Will the U.S. default on its debt? | Inside Story
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- Опубликовано: 19 май 2023
- Can the U.S. solve its debt ceiling crisis in time?
With just over a week before a deadline to agree on how much the government can borrow, deep divisions remain.
What will happen if the two sides can't seal a deal? What will be the global impact?
Presenter: Nastasya Tay
Guests:
William Lee, Chief Economist at the Milken Institute and former Deputy Division Chief at the International Monetary Fund.
Laura Blessing, Senior Fellow at the Government Affairs Institute at Georgetown University and Co-Host of the podcast, Congress, Two Beers.
Simon Rabinovitch, the U.S. Economics Editor at The Economist.
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#News #UnitedStates #Debt #DebtCeiling #Government #US
US Debt Ceiling will need to rise to 60 trillion because Zelensky just keeps coming back for more with his begging bowl 🤣
😂
100% and Israeli state
Must be hard being a ruskie "adam", hope your ruskie friends aren't dying en masse.
Beggin Strips for the Begging Bowl. 😂
😂😂
The whole earth is Financially DROWNING
Food in the house is empty and he ran around the world to talk about China. Lol
And more America's will travel this Memorial Day than in 10 years.
Do your research. US has defaulted 3 times previously 1812, 1933, 1971.
This means no more fake printing money America is falling Empire
1812, the United States was engaged in the War of 1812 against Great Britain. The war was expensive, and the government was forced to borrow money to finance it. However, there is no evidence that the government defaulted on its debt during this time.
In 1933, the United States was in the midst of the Great Depression. The government was facing a severe financial crisis, and it was forced to take a number of steps to address the crisis. One of these steps was to abandon the gold standard, which meant that the government was no longer obligated to redeem its debt in gold. However, this is not the same as defaulting on debt.
In 1971, the United States took another step away from the gold standard. President Richard Nixon announced that the United States would no longer convert dollars into gold. This decision was made in an effort to stabilize the dollar and to improve the U.S. balance of payments. Again, this is not the same as defaulting on debt.
The same. Default means not to keep your promise as stated in contractual agreement.
The US promised to peg the $ to gold. It was no longer keep it's promise and on one side changed the agreement. It was a default. That's why it was shocked the world.
But the US could get away with it. Face no consequences. That is another question. But it was a default nonetheless.
Also, there was another one. Before ww1 where JP Morgan bailed out the US Government.
@@gerouldiaz you're stupid. 1933 and 1971 both were debt defaults.
@@Jocky8807
I think now it’s different because millions of people can lose their jobs, which might cause a severe and deep crisis not only in US, but across the world. If the US does not honor its commitments and defaults on its debt, they are doing the same as Argentina did. And all the hegemony that the US once had around the world is being lost. So it has to be careful.
It is not only the US, the whole G7 is a grouping of bad debts countries. In order to protect your interest and remove bad debtors, start using your country local currencies.
You can only stay using your local currency when you have all that you need, which is impossible
@@sheik.2636 I guess you have being staying put all your life. Have you not travel oversea? Every country has its own money changer more willing to change your money to a local currency without a need of G7 currency.
@John Grey Not neccessary. It will turn into a multipolar world where currency swap is the only game.
investing in death arena's is you best method of earning money!
The only reason McCarthy is doing this is because he has no chance to pass a budget himself. That's why he has not released a budget, just cuts.
The US spending really is excessive. New spending is always added without examine old spending and waste. Not enough people in Congress are willing to bother with the small to medium follow up work.
As an American, I agree with you.
they willprint more money.
America has money. Its just that you'd rather drive on streets filled with potholes than tax billionaires
The problem was no US media call a spade a spade, and non dare to call for military spending cut that is very necessary, instead they cut the very necessary government spending on day to day needed expenses that cost more inflation which hit the peoples on the street.
I call bs. I am sure there is waste in defense, can we say Ukraine, but how many perfectly healthy adults are freeloaders on the tax payers?
the cost of “perfectly healthy freeloaders” is a drop in the bucket compared to massive tax cuts to pork barrel interests propping up politicians on both sides of the aisle. congress is just as corrupt as wall street is.
Congressmen are not stupid. If military spending could be cut, they would have already cut it.
Really? Wake up. I guarantee you or I would EASILY find some areas of waste
@@danrandall794 He do not want to wake up. 😌💤
The biggest crisis we have is incompetence in congress and the ovsl office
SOCIAL SECURITY will be paid out! Its the law you dummies!!!!
Who is making the law. Who can break it.
And the constitution says we must pay our debt, but that didn't stop them from creating this debt ceiling. There is no one to cry foul when all 3 branches of government don't follow their own laws.
Even if the US debt ceiling lifted automatically, chances are it would have been exceeded in the last 2-3 years.
Good grief! Borrowed money for WHAT?!? We'll all just go back to farming and simplicity.
Basic negotiations on spending built into the system are described here as “weaponized”, a bit much…
why no cuts in defence spending???
Lol they gave it all to Ukraine
The debt ceiling is not the story. The real story is the fast rising US govt, the 1.2 T dlr debt service in 2023 and the new debt raised just to pay interest, and the lack of bidders for Long Treasuries.
How about reducing US military budget closer to nill.. that ought to get the budget into balance/close to the path of surplus
Obviously they won't. The US funds it's military using other countries' money.
this is why I like world news because they tell it like it is with out all the US News bias and propaganda.
All of these so-called experts are completely overlooking the fact that Social Security Entitlement Benefits are not a part of the general United States budget.
Social Security in the United States is an insurance program that has its own source of funding and its own pool of resources from which to draw. It is not funded by tax dollars and it is does not affect the debt ceiling or borrowing of the government. 😎👍🇺🇸✝️
You are right but Republicans hate Social Security so much they equate it with debt because they want to get rid of it. They only way they can justify, in their minds, getting rid of Social Security is calling it debt.
who gives the money to the insurance program. Genuinely curious
@@akhiltt8823 Automatic payroll deduction. It is a federal law that every worker has about 7% deducted from every paycheck. That money goes toward your Social Security retirement account. Then when you retire, your monthly payment amount is based on how much you have paid into the system over your lifetime.
The current average retirement payout is around $1700 monthly. But it can be higher or lower based on how much you have paid in.
If a person becomes disabled before hitting retirement age, they can draw their money out early.
Ministers who have religious objections can opt out of the program and ultra-rich people can opt out. Everyone else is mandated by law to participate.
It also includes your basic medical coverage.
The debt limit won’t be raised forever and a new system will be brought in eventually
There shouldn't be a negotiation. They need to litigate the constitutionality of the existence of the "debt ceiling" as a concept, so it can be abolished. Otherwise, they're just kicking the can down the road.
I hate to be the one to burst your bubble, but EVERYTHING in economics has a floor and ceiling. Demand, supply, revenue, expenses, debt, equity, cost of goods sold, asset valuation, depreciation. You literally cannot have economics or an economy without a floor and ceiling to measure the gradient. And if there were no debt ceiling, the USA would probably end up like Venezuela due to how much they love starting endless wars.
we all know they won't default. just turn the money printers on
It wouldn't the first time the US had defaulted. It would be about the 4th. The last being in 1971 when the US removed the convertibility of the US to gold.
Honestly i think the debt ceiling as a concept is sort of dumb. Congress already dictates taxes and spending instead of a hard limit on how much the government can borrow in total it should be a soft limit on how much the government can borrow at any given time.
NEVER even though USA is bankrupt, political theatre
No.
I'm sorry can you just remind me how do you spend over $33 trillion and what do you spend it on? This is equivalent of giving each man, women and child in the US $100,000 😦. So, let me get this straight their best case scenario is to remove the debt ceiling, right?
This seems to me like that time in the 70s when the president took USD off of the gold standard and gave the reigns to bankers. Now look where this has got the USD. So seems like these lot really didn't learn anything and they are now in it till they literally collapse USD (in other words print so much of the currency to make it worthless), taking US and the rest of the economic world with it.
Is it just me or does someone smell something off about this? Sounds to me like they are talking about a great reset (where the entire economic system comes to a halt, it's reset using a new monetary system in form of a new cryptocurrency backed by the government and off course the fed, central banks, IMF, etc. and then shoved down our throats).
Once we are on the new 'system' they literally can control what we spend the money on, how we spend the money, how much the money is worth, where we spend the money, and tax us as much as they want. Welcome to new modern day slavery, where you can just be turned off from the system. Reminds me of that film, ummmm... what's it called, oh yeah!! The MATRIX!
It is just you.
Why doesn’t the u.s. just raise the debt ceiling to 100 trillion? Everyone knows they’ll never pay it back! Lol 😂
If everyone knows they will not pay it back, no one will loan the money.
@@Matthew_Loutner 😂😅
@Felix Motanul From the Fed.
We need to cut the addict off from its supply. No new taxes. No new government spending. No more spending money we do not have. If that means defaulting, so be it.
No new spending
Same kind of game these politician playing every year ..what a fool to run country like this 31trillion in debt !!! New political system,new leaders ,new reform are needed
It is not foolish to run a country in a debt situation. It boosts the economy and creates jobs. United States unemployment is 3% -- the lowest in the world (not including communists).
Inter party politics shrouds intra party politics. A good point raised by the panelists. Also weaponisation or politicisation of the debt ceiling is really distressing on part of politicians of so mighty a nation with possible effect of plunging the world into recession. Quite childish indeed.
I do not believe that the debt ceiling has been either "weaponized" or "politicized."
These panelists are using some very extreme wording.
The simple fact is the Democrats want to borrow and spend lots of money and the republicans are more fiscally responsible. So there is disagreement on how much to borrow.
Some of the smartest people in America are involved in these negotiations. One does not arrive at the highest echelons of power by being "childish."
Government taking more Debts so that they do not Default on their existing Debts summarises efficiency of the Government in managing their Finances.
A Government which cannot function or pay its people without opting for Debt only shows how financially vulnerable the Government is.
A Democracy where the Government is at the mercy of Bankers in printing money and lending money and does not has its own Monetary & Financial Freedom is expected to make its people financially free and independent?? No, rather they will also trap all its people under Debt Trap to Bankers which is already happening.
@@imran4006 Maybe, but the GDP of most countries goes up every year. Raising the debt ceiling to match GDP growth does not signal inefficiency.
its has to....................
This time I think the U.S. will do it to try to fold the market in its favor/failure.
china is also not far away in debt, provincial goverments in china on 23 trillion debt alone
china will do fine
and who told u china had 23 trillion debthahaha
1, idk where did you get the data
2,chinese cny is not world reserved currency, whatever debt crisis china has, its china's problem, Dollar is world reserved currency, US enjoying the benefit of it and also should carry its responsibility.
3, why does this conern China, It may rain tomorrow, is china to blame for that?
@@tedwong7037 why do Chinese peasants always ask deflective questions when trying to make arguments?
@@tedwong7037 china is pushing its yuan to other countries, chinese rail alone 1 trillion in debt and bring more debt each day from maintenance coast
Yeh, but they produce stuff and have a massive trade surplus
The deal is in...UNLIMITED AMOUNT of debt ceiling...Trillions will be added when they pull the rug ...default ahead...what will be your $ donation ?
Instead of political infighting, Republicans and Democrats need to work together to prevent a catastrophe. This could cause a humanitarian crisis... many seniors and the disabled have nothing to fall back on and rely on their checks for basic needs. The suspension of federal paychecks, crash of the stock market, etc. would also create disastrous consequences. They need to put differences aside and concentrate on salvaging the country. This would further weaken the U.S. and hostile nations are circling like hungry vultures.
Ignorant "both sides" people like you dont seem to understand whats going on. You have frauds, liars and extremists on the Republican side that weaponize the debt ceiling when their in charge. They have no interest in actually fixing this problem with rational, good-faith policy solutions.
Youre the perfect voter for the Republican...you'll cast blame on both parties when one is really at fault
Social Security is not a part of the general budget. No one is going to cut your Social Security out.
You have your own "hostile nation" inside: the Republicans. They are the Trojan horse of the ultrarich cabal. They din't want one state. They only need militarced police to keep their peasants and their slaves at bay. They don't mind the people of the Us or the world for what matters. They are beyond all humankind. In principle the worse the crisis the better for them. They are aided and albeited by corporate democrats al all republicins. Only progressives fight for the current Joe. So the hostile nations flying like vultures you have them inside between your own. No need to look outside
No US default on its debt, just print more monies to solve its crisis.
Zero chance US will default. They will play the game until last minute. June 1 St is the deadline.
There is no deadline. They will just do a 30 day approval and continue arguing about it.
If they keep on raising the debt limit with ever increased spending(no cuts). You reach a point where all the taxation revenues are used just to pay interest on the debt. Somewhere between now and then the dollar collapse. This is why BRICS are moving to sound money
they lied... cut for spending on american like housing, educations and medical ... increase on wars machines spending to kill more human !!!
We are very, very far from any scenario like that. Maybe 100 years.
@@Matthew_Loutner good job
@@Matthew_Loutner
Why very far?
If most countries stop using dollar as their actual reserve currency it will simple bounce back to US as a massive inflation that will be difficult to contain. And this can happen in 10 years or even less. That’s why many countries have decided to leave the dollar out.
@@DionisoBaco. You are talking about a completely different situation than the guy at the top is talking about. You may want to reread his comment and concentrate on what he is saying.
You cannot cut your way out of recession you've got to invest your way out of recession, the Conservative party are in the dark ages on policy they've got to think again. My primary concern is how to maximize my savings/retirement fund of about £170k which has been sitting duck since forever with zero to no gains.
@Margaret The truth is that people are finally waking up to the fact that our systems are breaking down in thousands of different ways all around us. Personally, the financial market seems like the only way to go with my long-term horizon (accumulated about £557,000 in earnings since May 2021), but if you don't have that time luck, it's a tough market out there down almost nowhere feels safe!
@@kurttSchuster who is your financial coach, do you mind hooking me up?
@@Harperrr.99 My consultant is NICOLE DESIREE SIMON I found her on a CNBC interview where she was featured and reached out to her afterwards. she has since provided entry and exit points on the securities I focus on. I basically follow her trade pattern and haven’t regretted doing so
@@kurttSchuster I just copied and pasted her full name on my browser, super impressed with what I've seen so far. thanks for sharing!
US has god printing machine...no doubt right lol
Ask corporate America for a bail out.
If you haven’t realized already, the us will default and use it as a scapegoat to introduce CDBC’s
Not looking for a scapegoat.
For international audiences: when Simon said "zero to 60," he was speaking in American, i.e. miles per hour. What he really meant was "zero to 100" in non-imaginary (anti-freedom) units of measurement, i.e. km per hour.
Deal will be reached at 31st may 24:00PM
How The Banks Work And Why They Are Collapsing by Greg Reese. Reese Report.
That's a question. The correct answer is 'no'.
No one is coming to rescue the dollar this time round.
Ceiling limit is not problem, (useless talking about this.) obscene debt IS, especially the very BAD and NEVER payback America.
America constantly pays back their debts.
There’s no debt. It’s a myth. How can you be in debt to yourself? You print the money, you borrow from your one pocket and out in your other pocket lols.
The United States is not "in debt to themselves." They borrow the money from foreign governments and rich people around the world.
You're asking people who have been propagandized to accept such a system to think what you said through. Newsflash: they won't.
@@lukeaustin4465 Also he is wrong.
In other words people have been trained to accept such a system, you know how you can condition an animal to accept a given environment and a set of conditions? It's the same thing but with human beings.
@@Matthew_Loutner Gnosticism is the only true denomination of Christianity, the rest are there to keep you from achieving gnosis.
the emergence of prc sets a standard of national management which shames most of the nations on earth.
usa is genuinely primitive in comparison.
the management of the nation is a ball in a game played by politiians, the people are lucky if financial chaos does not ruin them at any moment.
imagine allowing politicians to decide what is best for the nation. insanity!
Gold and silver have been much better for thousands of years.
The question is will the republican party kill their hostage.
Eventually yes. I don’t see any possible solutions for the US governments to reduce spendings. It is very likely that the debt ceiling will continue rising and the US governments or the US dollar will lose reputation.
When didn't it rise ?
There is plenty of solution to reduce United States government spending. Six months ago, the government passed a huge spending bill to rebuild infrastructure and implement green energy infrastructure. None of that spending was absolutely necessary and could easily be curtailed. But the democrats are opposing it.
@@Matthew_Loutner or we can revoke the 2017 tax cuts that actually increased the debt. Trump saw the highest increase in national debt since Lincoln and Bush. We literally need infrastructure and need to reduce are carbon foot print not give corporations and the wealthy tax cuts which was done under the republicans who literally had no problem with the debt while they held the white house.
@@seymourbutts4654 constantly but it increased due to the 2017 tax cuts which reduced tax revenue and because of the pandemic but also because of the 20 year occupation and several wars we launched for no real monetary return for the government. The republicans want to cut social safety nets which will increase poverty and reduce consumption which will probably throw us into a recession.
@@franzjoseph1837 Interesting to hear you say that exactly at the same time that I lifted my finger from texting my congressman that we need to raise taxes.
However, we already have enough infrastructure and do not need more at this time and green spending can wait. For example part of the green spending bill installs a chain of electric car chargers across the United States. I do not think the government should be doing that at all. Private companies should pay for that. You are against big corporations not paying taxes, but okay for the federal government to pay for the charging stations, when corporations will get the profits??
Your comment to that guy saying "the Republicans want to reduce social safety nets" is just not true.
This plan has been set in motion for a while.
Qatar themselves have pegged their currency with Dollar
It is not worthy to show favor to the godless,
to crush the just in court.
Always funny to me that americans think they have different factions from the left to the right politically, when both democrats and republicans are extreme right basically
The democrats tend to be more socially-oriented than the Republicans.
In the United States, the democrats believe in and trust the government to do everything for you including wipe your bottom. Trusting government like you trust your mother and expecting the government to be your nursemaid is left.
The Republicans do not trust governments. They are highly suspicious of anything the government does that would control anything in your life. Republicans lock the government out of the bathroom and wipe their own bottom. Suspicion of all governments is right.
To a Republican, the whole rest of the world is naive because the left trusts the government and the right trusts the government. Trusting the government is dangerous and stupid. The government is your first enemy.
They can print dollars.
Nope. That causes inflation.
Sure increase the debt limit otherwise military start dropping their weapons
Government employees getting no pay
All these discussions are meaningless if they still invest meaninglessly on "defense" abroad. It achieves nothing at the cost of everything.
The defense investments abroad are not "meaningless." It is all very legitimate and necessary spending.
GO REPUBLICANS! DON'T BOW DOWN TO BIDEN 🎉
Screw u want the economy to default
Peter zeihan is the best analyst………..
They'll reach a compromise as always 😂
You identified the problem but you don't know how to fix it.
So sad what this pathetic empire has degenerated into.
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Are you going to ask this dumb question every 6 month????
🤔👍🏽🔥
I hope the US will default and causes the stock markets to crash. It will be a great opportunity for small investors.
😂
debt ceiling will be raised. it's a drama show
😂 I always laugh when I see someone call social democrat left as extreme left .
There what's happening when you only listen mainstream, system puns economists
China is going to make some of congress rich with A I and chips
The whole world will follow division. It is God versus Satan.
Solution...keep printing paper money and gives to Ukraine
💛😻🐾
I think we should live on the sea the land Mass is too small only hotel for vacation and get resources from out of space we need to farm on the moon Mars I would love to eat a apple from those planet we need to plant 🌲🌲 trees all over the earth 🌍 to keep it cool we all need to think about what is good for the earth 🌎 and us we can not cutting down so much of the tree not good for the earth if we love the earth we would plant it up all of it with tree we need to shut down every thing and start over we have so much work to do on earth 🌍 we don't have resources to wast
If the Americans default, it will be a global catastrophe & the end of the dollar as dominant currency/backstop currency. We’re all screwed, the poorer, the worse the outcome (individuals or & nations).🤦🏽♂️🤦🏾
za taku hlupu propagandu nezaplatil ani cent
I identify that woke lisa makes it worse
Tell Joe Biden call me .
wtf are the democrats doing omg.
Pakistan 🇵🇰 will to rescue USA 🇺🇸 😊
We probably gonna see an exciting race between US and China but China is close.!
Just get out their money printing machines and start printing money, then send Zelensky their money printing machine.
This is so sad the usa is not United the country is too divided democrats vs republicans pray to his an agreement is reached
Come on guys they play this game every time. It's in the new psychopol wild they Raise the debt ceiling and then they move on nothing new here
Yeh until they don't and you get caught short
Agree for both
@@ryanknight8077 For s**** and grins of conversation how do you suppose?
'Inside story' thanks Democrat party for the talking points.
This black speaker is ridiculous
Cut domestic spending to balance budget?? Lol. Try cutting your enormous military budget first. That's where all the big spending is!!!!
The United States has no intention of cutting the military budget. If we do that, China, Russia, North Korea, and Iran will attack. Do you think we are stupid?
No.