Why The US Won't Pay Down Its $33 Trillion Debt
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- Опубликовано: 1 июл 2024
- The U.S. is $33 trillion in debt. As government spending, interest rates and fears of a recession continue to climb, I noticed why the US won’t pay down its debt and why it even doesn't care.
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00:00 Start here
00:19 Why does the US owe $33 trillion in debt?
01:56 This more important than national debt
03:18 Why the US doesn't care about its debt
07:10 What's the point of taxes then?
09:06 What's the point of bonds then?
11:01 Why the US won't pay off its debt
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China got a way bigger problem. Not only debt but also no high tech and no FREEDOM
I define my own currency, back it with nothing, tell you that it's worth something because I say so, and promise to pay you with that currency for your services. If you think that I'm losing any sleep over my mounting debt to you, you're not paying attention.
This is why I'm not freaking out over $500k of non-real estate debt. Ok, I'm a little freaking out.
It's backed with a gun.
Until people say I’m no longer playing by your stupid rules
@@enemyofYTemployeesBRICS
and if not accept my currency then I will give you a 'democracy'
It should be noted that modern economic theory is highly debated not just in politics but also by ecomicists. I personally believe only the US as of today can get away with it and only because it's on top of the great power leader... So do you really want the US to fully embrace something it can't afford to use forever assuming the US falls from the top?
What is even worse is the enormous size of it's annual deficit.
4:04
Stop fighting it, man. Let it go. It's over.
😂😂😂😂😂
MMT is nonsense. If not for its reserved currency status, the USD would have hyper-inflated to worthlessness long ago. This unfair advantage is not victimless will not last forever. De-dollarization is already happening and will complete in our lifetime. Without the reserve currency status, try printing your way out of debt. You don’t have to be an economist to see where that’d lead.
The part about Greece is not correct. Greece can issue its own currency, like any euro member with government bonds. Interest rates on government bonds have risen dramatically due to economic and political crises. This interest on government bonds could no longer be serviced, which led to a near insolvency. Greece does not owe money to the European Union, but to banks that hold its government bonds. Greece had no debt to the EU. The EU cannot lend money. For your video, better use Argentina, which is actually indebted in foreign currency, instead of Greece.
If you are right then why are countries all over the world rushing to de-dollarize?
The debt is what the U.S. sells
Ponzy scheme 😅
Which many are now avoiding.
@@leezhieng A ponzi scheme actually
This is really well made. You give me hope for my new RUclips channels. Keep up the great work Vincent!
So everything is good until other countries stop buying our bonds and using the $ as currency. When in Rome ...
good channel. thanks
Can't fix debt without fixing the spending first. The four year cycle ensures this will never happen.
National debt ignore state and municipal debts.
Ask yourself how much inflation has reduced the size of the debt in the past few years.
It grew
Great example with Italy, please do next video with 5 countries that their debt get too high
You can't properly have money that doesn't have productivity. I think you missed the entire reason why they tax. It's to capture real productivity.
9:03 That's an odd view of it as if it was true why have fedal taxes at all on persons and why be so uptight with getting them? Like all the things you've listed are state taxes not federal ones... So why not just tax states if true? Which by the way taxes are the primary income for the US of A and is why it's the richeces country on earth despite the dedt and spending...
It’s not the richest country because government collect taxes 😂 😂. Government spending isn’t even close to the largest number in gdp, so that’s not the reason why we are the richest. It’s a combination of thing, the largest weight being the private sector consumption and capitalism.
Thanks for an informative video Vincent. Basically, as long as all the key actors keep the illusion alive, it will be ok. I highly recommend The Ascent of Money by Niall Ferguson for an insightful gallop through the history of money.
It's OK for internal circulation as long as Americans accepts it as payment.
It's not OK if foreign countries refuse to accept as payment for imports of goods into USA.
The US will have to pay down its debts soon or later especially de-dollarization is rapdly taking shape. Imagine the scenario of hyper-inflation when all the extra USD make their way back to US because no countries want them.
how much is the official Chinese debt to gdp ratio ?
Less than 77% according to IMF
Assuming anything from China or the IMF is to believed.
about 70 percent, but by the way they also have the largest stock of money in the world, somewhere around 4 trillion dollars
Latest: they loan USD to Argentina 1-month bonds at 8.5% per month, highly lucrative! Keep printing, keep earning…
5:44 That isn't it though as you need to be a njation as great as the US is curntly to get away with it on scale a nation like zemboway didn't and China and Russia can't ethetier... Itally likely etheir did not have as much dedt or had outside help from the UN or EU.
WIT
We will close at 34 T this year
RUclipsr: Proceeds to talk about modern monetary theory and how the debt doesn't matter because the US is the US.
Me: Thinking about how the most powerful countries in the past also thought they could be in debt and not have to worry.
IT IS ABOUT PEOPLE, not about money. If the best start leaving, what happens? :)
War with debtors seem to be the only answwer 😂😂😂😂😂
i saw potential in subbing to this channel until he said to watch another video for an explanation at the end
By promoting a different video on a new topic, like every RUclipsr ever?
Yes, but if the bond is worthless because inflation went up 100+% it might as well default.
Taxes of cigarettes or going to city in carbon fueled vehicle and cbdc social score
Im living on tax free credit lines.
As of 02/06/24 we have 34 trillions. This cideo.was made 2 month ago and we made 2 trillion more in debt.
At this rate, US debt will be 170% debt to GDP ratio by end of this year. Easily hit 180% by next year which is the same rate as Greece.
Won't or can't?
The way I see it US cannot pay off its debts even if it wants to. That why they having this fight in the Congress over increasing the debt ceiling.
Long way to go to get to 180% debt to GDP like Greece 2011. Maybe by 2033 we'll be there though.
That's only true if the debt increases in a steady increment. However, US debt increased by $1 trillion in just 3 months back in June 2023 - Sep 2023, from $32 trillion to $33 trillion. Just for your info the US debt already reached $34 trillion back in January. It's so fast this video from 2 months ago already seem like outdated. It will probably be $40 trillion by end of this year, which is 170% debt to GDP ratio. Next year will exceed 180%.
How to pay it off? Just print money?
Congratulations on hyper inflation
Someone has to buy the debt as bond, but currently everyone is avoiding US bond.
After de dollarization Usa will pay 😂😂😂
One big rip-off. My game is my rules
How are there 4500 views but 13000 likes ?
Does that not sound fishy?
there aren't 13000 likes
@@VincentChan then there is a bug, just checked again, it still showes 13k likes 5000+ views
By the way we entered the current reccesstion in 2019 and will likely exit it into a golden age somewhere between 2025-2030... Which yes most have only started to catch on this year... But it's very true if you look at the facts... Which about that goldened age it will likely happen because of the rest of the world pretty much having a abd time... wars both normal and civil, depressions and actual government colapsises not where they get a new leadership in... Which leaves the US to just pick and choose what to do during that time when it's just fine.
😂. We are entering a new Great Depression not a golden age you 🤡
If I can just tell my bank the same: "Hey I have 20k in debt, but it doesn't really matter". Nah American is so well manipulating it's citizens that they'll save themselves at the cost of tax payers every time
RENT CONTROL NOW ABOLISH LEASE
Cause it can’t period
Opt out
This video will go viral
This is really excellent stuff. It also reminds me that I think of cryptocurrency as a foreign currency but with no country backing it; backed by nothing. I really like your material.
Backed by burning electricity actually. Burning electricity and trust or no trust, usually crypto can’t determine if they want to trust one another or not.
dont look at me - im part time !!
The government really can't and shouldn't pay it all back. That doesn't mean we should continue to increase it, but the economy would grind to a halt if all of a sudden treasury bonds stopped being available for purchase. Something like 70% of U.S. debt is held by U.S. nationals and corporations. We owe it to ourselves.
Also, it's unconstitutional for the government to default due to the 14th Amendment.
😂As if the government cares about the constitution. They wipe their ass with it everyday.
Trust me the constitution will be like trash when hyperinflation hits.
Where did Trump go with the $8 trillion he blew through in 4 years? Some want him back in office; hell NO. 😬😡👿
They don't care...but I do....I'm 33 thousand in debt..lol
So what's the point rambling a lot without any conclusion, ? Are you saying U.S all those debt are doesn't matter congrats to lead more misleading information to Americans.
😯🇺🇲 can print more $ 😁😁😁😁
👏👏🇧🇷🇷🇺🇮🇳🇨🇳🇿🇦➕️👍👍✌️✌️
About five minutes in, you realize that you're listening to the intellectual equivalent of AOC.
Nobody pays anything that they don't have to
The US Government doesn’t have “Debt” cause we don’t borrow USD from anyone cause USD is our own sovereign currency that we can create at will.
The “Deficit Calculator” with that huge number isn’t counting our debt…. It’s merely a calculation for how much the FED has put into our economy vs the amount they have extracted from us. It’s a calculating of how much has been extracted from the US Economy😮💨💯
Pay it down lol fu@k it just keep printing it nobody's paying any way you take a 100 case of booze and selll it for 50 😂
Do not forget to mention SS payments! Thats a lot more!!!!