold amount of new billionaires while wrecking the economy and destroying the health of millions. Stop perpetuating the big lie.
Every time in history, when a super power starts thinking "we can do what we want because we have the world reserve currency", they don't keep the status of "world reserve currency" very long.
Federal Reserve is not a part of federal government, although corruption has made them inseparable from each other. US will have to default on its debt eventually. That will be a true SHTF situation.
The federal government has $5.95 trillion in assets and $129.06 trillion worth of bills resulting in a $123.11 trillion shortfall, or a debt burden of $796,000 per U.S. household.
So if the government prints 10 million and then it uses this imaginary cash to build a bridge(as an example), the imaginary printed cash creates a real, and tangible assets for the country. In addition, the 10 million fundend are not locked in the actual bridge. The money goes to the workers who built the bridge, in turn, spend the cash for their living expenses. Just think, how small this country economy would be if these imaginary trillions did not make into the economy and produced tangible assets.
Who owns the debt? Is it the same people who owe it through their government? Is it something to do with USD transactions overseas, or interest-bearing debt?
I have news for you. Most of that 18 trillion in deposits is actually created by debt and is an iuo from the bank. The banks have leveraged those deposits to lend to others.
Posting about individual vs corporate (C corp) income taxes hides the fact more than half of business income is reported as individual income via pass-through businesses. Corporations are also double taxed at entity level and shareholder level. Let's also not forget the number of tax exempt entities have dramatically increased, exempting over $3.3 Trillion.
We all know politicians and the people who vote them in won't solve this problem . at some point investors will demand much higher interest rates and force government into austerity measures . Hopefully......
I don’t see any pols running on the premise of reducing the debt. Must not be too important to most people compared to the pets in Springfield. I seem to remember a bipartisan compromise in about 2000 that greatly reduced the deficit by holding spending and increasing taxes. We could do it again.
Inflationary default. Why you need to own assets and why Roth conversions are never a bad idea. If 50%+ of your returns for the next 20 years are from inflation and the government taxes you on nominal gains rather than real gains then you are effectively being taxed for twice as much. More when you consider that inflation is underreported pushing you into a higher relative tax bracket. Roth early, Roth often.
Eventually, congress will renege on the ROTH deal. They will start by imposing RMDs on ROTH accounts of those nasty wealthy folks who are not "paying their fair share". Any ROTH that has over $300K in it.
In 2022, USA spent $188 per capita on foreign aid, $3647 per capita on social security, and $13494 on health care and Medicaid. Don't know why you guys are always thinking you help others more Than you do but hope that helps to clear up your misinformation
one of the side benefits of retiring will be living on much less income, and paying less in taxes to the government. I plan to be in the 24% bracket or less. enjoy the decline
Doctors would not like higher caps on Medicare costs, but as it is now, health care spending guarantees doctors make fortunes with the US government paying the bill. The US should have built medical schools in the 1960's to allow more doctors. But the AMA had a strangle hold on the number of doctors graduating each year. The US has filled the huge shortfall by importing 3rd world doctors. Medical costs are out of control ~
It took a hundred years for the Dollar to lose 99% of its value. It’ll lose 99% of the remaining value within the next generation. It happens slowly then all of a sudden.
A low rate of inflation is factored into the cost of buying US debt. But if we try to inflate out way out of debt I think we're just going to end up having to pay a much higher interest rate on any new debt we try to sell. Which makes it more expensive, but gee, inflation worked before so let's try more of that. And down that path lies madness and a needing a billion dollar banknote to buy a cup of coffee. So for once in the history of the world let's not go there. (I'm not holding my breath).
One of the best things our government could do is find a way to reduce health care expenses. The US spends way more than any other country. Obamacare needs to be replaced. It was enacted to help the pharmaceutical industry. Who can afford to pay $15k/month for chemo drugs? The super rich and people with insurance. Make sure everyone has insurance, so everyone can afford the insanely overpriced drugs.
Azul, Congress, specifically The House of Representatives, controls the power of the purse. Please show a chart on which party has created this massive debt. Thank you.
. It’s the printing and spending that’s the problem. The federal government is printing and spending nearly two trillion dollars a year. There are not enough corporations or people to tax to pay down this debt. Elon Musk even said our debt is the biggest threat to the US.
Elon Musk's recent interest in US politics is more related to his concerns over proposals to tax unrealized CGs rather than solving the debt crisis. His only solution is to cut spending (read: social security and medicare) and to prevent tax increases on fantastically wealthy persons such as himself.
@davidfairchild1640 You missed their point. Musk is less interested in the good of the U.S. and more interested in his personal agenda. He was never into Republican politics until Biden had a "EV summit" and didn't invite Musk, Biden then signed a tax credit for EVs but structured it in a way that most Teslas don't qualify for the credit. Musk ever since then has been on his own personal agenda to help his ego and his bottom line.
US Federal Income Taxes are vaporized. It has been that way since the Continental. The Treasury and the Fed do not borrow, and do not operate like a household. Find Richard Murphy a Brit. Richard Werner, a German. Both are completely transparent on global banking. Warren Mosler is a former Bond trader who is another source for the way it is. The term "Debt" primarily is associated with the US Treasury.
Corporations do not have to feed themselves nor a family, but since Reagan, they have had more consideration than the individual. One of the solutions is to raise the corporation taxes back above 30% at least and cut non essensial programs. I am 53 and grew up on welfare in Chicago vowed never to be a Welfare Baby. I have kept that promise. Just saying.
I'm appalled by the comments section. I'm not even American and I know more your finance system than some of you. Granted I work in finance but not in your country. Perhaps people should google before they spout nonsense
If you don't care why did you reply to my comment, maybe because I spoke the truth ? So obviously you care. Either grow up or don't comment. And since it bothered you so much I deleted my comment, happy ? you little baby.
Doesn't sound as bad as how other youtubers portray it. I think that's because many of those youtubers don't take into account the fact that the dollar is the world's reserve currency thus cushioning some of the negative effects of the national debt.
Ike Eisenhower would not lower taxes because he thought we should pay our WWII war debt- that used to be conservative. JFK lowered taxes when we were to left of Laffer Curve, now we are to the right of the Laffer Curve, meaning lowering taxes (as Trump did) blows up deficits and debt AND tax cuts are inflationary.
My math shows 35 trillion, divided by 435 House members plus 100 Senators, comes to 65 billion each.
We voted them in period and continue to vote them in
Add two more since the POTUS signs the budget bills and the VP is complicit
@@geo1134 nah elections are not real LOL keep seething you arent getting your money back.
The US economy cannot survive without continuous credit and debt creation. The FED will print more money and the average American will go just that much further in debt. Meanwhile, foreigners lust for the greenback. Their economies are in worse condition than the US... if that's even possible. Someone is going to be left holding the bag...
Gold might crash in a liquidity crunch, but many precious metal holders are prepared for this and unlikely to be forced sellers. The paper market would tank and possibly collapse. Hearing from an experienced investor who has overcome adversity is motivating. It can be scary when your portfolio turns red, but if you've invested in strong companies, stick to your goals and continue growing them
It's often true that people underestimate the importance of financial advisors until they feel the negative effects of emotional decision-making. I remember a few summers ago, after a tough divorce, when I needed a boost for my struggling business. I researched and found a licensed advisor who diligently helped grow my reserves despite inflation. Consequently, my reserves increased from $275k to around $750k.
impressive gains! how can I get your advisor please, if you don’t mind me asking? I could really use a help as of now
My fiduciary is Stacy Lynn Staples. Just research the name. You’d find necessary details to work with a correspondence to set up an appointment..
Thanks a lot for this recommendation. I just looked her up, and I have sent her an email. I hope she gets back to me soon.
Govt runs out of money for SS but never runs out of money for Welfare, sending to Ukraine, or Lebanon…. Give me a break!!!
Time to move to Ukraine where our money is. 🙂
Funny how that works, isn’t it?
I see the rising interest rate as a very big problem, as more investors will definitely pull out more money from the Stock market. This might have worked when I was still invest-ing with a couple thousand dollars, but it is more difficult now to decide whether to pull out more than $365k from my port-folio. I know some inves-tors still make that despite the strong bear market. In wish I could pull that feat
I think the whole thing about holding stocks for long term will always apply. So I think you should get a quality broker who is able to analyze and pick stocks that will do well in the long term, else you will be in a long bear ride.
You have a very valid point, I started investing on my own and for a long time, the market was really ripping me off. I decided to hire a broker, even though I was skeptical at first, and I beat the market by more than 9%. I thought it was a fluke until it happened two years in a row, and so I’ve been sticking to investing via an analyst.
This sound interesting. I’m not really one to use pro analysts, but I guess it would not hurt to try one. My portfolio is in the red waters right now
There are a handful of experts in the field. I've experimented with a few over the past years, but I've stuck with ‘’Melissa Elise Robinson for about five years now, and her performance has been consistently impressive. She’s quite known in her field, look-her up.
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.
Corporations do not pay taxes. That cost is ALWAYS passed onto the consumer, which is we the people.
Yes, the petty bourgeois, the farmers and small business owners who receive much lip service from the right and are the most easily manipulated by fascists. “Look what they are doing to you” “you won’t have a country if you don’t fight like hell”
Prepare for more passing onto.
Plus if you look at that graph the business tax being high was before 1980. Way before 1999 when we started a deficit.
Which is why I think corporate tax should be zero. But then we need to change how we tax capital gains so that it is taxed exactly the same as earned income. There are loopholes where hedge funds make massive profits and no one pays any taxes on their investments. However, with a zero corporate tax rate I would implement a national sales tax, so that corporate buyouts and mergers would cost real money as they reduce competition and shield the corporation from paying any taxes. The national sales tax would apply to luxury goods and certain services as well as corporations trying to transfer money overseas or spent on stock buybacks, mergers and the like. Bill Gates can buy farmland but then Bill Gates would be subject to sales taxes on that purchase, where as now that money is shielded in tax loopholes and allows for massive amounts wealth to avoid any taxes.
Wrong. Corporate taxes are on profits. It just means a bit less after tax profits.
The US government doesn’t have a revenue problem, it has a spending problem.
The debt does not actually exist with a body for it to be paid back to. The money was printed with nothing behind it. It was INVENTED by plucking out of nothing, the interest is actually real, but to the central banks. The actual cost was absorbed in the labour of workers and at the same time the DEVALUATION of the dollar from 100% and now down to 6%. Next year 1% of the 1933 values. Gold has stayed the same value and you can see the dollar value against it. Defence spending is the major cost as it is to hold the world to blackmail with violent threats and hegemony. The world will not stand for it anymore.
Earning in America and spending abroad will keep retirees afloat. I've been preparing for this crisis my entire life. Thanks for the update.
With your American dollar? My fear is the exchange rate might end up being a problem unless you are in Ecuador.
@@bryantjenks3598 The Fed needs a strong dollar to keep inflation down. But the wise will keep an inflation hedge, like a rental home, available in America, just in case.
@bryantjenks3598 you shouldn't keep all your assets in any currency. Most advisors encourage you to invest at least 20% overseas for diversification and too help with currency fluctuations. People have been predicting the dollars fall for many years. It might happen, but I wouldn't be assuming it. India just came out this week saying despite being part of Brics, they still want to do foreign transactions in dollars and are not on board with Russia/China in moving off the dollar as the world's currency.
I’d be happy to pay my full share of that today, if they never tax me again lol
🤣 Your full share is 95%
One, two- (One, two, three, four!)
Let me tell you how it will be
There's one for you, nineteen for me
'Cause I'm the taxman
Yeah, I'm the taxman
Should five percent appear too small
Be thankful, I don't take it all
'Cause I'm the taxman
Yeah, I'm the taxman
(If you drive a car, car) I'll tax the street
(If you try to sit, sit) I'll tax your seat
(If you get too cold, cold) I'll tax the heat
(If you take a walk, walk) I'll tax your feet
Taxman!
Every American needs to pay up to cancel the debt.
@@ParisianThinker that sounds good to me
@@ParisianThinker Every politician that created the debt needs to have their wealth confiscated. They lined their pockets at our expense. Most would label that as fraud.
Dittos!
I retired at 65 but waited till 68.5 years old to apply for social.
For me, it was the right decision, because of the following:
1 - I'm in great health, fortunately. I guess a lifetime of healthy food and lots of exercising has helped with that.
2 -Good nightly sleep is critical to staying healthy. So, I wanted the social security to pay all the usual monthly expenses. That works great for me, since I'm frugal, so I don't carry debt. Low stress, better sleep.
So, file later if low financial stress is something you do want in retirement.
I am taking additional steps. I'll be leaving the US and moving my retirement to a less expensive country. That should help even more.
Corporations don't pay taxes (never have) they collect taxes from their consumers.
💯 Governments cause inflation.
Not true. Not all corporations sell directly to consumers.
@@STF68 Anyone who buys from a corporation is their consumer.
And you’ve never paid taxes in your life. Your taxes are paid by your employer through the wages they give you
@@pumasheen Indeed, but so what ?
That's how it works, tax is but a name, you can take it at different point in the economy (e.g. companies, customers, workers). The worker paid tax money you refer to can indeed only come from/through where it is made, i.e. the companies, that get their money however through customers (partly being other workers, partly other companies) that pay these companies partly with thus circular money, and partly customer debts.
But where did all the money originally and gradually come from ? From the federal reserve(s) that print the money, and supply it to the companies through investments loans, injected as debts into the economy. This injection is not even a circle, this money does not come back to the FedRes (only the interest comes back, earned by companies and customers, creating inflation/amount of money, injected again back into the economy), so debts (and interest and inflation) remain, even increase.
Hence we live in a never ending debt economy since we left our caves, and started using money instead of exchanging physical products.
Irresponsible leaders and their spending.
Irresponsible voters and media who don't hold them accountable. Everyone loves Santa Claus, but you need Scrooge.
@thomasboissy3560 well to be fair it's been a constant trend for 40 years where we alternate between a republican administration cutting taxes and a democrat (and often republican administration as well) expanding spending with the inevitable result that we are paying the lowest taxes in 100 years and the government is spending at record levels. The problem is that voters never want to make difficult choices, so they simply get what they vote for: the mirage of a free lunch.
Thing is after WW2 we could get away with higher corporate tax because out competition was bombed. Now we can’t compete with high corporate tax . Not an option.
no way will congress cut current social security benefits, too many voters, they will increase payroll taxes on those making more then 150-250K with no additional benefits to that group, they will get rid of the earnings limits (168K), they may increase the retirement age for those 25 years old or younger. They can can means test survivor/spousal benefits, there are many ways to fix the system
If the government cuts Social Security, there will be a blood bath (probably literally).
Means testing is horrible and should never be implemented. Think about two people who make the exact same amount every year. One buys new vehicles and fancy boats. The other saves money for retirement and lives below their means. Now they retire. One qualifies for SS but the other has saved to much money and no longer qualifies. In the end, one was rewarded for being financially irresponsible and the other is penalized for being responsible.
remove the earnings limit! keep the benefits limit.
Congress is not worried about the debt. Neither am I. The debt will never be paid off. But Countries will stop buying our debt.
How does that fix anything?
Sounds like someone is in la la land.
That is why gold price keeps going up. Other countries are not stupid and see that treasury bonds is worthless in the long term. So probably buying gold to insulate themselves.
Not so fast, Azul, corporate rates were higher because of the war, but the amount actually paid by corporations was way lower.
Conflating the tax rate to what they paid is not honest. Try again!
The fundamental assumption that the debt can't be paid is false also. We have to stop spending and promote actual growth. A combination of both, surrendering to we can't pay the debt, is not the way.
The Math ain’t mathing…regardless corporations may not be paying their fair share.
There is no such thing as a tax on corporations. There is only a pass through tax borne by customers or employees.
Agreed. But it does distribute that tax to the people that use those goods and services rather than everybody. And for any goods sold to foreign countries or citizens that passed through tax gets paid by them, not us.
No, the tax is on benefits, on profits, so it just lowers the profits a bit.
@@pascalbruyere7108 you're kidding right? Corporate owners get to decide how to deal with a corporate tax. They can choose higher prices for customers, lower pay for employees, or fewer profits for themselves. Which do you think they will pick last?
@@davidfairchild1640 it depends on their competition, market situation, job market, etc. Most of the time it means lower net profits, as I said.
What if we stopped giving money to Israel and Ukraine as opposed to taking away social security from people who paid into that system? Would that help?
I think the money they give to Israel has to be spent on U.S. made weapons. So the money really goes to U.S. companies to employ U.S. citizens. I don't think the money to Ukraine has the same stipulations.
Ukraine and Israel are test labs for US military weapons. Also the destructions of Ukraine and Israel are opportunities for US contractors to come in to rebuild. War is profitable, unfortunately.
It isn't even a drop in the bucket.
You never look at the federal budget. Its 60 percent on social spending like housing, welfare, education, healthcare, food, etc. The healthcare and education are growing faster than anything else. That's waste on government administration.
No, the federal budget is SS, Medicare, interest on the debt and defense.
Yellen directly objected to using low interest rates in 2021 to issue long term notes (30+ years) to finance Treasury debt. As she said, "Inflation is unlikely and transitory."
The US will inflate away its debt away. This is why you move away from the US dollar and into Bitcoin, real estate , and other hard assets. Sticky inflation is inevitable. Government will never spend less and they are trying to inflate our money at at least 2%. Debt will continue to explode.
Inflation also eats into the value of real assets. The land is still the same, but the value in inflated dollars cuts deeply into the preservation of capital. The costs to maintain real property, as well as property taxes, continue to rise with inflation, while capital gains taxes will take a big chunk through inflated land values.
Bitcoin is nothing but a pump and dump. A major ponzie scheme. What can you buy with bitcoin. It is only worth what the next sucker will pay for it.
Unless the right wing Wall Streeters are in power. Then they will spend billions funding Raytheon and talk about how great our economy is. Then when democrats are in power fixing a few things, t
The financial slick talkers will have this here conversation and appeal to the petty bourgeoisie who are so easily manipulated. “ I love the uneducated “
Bitcoin is money laundering and when there’s talk of criminal opportunism, this is it.
Stock market as well: you buy a bit of these corporations that pay low taxes. Bitcoin only if you time well your in and out of the Ponzi scheme.
The USA is close to losing "World Reserve Currency" Status. In fact, many countries ALREADY starting de-coupling from the US dollar
Buy commodities, gold, bitcoin.
Income taxes on the wealthy are much less than they were in 1981.
Productivity and wages separated precipitously since 1981.
Income from taxes of corporations is much less today than they contributed before 1981.
The third-party medical insurers suck 30 -50% of the Health Care dollars spent in the US, yet the US won't change its system. We are the only wealthy country in the world that does not have a National Health Care system.
We are only as lucky as we are because of our World Currency status.
How do we fix it? Tax the Wealthy and Corporations much more. They are the reason for the deficit. Change how healthcare dollars are spent.
The math doesn't add up. There are not enough wealthy people to make up the deficit.
@@johannesswillery7855
Yes. Not enough to pay off the National Debt, but to drastically reduce the deficit, (the difference between what the US spends and what it takes in). Don't forget Corporate tax revenue and reduction of 30 to 50% of healthcare dollars spent.
@@DrDRE4391 The only way we will get healthcare costs down is to get seed oils, preservatives and ultra processed foods out of our diets. RFK Jr is talking about it.....
Raising taxes is not gonna fix it, the government will just spend the extra money. Look up the Graham Rudman act, was supposed to ensure a balanced budget by law. You see how that worked out!
@@ngoshawk1
Faux Talk
forget GDP/Capita...its all about Debt/Capita.
Azul, love your videos. Have you taken a position on bitcoin yet? I may have missed it and if so I'm sorry. I'm long and I'm 62. Thanks for all you do!
Paul Ryan proposed a plan to reduce the debt over 8 years and was vilified, dismissed, and eventually not re-elected. Problem is human nature, especially in the U.S., when people are given gifts long enough, they eventually see it as their right to have this gift and will fight to keep it. It's essentially impossible to take benefits back so nothing will change
Most of it is debt to ourselves around 80%. Therefore, Americans are the ones receiving the interest.
Great! Where's my check from the Treasury to make up for my higher priced groceries?
Paying interest on treasuries is a choice. A choice to subsidise rich people.
it will be issue because neither party is interested in cutting spending, Azul.
Very informative & well done insightful talk with good stats & charts. Thanks
One healthcare solution. Allow Medicare / Medicaid users to use their coverage outside the U.S. Procedures that cost $50k in the U.S. can be done outside the U.S. for $10-20k. Mexico has many 5 star private Hospitals.
I’m curious what the US government considers “Other” as part of their budget? Could it be stimulus handouts (free money)? Housing and feeding all the illegal immigrants they let through the border? Funding foreign wars? Unemployment (of course its the new unemployed not the ones who were removed because their benefits ran out)? Or maybe they’re afraid to tell the public what it really is? Seriously what is in that category?
The problem is that it is politically popular to subsidize longevity. At some point, Americans will realize that they can no longer afford this luxury.
Our future taxes are going to be much much higher !
Raising taxes doesn't work. I believe once it goes above 20% in aggregate, people start making less. They're not incentivized to work harder for more money,
Will USD be worthless?
What will happen to Fed issue bond?
Public Debt is the private sector wealth, no debt, no money...that's accounting
Becuase USD FIAT is a deflationary Note, the debt is easily repayed by increasing the supply. If the Debt was contracted to be payed in Gold than your argument is valid.
What gives them the right to dip into SS money that we have given into?
Every country does that.
You realize their is no "social Security" box that you taxes get put into? When their was a surplus the government would use the funds to buy treasuries and now it is beginning to run in deficits. The government "money" is just an accounting ledger. This isn't new this has been the case for generations.
We need to both raise taxes and cut spending. Raising taxes doesn't always translate to more government revenue either, but it changes patterns. When taxes were high from WWII - 1970s, companies re-invested a lot of money in R&D and we had some of the greatest public/private partnerships ever which drove the space and arms race with the Soviets. As a spin-off gave us many of the affordable technical luxuries we enjoy today. We need to unlock more of the dynastic wealth that is held by the 1% or even 0.1%.
Exactly. Watching videos like these from different content creators, they only talk about cutting spending. They don’t mention raising taxes on the wealthy. Cutting taxes on the wealthy since the 80s is the reason why the national debt has gotten so high in the first place. Just roll tax rates back to what they once were
Then they change citizenship.
@@pumasheen best answer, stop spending in war efforts which is all a scam
UA-cam made it really hard to watch this video but inserting 2 to 3 times more ads than I normally see. There were a couple of times a new ad popped up less than 30 seconds after the previous one ended Certainly not the fault of Azul but annoying. Maybe the UA-cam algorithm decided I am a sucker for this subject and is running an experiment to see how many ads I will put up with to watch it.
UA-cam Unlimited.
look into it.
Personal finance strategies are based on our life expectancy. Our country has a longer lifespan and can carry debt much longer than a person. The strategies are different. That is not to say things haven't been abused.
It also helps that the country has the Bureau of Engraving and Printing.
But we are getting tomorrow’s rewards today at the expense of tomorrow’s workers who won’t be able to enjoy our lifestyle.
Azul, when did the US pay off its national debt completely in the past? How about other countries? How many have no national debt?
Hi Azul, your spending data is 2022. This year, government interest payments are >> 1 bln USD i.e. twice the number you showed, and it is bigger than defence. The treasury now needs to raise new debt to pay interest. That is sick.
Watched the whole video... Not sure I heard an answer to your "what happens instead" question. More inflation? That's it? Did I miss something?
Problem isn’t a taxing issue, it’s a spending issue. We basically borrow money to give to foreign countries in aid. Remove subsidies for gas and electric, make every federal agency reduce expenses by 3 percent per year until they reduce spend where debt doesn’t continue to rise. Need to reverse the cycle to no longer have the debt growing
Just a real zero percent increase per year would be a big win, but the government fudges the numbers, when the government says they are reducing a budget by three percent that is a three percent cut in their projected growth.
Clown. Its a spending and tax issue.
@@flea4061 Feel free to disagree, but you can still be gracious to those you disagree with, right?
@@swtexan6502 He’s just living up to his name.
We had to spend out of the pandemic. Every country did it. We’re recovering faster than any other country. So much waste in all branches of government. Both parties are equally responsible regardless of them always blaming the other ,when you look at the facts.
I agree. The spend is pretty much the same from either side. The difference is what they spend it on. It's been that way for several decades now.
We absolutely did not need to spend ourselves out of the 'pandemic' which was not a pandemic by the normal definition of the word. The truth is out, there was no need, and the government had no legal authority, to suspend our constitutional rights, and we should not have accepted it.
It was a massive scam that created an untold amount of new billionaires while wrecking the economy and destroying the health of millions. Stop perpetuating the big lie.
Every time in history, when a super power starts thinking "we can do what we want because we have the world reserve currency", they don't keep the status of "world reserve currency" very long.
If the US is a debtor nation, how can it be a hegemony anymore?
The fact that social security exists is most of our problem. No one takes responsibility for for their situation now, especially the government.
Federal Reserve is not a part of federal government, although corruption has made them inseparable from each other. US will have to default on its debt eventually. That will be a true SHTF situation.
Thank you , Azul...Terrific Video !
monitise the debt by increasing the price of gold enough to cover the debt unless we have no gold reserves.
The "What happens instead" part was never answered.
Finally someone who gets it. We are never paying that back. You know how it ends. The only question is will you be alive to see it? I hope not.
Ok, you told us what it is, how we got here and how bad it is, so where are the solutions?
Did I spend the money?
Your representatives in congress spent it for you. Did you vote for them?
@@bjhellstrom1284 of course not
the Tea Party tried in 2010 when the debt was 1/3 of today but was crushed by BO, Dems in Congress w/ an assist by RINOS like McConnell.
They will inflate the debt away
The federal government has $5.95 trillion in assets and $129.06 trillion worth of bills resulting in a $123.11 trillion shortfall, or a debt burden of $796,000 per U.S. household.
So if the government prints 10 million and then it uses this imaginary cash to build a bridge(as an example), the imaginary printed cash creates a real, and tangible assets for the country. In addition, the 10 million fundend are not locked in the actual bridge. The money goes to the workers who built the bridge, in turn, spend the cash for their living expenses. Just think, how small this country economy would be if these imaginary trillions did not make into the economy and produced tangible assets.
Wow. Brilliant. So how did things happen before fiat currencies?
The problem is if the govt keeps doing that then you will barely be able to buy a toy bridge for ten million bucks.
Easy Solution...stack physical silver/gold and be outside the fiat system.
Sad news to realize how far our country has fallen so deeply in so short a time
Corporations don’t pay taxes. They pass on that amount to customers in the form of inflation.
Who owns the debt? Is it the same people who owe it through their government? Is it something to do with USD transactions overseas, or interest-bearing debt?
Thank you for a great video Azul, i appreciate you .
There is $2 trillion in hard currency, $18 trillion in bank deposits! So how do you pay back $35 trillion with $20 trillion total cash right now!😂
I have news for you. Most of that 18 trillion in deposits is actually created by debt and is an iuo from the bank. The banks have leveraged those deposits to lend to others.
Posting about individual vs corporate (C corp) income taxes hides the fact more than half of business income is reported as individual income via pass-through businesses. Corporations are also double taxed at entity level and shareholder level. Let's also not forget the number of tax exempt entities have dramatically increased, exempting over $3.3 Trillion.
We all know politicians and the people who vote them in won't solve this problem . at some point investors will demand much higher interest rates and force government into austerity measures . Hopefully......
What about the UNFUNDED LIABILITY'S ??
9:30 the US treasuries owned by foreigners is a measure of the STRENGHT of the US. It's because the USD is the world's currency- a massive advantage.
I don’t see any pols running on the premise of reducing the debt. Must not be too important to most people compared to the pets in Springfield. I seem to remember a bipartisan compromise in about 2000 that greatly reduced the deficit by holding spending and increasing taxes. We could do it again.
If you feel the need to repeatedly say that 'this is not a political statement', then it is definitely a political statement.
You are looking at 2022 data?
Until the early seventies, we couldn't just print more money.
Yes we could. FDR ended the gold standard domestically in 1933.
Inflationary default.
Why you need to own assets and why Roth conversions are never a bad idea.
If 50%+ of your returns for the next 20 years are from inflation and the government taxes you on nominal gains rather than real gains then you are effectively being taxed for twice as much. More when you consider that inflation is underreported pushing you into a higher relative tax bracket.
Roth early, Roth often.
Eventually, congress will renege on the ROTH deal. They will start by imposing RMDs on ROTH accounts of those nasty wealthy folks who are not "paying their fair share". Any ROTH that has over $300K in it.
I think the amount of money that leaves this country dwarfs what is spent on Medicare and Social Security.
In 2022, USA spent $188 per capita on foreign aid, $3647 per capita on social security, and $13494 on health care and Medicaid. Don't know why you guys are always thinking you help others more Than you do but hope that helps to clear up your misinformation
@@3railmike713 and you are completely wrong.
@@3railmike713 Social Security and Medicaid account for 2/3 of all Federal spending, so...
BOTH parties are to blame. Not a little bit. A LOTTA bit!! We haven't had a two-party system for decades. Just the illusion of that system.
one of the side benefits of retiring will be living on much less income, and paying less in taxes to the government. I plan to be in the 24% bracket or less.
enjoy the decline
Doctors would not like higher caps on Medicare costs, but as it is now, health care spending guarantees doctors make fortunes with the US government paying the bill. The US should have built medical schools in the 1960's to allow more doctors. But the AMA had a strangle hold on the number of doctors graduating each year. The US has filled the huge shortfall by importing 3rd world doctors. Medical costs are out of control ~
Everything needs to take a cut, pull out of wars and supporting other countries, pay it down
Funny how long-term bond markets do not seem to be concerned about 5%, 6%, or 10% interest rates.
It took a hundred years for the Dollar to lose 99% of its value. It’ll lose 99% of the remaining value within the next generation. It happens slowly then all of a sudden.
A low rate of inflation is factored into the cost of buying US debt. But if we try to inflate out way out of debt I think we're just going to end up having to pay a much higher interest rate on any new debt we try to sell. Which makes it more expensive, but gee, inflation worked before so let's try more of that. And down that path lies madness and a needing a billion dollar banknote to buy a cup of coffee. So for once in the history of the world let's not go there. (I'm not holding my breath).
One of the best things our government could do is find a way to reduce health care expenses. The US spends way more than any other country. Obamacare needs to be replaced. It was enacted to help the pharmaceutical industry. Who can afford to pay $15k/month for chemo drugs? The super rich and people with insurance. Make sure everyone has insurance, so everyone can afford the insanely overpriced drugs.
Maybe a balanced budget amendment would help.
Azul, Congress, specifically The House of Representatives, controls the power of the purse. Please show a chart on which party has created this massive debt. Thank you.
. It’s the printing and spending that’s the problem. The federal government is printing and spending nearly two trillion dollars a year. There are not enough corporations or people to tax to pay down this debt. Elon Musk even said our debt is the biggest threat to the US.
Elon Musk's recent interest in US politics is more related to his concerns over proposals to tax unrealized CGs rather than solving the debt crisis. His only solution is to cut spending (read: social security and medicare) and to prevent tax increases on fantastically wealthy persons such as himself.
This is why we are going to have massive inflation. It is why you don't want to hold dollars. Real property, gold, stocks (minimize bonds).
@@bjhellstrom1284do you want to pay taxes on your unrealized gains?
@davidfairchild1640
You missed their point. Musk is less interested in the good of the U.S. and more interested in his personal agenda. He was never into Republican politics until Biden had a "EV summit" and didn't invite Musk, Biden then signed a tax credit for EVs but structured it in a way that most Teslas don't qualify for the credit. Musk ever since then has been on his own personal agenda to help his ego and his bottom line.
@@donmountford797 so a Democrat POTUS puts forth a policy unfavorable to Tesla and you wonder why Musk would support the Republican candidate?
US Federal Income Taxes are vaporized. It has been that way since the Continental. The Treasury and the Fed do not borrow, and do not operate like a household. Find Richard Murphy a Brit. Richard Werner, a German. Both are completely transparent on global banking. Warren Mosler is a former Bond trader who is another source for the way it is. The term "Debt" primarily is associated with the US Treasury.
Corporations do not have to feed themselves nor a family, but since Reagan, they have had more consideration than the individual. One of the solutions is to raise the corporation taxes back above 30% at least and cut non essensial programs. I am 53 and grew up on welfare in Chicago vowed never to be a Welfare Baby. I have kept that promise. Just saying.
The government can pay it back but it would have to massively scale back social spending, which accounts for 75 to 80% of the annual budget.
I hate when people show the "debt per person". Much of the wealth in the world is owned by businesses. Apple is worth $3 trillion!
Who do you think owns apple stock?
You need a dozen Apples to pay it down, then you would be zero debt but no apples.
lots of mention of corp tax, not to be political, but we did not have medicare until 1965, we did not have dept of education until 1979.
35 trillion can never be repaid. It numerically impossible. Spend the time to understand Bitcoin and how all fiat currencies eventually go to zero.
I'm appalled by the comments section. I'm not even American and I know more your finance system than some of you. Granted I work in finance but not in your country. Perhaps people should google before they spout nonsense
Examples please?
@@davidfairchild1640 there aren't that many comments... Go look. I'll give you a hint... Social security and all Americans pay their bills
@@laundrygoddess4What about Social Security specifically?
@@sunmand6136 I've commented hard facts on others comments. Go look yourself or don't. I don't care.
If you don't care why did you reply to my comment, maybe because I spoke the truth ? So obviously you care. Either grow up or don't comment. And since it bothered you so much I deleted my comment, happy ? you little baby.
Doesn't sound as bad as how other youtubers portray it. I think that's because many of those youtubers don't take into account the fact that the dollar is the world's reserve currency thus cushioning some of the negative effects of the national debt.
Ike Eisenhower would not lower taxes because he thought we should pay our WWII war debt- that used to be conservative.
JFK lowered taxes when we were to left of Laffer Curve, now we are to the right of the Laffer Curve, meaning lowering taxes (as Trump did) blows up deficits and debt AND tax cuts are inflationary.
We can call it a provisional income tax.
Hyperinflation is the only way out. Buy gold.
cuts in public service...police, schools, streets, etc.... fees increase. tax via inflation.
THIS GOT OUT OF CONTROL WHEN THE obamas SHOWED UP