@YT_coolking This is what every country does, not only Greece. We say that one does not reimburse a debt, but refinances it. You look for investors to reimburse your debt.
I mean it's a pretty obvious answer. If you have the most money then you're going to spend the most money and take out the biggest loans of anyone else.
i just found this channel and i have to say i think you've created such a great way for young people to learn about the world. your videos are simplistic, realistic, unbiased, while also being funny and attention grabbing. i appreciate your work!
The problem is that Greece doesn't have a currency and needs to ask th EU and the European central bank for money. The EU accepted Greece into the Eurozone, knowing its economic and financial situation. But they still treated it like an enemy after the financial crisis. It is European mismanagement, and Germany is as guilty as Greece is and maybe even more
@@vide-yo3336its 100% on Greece they had hidden the severity of problems to get into the euro zone. Greeks blaming Germany for their situation is crazy
@@ludo2869 If debt was about also killing people Germany would have had more than a 250% WWII is the reason a million greeks died but Soviet lost 3 m people , take into account that the population of Greece was 9 million . Yes more than a 10% of the country died because of the Germans . So if you kill more than 10% of a country You owe trillions . You forgot HISTORY
@@Zhkoulisdebt is not about killing people…. You stemmed your argument from a “if” Edit: Adding to that, the “if” statement does not make sense someone used a single braincell, that’s like saying “if banks are charged with how much people they screw over it’s going to be in the trillions”
For the better part of the 2010s Germany borrowed money for a NEGATIVE interest rate. Lenders payed Germany to lend them their money. Absolute ridiculous. The German Minister of Finance was happy, though.
German economists just adore austerity and classical rightwing economic police’s. Hopefully they change how the euro is ran from a centralised system to a federalised one sometime soon.
they did this because they believed their money was at higher risk in any other assets due to the financial crisis, paying a government notorious for always paying back seemed like a good idea when the alternative was just eating a loss in any other sector.
@@raquetdude Haha, that's a good joke! We currrently have a liberal Finance Minister who's dedicated to the "black zero", meaning that the federal government will basically take no further debt. It's even enshrined within our constitution.
Danish National Bank has done the same since 2008. The cost was of course put on the customers by the regular banks, cause you know, they only care about making shareholders happy.
whole world including the countries that absolutely hates you like Chinese and Russians are more than happy to finance your debt, For usa debt is not much of a problem. USA economy is just on another level altogether. You can double your debt and still be fine. You attract the best talent from around the world with number one in business environment, your contry is open and understanding to new people and ideas for the most part... USA is number one and would prolly be that way as long as the fundamentals of the country dont change or some politician does something rash or something unexpected happen basically to Finish usa, usa needs to something unexceptional. Your sworn enemies like iran and russia would love to be able to finace your debt again but you stopped selling your debt to them (SANCTIONS).
That's a general thing in Germanic languages, in fact if you look at the older translations of the Lord's Prayer in English you will notice it says forgive us our guilt.
When the debt is from your own central bank, it is a little different. Japan has so much debt, but they also have more asset that pays more than the interest they need to pay. Also, Japan has a hidden U.S. dollar asset that they don’t talk about. When Japanese yen was at their highest, Japanese government unofficially printed more yen to buy U.S. dollars. The yen was twice as strong as it is right now. That U.S. currency can be sold at 100% profit. But it is sitting collecting dust as a shadow savings. So the nature of Japan’s debt is so different.
16:20 FYI - Russian default in 2022 was technical - the US officials did not allow payments in USD to go through the intended payment channels. Russia offered payments through other channels, including payments in Roubles at the standing exchange rate. As the payment method was in breach with the securities issued contract it was declared a default, but the goverment was financially stable. Russian debt to GDP is @ approx 15% now, one of the lowest in the world.
True. Russia had plenty of money-including US Dollars-to make the payments on its debt, and the problem was exactly what you described, with US officials barring the payment channels and preventing Russia’s payments from going through to the creditors.
Japan has also managed to live with its debt, because most of its own debt is somehow owed to its own citizens and banks. The upside of this is currency variations don't dramatically change the debt, or the repayments. Argentina, on the other hand, has all of its debt in foreign currencies, so when their Peso drops, their debt gets exponentially worse. It's all pretty confusing.
@@tsubadaikhan6332 "exponentially worse". Why _exponentially?_ It just gets worse (in a geared manner). "Exponential" is so overused and misunderstood by the people using it
A misconception on government debt, Japan's bond are mostly owned by their own citizens while the USA bonds are (30%) by foreign corporations and other nations. Foreign nations holds US bonds as hedge to lower their currency against the US dollar. Most all international trades are transacted through US dollar so all nations needs to manage their currency exchange against the dollar or the dollar will become to high and will make it impossible to commodity like crude oil, various mineral ores, wheat, etc. Japan also holds the most US bonds to keep the Yen managable since Japan buys those commodity using the US Dollars as the transaction currency. As for Japans debt/bond, Japan also holds alot of foreign government bonds/debts and also lends a lot of money through overseas economic/development assistance. In essence you need to look at the government balance sheet to actually see how the actual health of the nations. One more thing, US most largest export items is the US Dollars through US government bonds/debts.
@@pepehimovic3135 No, you're not. There used to be a meme going around on TV screaming "China owns all our debt" (implying that China could control the US). But in reality, China was only the biggest owner within that 30%.
The U.S. economy relies on ongoing credit and debt generation for sustenance. The Federal Reserve is expected to increase the money supply, leading to further debt accumulation for the average American. Meanwhile, foreign nations continue to desire the U.S. dollar, despite their own economies facing significant challenges, some even worse than that of the U.S. This situation raises concerns about who will ultimately bear the consequences of these economic dynamics.
I 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.
When do you expect the fed to increase the money supply? You are just saying that. The Fed has been tightening or reducing the money supply to bring down inflation.
I'm not sure why the title of the video made me think my country (Argentina) would instantly get a shoutout, it's almost as if the economy has been a mess for like a century.
I get that it takes a lot of time to make this, and I want you to take your time and keep a schedule you are comfortable, but I wish you made more videos. I love this content so much. It's actually informative and it seems very unbiased (even jokes hit everyone equally). Your comedy to information to editing is just top notch. You're great
Odds are taking less time to make videos will be detrimental to the quality we all appreciate from his channel. If the video quality stays consistent, let the man take all the time he needs. We do get to watch them for free, afterall.
The Chinese high speed rail isn’t doing too well. The poorer Chinese prefer the regular cheap rail network. The rich Chinese prefer airlines. The high speed rail is making a big loss from what I gather.
@@user-ConnorKaroThompson Everytime I try and copy a link it gets deleted. Just do a search for: “Is China’s high speed rail losing money?” in Google or RUclips. Dozens of articles and videos on the subject.
Japanese debt is often seen as being one of the most significant in the world, but what's also quite forgotten is that their debt is majorly owned by the japanese people themselves which changes a lot of things when it comes to economics and also political decision available to the japanese government. Having a debt can be a problem but the one you're owning this debt to is potentially a even bigger problem (or an advantage in the case of Japan)
It's only an advantage for Japan if it can maintain or increase it's GDP which is a tall order given the population cliff it's about to fall off of. They're going to need to get rid of their strict immigration policy and let more foreigners in to provide a new younger work force like the west does.
@@phillyidiotwithafakeblog Ho yes because it worked so well for us with those pos immigrant all those doctors and engineer sure helped our economy a lot. No Japan will replace its workforce with AI and robots and even if its hard at first they will succeed without losing their identity like us.
It's a good thing that Japan started to open up their border to countless young and skilled workers from various Asian countries like Indonesia, Malaysia, and Vietnam. Hopefully this'll give them a breathing room to fix their elder leaned society so their youth can gradually becoming more aware and involved in their political world more and more
@@javantm1676 The trouble is they still haven't really changed their immigration system. As a foreigner you're still not allowed to get like a green card or become fully naturalized as a Japanese citizen unless you know the right people in the national government. Best you can do is find a company to sponsor you while you work for said company. However, you're stuck at that company and it's really really hard to get a better job with a different one since the first company is the one who sponsors your working visa.
High Speed Rail requires a lot of maintenance if the debt implodes in China HSR will be among the first things to deteriorate as the ability to fund maintenance goes away.
@@flowgangsemaudamartoz7062 Imagine feeling the need to point this out. You must feel really smart. F for economy I am guessing? ;) But yes, if your parents were from the boomer generation and feel the need to squeeze a millennial for some $ they are certainly draconian. But you live under a rock and have no idea how to put it into context so I'll just leave it at that.
16:20 Russia was forced to default by not allowing it to pay back it's debt via Swift.Russia has the lowest debt to gdp among G20 and has no issues paying back it's debts thanks to it's riches.
16:21 is wrong, Russia wasn't allowed to pay off debtors because of the sanctions. Very unfair comparison given that they had the budget and means to pay it but wasn't allowed to because of the sanctions.
"this rail isn't going anywhere" is objectively false. Conditions got so bad in South Africa that average people went out and dug up rails to sell for scrap metal. Infrastructure exists to service an economy, and when that economy disappears, that infrastructure is only worth its weight in materials. If you don't have a job, but own an expensive car, you can't say "well at least I own this car". You'll be in a position where you're forced to liquidate assets to keep going.
The tracks laid in Afghanistan by Britain were dug up and turned into guns by Khyber craftsman. Power lines are constantly stolen and sold for scrap by people in desperation Infrastructure isn't immune to financial collapse
rail isn't going anywhere, unless the entire government changes, the economy doesn't just stagnate but effectively collapses or shrinks significantly (so the rail doesn't really serve a purpose anymore), and the new government fails to maintain order. so yeah, it's objectively false but unless you're South Africa back then or a low income nation before de-colonization or with over-reliance on one industry, you'll probably be fine.
Rails getting salvaged is synonymous with them not being used. Rails being used is correlative to economic propserity due to people and goods being transported around. If I got an expensive car with no job but was using that car for something that still made me money, that car isn't going anywhere.
In Finance I learned that debt is absolutely good when you use it with the intention of future growth, in other words, to increase your income/production. BUT, if you use it to pay for ordinary expenditures such as salaries, pensions, or even more debt, then basically you're screwed.
@@ThomasVWorm Well, it makes money to circulate through the economy, and that itself produces some sort of growth. Remember the pre-2008 crisis period?
That's essentially how it works. However, a nation can absolutely tolerate borrowing for regular expenditures as long as both the borrowing and expending don't impact markets too much. Money is a construct and a pretty flexible one at that. It doesn't really matter how much debt a nation has as long as the real resources and resource potentials aren't utilised.
16:19 I don't remember Russia defaulting. This is just a political label, since the United States has blocked the possibility of debt repayment (sanctions).
As a filipino we were still working our asses off on our debts till the literal Dictator Jr. became our current president, so suffice to say LOVE THE PHILIPPINES!
Growth cures debt, cuts cause debt. Cuts shrink the economy and make your gdp shrink, lower gdp to debt makes being able to pay it off harder over time. Cutting social services to pay for debt only works in the very very short term and at best you destroy your economy like Greece.
I’ve always struggled with learning about securities and international finance-type stuff for some reason, so genuinely thank you for explaining it in such clear and easy to understand terms, h0ser.
Me too. One of the problems is that the financial system changes constantly. After the '29 crash, a bunch of laws were passed so it wouldn't happen again. And it didn't until the crash of the '80s. It's always something new.
19:19 as an Italian, it amazes me how people outside italy (and europe) don't know how bad it is here. Deficit since covid has been 7.5-9.5% yearly of GDP. 140% debt to gdp ratio. One of the most extreme cases of aging population in europe.
Why don’t governments dedicate less of their budget to debt repayment if that’s causing so much trouble? Also, I can tell you as a Haitian that the loans being sent to Haiti disappear. Either the oligarchs fill their accounts or the government flat out steals it for themselves
@@jarry1595 right I figured a government can’t pay back like $10M one year and then $6M the next then $9M the next because that would be confusing. But if 40% of the budget causes issues, can’t they say they’ll pay like 10% of the budget over a certain amount of years or does the IMF require them to pay that much of their budget?
@@alex15095 so they’re required to pay more than a quarter of their budget in order to get a loan? No wonder people hate the IMF. That basically screws any country who takes a loan
That's called raising taxes and it's what countries like japan are doing. You can't cut your loan payments but you can raise more revenue by taxing the population more. The result is a lower percent of the national budget being spent on loan repayment
Heard of Mark Blyth, recommend watching his presentation to Congress. Main takeaway, Growth cures debt while cuts cause debt to increase. (See the US and Eurozone post 2008)
Everything is big here, the military spendings, the width of an average american, the debts, the student loans, medical fees, and an unwillingness to service the common people, instead growing their largest military in the world.
... incarcaration rates, (mass) murder stats, number of executions, opioide misuse, political corruption, number of wars lost against third world nations, number of wars based on officially acknowledged lies, average age of the senile leadership, corrupt lobbyism, religious fanatism akin to the darkages, number of casualties from gun usage of all kind, CO2 emissions per capita, average workhours, ...
@@diedampfbrasse98 not to mention the *unlivable* wages given to mcdonald workers and most low ranking individuals they're big on that and for the middle class, they have to pay ridiculous taxes to the military, the biggest military in the world who on earth needs that big of a fighting force? Nuclear deterrence already got u covered
China is losing money on their high speed rail because people aren't using it. So the cost of maintaining it plus the cost of the interest on the loan used to build it means it was a terrible idea to build so many in the first place.
*More economic downturn* “A bad economy and weak governments meant that the people are a little unhappy.” King Louis XVI: Yeah about that money, when can we get it back? George Washington: Gotta go, best of luck to you. King Louis XVI: Ohhh nooo!
I just wanted to say that I love your channel. I love to learn about these topics but am too lazy to look it up and scrounge though mountains of information. You make these complex concepts easy to understand and you do so in such a funny way. Somehow you make learning about governments and finances fun, how is that possible??
Problem with some of these things is that you need to continue to pay to maintain and use them. Its like borrowing money to buy a Ginormous Hummer. When you run out of money, you might still have that Hummer, but you also need to pay for gas and maintenance - assuming you're going to skimp on insurance - but without gas and paying for maintenance, that Hummer isn't going anywhere. So infrastructure is the same thing. Operating and maintaining them can be expensive, especially if the income from normal operations can't cover the normal operation and maintenance costs - ignoring debt servicing costs.
I do not know who hoser is and never saw one of his videos before. But now I am going to subscribe because this was one of the most informative, entertaining, amusing, and bizzare presentations that I have ever seen on years of watching RUclips. I may even have to contribute to whatever means he has to help him financially... unless he is a multi-millionaire. 😏
@@jp-ui6qgmy Canadian friend lives off of pretty much welfare and he still has a small apartment/flat, to be fair though he has several disabilities so yeah
Should you not mention that most countries hold their debt in USD and that the restructuring imposed favours multinational companies to best extract wealth from these countries whilst keeping them in debt
China has a debt of about 53 trillion according to the world bank. About 23 of that is publicly owned while the rest is owned by the government. Compared to America, only about 6 trillion is owned by the government with the rest being owned by the public.
Where did you get these statistics? China has 23 trillion in “public” debt in actuality mostly owed to local governments, owed to the government, not to the public according to Goldman Sachs
16:13 idk about the other countrys BUT I want to mention that russia default was 1. very little ($1.9 million) and 2. was coused by sanctions (so the money was there yes But russia couldnt pay in dollars bc well sanctions....But the other side (that made the sanctions btw) wanted it in dollars)
Fun fact. Those high speed rails you talked about… they don’t work. When I lived in China 7 years ago the trains were never running. They were something of a joke among the native Chinese. One thing you will notice about China if you live there is everything is cheaply made and I mean EVERYTHING!! Even the cities are at risk of falling apart
"Good Debt make you rich, and bad debt make you poor. Unfortunately many people invested bad debt, and that's why they are poor." - Cashflow 101 (1996 PC game ver.)
An interesting fact when the UKs credit rating comes up . Since the late 70s we had a AAA rating up there with the Swiss and Germans which is understandable given our historical importance in finance and our continued importance (the connector of the outside world to the EU, as a member we had the same benefits as Germany but we had concessions allowing greater freedoms such as fiscal and monetary policy independence from the ECB and EU parliamentary fiscal rules) but since we voted in 2016 for Brexit our rating was lowered to the shown AA because we had voted to get rid of our uniqueness as the global broker for Europe. Just some interesting what’s now economic history :)
very informative video as usual talking about different countries' policies but there's something i didn't get when you explained why debt is not such a bad thing. sure debt softens the blows of unexpected downturns, and it can produce tangible development like infrastructure, and aid in a disaster to prevent humanitarian crises, but every point about why debt repayment is troublesome is not a problem of not having debt, it's about having debt in the first place. having to pay a much larger figure in the future on the backs of future population and as someone very familiar with philippine politics it seems to me debt enables would-be dictators to borrow a lot and let the people pay for it when the dictator is already dead. true that debt is not necessarily bad (and sometimes good) but it seems to me it oftentimes is
Having debt is normal, if a nation goes to war they go into debt and that debt is worth it. Nation has a humanitarian crisis and needs money to help ppl/ infrastructure then they go into debt. The idea of debt is older than currency itself even, it’s normal. Second. Growth cures debt, issue comes when your nation makes it harder than normal to grow due to being a bad place to live, lack of social security, healthcare, national defence, trust in institutions, access to trade routes, people, resources etc. People should never pay majority of the debt rather it should be the wealthiest ppl/institutions/companies.
You're right, mismanaged debt can be very bad. But well managed debt can be very good and that's the risk and tradeoff of taking on debt. For example nobody questions a business taking a loan to expand their business, or a young family getting a mortgage so they have a nice house to live in. There is time value to money and having it now is worth more than in the future. But if you can't pay it back you can end up worse than where you started.
@@raquetdude but you have to grow first, if your grow is by debt you better pray that at least it is sustainable, because it will be extremely easy to just inflate the currency to cover for an ever increasing debt
I think the most accurate measure for a debt's success or failure would be some sort of payback success rate, to measure whether or not investors got back their money.
@@haruhisuzumiya6650 First: who pays for your internet? Second: you are using the internet that was created by the Americans, so there is no way to escape the capitalist system.
What you said about nationalism and scapegoating and the IMF totally describes Tunisia right now. Since the revolution in 2011, the governments have been screwing the economy with populist policies that completely destroyed lots of important sectors. Most importantly energy. We went from close to 100% energy sufficiency in 2010 to about 40% right now. Not sure if this number is correct but I've heard that 70% of our loans go to import energy. Our government went to the IMF 3 times, I think, since 2011. The last time, we were refused the loan so what did our politicians say ? The IMF is a western entity whose job is to ruin people's economies (scapegoating and a denial of failures of our past policies and incompetence of our leaders) and then our president concluded with "We will rely on ourselves" (literally 5:02)
I really want to see if the world can attempt some form of "debt untangling." Something along the lines of "ok, I owe you 2.3b and you owe me 2.4b, so let's just say you owe me 0.1b and call it a day." It'd probably solve a shitload of accounting headaches.
"Greece is a BB+" Not anymore... And the same agency said in its report it would urgently further upgrade it if the accelerate debt reduction continues, as the 210% to 145% reduction has been made. The graph at 15:15 is no longer accurate
Remember that the money from loans which governments take out are usually stimulate the economy, like with the infrastructure projects that h0ser mentioned. So ultimately, that debt that we have to pay back, is offset by the benefits from a better GDP
Nope. It's a form of slavery. "Stimulating the economy" means that you buy something you can't afford, so that the borrower can get a slice from your profits. Nothing guarantees that the GDP will grow more than the interest. If it doesn't, too bad, you are still paying the interest. Nothing stops recessions from happening. Nothing stops people from getting unemployed. Nothing stops the exports from falling or the mines depleting. But you are still paying the interest. What are you going to do? Increase taxes. Sell government property. Outsource government services. Interest is a parasite that EVERYONE is paying, one way or the other.
Thank you for being there MYSTICFLIP when I wanted you to..... I was lost in this new world that I was hassled to start with ....you not only guided me along the way but you also showed me the proper way....whatever little I have been able to achieve in life is because of you today ..... I want to thank you for being there and showing me the proper way of doing thing for me you are my best guide as you truly showed me the way to life....once again , I would like to tell you a heartfelt thanks for being there.
The problem with debt being high is this: Every dollar you are NOT spending on interest is another dollar you could save for the emergency fund, infrastructure, education, etc. When the Interest on the debt is allowed to be added to the next year, it compounds. If allowed to go too far, 100% of your budget will be interest on debt, nothing else. Debt is nothing but a leech sucking-dry the public coffers (when not paid back immediately.)
I'd argue that your debt to GDP ratio isn't nearly as important as how fast that ratio grows If a country were to reduce its GDP ratio from 200% to 150%, that country would probably be considered more trustworthy (and therefore more likely to refinance its debt) than a country which saw its GDP ratio grow from 50% to 100% in the same time frame Which is why I'd say that my country Argentina is right now the country with the worst performance, because debt (both local and foreign) has skyrocketed in the past decade
It's also using GDP because it is the biggest number the economists can think of. It implies the entire GDP is there sitting waiting to be used to pay off the debt. That is far from the truth. In reality debt should be measured in terms of tax income - just like your own personal debt would be, or the debt of a corporation. That would make the US look really bad however, since the federal debt is huge compared to federal income - that's because the federal budget is only about 50% of the total government budget with the rest being with the individual states and cities.
It's like you said; it all comes down to whether or not you can pay it back. High speed rail, healthcare, and various other things can be really great, but if a country can't pay it back it's eventually going to default. If you're interested in learning a bit more about how this stuff actually works on a higher level, I can't recommend Heresy Financial enough. The dude there is insanely good at breaking down all the different parts of how this stuff works (Central banks, national debt, what actually happens when you default, etc), and once you understand all the pieces the big picture makes much more sense. Basically, this type of stuff is why the Gold standard and not practicing fractional reserve banking are so important. With gold, a country can only borrow from their central bank as much as the amount of gold they have in reserve. Without some kind of standard to tie your currency to, the only thing that controls how much you can borrow is political will, and we all know how that goes.
Yeah, but as you may have noticed, you also need the political will to stay on the gold standard.... Anyway, It makes absolutely no sense to have huge amount of gold held in reserve, sitting there doing nothing most of the time. It's misuse of public funds.
Glad you touched on the positive aspect of debt (And how it can go bad). A good analogy I always use is: There's a extremely large difference between a $800,000 debt that you use to pay off your home loan (I'm Australian, housing prices are wild), and a debt that's $800,000 from gambling. Most countries in the world (Including my own) are analogous to the former. Good video.
@oysteinsoreide4323 It is stupid. human rights apply for all humans so what does gender equality truly mean or what does it really stand for other than a misguided branch of the humanitarian movement?
@@datuputi777 no, it is not stupid. Unfortunately women don't have the same rights as men in many places. And some places they don't even get an education. You need of course other movements for other human rights issues.
@@oysteinsoreide4323 i believe in relative eqaulity rather than absolute eqaulity. absolute eqaulity= women work in 50% of construction jobs and given same workload(currently only a few pecentage work in construction, mostly in higher paying positions), 50% women play in mens sports and 50% of men play in women sports, 50% of women work and 50% of women do hosuehold chorse by law, or both men and women work but percentage must be equal. vs you work in the feilds that you are qualitfied in (aka women work in positions that require less physical strength(please dont say that it bias that women are weaker its biology), but more do take on teaching roles)
Greece has been able to turn things around for the past few years,its national debt has dropped from more than 200% to 171% and its GDP is expected to grow by 2,7% each year
That's basically what I did when I was broke. I just went to the store and payed with credit card to be able to withdraw some cash and then went to the bank and deposited it again to pay off my last card bill. And well it got worse and I ended up paying my arse off because of that interest charges.
That is a smart idea and would force a decision between raising taxes, spending levels or taking on debt so a proper decision would need to be made rather than kicking the can down the road.
You should do a new video about MYSTICFLIP ! I really like you’re mellow delivery and you seem like you’re very knowledgeable. I watch lots of influencers and you always seem very calculated and know exactly what you’re talking about and understand it. You’re better at explaining complicated things simply, than any other person on youtube keep it up brother!
to be clear, the rating agencies that put triple A on countries debt are the same that put triple A on the funds that were full of subprime mortgages in 2008. We all know how that went.
Well, one of the main reasons on why Argentina has a massive debt is because the money that they borrowed was used for public works, but the politians (manly from the political party called "Peronistas") that issued those works would take the money that was not used, for themselves and not putting it back into the national reserve. That's why the Kirchner family have so much money and the country don't.
When referencing corporate America, he said “They don’t really care about you as they make it seem” realest thing he said...I’ve seen experienced it first hand in the DMV. Black ppl aren’t really respected in corporate America. Glad that he was able to get out of there and become his own boss MYSTICFLIP
no, its an example of good debt management, youre just BSing. the original constructions were made on high-demand routes where HSR could cut travel times and costs, and could reliably pay back their interest and turn a profit. that was good debt management. the "debt trap" issue is more recent, with provincial governments trying to copy that and build lines that can't currently turn a profit or even pay back the interest on the loan. thats why they've been told to stop building low-traffic lines and have been limited on the debt they can take.
China is one big Potemkin village. Just look up tofu dreg project, and you can see the quality of infrastructure China has. One very recent example, China finished a underwater tunnel then less than a week after opening the tunnel China closed the underwater tunnel because its flooded with seawater. China looks bright and shiny in the pictures and videos, but the reality is much more grime and depressing. China spends a lot of money on propaganda.
Paying back loans with more loans is like getting a car and when it breaks down you buy another car to replace the parts on your old car but now you have a new car that doesn’t work yay.
![Seungmin "그렇게, 천천히, 우리(As we are)" | [Stray Kids : SKZ-PLAYER]](http://i.ytimg.com/vi/kAzmhLHePqU/mqdefault.jpg)
100,000,000,000,000*
Big number.
😳
oui
@@Zidan07166 for real
basically amount money for groceries you need in Zimbabwe
By borrowing money to pay a past debt you can understand how desperate Greece's economy is
Thats what every country does tho. Even my country, Germany, which is considered to be rich and prosperous does that
AAA Canada does that every years
Filling up buckets on a sinking boat
@YT_coolking This is what every country does, not only Greece. We say that one does not reimburse a debt, but refinances it. You look for investors to reimburse your debt.
Average EU4 gameplay be like
Love how you immediately cut to the chase and said the answer is the US.
I mean it's a pretty obvious answer. If you have the most money then you're going to spend the most money and take out the biggest loans of anyone else.
@@ThwipThwipBoom I have a lot of debt, but no money 😥😥
“American sized” debt 🇺🇸🇺🇸🦅🦅
Americans are number 1 in everything, even the not so great stuff
@@mysteryuser7062 USA USA USA!!!
@@mysteryuser7062aint that the truth. we jus always have to be at the top of the damn list.
Thanks for breaking this complex issue down so well. I guess you could say… I’m in your debt
bro 😭
Great now national debt is raised even more
Get out
The unfunny… it hurts
Bend over.... I'm a -booty collector- debt collector
i just found this channel and i have to say i think you've created such a great way for young people to learn about the world. your videos are simplistic, realistic, unbiased, while also being funny and attention grabbing. i appreciate your work!
it's difficult to understand complex world events from all the mixed media and perspectives.
Yow my country Philippine choose the wrong president again bubongmarkos
Fire pfp @@beavis4664
The perfect sum of compliments. This is remarkable content.
420th 👍
Europe: "Hey Greece can we get our money back?"
Greece: "NUH UH"
The problem is that Greece doesn't have a currency and needs to ask th EU and the European central bank for money.
The EU accepted Greece into the Eurozone, knowing its economic and financial situation. But they still treated it like an enemy after the financial crisis. It is European mismanagement, and Germany is as guilty as Greece is and maybe even more
@@vide-yo3336its 100% on Greece they had hidden the severity of problems to get into the euro zone. Greeks blaming Germany for their situation is crazy
Its even said in the video 15:18 smh
@@ludo2869 If debt was about also killing people Germany would have had more than a 250% WWII is the reason a million greeks died but Soviet lost 3 m people , take into account that the population of Greece was 9 million . Yes more than a 10% of the country died because of the Germans . So if you kill more than 10% of a country You owe trillions . You forgot HISTORY
@@Zhkoulisdebt is not about killing people…. You stemmed your argument from a “if” Edit: Adding to that, the “if” statement does not make sense someone used a single braincell, that’s like saying “if banks are charged with how much people they screw over it’s going to be in the trillions”
For the better part of the 2010s Germany borrowed money for a NEGATIVE interest rate. Lenders payed Germany to lend them their money. Absolute ridiculous. The German Minister of Finance was happy, though.
German economists just adore austerity and classical rightwing economic police’s. Hopefully they change how the euro is ran from a centralised system to a federalised one sometime soon.
they did this because they believed their money was at higher risk in any other assets due to the financial crisis, paying a government notorious for always paying back seemed like a good idea when the alternative was just eating a loss in any other sector.
@@raquetdude Haha, that's a good joke! We currrently have a liberal Finance Minister who's dedicated to the "black zero", meaning that the federal government will basically take no further debt. It's even enshrined within our constitution.
@@donaldmcronald2331no Depth untill the car industry needs another highway recomstruction at least
Danish National Bank has done the same since 2008. The cost was of course put on the customers by the regular banks, cause you know, they only care about making shareholders happy.
#1 in debt because we’re always number one RAAAHHH 🦅🦅🦅🦅🦅
We don't lose weight because we never lose.
"Yo, khaled I don't see you lose weight. Because I don't lose all I do is win"
yes but lowering spending can easily reduce gdp increasing debt to gdp it is about sustainability not fiscal orthodoxy.
whole world including the countries that absolutely hates you like Chinese and Russians are more than happy to finance your debt, For usa debt is not much of a problem. USA economy is just on another level altogether. You can double your debt and still be fine. You attract the best talent from around the world with number one in business environment, your contry is open and understanding to new people and ideas for the most part... USA is number one and would prolly be that way as long as the fundamentals of the country dont change or some politician does something rash or something unexpected happen basically to Finish usa, usa needs to something unexceptional. Your sworn enemies like iran and russia would love to be able to finace your debt again but you stopped selling your debt to them (SANCTIONS).
@@sen4784 yo all im saying is austerity bad
This is why in Germany the word "Debt" translates to "Schuld", a word that also literally means "guilt" :D
Same in Sweden, here we even say "jag står i skuld till honom" which means, "Im guilty to repay him" gives it more dramatic conotations.
Same here in the Netherlands.
That's a general thing in Germanic languages, in fact if you look at the older translations of the Lord's Prayer in English you will notice it says forgive us our guilt.
So are you Schultz enough? 👁️👃👁️
Same with Afriaans
Skuld means debt and guilt
When the debt is from your own central bank, it is a little different. Japan has so much debt, but they also have more asset that pays more than the interest they need to pay. Also, Japan has a hidden U.S. dollar asset that they don’t talk about. When Japanese yen was at their highest, Japanese government unofficially printed more yen to buy U.S. dollars. The yen was twice as strong as it is right now. That U.S. currency can be sold at 100% profit. But it is sitting collecting dust as a shadow savings. So the nature of Japan’s debt is so different.
16:20 FYI - Russian default in 2022 was technical - the US officials did not allow payments in USD to go through the intended payment channels. Russia offered payments through other channels, including payments in Roubles at the standing exchange rate. As the payment method was in breach with the securities issued contract it was declared a default, but the goverment was financially stable. Russian debt to GDP is @ approx 15% now, one of the lowest in the world.
True. Russia had plenty of money-including US Dollars-to make the payments on its debt, and the problem was exactly what you described, with US officials barring the payment channels and preventing Russia’s payments from going through to the creditors.
As a greek when i saw the title i knew the video would mention Greece 😅
As a German I knew it as well
German here, i instantly knew it was gonna mention you (i want my money back)
@@omnissiah7859 on behave of all germans, I agree with this message. Give us our money back
I am not a German but still give me monnie
Guys chill its jot that much
Remember that money is just a placeholder for debt and US debt is one of the most desirable global assets with Japan holding the most of it
Japan is the foreign country that owns the most US debt (1.1 trillion). Most of the US's debt is owned by its own citizens + corporations.
Japan has also managed to live with its debt, because most of its own debt is somehow owed to its own citizens and banks. The upside of this is currency variations don't dramatically change the debt, or the repayments. Argentina, on the other hand, has all of its debt in foreign currencies, so when their Peso drops, their debt gets exponentially worse. It's all pretty confusing.
@@tsubadaikhan6332 "exponentially worse". Why _exponentially?_ It just gets worse (in a geared manner). "Exponential" is so overused and misunderstood by the people using it
Why is it desirable?
You mean credit
A misconception on government debt, Japan's bond are mostly owned by their own citizens while the USA bonds are (30%) by foreign corporations and other nations.
Foreign nations holds US bonds as hedge to lower their currency against the US dollar.
Most all international trades are transacted through US dollar so all nations needs to manage their currency exchange against the dollar or the dollar will become to high and will make it impossible to commodity like crude oil, various mineral ores, wheat, etc.
Japan also holds the most US bonds to keep the Yen managable since Japan buys those commodity using the US Dollars as the transaction currency.
As for Japans debt/bond, Japan also holds alot of foreign government bonds/debts and also lends a lot of money through overseas economic/development assistance.
In essence you need to look at the government balance sheet to actually see how the actual health of the nations.
One more thing, US most largest export items is the US Dollars through US government bonds/debts.
Am I missing something? 100%-30% = 70% American-owned bonds, I.e. mostly owned by their own citizens as well
@@pepehimovic3135 No, you're not. There used to be a meme going around on TV screaming "China owns all our debt" (implying that China could control the US). But in reality, China was only the biggest owner within that 30%.
The U.S. economy relies on ongoing credit and debt generation for sustenance. The Federal Reserve is expected to increase the money supply, leading to further debt accumulation for the average American. Meanwhile, foreign nations continue to desire the U.S. dollar, despite their own economies facing significant challenges, some even worse than that of the U.S. This situation raises concerns about who will ultimately bear the consequences of these economic dynamics.
I 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.
Her name is “Vivian Carol Gioia” can't divulge much. Most likely, the internet should have her basic info, you can research if you like
The US basically has a get out of jail free card, as they can control the inflation of USD which is what everyone uses to finance debt.
I think you specifically should bear the consequences
When do you expect the fed to increase the money supply? You are just saying that. The Fed has been tightening or reducing the money supply to bring down inflation.
I’ll take on all the debt of every country guys don’t worry
I.. declare.... bankruptcy!!!
The one we need but don't deserve
My hero! 😍
I already see a MrBeast video where he pays back the debt if some African country
@@talosgak1236Lol. Mr would buy a planet for a video if he could.
I'm not sure why the title of the video made me think my country (Argentina) would instantly get a shoutout, it's almost as if the economy has been a mess for like a century.
History student here.
In fact, we have been 200 years in debt
There is even a book about it.
Peron
🏆🏆🏆
Chainsaw man
I get that it takes a lot of time to make this, and I want you to take your time and keep a schedule you are comfortable, but I wish you made more videos. I love this content so much. It's actually informative and it seems very unbiased (even jokes hit everyone equally).
Your comedy to information to editing is just top notch.
You're great
Odds are taking less time to make videos will be detrimental to the quality we all appreciate from his channel. If the video quality stays consistent, let the man take all the time he needs. We do get to watch them for free, afterall.
@@schuckdaddy1318 Yeah, for sure.
The Chinese high speed rail isn’t doing too well. The poorer Chinese prefer the regular cheap rail network. The rich Chinese prefer airlines. The high speed rail is making a big loss from what I gather.
Yes that makes sense
sources?
@@user-ConnorKaroThompson
Everytime I try and copy a link it gets deleted.
Just do a search for: “Is China’s high speed rail losing money?” in Google or RUclips.
Dozens of articles and videos on the subject.
@@user-ConnorKaroThompson I think he might have experienced that
@@N.asper02 Cancer dog get you fifteen times more cance than you and me
I’d kill for a video just showcasing all of the different animals you use for these videos xd
Japanese debt is often seen as being one of the most significant in the world, but what's also quite forgotten is that their debt is majorly owned by the japanese people themselves which changes a lot of things when it comes to economics and also political decision available to the japanese government.
Having a debt can be a problem but the one you're owning this debt to is potentially a even bigger problem (or an advantage in the case of Japan)
It's only an advantage for Japan if it can maintain or increase it's GDP which is a tall order given the population cliff it's about to fall off of. They're going to need to get rid of their strict immigration policy and let more foreigners in to provide a new younger work force like the west does.
@@phillyidiotwithafakeblog Ho yes because it worked so well for us with those pos immigrant all those doctors and engineer sure helped our economy a lot.
No Japan will replace its workforce with AI and robots and even if its hard at first they will succeed without losing their identity like us.
It's a good thing that Japan started to open up their border to countless young and skilled workers from various Asian countries like Indonesia, Malaysia, and Vietnam. Hopefully this'll give them a breathing room to fix their elder leaned society so their youth can gradually becoming more aware and involved in their political world more and more
@@AB-dd4jz show us on the doll where the Indian doctor hurt you bruh.
@@javantm1676 The trouble is they still haven't really changed their immigration system. As a foreigner you're still not allowed to get like a green card or become fully naturalized as a Japanese citizen unless you know the right people in the national government. Best you can do is find a company to sponsor you while you work for said company. However, you're stuck at that company and it's really really hard to get a better job with a different one since the first company is the one who sponsors your working visa.
High Speed Rail requires a lot of maintenance if the debt implodes in China HSR will be among the first things to deteriorate as the ability to fund maintenance goes away.
Chinese debts to themselves don’t matter
This whole video is very superficial
@@leonardotheuseless4188 It really is, but views I guess
if "debt implodes in China" i think they and the world economy will have some bigger issues to deal with than maintenance of domestic HSR...
Yeah so does maintenance for the US military equipment. In reality that's what people pay for when they buy a country's debt.
H0ser: Here's something a little controversial... debt can be really good
Me losing hair over my debt issues to my mother: WHAT!!!!
Debt to your parents? Lol my parents were drug addicts but I cant imagine having such bad parents.
@@SevenTheMisgiven Maybe they want to teach him a bit about financial responsibility, ya dingus.
@@SevenTheMisgiven Or they're just draconian narcissists.
@@flowgangsemaudamartoz7062 Imagine feeling the need to point this out. You must feel really smart. F for economy I am guessing? ;)
But yes, if your parents were from the boomer generation and feel the need to squeeze a millennial for some $ they are certainly draconian. But you live under a rock and have no idea how to put it into context so I'll just leave it at that.
Did you sign an official paper for that debt, if so were you forced to do so?
16:20 Russia was forced to default by not allowing it to pay back it's debt via Swift.Russia has the lowest debt to gdp among G20 and has no issues paying back it's debts thanks to it's riches.
If that's how debt is calculated, then my house mortgage is an abomination.
Takes 6 years of my total annual salary for the house 💀
in Arg it takes.. well you can never buy a house with an average income.. the end
hoser is the only "political" channel I watch
Economics Explained is a another really good "political" channel for this kind of stuff
@@ThwipThwipBoomeconomics explained can be kinda unreliable sometimes Money & Macro and Unlearning Economics are better
@@ThwipThwipBoomhe's notoriously incorrect and biased. Literally has videos correcting him xd
@@lifeunderthestarstv nah
@@ThwipThwipBoom Don't take it personally. Lot of his stuff is suspect, as has been pointed out numerous times.
16:21 is wrong, Russia wasn't allowed to pay off debtors because of the sanctions. Very unfair comparison given that they had the budget and means to pay it but wasn't allowed to because of the sanctions.
"this rail isn't going anywhere" is objectively false.
Conditions got so bad in South Africa that average people went out and dug up rails to sell for scrap metal.
Infrastructure exists to service an economy, and when that economy disappears, that infrastructure is only worth its weight in materials.
If you don't have a job, but own an expensive car, you can't say "well at least I own this car". You'll be in a position where you're forced to liquidate assets to keep going.
The tracks laid in Afghanistan by Britain were dug up and turned into guns by Khyber craftsman.
Power lines are constantly stolen and sold for scrap by people in desperation
Infrastructure isn't immune to financial collapse
Dug up abandoned rail*. Nobody's going to try touch electrified high-speed rail.
rail isn't going anywhere, unless the entire government changes, the economy doesn't just stagnate but effectively collapses or shrinks significantly (so the rail doesn't really serve a purpose anymore), and the new government fails to maintain order. so yeah, it's objectively false but unless you're South Africa back then or a low income nation before de-colonization or with over-reliance on one industry, you'll probably be fine.
Rails getting salvaged is synonymous with them not being used. Rails being used is correlative to economic propserity due to people and goods being transported around. If I got an expensive car with no job but was using that car for something that still made me money, that car isn't going anywhere.
In Finance I learned that debt is absolutely good when you use it with the intention of future growth, in other words, to increase your income/production. BUT, if you use it to pay for ordinary expenditures such as salaries, pensions, or even more debt, then basically you're screwed.
@@ThomasVWorm I don't know dude. It's not "my" economy it's just the way it is. Besides, the scenario you're suggesting is very unlikely
@@ThomasVWorm Well, it makes money to circulate through the economy, and that itself produces some sort of growth. Remember the pre-2008 crisis period?
@@ThomasVWorm Yes
That's essentially how it works. However, a nation can absolutely tolerate borrowing for regular expenditures as long as both the borrowing and expending don't impact markets too much.
Money is a construct and a pretty flexible one at that. It doesn't really matter how much debt a nation has as long as the real resources and resource potentials aren't utilised.
16:19 I don't remember Russia defaulting. This is just a political label, since the United States has blocked the possibility of debt repayment (sanctions).
You're one of my favorite creators on RUclips, your style is so fun and informative keep it up brother!
As a filipino we were still working our asses off on our debts till the literal Dictator Jr. became our current president, so suffice to say LOVE THE PHILIPPINES!
He is making a national wealth fund. Even though PH has perpetual trade deficit and there isn't a surplus to even manage. Spoiler: its corruption.
People voted for Bongbong, though. Free and fair, I guess.
Growth cures debt, cuts cause debt.
Cuts shrink the economy and make your gdp shrink, lower gdp to debt makes being able to pay it off harder over time.
Cutting social services to pay for debt only works in the very very short term and at best you destroy your economy like Greece.
@@danielkelly2210more like dumb and dumber.
That’s because you’ve been a vassal state with limited sovereignty since 1900.
H0ser just doesn't miss. Every video is a banger from start to finish
What a unique and creative comment
incorrect. Russia never defaulted on its debt in 2022. US sabotaged the financial system blocking Russia's payment. So it should be US who's defaulted
We have to ask tho, who are they paying debt to?? Were does the money originate from? The Fed? Did you know that the Fed is privately owned
To bond holders and other governments :facepalm: take off the tin-foil hat
I’ve always struggled with learning about securities and international finance-type stuff for some reason, so genuinely thank you for explaining it in such clear and easy to understand terms, h0ser.
Me too. One of the problems is that the financial system changes constantly. After the '29 crash, a bunch of laws were passed so it wouldn't happen again. And it didn't until the crash of the '80s. It's always something new.
Argentina: Well... finally the last economic crisis is over
Also Argentina 5 seconds later: *Yet another economic catastrophe*
Here in the U.S, everything is bigger. Even our debt.
We don't lose weight because we never lose 🦅🦅🦅🦅🦅
YOU SAID IT BROTHER 🦅🦅🦅🇺🇸🇺🇸🇺🇸🇺🇸🇺🇸🦅🦅🦅🇺🇸🇺🇸. Now lemme get 5 dollas on the diesel and a 20 dolla scratcher
19:19 as an Italian, it amazes me how people outside italy (and europe) don't know how bad it is here. Deficit since covid has been 7.5-9.5% yearly of GDP.
140% debt to gdp ratio. One of the most extreme cases of aging population in europe.
Why don’t governments dedicate less of their budget to debt repayment if that’s causing so much trouble? Also, I can tell you as a Haitian that the loans being sent to Haiti disappear. Either the oligarchs fill their accounts or the government flat out steals it for themselves
There are requirements to pay back your debt in consistent amounts
@@jarry1595 right I figured a government can’t pay back like $10M one year and then $6M the next then $9M the next because that would be confusing. But if 40% of the budget causes issues, can’t they say they’ll pay like 10% of the budget over a certain amount of years or does the IMF require them to pay that much of their budget?
I believe that's called defaulting
@@alex15095 so they’re required to pay more than a quarter of their budget in order to get a loan? No wonder people hate the IMF. That basically screws any country who takes a loan
That's called raising taxes and it's what countries like japan are doing. You can't cut your loan payments but you can raise more revenue by taxing the population more. The result is a lower percent of the national budget being spent on loan repayment
Incredibly excellent video. I work in government and do a LOT of financing with it so this was interesting.
Heard of Mark Blyth, recommend watching his presentation to Congress. Main takeaway, Growth cures debt while cuts cause debt to increase. (See the US and Eurozone post 2008)
parasite
Work in government, counting flies ? Sure you do kid. Sure.
@@DefensiveDriver100% parasite
@@DefensiveDriver Wow, rude much!
Luxembourg. Yes, it's just Luxemburg.
Everything is big here, the military spendings, the width of an average american, the debts, the student loans, medical fees, and an unwillingness to service the common people, instead growing their largest military in the world.
... incarcaration rates, (mass) murder stats, number of executions, opioide misuse, political corruption, number of wars lost against third world nations, number of wars based on officially acknowledged lies, average age of the senile leadership, corrupt lobbyism, religious fanatism akin to the darkages, number of casualties from gun usage of all kind, CO2 emissions per capita, average workhours, ...
@@diedampfbrasse98 not to mention the *unlivable* wages given to mcdonald workers and most low ranking individuals
they're big on that
and for the middle class, they have to pay ridiculous taxes to the military, the biggest military in the world
who on earth needs that big of a fighting force? Nuclear deterrence already got u covered
You talk too fast! But you do a great job of putting things into CONTEXT. Which shows how important (or unimportant) those things are. Good work!
China is losing money on their high speed rail because people aren't using it. So the cost of maintaining it plus the cost of the interest on the loan used to build it means it was a terrible idea to build so many in the first place.
It's not useless lol
People can now travel faster than walking in china
The ccp is helping people to get to their destination easily
Which USA don't really do that
Plus they don't even have a train
Well in new York but that train is old
@@cocaineminor4420 The CCP did a good thing, but they over did it.
*More economic downturn* “A bad economy and weak governments meant that the people are a little unhappy.”
King Louis XVI: Yeah about that money, when can we get it back?
George Washington: Gotta go, best of luck to you.
King Louis XVI: Ohhh nooo!
*executed*
@HeisenbergIsHereAAAAAAAAAAAAA
“But when a man with a silly mustache came and said that he can fix everything, the people loved him!”
I just wanted to say that I love your channel. I love to learn about these topics but am too lazy to look it up and scrounge though mountains of information. You make these complex concepts easy to understand and you do so in such a funny way. Somehow you make learning about governments and finances fun, how is that possible??
Problem with some of these things is that you need to continue to pay to maintain and use them. Its like borrowing money to buy a Ginormous Hummer. When you run out of money, you might still have that Hummer, but you also need to pay for gas and maintenance - assuming you're going to skimp on insurance - but without gas and paying for maintenance, that Hummer isn't going anywhere. So infrastructure is the same thing. Operating and maintaining them can be expensive, especially if the income from normal operations can't cover the normal operation and maintenance costs - ignoring debt servicing costs.
crap, it was only $8 trillion last time I checked
I’m still mad I was messing around in kindergarten in 2008… should’ve just started real estate😒
I do not know who hoser is and never saw one of his videos before. But now I am going to subscribe because this was one of the most informative, entertaining, amusing, and bizzare presentations that I have ever seen on years of watching RUclips. I may even have to contribute to whatever means he has to help him financially... unless he is a multi-millionaire. 😏
he is Canadian, so being a multi-millionare just means he can afford rent
@@jp-ui6qgmy Canadian friend lives off of pretty much welfare and he still has a small apartment/flat, to be fair though he has several disabilities so yeah
Should you not mention that most countries hold their debt in USD and that the restructuring imposed favours multinational companies to best extract wealth from these countries whilst keeping them in debt
Yeah well countries should be more responsible than. There is no such thing as free money
@@TheKeendark yet another person who has no idea what they are talking about nor do they know about lend lease
@@TheKeendark Ukraine paid with cannon fodder. Zelensky is now billionaire in just 1 year.
@@robertjonker8131they’re pretty much forced to take foreign aid or face violent consequences lmao
@@TheKeendark No shit there like stuck on a conflict against a massive army
As an 11B, I have ZERO problems with the American government's debt, as, it keeps me employed.
so it all boils down to
"An economy can have some debt, as a treat"
and we all know that treats are fine in moderation, right?
I just wanted to let you know how excited I got when I saw you posted a new video dude 😂
China has a debt of about 53 trillion according to the world bank. About 23 of that is publicly owned while the rest is owned by the government. Compared to America, only about 6 trillion is owned by the government with the rest being owned by the public.
Where did you get these statistics? China has 23 trillion in “public” debt in actuality mostly owed to local governments, owed to the government, not to the public according to Goldman Sachs
@@bigbrothersinnerparty297 My bad. I got the statistics mixed up
@@The_WhiteSilver China's public debt-to-GDP is at around 90%, while the US public debt-to-GDP is at around 123%
Incredible video, thank you for teaching us so much in such a fun way.
16:13
idk about the other countrys BUT
I want to mention that russia default was
1. very little ($1.9 million)
and
2. was coused by sanctions (so the money was there yes But russia couldnt pay in dollars bc well sanctions....But the other side (that made the sanctions btw) wanted it in dollars)
Fun fact. Those high speed rails you talked about… they don’t work. When I lived in China 7 years ago the trains were never running. They were something of a joke among the native Chinese. One thing you will notice about China if you live there is everything is cheaply made and I mean EVERYTHING!! Even the cities are at risk of falling apart
Wow the deception is real. I was travelling in China back in 2019 and I sure as hell used it to travel great distances.
"Good Debt make you rich, and bad debt make you poor. Unfortunately many people invested bad debt, and that's why they are poor."
- Cashflow 101 (1996 PC game ver.)
An interesting fact when the UKs credit rating comes up . Since the late 70s we had a AAA rating up there with the Swiss and Germans which is understandable given our historical importance in finance and our continued importance (the connector of the outside world to the EU, as a member we had the same benefits as Germany but we had concessions allowing greater freedoms such as fiscal and monetary policy independence from the ECB and EU parliamentary fiscal rules) but since we voted in 2016 for Brexit our rating was lowered to the shown AA because we had voted to get rid of our uniqueness as the global broker for Europe. Just some interesting what’s now economic history :)
The rating had nothing to do with our ‘uniqueness” 😂
I rake a lower rating then become what happened to France sweden germany Spain full of middle eastern men
very informative video as usual talking about different countries' policies but there's something i didn't get when you explained why debt is not such a bad thing.
sure debt softens the blows of unexpected downturns, and it can produce tangible development like infrastructure, and aid in a disaster to prevent humanitarian crises, but every point about why debt repayment is troublesome is not a problem of not having debt, it's about having debt in the first place. having to pay a much larger figure in the future on the backs of future population
and as someone very familiar with philippine politics it seems to me debt enables would-be dictators to borrow a lot and let the people pay for it when the dictator is already dead.
true that debt is not necessarily bad (and sometimes good) but it seems to me it oftentimes is
Having debt is normal, if a nation goes to war they go into debt and that debt is worth it. Nation has a humanitarian crisis and needs money to help ppl/ infrastructure then they go into debt. The idea of debt is older than currency itself even, it’s normal.
Second.
Growth cures debt, issue comes when your nation makes it harder than normal to grow due to being a bad place to live, lack of social security, healthcare, national defence, trust in institutions, access to trade routes, people, resources etc.
People should never pay majority of the debt rather it should be the wealthiest ppl/institutions/companies.
You're right, mismanaged debt can be very bad. But well managed debt can be very good and that's the risk and tradeoff of taking on debt. For example nobody questions a business taking a loan to expand their business, or a young family getting a mortgage so they have a nice house to live in. There is time value to money and having it now is worth more than in the future. But if you can't pay it back you can end up worse than where you started.
@@bobboberson8297 and that is exactly why the government shouldn’t be allowed to go into debt.
@@raquetdude but you have to grow first, if your grow is by debt you better pray that at least it is sustainable, because it will be extremely easy to just inflate the currency to cover for an ever increasing debt
@@asonofliberty3662 Did you even read what I said, I argued that debt is useful
I think the most accurate measure for a debt's success or failure would be some sort of payback success rate, to measure whether or not investors got back their money.
It almost seems as though capitalism is a system that struggles to sustain itself
Well, it certainly did a better job than socialism. lol
@@dyawrmarket socialism is better
@@haruhisuzumiya6650 First: who pays for your internet? Second: you are using the internet that was created by the Americans, so there is no way to escape the capitalist system.
"You earn money by not paying" - USA, probably.
And this kids, is what we call Economic Warfare. Fun shit. Thanks hoser!
Great work
What you said about nationalism and scapegoating and the IMF totally describes Tunisia right now. Since the revolution in 2011, the governments have been screwing the economy with populist policies that completely destroyed lots of important sectors. Most importantly energy. We went from close to 100% energy sufficiency in 2010 to about 40% right now. Not sure if this number is correct but I've heard that 70% of our loans go to import energy. Our government went to the IMF 3 times, I think, since 2011. The last time, we were refused the loan so what did our politicians say ? The IMF is a western entity whose job is to ruin people's economies (scapegoating and a denial of failures of our past policies and incompetence of our leaders) and then our president concluded with "We will rely on ourselves" (literally 5:02)
Dude I love your videos. Always a great time. Gonna go buy some japanese bonds now.
You should have discussed how rapid credit expansion can lead to economic booms and then subsequent busts, and in turn higher debt
Every day is a good day when hoser uploads
I really want to see if the world can attempt some form of "debt untangling."
Something along the lines of "ok, I owe you 2.3b and you owe me 2.4b, so let's just say you owe me 0.1b and call it a day."
It'd probably solve a shitload of accounting headaches.
Not really
"Greece is a BB+"
Not anymore... And the same agency said in its report it would urgently further upgrade it if the accelerate debt reduction continues, as the 210% to 145% reduction has been made. The graph at 15:15 is no longer accurate
And how much of it is just digital numbers and not physical cash?
Remember that the money from loans which governments take out are usually stimulate the economy, like with the infrastructure projects that h0ser mentioned. So ultimately, that debt that we have to pay back, is offset by the benefits from a better GDP
Nope. It's a form of slavery. "Stimulating the economy" means that you buy something you can't afford, so that the borrower can get a slice from your profits. Nothing guarantees that the GDP will grow more than the interest. If it doesn't, too bad, you are still paying the interest. Nothing stops recessions from happening. Nothing stops people from getting unemployed. Nothing stops the exports from falling or the mines depleting. But you are still paying the interest. What are you going to do? Increase taxes. Sell government property. Outsource government services.
Interest is a parasite that EVERYONE is paying, one way or the other.
Thank you for being there MYSTICFLIP when I wanted you to..... I was lost in this new world that I was hassled to start with ....you not only guided me along the way but you also showed me the proper way....whatever little I have been able to achieve in life is because of you today ..... I want to thank you for being there and showing me the proper way of doing thing for me you are my best guide as you truly showed me the way to life....once again , I would like to tell you a heartfelt thanks for being there.
thank you for fast answer. no clickbait.
He wasted no time 😂😂
This channel is pure gold.
The problem with debt being high is this: Every dollar you are NOT spending on interest is another dollar you could save for the emergency fund, infrastructure, education, etc. When the Interest on the debt is allowed to be added to the next year, it compounds. If allowed to go too far, 100% of your budget will be interest on debt, nothing else. Debt is nothing but a leech sucking-dry the public coffers (when not paid back immediately.)
I'd argue that your debt to GDP ratio isn't nearly as important as how fast that ratio grows
If a country were to reduce its GDP ratio from 200% to 150%, that country would probably be considered more trustworthy (and therefore more likely to refinance its debt) than a country which saw its GDP ratio grow from 50% to 100% in the same time frame
Which is why I'd say that my country Argentina is right now the country with the worst performance, because debt (both local and foreign) has skyrocketed in the past decade
It's also using GDP because it is the biggest number the economists can think of. It implies the entire GDP is there sitting waiting to be used to pay off the debt. That is far from the truth. In reality debt should be measured in terms of tax income - just like your own personal debt would be, or the debt of a corporation. That would make the US look really bad however, since the federal debt is huge compared to federal income - that's because the federal budget is only about 50% of the total government budget with the rest being with the individual states and cities.
WHat i wonder is why argentine selected a liberal president while they were already suffering
@@micahsarm They elected a liberal president because they don't want their country to become Venezuela
It's like you said; it all comes down to whether or not you can pay it back. High speed rail, healthcare, and various other things can be really great, but if a country can't pay it back it's eventually going to default. If you're interested in learning a bit more about how this stuff actually works on a higher level, I can't recommend Heresy Financial enough. The dude there is insanely good at breaking down all the different parts of how this stuff works (Central banks, national debt, what actually happens when you default, etc), and once you understand all the pieces the big picture makes much more sense. Basically, this type of stuff is why the Gold standard and not practicing fractional reserve banking are so important. With gold, a country can only borrow from their central bank as much as the amount of gold they have in reserve. Without some kind of standard to tie your currency to, the only thing that controls how much you can borrow is political will, and we all know how that goes.
Yeah, but as you may have noticed, you also need the political will to stay on the gold standard....
Anyway, It makes absolutely no sense to have huge amount of gold held in reserve, sitting there doing nothing most of the time. It's misuse of public funds.
Glad you touched on the positive aspect of debt (And how it can go bad). A good analogy I always use is: There's a extremely large difference between a $800,000 debt that you use to pay off your home loan (I'm Australian, housing prices are wild), and a debt that's $800,000 from gambling. Most countries in the world (Including my own) are analogous to the former. Good video.
Yep it seems like anything else money spent on stupid shit like gender equality will be death of all.
@@datuputi777 gender equality isn't stupid. Unfortunately it is still necessary. And I can't see the relevance. It was gambling vs house loan .
@oysteinsoreide4323
It is stupid. human rights apply for all humans so what does gender equality truly mean or what does it really stand for other than a misguided branch of the humanitarian movement?
@@datuputi777 no, it is not stupid. Unfortunately women don't have the same rights as men in many places. And some places they don't even get an education. You need of course other movements for other human rights issues.
@@oysteinsoreide4323 i believe in relative eqaulity rather than absolute eqaulity.
absolute eqaulity= women work in 50% of construction jobs and given same workload(currently only a few pecentage work in construction, mostly in higher paying positions), 50% women play in mens sports and 50% of men play in women sports, 50% of women work and 50% of women do hosuehold chorse by law, or both men and women work but percentage must be equal.
vs
you work in the feilds that you are qualitfied in (aka women work in positions that require less physical strength(please dont say that it bias that women are weaker its biology), but more do take on teaching roles)
Greece has been able to turn things around for the past few years,its national debt has dropped from more than 200% to 171% and its GDP is expected to grow by 2,7% each year
7:25 yo that bounce back on Covid is way impressive
That's basically what I did when I was broke. I just went to the store and payed with credit card to be able to withdraw some cash and then went to the bank and deposited it again to pay off my last card bill. And well it got worse and I ended up paying my arse off because of that interest charges.
I think American debt ceiling should be expressed as a % of yearly budget spent on servicing that debt
That is a smart idea and would force a decision between raising taxes, spending levels or taking on debt so a proper decision would need to be made rather than kicking the can down the road.
10:45
It's not going to unbuild this railway
*Meanwhile in Japan*:
This is a very educational informal yet formal video and i honestly dont know
you are underrated bro.....brilliant content
You should do a new video about MYSTICFLIP ! I really like you’re mellow delivery and you seem like you’re very knowledgeable. I watch lots of influencers and you always seem very calculated and know exactly what you’re talking about and understand it. You’re better at explaining complicated things simply, than any other person on youtube keep it up brother!
In a timeline where Pablo Escobar became president and managed to launder that money as that president, would've been crazy.
to be clear, the rating agencies that put triple A on countries debt are the same that put triple A on the funds that were full of subprime mortgages in 2008. We all know how that went.
Well, one of the main reasons on why Argentina has a massive debt is because the money that they borrowed was used for public works, but the politians (manly from the political party called "Peronistas") that issued those works would take the money that was not used, for themselves and not putting it back into the national reserve.
That's why the Kirchner family have so much money and the country don't.
The real question rather then does debt matter is Debt Worth the trouble.
The answer is yes and no depends of what you have saved as a backup.
the "oh shi-" at the end got me 😂
When referencing corporate America, he said “They don’t really care about you as they make it seem” realest thing he said...I’ve seen experienced it first hand in the DMV. Black ppl aren’t really respected in corporate America. Glad that he was able to get out of there and become his own boss MYSTICFLIP
Stop victimizing black people 😂 they got the same opportunity as everyone else
China's HSR is also a giant debt trap so I wouldn't be using them as a example of good debt management
no, its an example of good debt management, youre just BSing. the original constructions were made on high-demand routes where HSR could cut travel times and costs, and could reliably pay back their interest and turn a profit. that was good debt management. the "debt trap" issue is more recent, with provincial governments trying to copy that and build lines that can't currently turn a profit or even pay back the interest on the loan. thats why they've been told to stop building low-traffic lines and have been limited on the debt they can take.
China is one big Potemkin village. Just look up tofu dreg project, and you can see the quality of infrastructure China has.
One very recent example, China finished a underwater tunnel then less than a week after opening the tunnel China closed the underwater tunnel because its flooded with seawater.
China looks bright and shiny in the pictures and videos, but the reality is much more grime and depressing. China spends a lot of money on propaganda.
There’s been talk/debate about canceling the national debt just like the student loan debt because there is no way it’ll be paid
By whom? Nobody serious.
Student loan debt is debt issued by the government, not to the government. It is not remotely comparable.
Paying back loans with more loans is like getting a car and when it breaks down you buy another car to replace the parts on your old car but now you have a new car that doesn’t work yay.
A question I never knew I wanted an answer for.