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.
@@Daniel_12_3 My fiduciary is Jessica Lee Horst. Just research the name. You’d find necessary details to work with a correspondence to set up an appointment..
By my math, 31Tr divided by US population of 330M is about 93,000 per capita. If they would allow me to pay off my portion of the national debt in exchange for not paying taxes ever again, I would take the deal.
That is debt payoff. You should pay living expenses (Security, Transportation, etc) to layoff TAX. If there was some one time settlement, our life may become easy.
The U.S. economy relies on ongoing credit and debt generation for sustenance. The Federal Reserve is expected to increase the money supply, leading to further debt accumulation for the average American. Meanwhile, foreign nations continue to desire the U.S. dollar, despite their own economies facing significant challenges, some even worse than that of the U.S. This situation raises concerns about who will ultimately bear the consequences of these economic dynamics.
They do say gold will crash in a liquidity crunch However, many of those holding precious metals are preparing for such an event. So they are unlikely to be forced sellers. The paper market would tank and hopefully collapse.
I wholeheartedly concur, which is why I appreciate giving an investment coach the power of decision-making. Given their specialized expertise and education, as well as the fact that each and every one of their skills is centered on harnessing risk for its asymmetrical potential and controlling it as a buffer against certain unfavorable developments, it is practically impossible for them to underperform. I have made over 1.5 million dollars working with an investment coach for more than two years.
How can I participate in this? I sincerely aspire to establish a secure financlal future and am eager to participate. Who is the driving force behind your success?
I just googled her and I'm really impressed with her credentials; I reached out to her since I need all the assistance I can get. I just scheduled a caII.
Invest judiciously, keep a stop loss figure. Shuffle between debt and equity wherever the ratio goes too off your target. As for the target, I recommend a Ratio like this Debt % should be equal to your age in years. If you are 20, debt is 20%, reset in equity. If the market falls or rises drastically, your debt % will change, which you should rebalance to 20% and bring back equity to 80%. Thus you would have bought low or booked profit depending on if it was a crash or a bull run.
Starting early is simply the best way of getting ahead to build wealth , investing remains a priority . I learnt from my last year's experience , I am able to build a suitable life because I invested early ahead this time .
I agree, that's the more reason I prefer my day to day investment decisions being guided by an advisor, seeing that their entire skillset is built around going long and short at the same time both employing risk for its asymmetrical upside and laying off risk as a hedge against the inevitable downward turns, coupled with the exclusive information/analysis they have, it's near impossible to not out-perform, been using my advisor for over 2years+ and I've netted over 1.8million.
When Annette Marie Holt is trading, there's no nonsense and no excuses. She wins the trade and you win. Take the loss, I promise she'll take one with you.
Good on you for not stretching this out to a 20 min exploratory dissertation. Making this concise reaches a lot of people to realize this important issue.
Because its dumb and meant only for political drama. The U.S is one of only two countries in the developed world that have a debt ceiling. The other is Denmark, weirdly enough.
Theres a UA-cam vide called The Creature from Jekyll Island which explains the Federal Reserve-its a long video 6 hours but It will change your life Listen to it a little at a time
@@googlesmostwantedfrog147 another one that’s good is’ the battle for Europa’ talks about the fed, Bolshevik revolution etc. these fuckers have been in cahoots for a while
It's not fake money - it is fake currency, there's a big difference. Every $ created steals value from everyone on the planet who owns and uses those $'s, thus making them poorer ! It is like - someone is eating free lunch today, but you are paying for that lunch the following day for the rest of your life, as long as you own that currency ! The concept of currencies is the worst invention in human history. It allows the select minority to silently and continuously stealing from every living person who uses their currency as long as they're alive, without the need of using any power. Feat that not even the most powerful kings/rullers of the past could achieve. :X
Considering economies are human constructs…yeah, fake money. Humans decide the value of items based on supply and demand as well as a few other factors like scarcity etc. From there, we can literally wipe the slate clean and restart at any moment. Everything humans do is pretty much human created, including culture, systems, governments, so on and so forth. Everything is kinda fake except the real stuff… that stuff we kinda need. Food, air, and water. Anything more than that you need to have incentive for others to want to do it… so economies exist. We’ve tried the free living during Covid. It was a worldwide experiment that failed beyond measure. It made folks lazy rather than wanting to work. It made them sit at home doing nothing. There were many out there every single day making things work, but by and large most didn’t do much of anything. So, back to the slave game we went… if you owe money, you’re pretty much beholden to them until your debt is paid.
I foresee a recession lasting 2-3 years, and if inflation continues to surge, the Federal Reserve will likely raise interest rates soon. Inflation is causing various issues worldwide, such as food shortages, scarcities of diesel and heating fuel, and significant spikes in housing prices, leading to a potential financial market crash. This global downturn could have long-lasting repercussions. Given the current inflation rate of approximately 9%, my main worry is how to optimize my savings and retirement fund, which has remained stagnant at around $300,000, yielding almost no gains for quite some time.
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I’m sure the idea of an invstment-Adviser might sound controversial to a few, but a new study by Motley-fool found out that demand for Financial-Advisers sky-rocketed by over 42% since the pandemic and based on firsthand encounter I can say for certain their skillsets are topnotch. I've accrued north of 580k within 16-months from an initially stagnant Portf0lio worth 85k.
Inflation is over 10% here in the UK, but as we know it's definitely way more than the Government would like to admit. My plan is to earn more passive income and ride this out, can your Investment-adviser assist?
Aileen Gertrude Tippy’’ is her name. She is regarded as a genius in her area and works for Empower Financial Services. She’s quite known in her field, look-her up.
There is no way we can pay it back because as soon as we have the money to pay it off some wiseguy is going to figure out how to spend it or steal it ...
true,and there'll be no paying back 30+trillion,and over 300 trillion in unfunded liabilities,no way,no how,they are kicking the can down the street and sooner or later,the can goes in the ditch
Appreciate your videos! I’m 54 and younger generations should know there’s no shortcut to acquiring wealth, but there are ways to go about it. Fellow millionaires don’t tell the poor/middle class they need the knowledge of finance coaches to help build their wealth. If anyone here needs a good coach, here’s it..
When the Pentagon says it doesn't know where trillions of dollars went every decade. It would seem that they are responsible for the budget not being balanced. Also responsible for all of the national debt
It's pretty simple balance the deficit in5 years. The DOD is throwing money away like it worst nothing 7000$ coffee makers 650$ toilet seats and the list goes on F 35 they quit counting on that one.All the bugeta went over. They fail audit 5 times in a row. The next thing is to get the billionaires to pay a 5% increase in taxes, I don't think that would hurt them In 5 years The REP.are the the problem they lining their pocket with our money.And for somebody talking about tax cuts run their ass out the country.
@@benjiwatson2368 Seems like I heard that in a decade the government will be paying 800 billion dollars a year just in interest on the debt, that will be more than we spend on national defense.
National debt is a lie, it's more like national elite laundering of tax dollars. Rich people/corps in our own country are collecting the interest on it, because they predominately own the debt. AND the debt was acquired through overpriced dirty politics, by ALL YOUR ELECTED government. DON'T accept the con....
@@MrAmhara not normal it needs to be put on a leash, raising the debt ceiling wouldn't benefit the population. Instead to fund wars and destructions its the only nation on earth needing to spend this high amount but the people are poor and infrastructures are failing, only and blinded insane persons would think that they would benefit.
I remember when I just got into crypto back in 2019 but later in 2020 I ended up selling it because I was dumb and I didn't understand it. I studied and learned and now I know how it works. Got back into crypto early in 2023 with 10k and I’m up with 128k in a short period of time .This comment serves as motivation for all those who have invested and continue to invest in cryptocurrencies with so many losses, do not give up, cryptocurrencies can change your life. Do your best to connect with the right people and you will surely see changes.
I'm new to cryptocurrency and don't understand how it really works. how Can someone know the right approach to investing and making good profits from cryptocurrency investments?
As a beginner investor, it’s essential for you to have a mentor to keep you accountable. Myself, I’m guided by Alex Gomez. A widely known crypto consultant
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The central banks are who they owe the money to. In America, it's called the federal reserve which is actually a privately owned institution. The central banks control nearly all of the debt in the US which is broken among a few families of the world.
The Federal Reserve System is not "owned" by anyone. The Federal Reserve was created in 1913 by the Federal Reserve Act to serve as the nation's central bank. The Board of Governors in Washington, D.C., is an agency of the federal government and reports to and is directly accountable to the Congress.
@@margaretfrew6661 Wrong! There's a reason "owned" is in "" in your cut and paste reply. All of the federal banks, JP Morgan Chase, BOA, Wells Fargo..., all own shares of the Federal reserve and make the interest on the dept through dividends. Those are the folks raking it in off a big chunk of the US dept. These banks are still largely held by members of the original central banking giants like the Rothschilds, Rockefellers, & Lehmans
@@Luca-sz5uy no, I under estimate NOTHING. You fall for the LIES that the left tells. You think that the “rich” don’t pay their fair share because the extreme left tells you that but what you will NEVER hear them tell you is how much is their fair share. Today between local, state and federal taxes (of all kinds) the so called rich pay over 50% in taxes. And the extreme left (specifically Biden) say they will not raise the taxes on anyone making less than $400:000 then INCREASE the number of IRS agents by almost ONE HUNDRED THOUSAND, now why do they need that many agents when only the rich are going to see their taxes raised? And how much money does the government need to operate? And how much do they need to BUY VOTES? Look at parts of CA where they are trying to spend MILLIONS if not BILLIONS on reparations to Blacks. But only if they are member of the LGBTQ community? Read the TENTH AMENDMENT some time and think about all the things the Federal Government spends money on and if it violates the LETTER of the 10th Amendment.
@@zickzeon2946 probably more than the average American but not as much as a lawyer. Now, why do you think I don’t know anything? Love to have a discussion on the topic
First, let me apologize for not finishing my comment. I did not mean to condescend. Then for the bankruptcy issue, looking at a pure financial perspective, as long as the government is capable of paying all its current debt it will not go bankrupt. There are many ways to pay someone without actual money at date due. You can also roll over, reissue, extend debt to cheeze out bulk payments to mitigate the immediate liquidity pressure. There are also credit facilities for the government in OD/ revolvers that would help its short term needs. Aside financing, there's also the problem of FX. Given USD is the dominating currency globally in trade, and countries hold USD as reserves, letting the US government default on its debt would be devastating as not only they wont be able to claim their debt, USD would also depreciate so badly that would lead to a global scale collapse in financial institutions and companies alike. I (in terms of how complex this problem really is, there is no short answer though, but the gist of it is the US Government is too big to fail, and in the unlikely case that it does even enemies would be trying to keep it alive)
The most important part that was left out is the fact that US prints money out of thin air to Pay out to those naive Bond holder which lowers the purchasing power of Dollar. So for example 10 years ago when 100$ Savings bond was issued, you could buy 100 candy with 100$, 10 years later you wont be able to buy the same 100 candy even with the interest + principal. You would also have to pay tax on interest income. So the bond holders end up loosing significant amount of wealth at bond maturity date.
That's quite optimistic, real inflation for the average Joe, the little man is on average 50% for the past year. Let me give you an example, last year I eat a sandwich for 4.7$, today I bought the same one, from the same place and it was 7.6$. This is just a small example of what's going on.
@@houssamadnane271 so its actually not the interest that increases, it’s the par value that increases with inflation, so the interest rates actually go down as inflation rises, but you get the price appreciation from the bond itself.
@@houssamadnane271 prolly gonna sound preachy or pretentious, but I work for a private wealth manager and speak with sales reps from all the big investment banks regularly and all of them have actually said their investment teams have sold their inflation protected bonds this last quarter. Technically speaking, stocks are actually the best place to keep your money to mitigate inflation risk since they also price upwards with inflation, it's just that there's not a direct mechanism that performs the inflation adjustment like with the bonds we're discussing. Counter-inuitive right? Drives me nuts sometimes.
A weak dollar can signal an economic downturn, making me to ponder on what are the best possible ways to hedge against inflation, and I've overheard people say inflation is a money-eater thus worried about my savings around $200k.
The stock market is a way to hedge against inflation. Most notably amidst recession, investors need to understand where and how to allocate funds to hedge against inflation and still make profits.
in my opinion, the impact of the rise or fall of the U.S. dollar on investments is multi-faceted but learning how to grow your money has never been easier than now that you can explore and experience a truly diverse marketplace passively by using a well-performing portfolio-advisor.
@@greenquake11931 The stock market is down 20%. Keeping my money in the bank could be no good but investing is riskier, I wish to find better value deals as asset prices keep decreasing but lack the skillset, mind if I look up your advisor? I admit this is the only way for amateurs like myself.
@@stellamoore720 I invest with 'BRIDGET MARY TUROW" a widely known consultant. You can make a quick internet research with her name, where you can easily get in touch.
Hello, the US National debt is nothing but a record of all the USD the Federal government has spent, not taxed yet which sits in savings accounts. In order to pay back these Treasury bonds, the Fed debits a savings account and credits a checking account thru the use of a keyboard. The National debt = assets for the economy. It functions as our net money supply. As economist L. Randall Wray sums it here, “if we want our private sector to save, which almost everybody agrees is a good idea, the public sector must run a deficit.” And what happens when the public sector runs a surplus? The US has done so 7 times, and Wray has an answer: “The first 6 of those were followed by our only 6 depressions.” And the 7th was during the Clinton years, which led to a recession in the early 2000s and then a global financial collapse in 2008. 1817-1821 debt paid down & budget in surplus (depression began 1819) 1823-1836 debt paid down & budget in surplus (depression began in 1837) 1852-1857 debt paid down & budget in surplus (depression began in 1857) 1867-1873 debt paid down & budget in surplus (depression began in 1873) 1880-1893 debt paid down & budget in surplus (depression began in 1893) 1920-1930 debt paid down and budget in surplus (depression began in 1929 1998-2001 debt paid down and budget in surplus (recession 2001 2008)
IRM US us printing its own money, therefore, there is no need to pay back US or pay back to itself. US should print more money to spent on infrastructure rather than on corporations.
Exactly, the general public paying it's taxes means none of this is on them , this isnt debt left for our children as retards on tv and radio say . If you pay taxes as asked , your responsibility is done and over , this is on the people we elected
It's been less than a year since this video and we owe 30.5 trillion dollars so NO we do not plan on paying the debt off but increase it. The sad part is bad government brings on more debt not less .
Daily Treasury statement table 3a as of today July 2022 Total Redemptions $698,746 -today $2,627,249 month $108,481,593 YTD in millions. For the year we have paid back 108 trillion USD in US Treasuries easily. No media, no politicians bragging about this. We pay off over 100+ trillion each and every single year and have been paying the national debt for 200 years.
That's a nonsense term really. Everyone who works and can collect retirement is an "Unfunded liability" . It's a buzzword created by think tanks . Your household bills are unfunded liabilities or UL till you pay them , in a nutshell every employee is a UL in several ways , Payroll , Retirement, Benefits are all UL , driving a car without insurance is a UL . People like Frank Luntz created the usage of the term and then it hit talk radio . It was literally a nonsense term to detract from Democrats reducing debt and deficit. You never heard anyone leaning left use that term . It's as bogus as the Email server hearings that were conducted by at least 8 people who also did their government work on private email servers after General Colin Powell was the first to use it . At the time well over 100 Senators and Congress had them . Gowdy and Chaeffitz both had them on their business cards and they were leading the charge 🤣 More importantly when the election had been decided they packed up the hearings , sealed the records and never mentioned again and now MORE people are using private email servers .
@@DarkepyonX .. unfunded liabilities simply means that Medicaid and Medicare expenses are increasing faster each year than the payroll taxes (from employer and employee) fund these programs.
@healingbyqurannow --,,The Government has no money of its own , Our U.S., Government is made up of ' CELLS ' . Each ' Cell Group ' acts Independently of the Federal Government but is supposedly overseen by the White House Administration and the 2 Houses of Congress , plus there are a few Civilian Governmental Watchdogs Groups . The Federal Government ' Borrowed ' money from the Social Security Agency when it actually had a surplus of ' Taxed ' Funds , meaning that the Social Security Agency hadn't paid a large enough payment to all of the Social Security Payees compared to the Social Security Taxes received by the Agency from all of the Eligible Tax Payers . Essentially what happened was that the Payees who were eligible to receive those Tax Based Benefits had died prematurely , leaving a Positive Net Balance within the agency itself . So the U.S., Federal Government ' Took ' that Positive NET BALANCE from the S.S., Agency , So then issued to that Agency ' BONDS ' . When the U.S., Government Pays back those ' Bonds ' it will have to do so with INTEREST . The Social Security Agency doesn't have its own money , All of the Social Security Funding comes Directly from the Tax Payers with a Direct Access Link for each Eligible Tax Payer and How much over How long they Paid in to determine their Future Eligibility for these pre-purchased Benefits . As these Separate Governmental ' Cell Groups ' are OWED MONEY by the U.S., Federal Government thereby meaning that indeed the U.S., Federal Government OWES ITSELF money , Large Over Bloated Governments are SO BIG that they really aren't 1 Single Entity . In this case Big Government has more or less 1 thousand different Agencies under Each 1 Single Department Created by the U.S., Federal Government . Where does the U.S., Wildlife Agency come under , is it its own Agency ? The Answer is No , It is in Fact Not its own Agency but rather comes under a ' Parent Agency ' Associated with The U.S., Federal Government . The Federal Wildlife Agency is a Federal Government Police Agency , Do they come under the F.B.I., or the C.I.A., ? No , they do not , they are not Affiliated either of those Federal Policing Agencies . The C.I.A., can not operate domestically , they are our International Policing Agency charged with Policing Americans who go abroad / Leave our Country . The F.B.I., is our Federal National Policing Agency who operates Domestically but only deals with our citizens who are People . The Division of Wildlife deals with our Wild Animal Populations and of course the Humane Society deals with crimes related to our Domestic Animal Friends who are not of the Agricultural variety , supposedly , and of course we have our Department of Agriculture which is supposed to oversee our Agricultural Businesses and Agricultural Animals . So what ' Parent ' Agency does the Department of Wildlife Come under , Do you know ? That is HOW BIG our Federal Government has become ... The U.S., Federal Government EMPLOYS more people than any other Private Corporation or Company does , in fact if you took all Privately Owned and Publicly traded American Corporations and Companies and combined their Employees into 1 large Group , The U.S., Federal Government would still have more Employees than the private sector .
@@williamwaha3193 I taught currency trading in wall Street 20 years ago, I also wrote theories about international Economics 18 years ago, Iam telling you the U.S. government can create money, they don't even have to print it. The reason this can be done easily is the U.S. currency is the reserve currency and the trade currency of the world.
"Owing yourself" in this case is a fallacy. Social Security is funded by the taxed earnings of employees and employers exactly like 401Ks. People who pay nothing into SS own nothing, people who pay little, own little and so on. A treasury note has a specific holder or owner and it is not the in general "ourselves".
Debt is a two-way sword. On the one edge there is a complete desire to pay back the debt if all goes well. The other edge of debt is when we, the people, choose not to pay the debt. When this happens our reliability goes down, and our prices go up. Think about it. In 1965 I could buy a gallon of gas (0.26c), a gallon of milk (0.32c, from a cow), butter (0.16c, 4 cubes), bread, (0.17c), and still had money for Pop, (Shasta 0.5c, others 0.10c, leave the bottle). Now, after all those wars in the Middle East that we "won," and after all those freeways and bridges we sold to the private sector, and all that aide we've been cranking out, do you really think we paid those debts? All it took was to Blow Kennedy's head off.
Exactly. US currency values hanging through the ownership of key patents and OPEC oil trades that exclusively sold in US$. No longer in their industrial outputs and trade surpluses.
Regardless of who owns the debt, governments should not spend beyond their means (or our means). Governments generally care nothing about debt because debt helps create inflation, and inflation provides governments with more income - from of course the struggling middle class.
The devil owns the debt. And it does matter. Why do you think everything is ass backwards and upside down? When the Federal Reserve which is privately owned and unconstitutional never been audited can print a pallet of money and bribe whoever they want and you would never know a thing that's a problem
I'm new to stock market /Crypto and would like to invest but I've go no idea on how to make good profits. Pls what's the best approach you'd recommend?
Even if we wanted to, the US is way past the point of being able to repay the current National debt much less future obligations. Our currency will be destroyed by inflation and those depending on future funding will be left to die when the government defaults. I’m not sure there’ll be anywhere to run as this seem to be a world wide situation.
That’s not true. It would be practically infeasible politically to run a $1 trillion federal surplus for 31 straight years, but it’s not out of the realm of possibility.
It’s easy if we cut spending and didn’t increase the budget for 10 years and allowed the economy to grow naturally. Then allow the budget to grow with the economy
Like many Americans, the federal government is shelling out a lot more money to cover interest payments on its debt after a series of Federal Reserve rate hikes over the past year. The Treasury Department paid a record $213 billion in interest payments on the national debt in the last quarter of 2022, up $63 billion from the same period a year earlier. The fourth-quarter tab was also nearly $30 billion more than in the prior quarter, which is the largest quarterly increase on record, said Jerry Dwyer, an economics professor emeritus at Clemson University. Borrowing costs are expected to become an increasingly heavy burden in coming years. The Congressional Budget Office is set to provide its latest estimate on Wednesday. The surge is due mainly to the Federal Reserve raising interest rates by 4.25% between March and December. The central bank increased the rate another quarter point in February. Until recently, it cost the federal government very little to issue debt to finance its operations. “It was almost free money,” Dwyer said. “You could borrow a trillion dollars, and if you financed it with Treasury bills, you paid almost no interest. But interest rates weren’t going to stay there forever.” The national debt is once again in the spotlight now that the US has hit its $31.4 trillion debt ceiling, forcing Congress to take action or risk a catastrophic default. The Treasury Department is taking extraordinary measures to allow the government to continue paying its bills in full and on time, which it expects to last at least until early June. The spike in interest payments also contributed to the federal government hitting the debt ceiling that much faster. And it adds to the pressure on Congress to raise taxes, cut spending or allow the government to borrow more to meet all its obligations.
30 trillion. Trillion as with a T. It will never be paid off. The credit/debt system is a joke and is broken in my opinion. Fun fact want to know how much 1 trillion seconds is? It's roughly 136,000 years. So yeah that helps put trillions in perspective. 30 trillion will never be paid off. We need a new system. This system is broken and clearly doesn't work. The purchasing power of the dollar has been declining since it's inception.
Hello, the US National debt is nothing but a record of all the USD the Federal government has spent, not taxed yet which sits in savings accounts. In order to pay back these Treasury bonds, the Fed debits a savings account and credits a checking account thru the use of a keyboard. The National debt = assets for the economy. It functions as our net money supply. As economist L. Randall Wray sums it here, “if we want our private sector to save, which almost everybody agrees is a good idea, the public sector must run a deficit.” And what happens when the public sector runs a surplus? The US has done so 7 times, and Wray has an answer: “The first 6 of those were followed by our only 6 depressions.” And the 7th was during the Clinton years, which led to a recession in the early 2000s and then a global financial collapse in 2008. 1817-1821 debt paid down & budget in surplus (depression began 1819) 1823-1836 debt paid down & budget in surplus (depression began in 1837) 1852-1857 debt paid down & budget in surplus (depression began in 1857) 1867-1873 debt paid down & budget in surplus (depression began in 1873) 1880-1893 debt paid down & budget in surplus (depression began in 1893) 1920-1930 debt paid down and budget in surplus (depression began in 1929 1998-2001 debt paid down and budget in surplus (recession 2001 2008)
JFK and James Tobin Nobel prize winning economist. That the Heller council was able to be so influential with Kennedy is attributable in part to the tutorial function it played in his economic education. This is well illustrated by James Tobin's account of one of his sessions with the president. He wanted to talk about economics, economic theory indeed, He wanted to ask me some questions, but it turned out he wanted to give his own answers to them too and see if I agreed, almost as if he were showing how well he had learned his lessons. So he did most of the talking, and my own interventions were largely to confirm that his own answers to his questions were right. There were two subjects; the budget deficit and gold. On the first he said, "Is there any economic limit to the deficit? I know of course about the political limits. People say you can't increase the national debt too fast or too much. We're always answering that the debt isn't growing relative to national income? There isn't, is there? Well, what is the limit?" I said the only limit is really inflation. He grabbed at that. "That's right, isn't it? The deficit can be any size, the debt can be any size, provided they don't cause inflation. Everything else is just talk." Alan Greenspan: “Central banks can issue currency, a non-interest-bearing claim on the government, effectively without limit. A government cannot become insolvent with respect to obligations in its own currency.” St. Louis Federal Reserve: “As the sole manufacturer of dollars, whose debt is denominated in dollars, the U.S. government can never become insolvent, i.e., unable to pay its bills. In this sense, the government is not dependent on credit markets to remain operational. "The United States can pay any debt it has because we can always print money to do that. So there is zero probability of default" said Greenspan on NBC's Meet the Press "Alan Greenspan: "I wouldn't say the pay-as-you-go benefits are insecure in the sense that there is nothing to prevent the Federal Government from creating as much money as it wants and paying it to somebody." Cspan- How can we spend 6 trillion dollars and all the other money Biden wants to spend? How can we afford it? Congressmen John Yarmuth House budget committee chair - We can afford it because we determine how much money is in the system. The Federal government is not like any other user of currency. Not any local state or Government. We issue our own currency and we can spend enough to meet the needs of the American people. The only constraint being that we do have to worry about inflation from that spending. Now so many people say We have so much debt, our grandchildren, its going to be on their backs and so forth, that is not how the way it works, and I think the American people need an education on how the monetary system does work. I remember going back when Paul Ryan was chair of the budget committee and even before all that, all of these forecasts about gloom and doom about how we are going to accumulate so much debt and interest rates are going to crowd out all other spending, we basically doubled the national debt from the recession in 2009 until last year before the pandemic. None of things that people warned would happen happened. We didn't have inflation, we had record low interest rates than higher interest rates and the dollar was trading at normal levels vis a vis other currencies. A lot of economists have begun to say maybe we have been thinking about debt in an entirely different way, Even Fed chair Jay Powell has basically said we have the Fiscal space to do what we need to do right now to make the investments we need to make to build the kind of economy for the future we all hope we will have.
Don’t think so. I think the debt is not scary, what’s more scary is the rate at which it’s keep on rising. There will be a time when another currency will takeover. It could be crypto. It could be some other country with better financial system.
The debt is owed to the central banking system otherwise known as the federal reserve. Which by the way isn't federal by any means. It's privately owned.
@@Haijwsyz51846 I'm pretty sure I'm an owner of United States because I know I'm not an investor or I would see the returns by now and I know I'm not its slave because human slavery is illegal. Is it possible to be considered an investor without your informed consent?
@@Lumalnatti11 you can't be an owner of the US unless US has become a communist country. But a good news to you is that you are an owner of the US debt if you consider owning debt is akin to owning property.
@@Haijwsyz51846 Interesting what you say about communism... Seems to makes sense that the amount of debt owned by US is equal to the amount of property owned also, or who would buy debt? Lovely, Thanks for your input.
🇨🇦💂super flattering description. When lenders started lending out more & more paper $ but not have to add more gold to the treasury to back a % of the printed notes, thats when they realized the real profit was in lending to whole governments(taxpayers), standardization of currencies, getting entire societies to give up their gold(which is money) for pretty little pieces of printed linen(not money)
There's still something I don't understand, when foreign countries come to cash in their bonds, are they given physical U.S. dollars? what would the U.S. actually give back to China in exchange for the bonds?
when foreign countries come to cash in their bonds, are they given physical U.S. dollars? Yes. Treasury securities must be purchased with USD and redeemed for USD.
They debit the savings accounts of foreign countries who have an account at the Federal reserve called a securities account and credit that countries checking account called a reserve account. Voila, paid back. The US Fed govt pays back 100+ trillion in Treasuries each and every year.
US Dollar is world coupon which everybody uses to buy sell things .. say Pakistan buys saudi oil in US dollar coupons .. So Uncle Sam can print infinite coupons and buy Infinite Stuff from rest of world and not work a day .and inflate their currency and deflate(devalue) other currencies and enjoy good clothes suits made by poor bangladeshi, indian , pakistani and chinese workers
MP, that’s chump change for the military.. they get $850 trillion annually so they don’t have to be financially responsible… and what’s even more insane, the general public is willing to cut their own benefits to give more to military..
If borders was closed between October to April during Pandemic - way Less dead people & financial damage would be done to American people !!! Looks like Top Elite Wealthy individuals pocket taxpayers moneys 😞😞😞
The bonds themselves really don't care if the current owner is from the US, Germany or China, they will need to be repayed on the due date regardless. Giving the impression that bonds held by the US is "loaning to yourself" is very misleading.
If America just print money and borrow it out. Then they are really borrowing out paper money not worth nothing. How do they verify that they are lending out real money .Or are the the banking corporation of the world with no check or balance.
@@joeoreilly1479 Countries don't "print money and borrow it out". The central banks buy or sell assets on the market like everyone else. If the value of a countries currency decreases then a central bank may need to adapt the assets they are trying to sell, like increasing the interest rates on the bonds being sold. The "real money" you are talking about is most likely no longer being used.
@@perer005 yea but who does the checks and balances .we know about the bonds market. And Governments of so called state borrowing money and buying a bond from such and such when they could go and borrow it from the people of the state who have money lock up in the banks .Getting no interest surely that's the first place a state should go is to the people .no they go to a bond market . giving big conglomerate bigger interest. corruption is ripe and always has been.we can dress it up no matter way you like.You can't start a bank because of government laws that are against the people but you can bring in vultures funds to buy up every building standing .homes ect you name it they can buy it but we the people have no voice Most of the politician of any country in the world are millionaires. Their interest in first place is money .So tell me do or should we trust them .Look at the interest rate now when prices are sky rocketing not because of anything to do with Europe but because of government borrowing because of the Ukraine problem now how does that work. They deliberately made this problem knowing it's going to break the people into right and left. Problem are made not solved but by the people. But now we the mass have had enough. Time for those who see to speak out. I'm not ranting to you if it sounds like I am I apologise. The media have made those who speak out. To be right wing or racist and label everyone with an opinion So what they sow they will reap .
Has anybody ever tough about why it’s not really feasible to live without debt? Money is consumed faster than it can be made. The only thing that keeps the modern world moving forward is trust. Some countries have more , some less and some none.
It can not be paid off, what i think is that one day something huge, financially devastating will happen globally and all the debts would be forgiven we start afresh.
Nobody is going to forgive the USA for 31.8 trillion dollars when they crash. It will ruin every country that remains on the basis of using the USD as its form of global currency. Those that choose wisely and join BRICS will not suffer such humiliation and debilitating financial crisis. The only satisfaction open to countries like mine who will be like the band on the Titanic, is that those of us who are smart and have money invested in another currency will enjoy watching the death of the USD and its torturous role in global hegemony since 1973 as it flounders in its death rolls like a snake in a fire.
Isn’t debt supposed to be paid back though? They never pay back a single dime, just rack up more debt. How would they go about paying off such a debt? Also, it’s not really a debt if you owe yourself? Whole thing’s so confusing
The debt is consistently paid back to the people that bought the bonds, in our current situation debt continues to go up because new debt is being taken out faster than old debt is being paid off, which just means that the size of future bond payments will go up.
You are on the right track, it is NOT a debt if you owe yourself as you can not "owe yourself". All Money is an IOU/debt Hello, the US National debt is nothing but a record of all the USD the Federal government has spent, not taxed yet which sits in savings accounts. In order to pay back these Treasury bonds, the Fed debits a savings account and credits a checking account thru the use of a keyboard. The National debt = assets for the economy. It functions as our net money supply. As economist L. Randall Wray sums it here, “if we want our private sector to save, which almost everybody agrees is a good idea, the public sector must run a deficit.” And what happens when the public sector runs a surplus? The US has done so 7 times, and Wray has an answer: “The first 6 of those were followed by our only 6 depressions.” And the 7th was during the Clinton years, which led to a recession in the early 2000s and then a global financial collapse in 2008. 1817-1821 debt paid down & budget in surplus (depression began 1819) 1823-1836 debt paid down & budget in surplus (depression began in 1837) 1852-1857 debt paid down & budget in surplus (depression began in 1857) 1867-1873 debt paid down & budget in surplus (depression began in 1873) 1880-1893 debt paid down & budget in surplus (depression began in 1893) 1920-1930 debt paid down and budget in surplus (depression began in 1929 1998-2001 debt paid down and budget in surplus (recession 2001 2008)
@@henrygustav7948 so true so true , when Clinton balanced the budget and made a surplus it sent alot of the world plunging into financial chaos and hell . This is my own theory but Terrorism against the US was near non existent till Clinton , I'm pretty sure alot of these groups were funded via bonds and suddenly we bankrupted them and they came at us . Zz
The US Central Bank aka the FED is not a "privatized central bank" as stated in 1:57 Here from the FED FAQ: Who owns the Federal Reserve? The Federal Reserve System is not "owned" by anyone. The Federal Reserve was created in 1913 by the Federal Reserve Act to serve as the nation's central bank. The Board of Governors in Washington, D.C., is an agency of the federal government and reports to and is directly accountable to the Congress. The Federal Reserve derives its authority from the Congress, which created the System in 1913 with the enactment of the Federal Reserve Act. This central banking "system" has three important features: (1) a central governing board-the Federal Reserve Board of Governors; (2) a decentralized operating structure of 12 Federal Reserve Banks; and (3) a blend of public and private characteristics. [...] Some observers mistakenly consider the Federal Reserve to be a private entity because the Reserve Banks are organized similarly to private corporations. For instance, each of the 12 Reserve Banks operates within its own particular geographic area, or District, of the United States, and each is separately incorporated and has its own board of directors. Commercial banks that are members of the Federal Reserve System hold stock in their District's Reserve Bank. However, owning Reserve Bank stock is quite different from owning stock in a private company. The Reserve Banks are not operated for profit, and ownership of a certain amount of stock is, by law, a condition of membership in the System. In fact, the Reserve Banks are required by law to transfer net earnings to the U.S. Treasury, after providing for all necessary expenses of the Reserve Banks, legally required dividend payments, and maintaining a limited balance in a surplus fund.
When dollar loses its reserve currency status the misic stops for "owning" their own debt and other countries will not be easily convinced to loan them any money... Now you know what's up in the world 😅
@@ConcerningReality Chapter 11 is to protect someone from lender collecting the money by US authority. No one in the world could come to US and demanding returning the $ with our military muscle to back us up. The only consequence we are facing is nobody would trust us anymore.
Bulk of the debt is owed to the rest of the world. Other countries keep their foreign exchange reserves in US treasury bonds and similar USD instruments.
I can relate that! I always accumulate the debt from credit card by spending future money, borrow from credit card to pay off current debt from current credit card.
Thank God I’m 30 years old and I’ve never touched or been tempted to have a credit card. If I don’t have the money I’m not gonna pay for it simple, even in an emergency I don’t mind living on the bare minimum to get my feet back up. Rather then going in debt for something temporary 🤷🏾♂️
This is extremely positive. I thought the national debt was money borrowed to fund ourselves. Now I better understand its effects on the US economy and the spending will destroy us.
There was a lot of words being used but nothing was being said… Why would anyone think a bond is a good investment when the dollar is guaranteed to inflate by constantly increasing the money supply? I think foreign governments are smarter than that so I think there’s a little more to it than you explained.
This was a fairly basic background to government bonds and debt. If you’re really curious about why someone would buy bonds in more detail, here’s a good article from Investopedia on treasury bonds as investments: www.investopedia.com/ask/answers/041515/treasury-bond-good-investment-retirement.asp You can also check out our video on bonds here: ua-cam.com/video/N_0d35JvuO0/v-deo.html
Increasing the money supply has nothing to do with inflation. Zero, nada, zip, zilch. We are off the gold standard. The money supply expands and contracts every single day. The money supply has increased by record amounts since 2010-2020 and the Fed has been trying to get inflation to 2 percent and they couldn't even do that. So no increasing money supply has nothing to do with inflation. Inflation is you paying more and someone else getting more. Look to corporate profits in a pandemic and you will be closer to understanding inflation.
@@samuelhorrocks9187 correct since 1933 domestically then 1971 internationally when France tried to demand gold. That is when Nixon ended convertibility completely.
The problem with the debt is that the interest payments are quickly becoming too burdensome to keep paying. Eventually we won’t be able to pay the interest and then we’re finished.
Interest rate is currently at 4.75%(8th rate hike since March last year) Inflation at 7% and mortgage rates is at over 7.5% but yet minimum wage remains the same and my retirement portfolio has suffered tremendously these past years, so my question is how do senior citizens retire and live off such unstable economy. The long term game is obviously not for me at this point My reserve of $450,000 is being wiped out and I'm saddened that despite investing, I lack the mental capacity to analyze and determine whether now is a good time to buy stocks or not. I honestly don't know what to do at this point; I need reliable market trajectory data.
@@fresnaygermain8180 I agree; for over 17 months, I've maintained regular contact with an investment advisor. Nowadays, it's really simple to invest in trending stocks, but the challenge is knowing when to sell or hold. To support me with entry and departure points, my advisor steps in. Within 18 months, I've accrued almost a million dollars from an originally stagnating reserve of $300K.
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The US has enjoyed the privilege of being the worlds reserve currency, which is what allowed the US to print and barrow as much as it does. Most other countries would have collapsed by now.
Given that the debt problem has the potential to devastate the stock market and cause economic downturns. We must be ready for any turbulence in the market. How can I prevent the decline of my $250K stock portfolio?
I've read that there seems to be a combination of things. The instability is exacerbated by high levels of personal, business, and government debt. It resembles an ideal storm. To assist you in allocating stocks in your portfolio, you should speak with an expert.
The issue is most people have the “I want to do it myself mentality” but not equipped for a crash that comes afterwards. Ideally, advisors are perfect reps for investing jobs and at first-hand experience, my portfolio has yielded over 300%, summing up nearly $1m, since covid outbreak to date
That's really great. I've tried doing some research myself to hire a financial advisor, but it's really overwhelming. Could you recommend who you work with please?
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The United States Public Debt is a big concern for a lot of people, and they have a right to be concerned, but not for the reasons they believe or have been told. No foreign country controls the majority of our debt, China has no real interest in seeing the US dollar collapse because if our currency fails, theirs fails too.
With that Debt Ceiling so huge, The only thing I can say is CRAZY, THE WORLD TRUST NOT THERE ANYMORE, No more...IF I HAVE TRILLIANT OF DOLLARS IN MY POCKET, i would not buy the U.S. Bond, not EVEN 1CENT, TO SAVE MY MONEY...
What does a National Debt Doomsday look like? Or is it like the 2009 Mortgage Crisis? That is, you have to experience it first in order to understand it.
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If they owe their citizens about a third of the debt, that would be a little over $10.3 trillion. Divide that by how many citizens live in the U.S. (Roughly 332 million people) and you’d get a little over $31,100 per capita. (Not including debts to the Fed, foreign investors or its own institutions obviously) So in a sense, the U.S. government owes each of its citizens $31k. Yet they make us give up 20%-40% of their salary to the IRS so they can spend recklessly on whatever they want with no consequences (at least for the time being) wow…
I have always paid my mastercard with my visa cards then paid visa with the discover card then paid discover with the American express. Now i am getting a credit limit increase from master card and starting over. Easy peasy
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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
@@Daniel_12_3 My fiduciary is Jessica Lee Horst. 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.
By my math, 31Tr divided by US population of 330M is about 93,000 per capita. If they would allow me to pay off my portion of the national debt in exchange for not paying taxes ever again, I would take the deal.
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That is debt payoff. You should pay living expenses (Security, Transportation, etc) to layoff TAX.
If there was some one time settlement, our life may become easy.
the US government can suck wayyy more than 93k from you during your lifetime. US government grinning atm.
Thanks captain obvious.
@@doggygaming950 It's obvious you did not read all of my post.
The U.S. economy relies on ongoing credit and debt generation for sustenance. The Federal Reserve is expected to increase the money supply, leading to further debt accumulation for the average American. Meanwhile, foreign nations continue to desire the U.S. dollar, despite their own economies facing significant challenges, some even worse than that of the U.S. This situation raises concerns about who will ultimately bear the consequences of these economic dynamics.
They do say gold will crash in a liquidity crunch However, many of those holding precious metals are preparing for such an event. So they are unlikely to be forced sellers. The paper market would tank and hopefully collapse.
I wholeheartedly concur, which is why I appreciate giving an investment coach the power of decision-making. Given their specialized expertise and education, as well as the fact that each and every one of their skills is centered on harnessing risk for its asymmetrical potential and controlling it as a buffer against certain unfavorable developments, it is practically impossible for them to underperform. I have made over 1.5 million dollars working with an investment coach for more than two years.
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Invest judiciously, keep a stop loss figure. Shuffle between debt and equity wherever the ratio goes too off your target. As for the target, I recommend a Ratio like this Debt % should be equal to your age in years. If you are 20, debt is 20%, reset in equity. If the market falls or rises drastically, your debt % will change, which you should rebalance to 20% and bring back equity to 80%. Thus you would have bought low or booked profit depending on if it was a crash or a bull run.
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I agree, that's the more reason I prefer my day to day investment decisions being guided by an advisor, seeing that their entire skillset is built around going long and short at the same time both employing risk for its asymmetrical upside and laying off risk as a hedge against the inevitable downward turns, coupled with the exclusive information/analysis they have, it's near impossible to not out-perform, been using my advisor for over 2years+ and I've netted over 1.8million.
I just started a few months back, I'm going for long term, I'm still trying to wrap my head around it, who’s this advisor you work with?
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She appears to be well-educated and well-read. I ran an online search on her name and came across her website; thank you for sharing.
Good on you for not stretching this out to a 20 min exploratory dissertation. Making this concise reaches a lot of people to realize this important issue.
Can’t wait for Gods kingdom to take over. No more debt. No more taxes no more slavery to 9-5 no more renting a home.
It's funny how they keep calling it a debt ceiling when they keep raising the ceiling.
....yeah, no doubt.....'' topless '' takes on a 'whole new meaning '''..............
Funny how it wasn't an issue till late 1990s ,even Reagan chided people for even mentioning it as it was always something done without question before
It’s cause there’s a party in the USA.
Because its dumb and meant only for political drama. The U.S is one of only two countries in the developed world that have a debt ceiling. The other is Denmark, weirdly enough.
It's a ceiling made out of clouds..It don't mean nothing.
So basically it’s fake money, and the crooks are completely in charge of it. Got it. What could go wrong. 😂
Theres a UA-cam vide called The Creature from Jekyll Island which explains the Federal Reserve-its a long video 6 hours but It will change your life
Listen to it a little at a time
@@googlesmostwantedfrog147 another one that’s good is’ the battle for Europa’ talks about the fed, Bolshevik revolution etc. these fuckers have been in cahoots for a while
It's not fake money - it is fake currency, there's a big difference.
Every $ created steals value from everyone on the planet who owns and uses those $'s, thus making them poorer !
It is like - someone is eating free lunch today, but you are paying for that lunch the following day for the rest of your life, as long as you own that currency !
The concept of currencies is the worst invention in human history. It allows the select minority to silently and continuously stealing from every living person who uses their currency as long as they're alive, without the need of using any power. Feat that not even the most powerful kings/rullers of the past could achieve. :X
Collective Debt is Slavery in Disguise.
All Fiat Currency is Collectivist Currency.
Considering economies are human constructs…yeah, fake money. Humans decide the value of items based on supply and demand as well as a few other factors like scarcity etc. From there, we can literally wipe the slate clean and restart at any moment. Everything humans do is pretty much human created, including culture, systems, governments, so on and so forth. Everything is kinda fake except the real stuff… that stuff we kinda need. Food, air, and water. Anything more than that you need to have incentive for others to want to do it… so economies exist.
We’ve tried the free living during Covid. It was a worldwide experiment that failed beyond measure. It made folks lazy rather than wanting to work. It made them sit at home doing nothing. There were many out there every single day making things work, but by and large most didn’t do much of anything. So, back to the slave game we went… if you owe money, you’re pretty much beholden to them until your debt is paid.
I foresee a recession lasting 2-3 years, and if inflation continues to surge, the Federal Reserve will likely raise interest rates soon. Inflation is causing various issues worldwide, such as food shortages, scarcities of diesel and heating fuel, and significant spikes in housing prices, leading to a potential financial market crash. This global downturn could have long-lasting repercussions. Given the current inflation rate of approximately 9%, my main worry is how to optimize my savings and retirement fund, which has remained stagnant at around $300,000, yielding almost no gains for quite some time.
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I’m sure the idea of an invstment-Adviser might sound controversial to a few, but a new study by Motley-fool found out that demand for Financial-Advisers sky-rocketed by over 42% since the pandemic and based on firsthand encounter I can say for certain their skillsets are topnotch. I've accrued north of 580k within 16-months from an initially stagnant Portf0lio worth 85k.
Inflation is over 10% here in the UK, but as we know it's definitely way more than the Government would like to admit. My plan is to earn more passive income and ride this out, can your Investment-adviser assist?
Aileen Gertrude Tippy’’ is her name. She is regarded as a genius in her area and works for Empower Financial Services. She’s quite known in her field, look-her up.
Thanks a lot for this suggestion. I needed this myself, I looked her up, and I have sent her an email. I hope she gets back to me soon.
There is no way we can pay it back because as soon as we have the money to pay it off some wiseguy is going to figure out how to spend it or steal it ...
The U.S. is actually paying $5000 a SECOND in interest on this debt.That is unbelievable!
true,and there'll be no paying back 30+trillion,and over 300 trillion in unfunded liabilities,no way,no how,they are kicking the can down the street and sooner or later,the can goes in the ditch
you mean"we"are paying 5k a second -
Interest payable at today's rate is 800 billion per year.
$5000? That low?
Yeah but how much are they going in debt per second?
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Good to here. Thanks
Many needs this info. Good stuff.
What rot.
When the Pentagon says it doesn't know where trillions of dollars went every decade.
It would seem that they are responsible for the budget not being balanced.
Also responsible for all of the national debt
I’m afraid operating in a negative will continue until the government is insolvent. Congress spends as if they are drunk.
Don’t worry when the printing press doesn’t run out of ink
@@1jh963 It doesn’t, but one day the interest payments become too much.
It's pretty simple balance the deficit in5 years. The DOD is throwing money away like it worst nothing
7000$ coffee makers 650$ toilet seats and the list goes on F 35 they quit counting on that one.All the bugeta went over. They fail audit 5 times in a row.
The next thing is to get the billionaires to pay a 5% increase in taxes, I don't think that would hurt them
In 5 years The REP.are the
the problem they lining their pocket with our money.And for somebody talking about tax cuts run their ass out the country.
THEY NOT JUST DRUNK, THEY ARE UTTERLY .....PISSED
@@benjiwatson2368 Seems like I heard that in a decade the government will be paying 800 billion dollars a year just in interest on the debt, that will be more than we spend on national defense.
I CAN'T UPDATE THE VIDEO TITLE FAST ENOUGH. SOMEBODY HALLPPPPP.
lol
What country has given urain the most arms
More tax we pay more big the deficit 🙈
They borrow, spend. We pay it back ))
You mean: "To whom does The US owe $38.2 Trillion dollars." , right?
National debt is a lie, it's more like national elite laundering of tax dollars. Rich people/corps in our own country are collecting the interest on it, because they predominately own the debt. AND the debt was acquired through overpriced dirty politics, by ALL YOUR ELECTED government. DON'T accept the con....
In a world of delusion and confusion raising the debt ceiling is celebrated as victory
The best comment
Only stupidity and manipulations of the receiver of buying these debts.
It has to raise. Because needs are constantly growing. Population grows, production grows , new technologies and industries ect. It's normal.
@@MrAmhara not normal it needs to be put on a leash, raising the debt ceiling wouldn't benefit the population. Instead to fund wars and destructions its the only nation on earth needing to spend this high amount but the people are poor and infrastructures are failing, only and blinded insane persons would think that they would benefit.
Yay! More credit cards ! We're rich!
Wait... Pay what back? No... That's my money!
"It's not that we have this money lying around to send to Ukraine. We borrow this money from China to send to Ukraine", Republican Senator Ron Paul.
Don't worry uncle joe will keep giving money away.
I guess Rand Paul is 30% right, but 70% wrong.
Money to help Ukraine doesn't work.
Need real help but not taking about money.
And your 1000 spy/military bases……. Crazy fearful yanks. Not surprising though, for a country starting 251 interventions since 1945.
@@bobmanners8624 Right on! You have discovered the basics of fake news.
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The central banks are who they owe the money to. In America, it's called the federal reserve which is actually a privately owned institution. The central banks control nearly all of the debt in the US which is broken among a few families of the world.
And who exactly are those slimy families what are their names be specific??????
@@scottward1002 You don't know?
The Federal Reserve System is not "owned" by anyone. The Federal Reserve was created in 1913 by the Federal Reserve Act to serve as the nation's central bank. The Board of Governors in Washington, D.C., is an agency of the federal government and reports to and is directly accountable to the Congress.
@@margaretfrew6661 Wrong! There's a reason "owned" is in "" in your cut and paste reply. All of the federal banks, JP Morgan Chase, BOA, Wells Fargo..., all own shares of the Federal reserve and make the interest on the dept through dividends. Those are the folks raking it in off a big chunk of the US dept. These banks are still largely held by members of the original central banking giants like the Rothschilds, Rockefellers, & Lehmans
You are a very educated person .. the fed essentially controls and creates world debt ..
I think we are well past the point where we could even theoretically pay off our debt, in short we are already bankrupt
🖨 💵 💵
@@Luca-sz5uy no, I under estimate NOTHING. You fall for the LIES that the left tells. You think that the “rich” don’t pay their fair share because the extreme left tells you that but what you will NEVER hear them tell you is how much is their fair share. Today between local, state and federal taxes (of all kinds) the so called rich pay over 50% in taxes.
And the extreme left (specifically Biden) say they will not raise the taxes on anyone making less than $400:000 then INCREASE the number of IRS agents by almost ONE HUNDRED THOUSAND, now why do they need that many agents when only the rich are going to see their taxes raised?
And how much money does the government need to operate? And how much do they need to BUY VOTES? Look at parts of CA where they are trying to spend MILLIONS if not BILLIONS on reparations to Blacks. But only if they are member of the LGBTQ community?
Read the TENTH AMENDMENT some time and think about all the things the Federal Government spends money on and if it violates the LETTER of the 10th Amendment.
Apparently you do not understand bankruptcy
@@zickzeon2946 probably more than the average American but not as much as a lawyer. Now, why do you think I don’t know anything? Love to have a discussion on the topic
First, let me apologize for not finishing my comment. I did not mean to condescend. Then for the bankruptcy issue, looking at a pure financial perspective, as long as the government is capable of paying all its current debt it will not go bankrupt. There are many ways to pay someone without actual money at date due. You can also roll over, reissue, extend debt to cheeze out bulk payments to mitigate the immediate liquidity pressure. There are also credit facilities for the government in OD/ revolvers that would help its short term needs. Aside financing, there's also the problem of FX. Given USD is the dominating currency globally in trade, and countries hold USD as reserves, letting the US government default on its debt would be devastating as not only they wont be able to claim their debt, USD would also depreciate so badly that would lead to a global scale collapse in financial institutions and companies alike. I (in terms of how complex this problem really is, there is no short answer though, but the gist of it is the US Government is too big to fail, and in the unlikely case that it does even enemies would be trying to keep it alive)
The most important part that was left out is the fact that US prints money out of thin air to Pay out to those naive Bond holder which lowers the purchasing power of Dollar. So for example 10 years ago when 100$ Savings bond was issued, you could buy 100 candy with 100$, 10 years later you wont be able to buy the same 100 candy even with the interest + principal. You would also have to pay tax on interest income. So the bond holders end up loosing significant amount of wealth at bond maturity date.
That's quite optimistic, real inflation for the average Joe, the little man is on average 50% for the past year. Let me give you an example, last year I eat a sandwich for 4.7$, today I bought the same one, from the same place and it was 7.6$. This is just a small example of what's going on.
there's actually inflation bonds which go higher in intrests with inflation levels
@@houssamadnane271 so its actually not the interest that increases, it’s the par value that increases with inflation, so the interest rates actually go down as inflation rises, but you get the price appreciation from the bond itself.
@@GreenHammers ohhh okey it sounds like a good deal to protect money from inflation
@@houssamadnane271 prolly gonna sound preachy or pretentious, but I work for a private wealth manager and speak with sales reps from all the big investment banks regularly and all of them have actually said their investment teams have sold their inflation protected bonds this last quarter. Technically speaking, stocks are actually the best place to keep your money to mitigate inflation risk since they also price upwards with inflation, it's just that there's not a direct mechanism that performs the inflation adjustment like with the bonds we're discussing. Counter-inuitive right? Drives me nuts sometimes.
A weak dollar can signal an economic downturn, making me to ponder on what are the best possible ways to hedge against inflation, and I've overheard people say inflation is a money-eater thus worried about my savings around $200k.
The stock market is a way to hedge against inflation. Most notably amidst recession, investors need to understand where and how to allocate funds to hedge against inflation and still make profits.
in my opinion, the impact of the rise or fall of the U.S. dollar on investments is multi-faceted but learning how to grow your money has never been easier than now that you can explore and experience a truly diverse marketplace passively by using a well-performing portfolio-advisor.
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Lovely simple description 😍
"Will WE Ever Pay it off?"
I already paid my taxes, I don't Owe anyone Anything.
other countries owe debt in America to that's how it works
Yes you do next year.
Hello, the US National debt is nothing but a record of all the USD the Federal government has spent, not taxed yet which sits in savings accounts. In order to pay back these Treasury bonds, the Fed debits a savings account and credits a checking account thru the use of a keyboard. The National debt = assets for the economy. It functions as our net money supply.
As economist L. Randall Wray sums it here, “if we want our private sector to save, which almost everybody agrees is a good idea, the public sector must run a deficit.” And what happens when the public sector runs a surplus? The US has done so 7 times, and Wray has an answer: “The first 6 of those were followed by our only 6 depressions.” And the 7th was during the Clinton years, which led to a recession in the early 2000s and then a global financial collapse in 2008.
1817-1821 debt paid down & budget in surplus (depression began 1819)
1823-1836 debt paid down & budget in surplus (depression began in 1837)
1852-1857 debt paid down & budget in surplus (depression began in 1857)
1867-1873 debt paid down & budget in surplus (depression began in 1873)
1880-1893 debt paid down & budget in surplus
(depression began in 1893)
1920-1930 debt paid down and budget in surplus
(depression began in 1929
1998-2001 debt paid down and budget in surplus (recession 2001 2008)
IRM US us printing its own money, therefore, there is no need to pay back US or pay back to itself. US should print more money to spent on infrastructure rather than on corporations.
Exactly, the general public paying it's taxes means none of this is on them , this isnt debt left for our children as retards on tv and radio say . If you pay taxes as asked , your responsibility is done and over , this is on the people we elected
A central bank is not the country "itself". Sometimes that gets forgotten
We need a real National Bank owned by the people.
@@williamrice1955 Too much power for the people
People tend to make the mistake of conflating the country and the government
It's been less than a year since this video and we owe 30.5 trillion dollars so NO we do not plan on paying the debt off but increase it. The sad part is bad government brings on more debt not less .
Please return our money, thank you
The govt is now broke... but wait! They will easily increase the debt ceiling again to $40, $,50 or even $60 trillion dollars! Just watch!
@@HH-lc8zw of course debt is repaid . You are confusing repayment with decrease of debt level.
as the required interest payments on the natl debt increase, so will the total amount of the natl debt.
We will never pay off the debt.
This is one of the more accurate descriptions of US debt.
Never, any government would be able to pay off such a huge, massive, unreachable debt...
Oh look, in the day it took me to finish editing this video, the debt has gone up another trillion. It's about to pass 29 trillion. Neat!
Daily Treasury statement table 3a as of today July 2022
Total Redemptions
$698,746 -today
$2,627,249 month
$108,481,593 YTD
in millions.
For the year we have paid back 108 trillion USD in US Treasuries easily. No media, no politicians bragging about this. We pay off over 100+ trillion each and every single year and have been paying the national debt for 200 years.
31 trillion now!
Just put 30+ and growing with a link to debt clock in description
Now explaining the US Unfunded Liabilities along with that would help explain a great deal more.
That's a nonsense term really.
Everyone who works and can collect retirement is an "Unfunded liability" . It's a buzzword created by think tanks .
Your household bills are unfunded liabilities or UL till you pay them , in a nutshell every employee is a UL in several ways , Payroll , Retirement, Benefits are all UL , driving a car without insurance is a UL . People like Frank Luntz created the usage of the term and then it hit talk radio . It was literally a nonsense term to detract from Democrats reducing debt and deficit. You never heard anyone leaning left use that term .
It's as bogus as the Email server hearings that were conducted by at least 8 people who also did their government work on private email servers after General Colin Powell was the first to use it . At the time well over 100 Senators and Congress had them . Gowdy and Chaeffitz both had them on their business cards and they were leading the charge 🤣 More importantly when the election had been decided they packed up the hearings , sealed the records and never mentioned again and now MORE people are using private email servers .
@@DarkepyonX .. unfunded liabilities simply means that Medicaid and Medicare expenses are increasing faster each year than the payroll taxes (from employer and employee) fund these programs.
If you owe yourself you actually owe nothing, they just don't say it.
Just an excuse 2 attack social security and Medicare. As the main prob when defense waste alone dwarfs both
@healingbyqurannow --,,The Government has no money of its own , Our U.S., Government is made up of ' CELLS ' . Each ' Cell Group ' acts Independently of the Federal Government but is supposedly overseen by the White House Administration and the 2 Houses of Congress , plus there are a few Civilian Governmental Watchdogs Groups . The Federal Government ' Borrowed ' money from the Social Security Agency when it actually had a surplus of ' Taxed ' Funds , meaning that the Social Security Agency hadn't paid a large enough payment to all of the Social Security Payees compared to the Social Security Taxes received by the Agency from all of the Eligible Tax Payers . Essentially what happened was that the Payees who were eligible to receive those Tax Based Benefits had died prematurely , leaving a Positive Net Balance within the agency itself . So the U.S., Federal Government ' Took ' that Positive NET BALANCE from the S.S., Agency , So then issued to that Agency ' BONDS ' . When the U.S., Government Pays back those ' Bonds ' it will have to do so with INTEREST . The Social Security Agency doesn't have its own money , All of the Social Security Funding comes Directly from the Tax Payers with a Direct Access Link for each Eligible Tax Payer and How much over How long they Paid in to determine their Future Eligibility for these pre-purchased Benefits .
As these Separate Governmental ' Cell Groups ' are OWED MONEY by the U.S., Federal Government thereby meaning that indeed the U.S., Federal Government OWES ITSELF money , Large Over Bloated Governments are SO BIG that they really aren't 1 Single Entity . In this case Big Government has more or less 1 thousand different Agencies under Each 1 Single Department Created by the U.S., Federal Government . Where does the U.S., Wildlife Agency come under , is it its own Agency ? The Answer is No , It is in Fact Not its own Agency but rather comes under a ' Parent Agency ' Associated with The U.S., Federal Government . The Federal Wildlife Agency is a Federal Government Police Agency , Do they come under the F.B.I., or the C.I.A., ? No , they do not , they are not Affiliated either of those Federal Policing Agencies . The C.I.A., can not operate domestically , they are our International Policing Agency charged with Policing Americans who go abroad / Leave our Country . The F.B.I., is our Federal National Policing Agency who operates Domestically but only deals with our citizens who are People . The Division of Wildlife deals with our Wild Animal Populations and of course the Humane Society deals with crimes related to our Domestic Animal Friends who are not of the Agricultural variety , supposedly , and of course we have our Department of Agriculture which is supposed to oversee our Agricultural Businesses and Agricultural Animals . So what ' Parent ' Agency does the Department of Wildlife Come under , Do you know ? That is HOW BIG our Federal Government has become ... The U.S., Federal Government EMPLOYS more people than any other Private Corporation or Company does , in fact if you took all Privately Owned and Publicly traded American Corporations and Companies and combined their Employees into 1 large Group , The U.S., Federal Government would still have more Employees than the private sector .
@@williamwaha3193 I taught currency trading in wall Street 20 years ago, I also wrote theories about international Economics 18 years ago, Iam telling you the U.S. government can create money, they don't even have to print it.
The reason this can be done easily is the U.S. currency is the reserve currency and the trade currency of the world.
"Owing yourself" in this case is a fallacy. Social Security is funded by the taxed earnings of employees and employers exactly like 401Ks. People who pay nothing into SS own nothing, people who pay little, own little and so on. A treasury note has a specific holder or owner and it is not the in general "ourselves".
Nice video - straight to the point, not dragged out. Well done.
Thank you for your information, I really wanted to know more about this
love this channel
thank you!
Debt is a two-way sword. On the one edge there is a complete desire to pay back the debt if all goes well. The other edge of debt is when we, the people, choose not to pay the debt. When this happens our reliability goes down, and our prices go up. Think about it. In 1965 I could buy a gallon of gas (0.26c), a gallon of milk (0.32c, from a cow), butter (0.16c, 4 cubes), bread, (0.17c), and still had money for Pop, (Shasta 0.5c, others 0.10c, leave the bottle). Now, after all those wars in the Middle East that we "won," and after all those freeways and bridges we sold to the private sector, and all that aide we've been cranking out, do you really think we paid those debts? All it took was to Blow Kennedy's head off.
Exactly. US currency values hanging through the ownership of key patents and OPEC oil trades that exclusively sold in US$. No longer in their industrial outputs and trade surpluses.
Regardless of who owns the debt, governments should not spend beyond their means (or our means). Governments generally care nothing about debt because debt helps create inflation, and inflation provides governments with more income - from of course the struggling middle class.
Or give BILLIONS to other countries while spending our social security money that we paid in taxes for decades of hard work.
The devil owns the debt. And it does matter. Why do you think everything is ass backwards and upside down? When the Federal Reserve which is privately owned and unconstitutional never been audited can print a pallet of money and bribe whoever they want and you would never know a thing that's a problem
Zionist devils own the debt. Wake up sleepwalking Americans
Debt issuance keeps the government in greater control.
Paying billions of dollars for transgender “research” in Pakistan
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Wonderful book, stepping stone on my financial knowledge enrichment
Even if we wanted to, the US is way past the point of being able to repay the current National debt much less future obligations. Our currency will be destroyed by inflation and those depending on future funding will be left to die when the government defaults. I’m not sure there’ll be anywhere to run as this seem to be a world wide situation.
That’s not true. It would be practically infeasible politically to run a $1 trillion federal surplus for 31 straight years, but it’s not out of the realm of possibility.
It’s easy if we cut spending and didn’t increase the budget for 10 years and allowed the economy to grow naturally. Then allow the budget to grow with the economy
Like many Americans, the federal government is shelling out a lot more money to cover interest payments on its debt after a series of Federal Reserve rate hikes over the past year.
The Treasury Department paid a record $213 billion in interest payments on the national debt in the last quarter of 2022, up $63 billion from the same period a year earlier.
The fourth-quarter tab was also nearly $30 billion more than in the prior quarter, which is the largest quarterly increase on record, said Jerry Dwyer, an economics professor emeritus at Clemson University.
Borrowing costs are expected to become an increasingly heavy burden in coming years. The Congressional Budget Office is set to provide its latest estimate on Wednesday.
The surge is due mainly to the Federal Reserve raising interest rates by 4.25% between March and December. The central bank increased the rate another quarter point in February.
Until recently, it cost the federal government very little to issue debt to finance its operations.
“It was almost free money,” Dwyer said. “You could borrow a trillion dollars, and if you financed it with Treasury bills, you paid almost no interest. But interest rates weren’t going to stay there forever.”
The national debt is once again in the spotlight now that the US has hit its $31.4 trillion debt ceiling, forcing Congress to take action or risk a catastrophic default. The Treasury Department is taking extraordinary measures to allow the government to continue paying its bills in full and on time, which it expects to last at least until early June.
The spike in interest payments also contributed to the federal government hitting the debt ceiling that much faster. And it adds to the pressure on Congress to raise taxes, cut spending or allow the government to borrow more to meet all its obligations.
I made this video nearly 4 months ago at this point and the US's debt is already over 30 trillion. Neat.
I think we can say is that they owe more than that. Add the total debt. What they promise but can't pay
30 trillion. Trillion as with a T. It will never be paid off. The credit/debt system is a joke and is broken in my opinion. Fun fact want to know how much 1 trillion seconds is? It's roughly 136,000 years. So yeah that helps put trillions in perspective. 30 trillion will never be paid off. We need a new system. This system is broken and clearly doesn't work. The purchasing power of the dollar has been declining since it's inception.
Hello, the US National debt is nothing but a record of all the USD the Federal government has spent, not taxed yet which sits in savings accounts. In order to pay back these Treasury bonds, the Fed debits a savings account and credits a checking account thru the use of a keyboard. The National debt = assets for the economy. It functions as our net money supply.
As economist L. Randall Wray sums it here, “if we want our private sector to save, which almost everybody agrees is a good idea, the public sector must run a deficit.” And what happens when the public sector runs a surplus? The US has done so 7 times, and Wray has an answer: “The first 6 of those were followed by our only 6 depressions.” And the 7th was during the Clinton years, which led to a recession in the early 2000s and then a global financial collapse in 2008.
1817-1821 debt paid down & budget in surplus (depression began 1819)
1823-1836 debt paid down & budget in surplus (depression began in 1837)
1852-1857 debt paid down & budget in surplus (depression began in 1857)
1867-1873 debt paid down & budget in surplus (depression began in 1873)
1880-1893 debt paid down & budget in surplus
(depression began in 1893)
1920-1930 debt paid down and budget in surplus
(depression began in 1929
1998-2001 debt paid down and budget in surplus (recession 2001 2008)
JFK and James Tobin Nobel prize winning economist.
That the Heller council was able to be so influential with Kennedy is attributable in part to the tutorial function it played in his economic education. This is well illustrated by James Tobin's account of one of his sessions with the president.
He wanted to talk about economics, economic theory indeed, He wanted to ask me some questions, but it turned out he wanted to give his own answers to them too and see if I agreed, almost as if he were showing how well he had learned his lessons. So he did most of the talking, and my own interventions were largely to confirm that his own answers to his questions were right. There were two subjects; the budget deficit and gold. On the first he said, "Is there any economic limit to the deficit? I know of course about the political limits. People say you can't increase the national debt too fast or too much. We're always answering that the debt isn't growing relative to national income? There isn't, is there? Well, what is the limit?" I said the only limit is really inflation. He grabbed at that. "That's right, isn't it? The deficit can be any size, the debt can be any size, provided they don't cause inflation. Everything else is just talk."
Alan Greenspan: “Central banks can issue currency, a non-interest-bearing claim on the government, effectively without limit. A government cannot become insolvent with respect to obligations in its own currency.”
St. Louis Federal Reserve: “As the sole manufacturer of dollars, whose debt is denominated in dollars, the U.S. government can never become insolvent, i.e., unable to pay its bills. In this sense, the government is not dependent on credit markets to remain operational.
"The United States can pay any debt it has because we can always print money to do that. So there is zero probability of default" said Greenspan on NBC's Meet the Press
"Alan Greenspan: "I wouldn't say the pay-as-you-go benefits are insecure in the sense that there is nothing to prevent the Federal Government from creating as much money as it wants and paying it to somebody."
Cspan- How can we spend 6 trillion dollars and all the other money Biden wants to spend? How can we afford it?
Congressmen John Yarmuth House budget committee chair - We can afford it because we determine how much money is in the system. The Federal government is not like any other user of currency. Not any local state or Government. We issue our own currency and we can spend enough to meet the needs of the American people. The only constraint being that we do have to worry about inflation from that spending. Now so many people say We have so much debt, our grandchildren, its going to be on their backs and so forth, that is not how the way it works, and I think the American people need an education on how the monetary system does work. I remember going back when Paul Ryan was chair of the budget committee and even before all that, all of these forecasts about gloom and doom about how we are going to accumulate so much debt and interest rates are going to crowd out all other spending, we basically doubled the national debt from the recession in 2009 until last year before the pandemic. None of things that people warned would happen happened. We didn't have inflation, we had record low interest rates than higher interest rates and the dollar was trading at normal levels vis a vis other currencies. A lot of economists have begun to say maybe we have been thinking about debt in an entirely different way, Even Fed chair Jay Powell has basically said we have the Fiscal space to do what we need to do right now to make the investments we need to make to build the kind of economy for the future we all hope we will have.
Don’t think so. I think the debt is not scary, what’s more scary is the rate at which it’s keep on rising. There will be a time when another currency will takeover. It could be crypto. It could be some other country with better financial system.
The debt is owed to the central banking system otherwise known as the federal reserve. Which by the way isn't federal by any means. It's privately owned.
Privately owned? That means the United States is privately owned, doesn’t it?
@@Haijwsyz51846 I'm pretty sure I'm an owner of United States because I know I'm not an investor or I would see the returns by now and I know I'm not its slave because human slavery is illegal. Is it possible to be considered an investor without your informed consent?
@@Lumalnatti11 you can't be an owner of the US unless US has become a communist country. But a good news to you is that you are an owner of the US debt if you consider owning debt is akin to owning property.
@@Haijwsyz51846 Interesting what you say about communism... Seems to makes sense that the amount of debt owned by US is equal to the amount of property owned also, or who would buy debt? Lovely, Thanks for your input.
Such a great and simple explain , tnx
🇨🇦💂super flattering description. When lenders started lending out more & more paper $ but not have to add more gold to the treasury to back a % of the printed notes, thats when they realized the real profit was in lending to whole governments(taxpayers), standardization of currencies, getting entire societies to give up their gold(which is money) for pretty little pieces of printed linen(not money)
It is a negative spiral where they never can get out from. Sooner or later everyone will loose their money.
Putting your military all around the world and then tanking your dollar is a pretty genius strategy to maintain presence to be honest
Lol
The dollar has not 'tanked'.
@@Cynlixal it’s pretty relative but still a debatable concept
There's still something I don't understand, when foreign countries come to cash in their bonds, are they given physical U.S. dollars? what would the U.S. actually give back to China in exchange for the bonds?
Usually it's just a payment through a bank account, but they would get USD.
@@ConcerningReality ok thanks so much for answering
when foreign countries come to cash in their bonds, are they given physical U.S. dollars?
Yes. Treasury securities must be purchased with USD and redeemed for USD.
They debit the savings accounts of foreign countries who have an account at the Federal reserve called a securities account and credit that countries checking account called a reserve account. Voila, paid back. The US Fed govt pays back 100+ trillion in Treasuries each and every year.
Jayson Fabiyi Give them US dollars.
Great explanation, thank you. I hope the rest of the country sees this.
Lease and loan act ??????What happens when currencies are no longer accepted?????(Liquidation)
I still didn't get the idea, who should the US government pay this amount of money to?
US Dollar is world coupon which everybody uses to buy sell things .. say Pakistan buys saudi oil in US dollar coupons .. So Uncle Sam can print infinite coupons and buy Infinite Stuff from rest of world and not work a day .and inflate their currency and deflate(devalue) other currencies and enjoy good clothes suits made by poor bangladeshi, indian , pakistani and chinese workers
Whoever holds the US Treasury securities.
Gee, what if the Dept of Defense located the $27 TRILLION missing and unaccounted for from their budget ?
MP, that’s chump change for the military.. they get $850 trillion annually so they don’t have to be financially responsible… and what’s even more insane, the general public is willing to cut their own benefits to give more to military..
Love the short to the point video.
no way it gets paid
This didn't age well. $27.2t and we're currently at $34.8t.
I know, I can’t keep up 😔
If borders was closed between October to April during Pandemic - way Less dead people & financial damage would be done to American people !!!
Looks like Top Elite Wealthy individuals pocket taxpayers moneys 😞😞😞
Excellent video, well explained and to the point. 👊🏿👍🏿
this video is bullshit it does not explain the real truth
The bonds themselves really don't care if the current owner is from the US, Germany or China, they will need to be repayed on the due date regardless. Giving the impression that bonds held by the US is "loaning to yourself" is very misleading.
If America just print money and borrow it out. Then they are really borrowing out paper money not worth nothing. How do they verify that they are lending out real money .Or are the the banking corporation of the world with no check or balance.
@@joeoreilly1479 Countries don't "print money and borrow it out". The central banks buy or sell assets on the market like everyone else. If the value of a countries currency decreases then a central bank may need to adapt the assets they are trying to sell, like increasing the interest rates on the bonds being sold.
The "real money" you are talking about is most likely no longer being used.
@@perer005 yea but who does the checks and balances .we know about the bonds market. And Governments of so called state borrowing money and buying a bond from such and such when they could go and borrow it from the people of the state who have money lock up in the banks .Getting no interest surely that's the first place a state should go is to the people .no they go to a bond market . giving big conglomerate bigger interest. corruption is ripe and always has been.we can dress it up no matter way you like.You can't start a bank because of government laws that are against the people but you can bring in vultures funds to buy up every building standing .homes ect you name it they can buy it but we the people have no voice Most of the politician of any country in the world are millionaires. Their interest in first place is money .So tell me do or should we trust them .Look at the interest rate now when prices are sky rocketing not because of anything to do with Europe but because of government borrowing because of the Ukraine problem now how does that work. They deliberately made this problem knowing it's going to break the people into right and left. Problem are made not solved but by the people. But now we the mass have had enough. Time for those who see to speak out. I'm not ranting to you if it sounds like I am I apologise. The media have made those who speak out. To be right wing or racist and label everyone with an opinion So what they sow they will reap .
Has anybody ever tough about why it’s not really feasible to live without debt? Money is consumed faster than it can be made. The only thing that keeps the modern world moving forward is trust. Some countries have more , some less and some none.
It was invented from debt!
And interest
@@MM-ig1ivon the spot.
It’s basically 31T ghost money then
I have some government I bonds that I’m disappointing I ever purchased because when I do cash them in, they will be taxed. 🤷🏻♂️
It can not be paid off, what i think is that one day something huge, financially devastating will happen globally and all the debts would be forgiven we start afresh.
Nobody is going to forgive the USA for 31.8 trillion dollars when they crash. It will ruin every country that remains on the basis of using the USD as its form of global currency. Those that choose wisely and join BRICS will not suffer such humiliation and debilitating financial crisis.
The only satisfaction open to countries like mine who will be like the band on the Titanic, is that those of us who are smart and have money invested in another currency will enjoy watching the death of the USD and its torturous role in global hegemony since 1973 as it flounders in its death rolls like a snake in a fire.
We start afresh without a salary.
There is no way to avoid default. It’s just a matter of how. Outright default, or hyperinflation. Prepare accordingly.
After the war, everything will be fixed.
Isn’t debt supposed to be paid back though? They never pay back a single dime, just rack up more debt. How would they go about paying off such a debt? Also, it’s not really a debt if you owe yourself? Whole thing’s so confusing
The debt is consistently paid back to the people that bought the bonds, in our current situation debt continues to go up because new debt is being taken out faster than old debt is being paid off, which just means that the size of future bond payments will go up.
sounds like a ponzi scheme
@@surajgiri3828 it is
You are on the right track, it is NOT a debt if you owe yourself as you can not "owe yourself". All Money is an IOU/debt
Hello, the US National debt is nothing but a record of all the USD the Federal government has spent, not taxed yet which sits in savings accounts. In order to pay back these Treasury bonds, the Fed debits a savings account and credits a checking account thru the use of a keyboard. The National debt = assets for the economy. It functions as our net money supply.
As economist L. Randall Wray sums it here, “if we want our private sector to save, which almost everybody agrees is a good idea, the public sector must run a deficit.” And what happens when the public sector runs a surplus? The US has done so 7 times, and Wray has an answer: “The first 6 of those were followed by our only 6 depressions.” And the 7th was during the Clinton years, which led to a recession in the early 2000s and then a global financial collapse in 2008.
1817-1821 debt paid down & budget in surplus (depression began 1819)
1823-1836 debt paid down & budget in surplus (depression began in 1837)
1852-1857 debt paid down & budget in surplus (depression began in 1857)
1867-1873 debt paid down & budget in surplus (depression began in 1873)
1880-1893 debt paid down & budget in surplus
(depression began in 1893)
1920-1930 debt paid down and budget in surplus
(depression began in 1929
1998-2001 debt paid down and budget in surplus (recession 2001 2008)
@@henrygustav7948 so true so true , when Clinton balanced the budget and made a surplus it sent alot of the world plunging into financial chaos and hell .
This is my own theory but Terrorism against the US was near non existent till Clinton , I'm pretty sure alot of these groups were funded via bonds and suddenly we bankrupted them and they came at us . Zz
Federal reserve prints money to buy the bonds…, this process is crazy when you think about it.
Start think about who is or what is Federal reserve??
The US Central Bank aka the FED is not a "privatized central bank" as stated in 1:57
Here from the FED FAQ:
Who owns the Federal Reserve?
The Federal Reserve System is not "owned" by anyone. The Federal Reserve was created in 1913 by the Federal Reserve Act to serve as the nation's central bank. The Board of Governors in Washington, D.C., is an agency of the federal government and reports to and is directly accountable to the Congress.
The Federal Reserve derives its authority from the Congress, which created the System in 1913 with the enactment of the Federal Reserve Act. This central banking "system" has three important features: (1) a central governing board-the Federal Reserve Board of Governors; (2) a decentralized operating structure of 12 Federal Reserve Banks; and (3) a blend of public and private characteristics.
[...]
Some observers mistakenly consider the Federal Reserve to be a private entity because the Reserve Banks are organized similarly to private corporations. For instance, each of the 12 Reserve Banks operates within its own particular geographic area, or District, of the United States, and each is separately incorporated and has its own board of directors. Commercial banks that are members of the Federal Reserve System hold stock in their District's Reserve Bank. However, owning Reserve Bank stock is quite different from owning stock in a private company. The Reserve Banks are not operated for profit, and ownership of a certain amount of stock is, by law, a condition of membership in the System. In fact, the Reserve Banks are required by law to transfer net earnings to the U.S. Treasury, after providing for all necessary expenses of the Reserve Banks, legally required dividend payments, and maintaining a limited balance in a surplus fund.
When dollar loses its reserve currency status the misic stops for "owning" their own debt and other countries will not be easily convinced to loan them any money...
Now you know what's up in the world 😅
And yet I somehow owe $200 in taxes this year?🤣 I’ve never been in debt of any kind in my life and they want money from me now? Classic🤣
I think we’ll pay it off when we default on our debt
Seeming like the likely option - can we declare chapter 11?
@@ConcerningReality Chapter 11 is to protect someone from lender collecting the money by US authority. No one in the world could come to US and demanding returning the $ with our military muscle to back us up. The only consequence we are facing is nobody would trust us anymore.
Bulk of the debt is owed to the rest of the world. Other countries keep their foreign exchange reserves in US treasury bonds and similar USD instruments.
So why do I get penalized for not paying my debts back?
I can relate that! I always accumulate the debt from credit card by spending future money, borrow from credit card to pay off current debt from current credit card.
You are heading for trouble.
that is ponzi scheme...
Thank God I’m 30 years old and I’ve never touched or been tempted to have a credit card. If I don’t have the money I’m not gonna pay for it simple, even in an emergency I don’t mind living on the bare minimum to get my feet back up. Rather then going in debt for something temporary 🤷🏾♂️
By doing that you are buying time but you are increasing your debt. You are headed for huge financial disaster .
Ponzi style?
This is extremely positive. I thought the national debt was money borrowed to fund ourselves. Now I better understand its effects on the US economy and the spending will destroy us.
There was a lot of words being used but nothing was being said…
Why would anyone think a bond is a good investment when the dollar is guaranteed to inflate by constantly increasing the money supply?
I think foreign governments are smarter than that so I think there’s a little more to it than you explained.
This was a fairly basic background to government bonds and debt. If you’re really curious about why someone would buy bonds in more detail, here’s a good article from Investopedia on treasury bonds as investments: www.investopedia.com/ask/answers/041515/treasury-bond-good-investment-retirement.asp
You can also check out our video on bonds here: ua-cam.com/video/N_0d35JvuO0/v-deo.html
Why would anyone think a bond is a good investment
Because it is the most secure bond in the world.
Increasing the money supply has nothing to do with inflation. Zero, nada, zip, zilch. We are off the gold standard. The money supply expands and contracts every single day. The money supply has increased by record amounts since 2010-2020 and the Fed has been trying to get inflation to 2 percent and they couldn't even do that. So no increasing money supply has nothing to do with inflation.
Inflation is you paying more and someone else getting more. Look to corporate profits in a pandemic and you will be closer to understanding inflation.
@@henrygustav7948 Look up when the us got off the gold standard. It hasn't been on it for years.
@@samuelhorrocks9187 correct since 1933 domestically then 1971 internationally when France tried to demand gold. That is when Nixon ended convertibility completely.
The debt is not important. It's the interest you got to pay on it and that's getting pretty massive now. A trillion a year from memory?
The problem with the debt is that the interest payments are quickly becoming too burdensome to keep paying. Eventually we won’t be able to pay the interest and then we’re finished.
The fact that they never taught us this in school just confirms that school is an absolute joke you literally dont learn anything useful
If everybody was smart & had self worth Who would work low income jobs which is necessary to society It sucks but essential
Interest rate is currently at 4.75%(8th rate hike since March last year) Inflation at 7% and mortgage rates is at over 7.5% but yet minimum wage remains the same and my retirement portfolio has suffered tremendously these past years, so my question is how do senior citizens retire and live off such unstable economy. The long term game is obviously not for me at this point My reserve of $450,000 is being wiped out and I'm saddened that despite investing, I lack the mental capacity to analyze and determine whether now is a good time to buy stocks or not. I honestly don't know what to do at this point; I need reliable market trajectory data.
I'll suggest you find a mentor or someone with experience to guide you especially in this recession.
@@fresnaygermain8180 I agree; for over 17 months, I've maintained regular contact with an investment advisor. Nowadays, it's really simple to invest in trending stocks, but the challenge is knowing when to sell or hold. To support me with entry and departure points, my advisor steps in. Within 18 months, I've accrued almost a million dollars from an originally stagnating reserve of $300K.
@@yolanderiche7476 I've been thinking of going that route, been holding on to a bunch of stocks that keeps tanking and I don't know if to keep holding or just dump them, think you investment coach could guide me with portfolio-restructuring
@@bernisejedeon5888 My advisor "Julia ann finnicum", is a highly respected financial consultant in the industry. For further information or to connect with her, a simple online search with her name will suffice. I wish you every success in your endeavors
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If there's no consequence, every country can print their own money.
The US has enjoyed the privilege of being the worlds reserve currency, which is what allowed the US to print and barrow as much as it does. Most other countries would have collapsed by now.
@@jeffhurtson5211 that's true. But the world had taken this long to realize the inequitable situation, that they had been had.
The debt is estimated to be ~200 Trillions by 2050 with 33 Billions daily payment for interest alone.
They don't.
The fact that there's any debt at all is ridiculous the government should have to balance the budget just like every household and company has to do
And you should get a list (electronic so there's minimal cost) of where the money is going.
Given that the debt problem has the potential to devastate the stock market and cause economic downturns. We must be ready for any turbulence in the market. How can I prevent the decline of my $250K stock portfolio?
I've read that there seems to be a combination of things. The instability is exacerbated by high levels of personal, business, and government debt. It resembles an ideal storm. To assist you in allocating stocks in your portfolio, you should speak with an expert.
The issue is most people have the “I want to do it myself mentality” but not equipped for a crash that comes afterwards. Ideally, advisors are perfect reps for investing jobs and at first-hand experience, my portfolio has yielded over 300%, summing up nearly $1m, since covid outbreak to date
That's really great. I've tried doing some research myself to hire a financial advisor, but it's really overwhelming. Could you recommend who you work with please?
Amber Michelle Smith has always been on the top of my list..She is regarded as a genius in her area and well knowledgeable about financial markets. I highly recommend you look her up if you want excellent collaboration.
Thank you for the recommendation. I'll send her an email and I hope I'm able to connect with her.
The debt will never be paid it’s to high
Get you facts right. The US Treasury has never defaulted on its debt.
The United States Public Debt is a big concern for a lot of people, and they have a right to be concerned, but not for the reasons they believe or have been told. No foreign country controls the majority of our debt, China has no real interest in seeing the US dollar collapse because if our currency fails, theirs fails too.
With that Debt Ceiling so huge,
The only thing I can say is CRAZY,
THE WORLD TRUST NOT THERE
ANYMORE, No more...IF I HAVE
TRILLIANT OF DOLLARS IN MY
POCKET, i would not buy the U.S.
Bond, not EVEN 1CENT, TO SAVE
MY MONEY...
Those numbers are going to infinity ♾ and beyond but what happens if the US pays it all off?
@l , nice .....where do i sign up?
but what happens if the US pays it all off?
Never happen.
wait where do we get money to pay it off
In America, you are either a lender or a borrower but never neither
I'm off grid - I'm a neither...
What does a National Debt Doomsday look like? Or is it like the 2009 Mortgage Crisis? That is, you have to experience it first in order to understand it.
The money we pay in taxes is not put in Ft. Knox to pay bills. It is used by private investors to play with.
My broker is E.F. Hutton, and he says that if you incorporate yourself as an LLC, then check-kiting is no longer a crime!
If there was any intention to pay off debt they won't keep moving up the ceiling 😂
With everything going on right now, the best decision to be on any creative man's heart is having a profitable investment strategy.
Investing is the code for having a successful financial life, investing with the right expert would free you from modern financial slavery.
Investing in crypto now is really cool especially with the current price in the market for now
I have loss severally trying to trade on my own. Can someone tell me the best way to win instead of losing more?
@@lea5898 I strongly advise you against self trading, it's really dangerous and has brought many investors down, you need someone with the right strategies and expertise to do the work for you, I recommend Mr fergus Waylen expertise.
he's really a professional. For this past months, I keep earning $11,800 weekly profit having invested $4,200 and working with him
I have also been trading with him and the profits are secured and over a 100% return on investment directly sent to your wallet.
Lack of trade discipline is the primary reason for in day trade losses. It is estimated that nearly 80-85% of day traders end up losing money in the stock market
Ponzi scheme
You might have added that the federal reserve is actually a private bank.
great video, short and to the point thank you for explaining.
Who owns Israel’s debt?
0:16 oxymoron
So what would happen if the percentage of debt owned by the US was written off, cleared to zero?
If they owe their citizens about a third of the debt, that would be a little over $10.3 trillion. Divide that by how many citizens live in the U.S. (Roughly 332 million people) and you’d get a little over $31,100 per capita. (Not including debts to the Fed, foreign investors or its own institutions obviously) So in a sense, the U.S. government owes each of its citizens $31k. Yet they make us give up 20%-40% of their salary to the IRS so they can spend recklessly on whatever they want with no consequences (at least for the time being) wow…
This game can’t go on forever.
I have always paid my mastercard with my visa cards then paid visa with the discover card then paid discover with the American express. Now i am getting a credit limit increase from master card and starting over. Easy peasy
Is there a limit of how much US can owe ?