What Happens If The U.S. Can’t Pay Its Debt?
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- Опубликовано: 8 май 2024
- The recent debt ceiling standoff gave a glimpse into how catastrophic a federal default would be for the U.S. economy. While a bipartisan agreement is the easiest solution to the crisis, there are other possible solutions to breaking the standoff, including a $1 trillion coin that has gained traction in recent years. So what exactly would happen if the U.S. government fails to raise the debt ceiling, and can a $1 trillion coin really put a stop to the crisis?
Despite the short-term deal struck between the Republicans and the Democrats in early October, the debt ceiling crisis is far from over.
Congress needs to decide by Dec. 3 if the U.S. government will raise the debt ceiling or default on its loans. But there are other possible solutions besides bipartisan agreement.
The debt ceiling can also be raised by a process known as budget reconciliation. First introduced in 1974, this process can expedite the passage of certain tax, spending and debt-limit legislation. What would otherwise require a 60-vote majority in the Senate to pass would only require 51 votes or 50 votes plus the vice president as the tie-breaker.
“The reason they’re hesitant to do that is that it forces them to specify a dollar amount raised to the debt limit,” American Enterprise Institute senior fellow Phillip Wallach said. “If Democrats move through reconciliation, they’ll have to stick a number into that law and that number is likely to be over $30 trillion now. So they’re worried about the way that looks and the way voters will judge them for that.”
Other solutions are more radical. The president can raise the debt ceiling using the 14th Amendment, which states that “the validity of the public debt of the United States, authorized by law … shall not be questioned.”
But other experts warn that using the 14th Amendment could potentially lead to a constitutional crisis.
“Congress has made it really clear through their actions over the past years that they consider it in their purview to raise the debt ceiling,” Brookings Institute senior fellow in economic studies said. “If the president were to say ‘no, no, no, it’s under my purview to raise the debt ceiling’, you create a crisis about powers of the executive branch versus powers in Congress.”
Then there is the idea of minting a trillion-dollar coin which was first introduced during a similar crisis in 2011. The Federal Reserve generally determines when and how much money the Treasury Department can print. But some scholars have identified a law from 1997 that allows the Treasury secretary to mint and issue platinum coins in any denomination and quantity.
The effectiveness of implementing such a coin is up for debate.
“It’s not a way to assure the governments of the world and the world economy that. we are in fact as risk-free as we’re supposed to be,” Vanderbilt University law professor Yesha Yadav said. “But in the absence of other solutions, it’s certainly a plausible way forward.”
However, AEI’s Wallach warned that, “the fact that it strikes people as so outlandish is not just a small flaw. It’s a real problem because the Treasury Department depends on the confidence of global investors and of the American people. And if it seems to be playing strange games, it could seriously erode that confidence.”
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What Happens If The U.S. Can’t Pay Its Debt?
The trillion dollar coin solution sounds like a solution only an entire high school would come up with.
It sounds like something out of the simpsons
@@stephennorth9529 👍👍👍
That's 2 much credit I would say like junior high maybe
Trump will called this 1 Trillion USD coin his Art of the Deal.
Straight out of The Simpsons. But that was a trillion dollar bill, which sounds even less outlandish than a trillion dollar *coin*
The 1 trillion coin sounds like Zimbabwean dollar or Venezuelan Bolivar
And that's why America is in the state it's in. Financial illiteracy on a national scale. How do you then expect those same people who can't balance their own bank books to vote someone in who can. Please. The whole system is a joke and should be treated as such.
@@TheFalseShepphard Statists will never do that. The US is a military junta, and it won't end until the US is no more.
Not really as they can just simply fight wars to continue borrowing
@@TheFalseShepphard unlikely, especially when they have to compete with Chinese military advancement. Since both Republican and Democrat have unfavorable view towards China, last thing they drastically cut back would be military spending.
@@mkay9988 They have another strategy, Keep printing the Dollar and hope China, Japan and HK keep buying their Debt.
And on another side keep Crapping on China which is good for poll numbers, and seems this strategy is working.
I like how the conversation isn't about reducing the amount of debt we can take on but rather how high we can raise it
Well rasing the debt ceiling is a easy short term solution. Reducing our debt as a country a lot harder than just rasing the debt ceiling.
Remember every time you or someone you know was angry at billionaire entrepreneurs for some of their billions? Yeah, the government printed 20000 billion in the meantime. You were bamboozled by the media to be distracted from the fact the government was printing literally infinite money behind your back. Time to start holding the government accountable for its crimes.
Government borrowing money from fed and then taxing the people haha
I agree. If this is how serious we are about that, then why do I even pay taxes?
Most of the country's debt is to its own people. So, there's not much risk with borrowing more & more over time.
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So the debt ceiling has no ceiling. That’s all y’all had to say 🙎🏾♀️🤦🏾♀️
This is true for many other countries, why not us?
A home with no roof will get rained in.
The Debt Ceiling is the next Leap Of Faith which only the USA, the Chosen ONE, can preach to the global community in Good Faith. Denying the existence of an Open-Ended Debt Ceiling will be considered a cardinal sin of the US imposed global order.
@@christopherhamm3181 because you are not argentina christopher
@@donhuang9855 nah, bitcoin its already knocking the door, the faith leap its towards the electronic gold.
Don't fret, the debt ceiling always goes up. I wonder if 2008 crisis survivors had it easier. I'm concerned about the stock market, I've lost $35,000 this month, and my income is down. Worried I won't save enough for retirement as I can't add to my savings.
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Thank you this amazing video! 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.
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@@veniceblackwood2931 scam
I have this $1 trillion coin.
Rick Harrison: *sigh* $5 and i'm taking a risk.
RICK BE LIKE i dont even know if i will be making any profit here , it is gonna sit on shelf for years
Let me call a friend of mine that knows a lot about hyperinflation and have him take a look at it.
@@GeneralChangOfDanang hahaha we all are on a roll here ask rick dad if he want the coin in silver i heard he is a fan of silver
Rick: I don't accept funny money...
@@ecognitio9605 🤣🤣🤣
Why should the debt ceiling even exist if they're gonna keep increasing it anyway
Manage perception
Hyperinflation happening near you
Initially is to make sure USA doesn't get too much debt, now it's a political weapon against opposing party.
True that
Because World War I.
It was something useful back then. That was never removed after the war.
Now it’s a political football
Economic collapse, death spirals, depression level unemployment, hyper inflation, global recession, and basically the collapse of human civilisation on the basis of simple time series analysis at the level of a first year introductory undergraduate macroeconomics unit. Although the English economy is set on a post-Brexit path of long-term decline, the world economy is in better shape than Dr Doom suggests.
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My greatest worry is, how do we recover from all these economic and global troubles? Especially with the political power tussle going on in the united states.
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Wow, I'm a bit perplexed, seeing Sherryl been mentioned here also. Didn't know she has been good to so many people.
Ah yes! The old “using the credit card to pay the credit card bill” trick!
what could possibly go wrong
yeah that's what you get for stealing our gold in Philippines Murica
Shame a household doesn't get to print its own money which it uses as a worldwide barter system otherwise it would be a slam dunk of an analogy.
Debt is 28.6 trillion you could cut it to zero in 5 years if you wanted to
They are just printing "trillion" on a piece of metal.
A coin that is ACTUALLY $1 trillion worth of Platinum would be 10 feet thick and over 100 feet in diameter.
It's like using a child's drawing of your credit card to pay your credit card bill.
It's like maxing out your credit card and then increasing your credit limit to make you feel rich. The issue will rise when you can't even make minimum monthly payment to WTO
Just called Chase Bank. Told them I can’t pay back my maxed out credit card, to raise my limit instead.
Lmfao they did they same to me
Yes because macro and micro economics are one and the same
Many creditors did exactly that last year.
Yaaaassssss
i hope you have also spent the past few decades telling your employer to pay you less because you dont think you want to take their money.
We should spend within our means but we should also tax at a rate that covers our needs.
Imagine picking up a coin on the street and it’s worth 1 trillion dollars. I’d buy Australia as a private island.
I get what ur saying, but Australia isn’t worth 1 trillion :p
Bitcoin is kind of like that if you grabbed them in 2010 :)
Joke's on you, it's full of British prisoners!
Genius idea as usual, well done america
@@Milky_Nguyen 2 trillion
The fact the idea of a $1 trillion dollar coin is being entertained really explains why we are in this mess in the first place
None of the last 4 Administrations have addressed this issue, when we do default, both Parties will be to blame. And who pays, the Middles class!
The middle class is disappearing
@Capitalist Pig You should revitalize old solutions for bankers commiting fraud - look up how they were treated when population actually held elites accountable.Suddenly solutions for economy to get better would be miracolously discovered.
The 1% contribute 46% of the government sending while the bottom 50% contribute 2% as they are the same people receiving more from the government. Private business contribute 85% of usa economy with government contribute 15%
Because people like you supported the hollowing of the tax base. You live in a world where billionaires don’t need to pay taxes because the IRS physically lacks the budget to audit someone that might need thousands of auditors and lawyers to audit.
what middle class? there is no more middle class
So why can't the government just get a better job? Or move in with it's parents?
And if the debtors come knocking, the US should just turn off the lights and pretend were not home
Who exactly are you talking about
Who are the debators and why exactly would they come knocking ?
Thats the stuff theres no debt collector thats why theres so much debt
@@egyptnz27 it sounds like he is satirizing the libertarian idea that governments should be run like households.
US knocks on England's door. Hey, I'm moving in to your basement. Send down some pizza rolls.
The LARGEST holder of US debt is us. The American citizen.
Every financial goal requires patience, Dedications and Consistent spirit knowing That investment is currently the most lucrative business in the world, both NFT , Real estate and crypto shares are really positively changing people's lives.
Easy way to build wealth for the next all generation is to consistently invest in trade , and watch them grow ?
It quite interesting to know over 97% of the billionaires we know are all secret investor in crypto, that were they grow their billion dollar portfolio ?
Majority of the people are unaware,and careless, when it comes to trading. Despite the fact that it should be the best way to watch your money grow?
@@piersmorgan64 Bitcoin doesn't always assures winning, the ability to make profit off your capital is what makes you win.. Stop relying on the market price to make profit. Choose trading ?
I truly agree with you on that, I must say trading is the future and with the way Bitcoin is growing, it's really advisable for people to trade now.
You know we are in trouble when the cheerleaders at CNBC are warning us.
We must borrow in order to pay our debt. The definition of a Ponzi scheme.
the real scheme is the dollars they borrow the fed prints out of thin air. The fed doesn't actually have an account full of idle dollars.
Borrow? Borrow from who? We're the only ones who print the dollar bill.
The central banks have been running there Ponzi scheme since 1913 printing IOUs called federal reserve notes I vote for default
Come on, we all know that US is never going to repay this debt.
The U.S needs inflation in order to pay this high debt because they can pay this fixed number with a cheaper dollar
Unless it finds an asteroid filled with rare earth elements, probably worth in the quadrillions, and brings it back to earth
@@Mansmokesalot yes but they don't need to, it's just "debt". If they care about their reputation they can do some “adjustments”
They only need to make the interest payments, like a credit card
Aluminum Oxide And I think they are working on that. They also plan on going back to the moon someday, so perhaps Helium-3 could be mined.
What needs to be done is cut unnecessary spending, negotiate for better prices from the city to the federal levels & not accumulate anymore debt.
The south will never use again
@@alecgurney9305. I presume you want the 1 trillion dollar coin to be minted?
And no more interest
@@farhanpatwary9345. Yup. Usury is evil.
@@jona.3809 I presume your parents are brother and sister?
I'm not a fiscal conservative but a $30 trillion debt scares the living hell out of me.
Better start spending less and less, Congress.
Anyone who doesn't find it scary is an idiot. Which, sadly, is the majority of the population.
Your house of cards won't hold up forever.
The next financial crisis won’t necessarily bring America to her knees.
The **response** to the next crisis may.
When met with the next fiscal crisis, politicians will face a figurative fork in the road. They can turn back to sound fiscal policy and free market principles, or charge headfirst into socialist like rule. My guess is they’ll do the latter.
- universal basic income
- direct price controls of goods and services
- nationalizing banks
- direct government control over the federal reserve
- taxing unrealized gains
- wealth caps
The list goes on.
The next crisis won’t necessarily in and of itself bring down the house of cards, the response may.
These politicians have been playing hot potato for a long time now, but it's got to explode. 💥 🤯💀
@@djmayna87 Let the streets run red. This corrupt nightmare must be destroyed.
If this "house of cards" fails, there will be a lot more victims in the world than just Americans
If things keep going like they are, the Trump cult TRAITORS will either start another civil war or attempt another coup to create their fascist dictatorship anyways...
The rest of the world should get ready to destroy us because if you know history, the Nazis were coming out of a deep depression and started making weapons only a few years before invading Poland. Imagine what they would have done with our military budget and hardware ...
The trillion dollar coin sounds like something you find in a Simpsons episode.
It was a 1 trillion dollar bill, if I remember correctly. Homer Simpson and Mr Burns stole it from the US government somehow and flew it to Cuba where it was taken from them by Fidel Castro. This all actually happened in an episode of The Simpsons.
@@patrickhanlon932 madness.if it happened in the simpsons its only a matter of time before it happens in reality...
Cool
In other words, our government is more of a joke than a Simpsons episode....
@@c4call if I may add... Just stick to the rule of law. All the special coin needs is for Congress to direct the government to legislate: That this special coin (just define what) is worth 1, 5, or 10 (up to POTUS to say) trillion USD. It is like printing money. Who decides how much, what denomination, etc... Does it matter? Simple Economics 101 stuff!
"I used the debt to destroy the debt. The ceiling is now gone, reduced to atoms."
thanos spotted
It nearly killed me.
Bro I can see the way the golden light, thank you everyone I can fight my way forward
The kids are in charge of our home’s finances. My favorite quote is “One goes into debt slowly, and bankrupt all of the sudden”
A US debt default is a matter of when not if without major reforms of mandatory spending
It's like when water freezes.
@@danielsteel9757 It might be good for us comon folk. Serious without being able to endlessly print and spend your savings in your countries currency will have some stability.
if bankrupt then voila no more debt to worry
@l , thank you
Yes the US can borrow $28 trillion that doesn't exist yet I overdraft $80 and my bank is at my throat..noice👍
Fo real😂😂
just make a $80 coin silly.
@@TheWhitefucks Lolll🤣
While this is a funny comment let me tell you that you could do what the U.S. does and ask for credit from someone else. Let's say you ask your boss to pay you early. You could pay off your bank debt and now you're in debt to your boss. Now let's say your boss needs a credit from the bank and gets 80 usd from the bank to pay you those 80 usd. The money just changed hands and you'll still be in debt. But this time, to your boss until you're able to work those 80 usd. That's basically what's happening.
Remember every time you or someone you know was angry at billionaire entrepreneurs for some of their billions? Yeah, the government printed 20000 billion in the meantime. You were bamboozled by the media to be distracted from the fact the government was printing literally infinite money behind your back. Time to start holding the government accountable for its crimes.
Normally, the US gets an inflation of 2-3% and grows 2-3% every year in GDP. This actually helps down melt down the significance of debt (money is worth less so old debts are easier to pay).
This allows the US government to borrow pretty much endlessly - as long as the US economy doesn't stagnate like Europe or Japan.
Most people venture into crypto to be wealthy,meanwhile I just want to be debt free.
Success doesn't happen overnight.
It's a marathon, not a sprint. You have to pace yourself, put in the work, and be consistent day in and day out if you want to achieve your goals.
You are right, to be a successful person in life require him or her of hard work and time
Invest in one of these!
Real estate
Crypto
Stock
Gold
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Talking about been successful. I know I am blessed if not I wouldn't have met someone is as spectacular as Anna S Wilson
The fact it's on the table is insanity.
proof that america is slowly declining and failing so bad bye murica
It's on table because treasury knows that it doesn't hold any actual value but a perceived value. This is a cop out mechanism at best. We talk about China manipulating their currency this is the same thing. Future generations will never know why their currency was devalued. Moving away from Gold standard was a mistake
@@cu7695 Can't agree more. Bring back the gold standard.
Strange how continuing to pay the dept obligations but reducing gov spending was never considered here as a solution! ;)
Just put the White House on Air BnB LOL
They don't like that solution 🤣 They prefer the bandage.
@@Ekowal1965 or maybe Zillow can still borrow ... and overpay for it!?! ;) LoL
@Darss Mare it's so refreshing to hear common sense. I swear it's so rare these days. Peace ✌
It's covered under the term "National Security", and nothing is ever too low for consideration in the name of National Security. It's the kind of sacrifices the US politicians love to brag about to the US citizens, and if this fails to convince them, there's always the fear factor like the China / Russia threat to US jobs and ways of lives.
I'm pretty sure this isn't the first time they had this conversation,since 2008 recession,they must have raised the debt ceiling at least five times and even shut down the government once.
easy solution: CUT DOWN THE DAMN MILITARY SPENDING!!!!
Michael, we need to keep America strong. We can't afford Obamacare, but when I'm president I'll give our military $500 billion more that they're not asking for
I love how none of the solutions were to reduce spending and slowly start paying back the debt
Its not about paying back the debt. the real thing to look at is whether the debt taken grows the economy of the country. USA going into 2-3 Trillion debt in Afghanistan was a total waste.
I was thinking the same thing lol.
Government debt on it's own isn't a huge problem, but it's fiscally irresponsible to just spend without any thought of the long term consequences.
At some point it will be crunch time, it might be at 50 trillion, 100 trillion, but at some point investors will stop buying bonds.
It's clear now though, the debt is never being repaid.
@@PK-tt5kk It is not ONLY about paying back the debt. If you never repay anything and instead only raise the debt ceiling, at some point the rest of the world will not look favorably on the dollar.
@@PK-tt5kk not for everyone. Same for the "pandemic"
Well this is for money already spent, so we have to pay it regardless. Plus, where do we cut? I'm ok with trimming the pentagon budget, but a lot of people aren't. I'm not ok slashing spending on already underfunded social programs that even more people will need during this "cut spending" phase to better pay on the debt. 🤷♂️ We're all screwed.
Mr beast be like “Today I’m going to be giving a trillion dollar coin to the worlds most indebted country”
This is why we need XRP
Lmao no cap 🤣
So, if I stop paying my mortgage, and just make a coin, I won't loose my house?
WHERE DO I START!
LOL
Pre-war Germany -"When economic collapse finally came on November 15, it took 4.2 trillion German marks to buy a single American dollar. The social and political cost of the hyperinflation was high. Scholars note that the inflation did more to undermine the middle classes than the ostensibly socialist revolution of 1918."
Out of that came Hitler and Nazi Germany.. Wonder what will come out of USA and the rest of the world.
I wish I could extend my own credit limit indefinitely, and print my own money to pay people back! LOLOLOL!
The government can only "print" more money by getting into more debt, because they "make" more money by borrowing it as credit. The whole thing doesn't work without more debt. It's a massive collapse ready to pop.
U can, if you have the biggest sticks:)
@@thinkingoutloud3757 The American dollar is used as the worlds reserve currency, as you say its backed up by nothing, a giant ponzi scheme.
get a credit card to pay for the credit card you got to pay for the credit you credited.
You can, provided you can always fool people into believing that you can be trusted to pay the monies back, by hook or crook.
The saddest part is that the debt ceiling will never come down. Move it from $20T to $28T, but the powers will push it past $30T in a couple more years with their new crisis.
Secede. THere is nothing more "american" than secession. And seceding is the only answer.
@@freyawildesciencefictionau8156 Secession would only be agreed to if the seceding area would take their share of the debt. I would like to see it but it would take forever to reach an agreement, look at Brexit. And the EU hasn't been together all that long.
@@freyawildesciencefictionau8156 Supreme court wont allow succession.
Then $40T then $50T
The very concept of a debt ceiling is pretty silly, at least in modern context. Back in the days of gold standard it was a different matter, but these days you don't so much pay back debt, but inflate it to non-existence. Debt, or printing money - same thing really, is just a different type of tax now, one you can raise without seeming to raise taxes. Of course it's only ever going to go up as an absolute figure, countries will no more pay back debts than they pay back taxes collected.
America as we know it is finished. All indications point to 2023 being a year of severe economic pain across the country. Put that money to work right away to make it grow. I knew I had to make an investment. I never imagined that a few thousand dollars per month would add up. However, it is. I've made around $600,000 since 2020.
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NO GOVERNMENT should be allowed to borrow money! Live within your means!
This is what happens when things keep on getting added to the tab and aren’t payed off.
This accounting practise is also known as American Exceptionalism - Do what I say, but never do what I do or else all hell breaks loose.
very intelligent observation there Einstein
Worse. The tab is accumulating at an exponential rate
Exactly, we can't expect to keep on sinning and hoping that the Saviour pays for it.
Federal Reserve: “Don’t panic , we’ll take care of it”
- *Cuts to Jerome Powell going ham on the printing press* -
lol🤣
How does Powell not look like Schwarzenegger yet?
@@joseph8275 hi
Brrrrrrrrrrrrrrrrr
@@knpark2025 correction:
Brrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrr
Tax payers pay for it. Higher Gas prices, higher food prices, higher rent,
Utilities, property tax. Ect. 🙄
Four Economic sectors. Primary, Secondary, Tertiary, Quaternary.
Is there a chart or website or channel, that breaks down WHAT time of year each sector is at its strongest?
As well as a chart that shows historical data Year by year for each sector performance?
As financial gurus like to say, the U.S. government should start making coffee at home and not flush $5 down the toilet by buying Starbucks.
I looked at healthcare a while ago Canada spends 10.5% of its gdp on a unified system the US spends 17% with millions uninsured and point of care being the emergency room.
Its currently a system built to gouge every dollar it can from its citizens
America cannot stop its consumerism habits because its economy is based on the services sector so if consumerism stops the gdp will fall
What do US government lives in your home and you were at don’t forget that
2008: Exists
Feds: Hehehe money printer goes brrrrrrr
Ur not funny
@@israelsaiyangod7195 Neither is the debt ceiling
@@julianj9830 try again
@@israelsaiyangod7195 he is, funnier than you
no problem. keep printing money!!!!
the only thing they can do is providing printers with paper and some grease.
The 1trillion coin is nothing but a gimmick, didn't Zimbabwe try that? Although in their case was uncontrolled inflation, this is the equivalent of using a credit card to pay another credit card bill. It's just insane.
There might be an economical turmoil but there is no doubt that this is still the best time to invest.
Best time to invest? thats funny tho because in the last four months I have lost more than $47,900 in stock market which is the biggest I have loss since I ventured into stock investment.
you could be right or wrong depends on your expertise, I once made such loss when i invested thinking i have gathered enough trading skills from youtube videos
but i was lucky i finally met Tamara Diane Hagan , a professional stock broker , i have been able to add $240,000 to my portfolio within 5 weeks
Really? people are cashing in from the stock market and frankly speaking its comforting seeing someone admit to the fact that they actually seek help from professionals. please how can i reach Tamara ?
search her name on the internet to reach her
How about reduce spending?
Oh, nevermind that's just for the plebs.
Certain group of people from certain country need their annual budget
They secretly hope we spend more. It redistributes the wealth upwards and generates more taxes.
@@Thaijler And create crazy inflation, destroying your economy? Great idea.
@@MichaelDavis-mk4me Its not us spending that creates inflation. Its the government printing rediculous amounts of money
You cannot stop the american world police war machine & trying to spread "the american way" that so many countries want nothing to do with.
I guess living within your revenue income, and not having a debt to begin with is out of the question.
Why is the only solution offered "raise the debt ceiling" and not "cut federal spending"? Far too many people reliant on government programs - housing, food, medical, etc. We need to find ways of making said people self-reliant and not dependent on a state. Fix the problem at the source, not move the goalposts to accommodate
Candidates like Mitt Romney and John McCain called for cutting unnecessary government programs, but thee math simply doesn't work
Printing money is what every civilization has done until they collapsed.
The truth is American paper money used to just be a note which represented a certain amount of precious minerals. Now that is not the case, money is just printed federally and the only value it has is because as a society we choose to ascribe value. So at any point it could suddenly be valued as worthless due to the lack of anything tangible to back it up.
@@jonn1334 money got me cars , I still a got a card , why u want them to stop printing ?
@@cash2374 he never said he wanted it, he’s exactly right
@@ssspottyyy a I got account, an old cash stack I love both
Three questions:
1) how is this different from printing a $1,000,000,000,000 bill?
2) Who is going to accept a $1,000,000,000,000 payment with only a few thousand dollars of platinum? (or whatever metal they mint it in)
3) Why do I work hard to earn money when others can magically create it?
Regarding your #3 point, that is exactly what is happening with all these nonsense with cryptos. There's tens of thousands of them and some random cryptos made people billionaires out of nothing. Stupid.
Platinum would go crazy! People will be stealing catalytic converters in broad daylight without care of consequence lol!!!!
3. Because as an American citizen you need to pay tax, and the tax is denominated in USD, if you don't pay tax, the IRS will bring you to jail, it is simple as that, this is how you create demand for something that has zero intrinsic value, aka monopoly money
1) They’re pretty much identical.
2) The Federal Reserve is required by law to accept it.
3) Because we don’t live in a mercantilist system and having a finite amount of money in the system only means that making money comes at the cost of others losing it. Our current system allows new money to be created through loans issued by banks and through natural inflation through minting new money.
@@walden6272 bitcoin is different. crypto is a scam but bitcoin is money
Are you sure the woman with the "throwing a gigantic Molotov cocktail..." is a real professor or just some impersonator? :D
The great lesson here is that leaders of the world didn't learn anything from the monetary history.
A trillion dollar coin🤣
At least the Germans could use their paper cash to keep them warm during the winter when they faced hyperinflation in the 1920s.
“We need to take out more debt to not risk not paying the interest on our existing debt.”
This is exactly the same as a consumer taking out ever new credit cards to pay the interest on their other credit cards. We all know the only real solution is to reduce ones spending.
Or drawdown the assets on the banks balance sheets. In this mess we are in it’s a standoff between the institutions and the people/producers and it’s going to have to be the banks that take a hit. Just one persons opinion.
You could juggle it in the past it’s no longer allowed for the poorest 15000 or middle class30000-90000 seperate rich 200000-1mill kinda can do it.
The super rich (1billion up) tho my my you pulled out a escrow on that bond ( government loan) to buy a Cruze liner no problem sir!
That would have been the solution 50 years ago.
The solution now is starting a war somewhere to wreck the economies of creditors and then ripping them off by selling them LNG at exaggerated prices.
Look at the fine print,your creditors can demand payment in full on your contract,your monthly payments is just a minimum you agreed to pay!
"Experts say it's unlikely anytime soon "
It has been only a year and you're having it.
What would happen if the Federal government actually restructured the budget based on the money THEY ACTUALLY BRING IN?? Someone needs to own this and fix it.
It would mean a lot of angry Americans and the most vulnerable of us suffering. The Fed could literally do this this second by raising the federal funds rate, or by increasing the discount rate and then Congress raising taxes just to pay back the debt. I imagine only a few people would be happy with that.
@@falloodaboy I bet you’re right. But, hunkering down to pay off debt and correct spending problems is never comfortable. Unfortunately, if spending continues at this rate, we’re all going to be suffering when those debts finally come due.
@@falloodaboy Government would have to stop showering the "most vulnerable" with money and let them get back to workforce and grow economy that way.
Keep social system for those who genuinely need it. Elderly, disabled etc. Cut spendings on various government projects including military. Strict anti lobbying laws, anti monopoly laws ru cut crony capitalist deals. Introduce BALANCED budgets based on what the economy can afford not on whe "We think we need".👍
@@falloodaboy well sometimes you gotta sacrifice, but once this bubble pops we're all gonna have to struggle.
@@jirislavicek9954 I honestly agree with everything you said. Unfortunately, regulatory capture has become really entrenched in our political systems. Also a significant portion of our budget goes to the disabled and elderly, which leaves little for discretionary spending which is why Congress raises the debt ceiling. Add to that the recent tax cuts for businesses, it's honestly no surprise that the debt ceiling is being raised again.
I think reasonable taxes need to come back for the uber wealthy along with reduction in government programs for America to get back on top. We use the generated taxes to pay back the debt and restore trust in our financial system.
All of Congress needs they’re assets liquidated. Present and former. As well as presidents. That’s would send the necessary message.
Wrong there their they’re
ruclips.net/video/E8eaICAOInA/видео.html
$TKING TO THE MOOOON 🐯🔥🔥
$Tking to the moooon 🐯🔥
The new debt went to rich people... capitalists to guarantee their losses during the pandemic. Get that? Rich people pressured Trump and other politicians for tax breaks and bailouts. The fed created money and handed it to big banks and corporations because they were pressured to do so by the ultra rich.
Almost none of the new debt was used to actually help the country... just rich people.
I can't believe that I told our team about this . Months prior.
This aged well
There is an awesome documentary that explains what’s happening in America, it’s called “Idiocracy”.
Funny but true they acting exactly like in the movie
@@curtbrockhaus6131 crazy and gullible. Rev: 911
@@marshalljulie3676 President Camacho
A guy wakes up in someones house and sees a man is hit in the nuts on TV
Its called "idiotness"
Back in the 80's this is the type of stuff we laughed at third world or central american banana republics at, who would have thought we would become one of them.
You're comparing a country that produces Apple to countries that produce bananas. You know how much cash FAANG carries?
@@crosswire7777 The greatest thing america produces is debt.when you have almost $30T in debt and just the interest alone is what the GDP is of some small countries, when your trade deficit alone is well over 1/2T per year,When you have a system where the wealthy control the government, when you constantly on the verge of defaulting on your debt,trust me you have a banana republic.
@@hifijohn i guess you never heard of modern economic theory. Yeah i agree we are far from a utopia, but things are never as bad as the average doomsday youtube commenter makes it out to be. You can read up on modern economic theory and trust the system, or you can go further down the demotivating rabbit hole you're in, the one leading to insanity
@ThoughtCrime you seem to know a lot more. You have me convinced and I fully support you. You should take a stand and share your wisdom on a bigger platform than just the youtube comments, and be the one that writes history for the better
Not so funny now is it buster
A 1T coin would only be worth that if it were accepted as a payment method by the debt owners.. Which is not a given and therefore the coin is not a sure fire way to fix this issue.
Stop all those elite's crap. Those greedy elites started and enjoyed the debt, instead of finding a way to pay the debt, they want more debt.
The debt problem is very basic, you spend more than you can earn. Stop spending more than what you can earn and stay STRICT with that! Hopefully you can save some money or sell some assets to pay the debt.
It’s ok we can just chapter 11 that sh*t😂😂
Nah it’s called bailout
Simply follow what Trump always does - declare the USA bankrupt and demand all the US creditors to take a deep 'hair-cut' , e.g., USD 0.01 to 1 USD, or sue the global community for entrapping the USA with easy loans.
Lol its not like it's student loans or anything
@@chancellorasher9417 how do you bail our the central bank exactly?
That’s right taking everything that dose not hold debt to pay
@@torfistrom4549 trust me they’ll find something out plus it’s not just USA gov that’s gon bail them out…
*Everyone freaking out about the debt almost reached the limit
*US government raising the debt limit
*everyone calm and suddenly forget about the topic
Repeat for enternity...
Basically
You know it's not sustainable, u can't just rely on printing sooner or later usa will default. China not buying treasury anymore so do other nations
@Shinshocks it shouldn't be sustainable. the more money the US prints the lesser the US dollar will become, inflation will forever go up and the minimum wage will have to keep rising as a result. all they're doing is putting more bills into the economy but lessening the worth. its essentially making no difference except giving the government more temporary money to play with until half of the population is homeless.
@Shinshocks there is something wrong with inflation, prices rise but not all jobs rise with the minimum wage either. more bills get put into the economy but the people who most benefit from that are the rich. the poor people and working class will get a lower percentage of the bills printed or none at all. take for e.g. here in the uk. inflation has made the minimum go up for years, yet some jobs are still offering the exact same pay since 5 years ago, when every other role has raised their annual salary. those are the people who get hit the hardest. this is what will create homelessness or lack of labour. it's a poorly thought out distribution system, the only thing its good for it getting the government out of paying any debts owed and lining the pockets of the 1%. you think people will stay in those bad paying jobs? either they stay and suffer or leave and create lack of labour. businesses die and this creates less jobs. its a cycle dude.
Imagine interchanging some trillion-dollar-worth stuff for a platinum coin. That person would be such an immense fool.
This is very important,,,,not stop the ceiling but ratio with expenditures
This thing can collapse the entire world economy
It’s all a show. Just print the money and get this inflation show on the road already
Good luck actually having a future if this is the case
@@DrunkenSocrates our future is allready screwed because of the unelected bureaucrats have power over the money supply... there is nothing as infinite as human greed we need a gold / btc standard then we can finaly recover and all the bad buisnesess will be whased out sound money is what we need
@@Xari0n92 ok doomer
@@Xari0n92 we really need a revolution. I still don’t understand how the American people doesn’t stand up. 300 million+.
Canadians watching this like: hmm interesting.
In 2 or 3 years they will be talking about a 5 trillion dollar coin and my rent will go from 750 to 1600.
more like 2000
For a room and no kitchen previliges 😅 make sure to buy a microwave, if you can afford it 😔
Lmao
you'll own nothing and you'll be happy (World Economic Forum)
$750 rent? Where do you live? In a cardboard box in rural Mississippi?
No mention of corporate price gouging and unfair taxation that’s created a billionaire aristocracy?
So, let's deal with the real facts. I happen to be a numbers person. I live in the top 3 percentile of earners in the US. I did it the hard way hardwork, and honesty, I know that is rare today.
So let's deal firsthand and foremost, the $31.5 trillion in debt we are now in as a nation. This alone has crushed us, let's call it came over. That debt ratio is unsustainable ànd there is no means to pay that down by as little as 1% with our current Fed Tax revenues and over spending! Sorry did I say over spending disclosing the hugh elephant in the room or lets say Washington DC! The Fed Governments answer is always we must raise the debt ceiling! Because according to a Republican leader America always pays it bills! Oh really how about proving that on a Balance Sheet Sir! You may fool 90% of Americans, but not this one my friend! Are you crazy? So a simple example friends: Lets say someone who is making Gross Salary (Not Net) of $40k a year. Than somehow was allowed be creditors to put $10 million on credit cards, and credit lines following as I know that should alone sound crazy to all Americans. So the creditors than decide the debt solution is to raise their credit line but ignore the income earnings remain the same. So how are they going to have the ability to pay down the debt! Mean while compounding interest (is a class for another day) is eating away faster than the speed of light! Hoping this is starting shed some light.
I hate to say it, but this is why America is now at the end of its super power reign! Just printing money and over spending is as disaster! Our dollar is only paper and backed by nothing by our past economic history, but the politicians stay away from this fact. They just keep spewing out lies and deception. Their power and control is their motivation!
Let's be factual and your welcome to do your our research. Every empire previous to America has fallen. Just look around they are no where to be find niw are they? They all collapsed for all the same reasons.
* To much War
* Out of control spending
* Under valued / backed currency
* Unable to continue to sustain themselves
Sorry, but true! I could only hope all Americans understood this unfortunate circumstance instead of being fed the lies the media and government wants them to hear and believe.
So, I ask if you think I am wrong where exactly is America's next big economic boom? If you think its electric cars for example you have drank their kool-aid. That industry will have the same outcome as the wooden clothespin industry. Our last and final economic boom was following WW2.
I love America, but I am so sad to see the deception that so few have been able to pull over the eyes of so many!
I've been privileged to serve 8 yrs in the USMC and defended our freedoms.
I've also been privileged to build a very successful American based business and have achieved what I use to believe was real and attainable, it was called the "AMERICAN DREAM".
For myself I pay an exorbitant amount of Corporate & Personal, Federal and State Taxes!!!!! All to be misused and abused!
Sorry, but I just have to live in reality people!
It's sad that this is what I see my 7 children and 5 grandchildren inheriting.
Thank God my wife and I can leave them the wealth we have obtained. Its just sad the government with take what they do not deserve!!!!!
PS: I myself came from nothing and was homeless in this country as a teen in 1974! Leaving in the streets and having to steal food to eat. Now what I give away is amazing and glad to do so. I achieved all I have through working endlessly and still do!
God Bless America as He is the only place to put your hope!
Sorry about any typos as I wrote this quick on my not so smart Smart Phone!!
Yes. I think it’s over. But it will take many decades to play out
@@redrum3405 Agrred and the longer the better for all!
I completed 600 level economics courses at one of the best business colleges in the country and I have no idea what these “geniuses” are doing.
Neither do they.
They're shearing their opinions so when one of them ends up being right they can write a book about it.
AOC has an economics degree and doesn’t know what the hell she’s doing as a congresswoman.
@@trenton7 she has an economics degree? I thought she was a bartender? Well I mean fair enough. Having a degree doesn’t mean you have brains. Just means your good at following directions, and I’m working on my third degree right now.
Did you go to A&M?
"in the absence of other options" hahahaha. There is little wonder why so many Americans live paycheck to paycheck when their own government can't even understand the concept you could theoretically spend less than you take in. "In theory" hahaha. We're screwed.
You act like that the voters of the United States are not part of the fiasco.
They don’t want their taxes raised.
In fact they want them cut.
And they don’t want any services cut.
In fact they want them added.
@@neilkurzman4907 lmao you cant cut taxes when corpos arent paying them in the first place, what are you talking about
When you don't understand federal finances...should not and does not work like household budgets where you need to spend less than you take in. In order for households to be able to spend less than they take in then the Federal government MUST spend more than they take in.
@@phastfire
Reagan had tax cuts
Bush tax cuts
Trump had tax cuts.
So apparently you can.
As long as you can keep borrowing.
@@henrygustav7948 That's a load of Keynesian BS that Krugman and his ilk feed the pro debt lifestylers. The country had no problem living within its means for nearly 2 centuries. Then entitlements and pork project became a lifestyle. The interest on the debt exceeds the tax rolls over 15 US states combined. If that money was being wisely spent towards projects that give people back time (the one thing money can't buy) then there could be an argument for it. Instead we have 100s of Murtha airports and a government that subsidizes sugar and HFCS despite diabetes burning through more of our GDP each year. Congress are selfish short sighted fools and the American people at large put them in power.
RUclips algorithm in 2023 perfect timing
This is crazy -you do not keep raising the limit, you start getting out of debt. Cap spending.
“They are representing us! We have these disagreements!” as if they have ever represented us before…
I dont know about yall, but this sounds like the start to an insane inflation…
Already begun
Inflation is already here. It’s only the beginning. That’s what you get for printing more money. Now they want to print 1T coins. Give me a break. Government is screwing all of us.
crypto,....
even biden admitted we should prepare for a "dark winter", even tho he is the one who created it.
My kindergarten level understanding of the issue is as follows . I was taught at school that the government does not make any money - it taxes the population to generate the money it needs. When the money it needs is greater than the sum of all of its taxes then that government goes into debt. The debt is funded by bonds which the government can print at will and repay at a future date as the economy turns around to a better position. The trouble begins when the economy does not recover and more debt is required. Eventually the debt burden becomes so large that currency in use starts to devalue which in turn leads to inflation as the government keeps raising the amount of currency(debt) it injects into the system. Which in its simplest form is where we are now in 2023.The trillion dollar question is how long can this go on for before something breaks??
All Stores Please Lower the cost of all Military and Local for all Brands of Debt Products and Accessories and Production Cost Now That's too much $$ The Whole World Now 🙏🙏🙏
Maybe not having endless wars for decades would be a start. Just a thought.
Endless Republican wars. Get it straight.
World needs more of usa version of freedom 😂
@@bagelchips3213 Out of last four administrations, three were democrat
Remember every time you or someone you know was angry at billionaire entrepreneurs for some of their billions? Yeah, the government printed 20000 billion in the meantime. You were bamboozled by the media to be distracted from the fact the government was printing literally infinite money behind your back. Time to start holding the government accountable for its crimes.
@@orangutan1700 cherry picking fool. Who invaded Iraq for no reason when we coulda just dropped a few bombs? Woulda saved a lot of lives and money on both sides
The Simpsons predicted this! Mr. Burns might try to steal it, so be careful! 😂
You beat me to this
Did they?? Omg sick
Yo, the simpsons be predicting the whole game plan brah!
Which episode?
@@stevenpreston5619 The Trouble with Trillions- Temporada 9
Episodio 198
All politicians need to stop gettin any pay, benefits and live in jail house conditions until the debt is gone. So sick of their greed!
When an economy considers larger denomination of its currency to pay off debts, you know the economy will go into deep recession
It will be a depression at that point
Yup very true... This upcoming recession is really going to hurt. What's worse is all of this could have been avoided.
@@ninabeasley2674recession depression is over a long period of time
Maybe instead of debating more spending or taxes we do a better job of allocating it instead of giving the military half the tax revenue to ruin peace around the globe
Kinda if we decrease our military some country might go crazy even more no country is peaceful
@@dannielcruz460 Who cares
If its their problem they can slove it and everyone have allies, also US isn't the only country with military
It's time to US mind own business to make home much better place
It's exactly why UN is created, let's make it strong together
How are you going to steal resources from other countries without military?
@@pranaym3859 but the UN is a failed party also I do agree we should focus more on our land instead of spending over seas but there are too many fully corrupt countries with so much military power now and technology is surging everyday. UN is a failed Nato is eating money EU is corrupt
@@pranaym3859 Guess where refugees of all those new wars will go
Liquidate the governments assets.
sell all of congresses stock portfolio and give it to the treasury, that would close the entire funding gap
can I buy you? you technically are an asset
@Bon Goaie begon vietcong
Start with the dems' security detail, since they want to ban the 2nd amendment so much...
@@EroticOnion23 I second that emotion.
the coin sounds like a great idea. it empowers legislators to take control of the dire situation at hand.
No that's that ceiling needs to be addressed it is ridiculously out of control and to continuously just lift it without no balance is stupidity. I don't care how many degrees of financial education you may possess one - 1 = 0 you can't make a profit on zero money is not created out of thin air in this today's society it is and that is not production that is devaluation and slavery.
The government should probably consider filing for bankruptcy, and completely rethink their spending practices
Well trump just cut taxes for the rich A LOT. Not blaming just him, but that cut down our revenue, while we always increase spending. So we “borrow” the deficit/difference with interest. If we made enough from taxes we wouldn’t need to borrow and add interest. Bottom line we need to cut spending and increase taxes. That still won’t be enough but needs to happen
@@32kirby32 Democrats are working on cutting taxes even more for the rich right now, the rich calls the shots in both parties
They should just pick up another job and try working harder so they can pull themselves up by their bootstraps
@@laanglr government employees don’t know what hard work is
@@32kirby32 America can't afford higher taxes while we're still recovering from the pandemic
It's all about investor confidence in America's willingness and ability to pay the interest on its skyrocketing debt. Once that confidence goes, the U.S. could very well default because no one, other than the Federal Reserve, will be willing to buy U.S. treasures, and even the Federal Reserve has its limit.
BS Japan and China would be more than happy to buy our debt.
@@deathsite95 Maybe with vassal state obedient occupied Japan, but of late not with China's attitude to the US.
China has its own financial problems and doesn't own a while lot of US debt anyway, in comparison to the total amount anyway.
You 100% correct. Ppl who own bonds and don’t get there very small interest payments will have to sell them on the open market. Causing bond prices to go down and inversely interest rates will rise. Effecting everytbing from stock market, home purchases and corporate loans. Shrinking the economy
China has pretty much taken over New York and Silicon Valley. Just give it to them already.
I bought a few 1 trillion dollar coins off of Ebay and when I went to Wal Mart to buy groceries, they couldn't cash it.
Virtually everything about this article misses the fact that the federal government does not borrow US dollars, it creates them. Andbthe Fed does not authorize Treasury spending. The Treasury gets its spending authority from Congress and the Treasury, in turn, whennit spends, authorizes the Fed to create US dollars by crediting commercial bank reserve accounts. Thus, the federal government creates US dollars by spending. It does not spend taxed or borrowed dollars. Consequently, the sales of treasury securities which is nominally called the national debt is not federal debt at all -- it is federal stewardship of private savings. So, in effect, the so-called "debt ceiling" is actually a private sector "savings ceiling".