Yeah of course they don’t talk anymore. Reducing debt absolutely requires RAISING tax AND REDUCE spending. Neither would make the politician popular not to mention both together.
I think this is much worse than it was with Rome. Unlike modern American Empire, Roman Empire was honest in its imperialism, and spirit of superiority its culture. Romans fought for their unity and superiority. Modern americans are fighting for opposite - diversity, money, and anti-nationalism. Modern USA is fighting for what weakens it, so it will fall ten times faster than Rome.
Absolutely, from iou’s to fiat overnight then the market rallied just like Tulip Mania 1636, pending the crash similar to 1637.. I’m a perma bull until the printer stops.. then down she goesssss. Can someone check, I’m lazy.. is the interest we’re paying on national debt greater than GDP yet?
@@SimpleAbundance Nope. Probably won't be for a few more decades. Besides, the debt problem will just be solved with printing money and inflation like always. Can't wait for a $50 dollar big mac combo.
35 TRILLIONS US -DEBT (= the official number! ). Can you ever imagine how much money that is ?? ( It means a sum of 35 000 BILLIONS !! ). But that is only the appearance of visible debt. Insiders ( for instance: US-Investor Jim Rogers ) however proclaim that the real amount of total US debt is somewhat close to 200 TRILLIONS !!! That's the real face of the US and not those fairy tales in movies and superhero comics. Now they will litter another 250 Millions more for corrupt Billionair and Clown Selenskij. People, beware of the „Greenback“ !! You will lose everything .
It means the dollar has no value but you can use it to light up your burner to keep yourself warm for the winter. Time to know how others felt in a war torn country when their money turn into ashes. What comes around goes around.
Imagine how much better the world would be if the politicians were not allowed to borrow any money. We might feel poorer, but at least we'd have to face reality.
Wrong. If the govt stopped borrowing, it would be exactly like the crew of a leaky boat stopping bailing. The boat sinks. For the USA that would mean a catastrophic collapse of everything and millions of deaths.
@@trobertday1390 It's possible and centralized, But It's called a sovereign money system or full reserve banking. Irving fisher advocated for it in the 1930's With his 100% money and the public debt. Read: Money and Debt: The Public Role of Banks
It's possible and centralized, But It's called a sovereign money system or full reserve banking. Irving fisher advocated for this in the 1930's With his 100% money and the public debt Read: Money and Debt: The Public Role of Banks
people who borrow money can't afford what their borrowing the money for people hate car payments what if they saved that money for 4 or 5 years then they could pay cash for a car a $100 a week is $5,200 a year that most will wast on stupid crap
It's disheartening to think that our tax dollars are being spent on international interests instead of tackling our own nation's challenges, such as rising rents and stagnant wages, which are making it difficult for me to make ends meet. In fact, I've been forced to dip into my savings to keep up with the increasing costs. However, I'm determined to make the most of my situation and invest the remaining $100,000 in a non-retirement account to secure my financial future. Advice on how to grow this sum would be greatly appreciated, especially considering the current economic climate.
For now, avoid index funds, mutual funds, and individual stocks, and opt for a stable 5% fixed-income option. Set aside funds for when the market recovers significantly, and consider diversifying across asset classes, short-term low-risk investments, and consulting a financial advisor for personalized guidance to secure what you have left for your financial future.
I agree! A financial advisor will help guide and create a tailored plan for growth and stability. 45% of Americans do not invest in the financial market because of lack of guidance. Every year you don't invest, you are falling behind. I’m hitting numbers in the stock market I used to dream of… Going from $50k to $600k in my portfolio is surreal all thanks to insights from my financial advisor
Glen Howard Chester my trusted CFA, is a prominent figure in finance. Just search the name to see his credentials and experience.He's a wealth of knowledge for navigating the financial landscape.
@@b1burckdifferent time, still seen as the last frontier. Now any nation could be the seed in a sense and that’s what the world is trying to see with rumbling the “empire”
I remember when Germany cut off their credit to Greece. Germany told Greece that starting austerity was mandatory. It’s time America’s creditor cut us OFF! I remember decades ago when Australia’s inflation was so bad that citizens took their pay directly to hard goods stores to buy stereos and other goods that would hold their value or increase in value! Plus they were tradable. Dry goods like food!
Yes I was referring to the economic information roller coaster that Australia was riding four plus decades ago. However there have been many run-a-way inflation trains over a century in many countries around the world!
We're going to have to downsize the budget, one way or another. Either you make the hard choices now, or you have the choices happen to you. Congress hasn't had the guts to do the former yet, so buckle up.
what happens when a ponzi scheme does not pay interest anymore? Everything collapse. The main difference with Japan's debt is that, the US one is hold in its majority by other countries/third parties, meanwhile the japanese one is only 30%. We can think like the japanese debt was already paid with inflation, meanwhile the US one is inside a vicious circle w/o escape.
Most of U.S debts are owned by American companies and U.S intra-government agencies. Only 20-25% of the debts are owned by foreign entities. Meaning if the debts are defaulted, the Americans investors will hurt the most. Japanese national debt is extremely high but it is 95% domestic and on top of that, it is an export-oriented economy. It produces more than its need. So it can sustain itself. The U.S is a import, consumption-oriented economy. If the debts crash... Hyper-inflation.
@@BYD-Gold You didn’t address my key point. Japan has the ability to effectively 'burn' a significant portion of its debt, as much of it is held by the central bank through fiat issuance. This means the cost of servicing this debt is already largely absorbed by the Japanese economy itself. In contrast, the U.S. central bank holds a much smaller proportion of national debt. This distinction highlights a crucial monetary perspective.
@@rya6701 The U.S dollar is the proprietary of U.S federals. The U.S federals is the central gov of US. If the USD fails, so will the central gov of U.S. And if the federals fails HARD! Multiple states will be seceded. In the past, there were political parties that overpromised their voters, like printing money endlessly to paid off the debts or making banana decisions related to economics. That is also why the Federal Reserve is granted "partial-independency" in the early establishment period. In order to make monetary policy more effective and NOT politicized. However, due to U.S increasingly more involved in the foreign-affairs after 1950s, the monetary policy has been weaponized again and again and again. While by de jure, The Fed Reserve is "independent" But by de facto, it is an extension of U.S Treasury and department of state. Again, if the debts defaulted, the biggest losers will be average Americans and the unity of 50 states (and other territories of U.S federals).
@@BYD-Gold I don’t see it that way. I believe that the well-being of investors is of minimal interest to the government. Its primary concern is to service the debt; without doing so, it risks losing access to debt markets. Furthermore, as I mentioned earlier, a significant portion of U.S. debt is held by foreign countries and various third parties. It seems limiting the definition of third parties to only those from abroad is unnecessarily restrictive and made my words to be redundant. I also don’t view the issue as primarily stemming from the balance of payments related to imports and exports. Instead, I believe it arises mainly from inadequate monetary and financial policies. Finally, I contend that if the U.S. debt were to collapse, inflation would primarily be driven by the influx of dollars returning to the U.S. (fewer countries will want or need dollars), with rising import prices playing a significant role. In other words, even the prices of domestic production will hyper-inflate, as the cause of inflation will be primarily monetary. This seems to be something planed, It will be a time of monetary chaos and time to pay the bill of years of monetary abuse for Americans.
Meanwhile in Europe our governments specifically get upset with people expressing this view. They're more inclined to "learn" from US example than decide to restrict trading with a proven insolvent party
@@DontMansion We're not in the 1800's anymore everything's moving faster and we have a solid alternative building for 15 years with a sharp acceleration in the last year, so I'll bet It will take way less than 40 years
It is not true that for all of US history the deficit and debt have always gotten bigger. There were periods of deficits and surpluses before 1913: From 1796 to 1811, there were 14 budget surpluses and only 2 deficits. In the 20 years following the War of 1812, there were 18 surpluses. President Jackson eliminated all US debt in 6 years. The problems we have are tied directly to the creation of the Federal Reserve and the implementation of a permanent income tax, both in 1913. The first steps to correct the current issues would be to eliminate the Federal Reserve and declare a debt jubilee -- discharging all Federal Reserve debt.
Yes, I seem to remember control of US currency has changed hands between We The People and globalist bankers about 8 times. For example the war of 1812 was fought because the globalist controlled First Bank of the US charter expired and Congress refused to renew it. We surrendered control of the Second Bank of the US to globalists after the treaty of Ghent. The British just defeated Napoleon which freed up thousands of seasoned troops to fight in the US. There was a good chance we might have lost that war. Andrew Jackson found out about the real reasons for the war of 1812 and defunded the Second US bank giving control back to We The People. Today all global currencies are controlled by a hand full of bankers who in turn control the world. The control of the issuance of currency it the root of power and evil.
@b1burck A global collapse and depression is EXACTLY what is needed to return back to sound money. It's much better than going the Zimbabwe (hyperinflation) route.
@@matteberry58 Exactly....all unfolding in a hyaline prison as most are not even aware of the chains they wear. For a dollar earned they give back 1.20. Hence credit card debt overflow.
Your average American might not have much cash in the bank... but their employer does. Good luck getting paid on Friday. The USG defaulting on UST's would destroy the global financial system. The entire supply chain that provides food, energy, medicine etc would entirely break down. The inflation you experience doesn't happen in a vacuum- there are massive non-fiscal deflationary pressures like open borders, globalism and technology advancement that effectively push back against money printing. My concern is those counter-pressures to all the money printing have a limit and I think we are getting close.
@@MisterTrollypolly That will also take a hit. You cannot convert to USD anymore. And all US nodes would stop, because they can't pay their electricity bill. Trading or paying would be difficult. And you are very lucky if your local groceryshop would accept bitcoin.
@@SPeeSimon not as much as you think. To think electricity would just turn off is nonsense. Some grocery stores already accept it and to implement it is simple.
@@MisterTrollypolly How does the power remain on when nobody is getting paid? Everyone from the coal mines, trains, power stations, linemen all would continue to work even tough their paycheck no longer comes?
I have been listening to many channels about global financial information and I would say you come across as the most interesting one out of them all.!!
That's why most of international lenders have started selling us treasury bonds into gold. If us govt goes default ,dollar would come down ,all the goodies imported would cost much more ,prices would sky rocket .standard of living would fall sharply....
Much more than a tax it would totally ruin millions of Americans holding treasury bills and notes. It seems most Americans don't understand ANYTHING about Treasury bills, notes and bonds. Too, Most individuals.apparently only invest in Treasury bonds, if they do at all, through bond funds, which behave very differently than holding individual bonds, because the return on bond FUNDS very often varies with market sentiment, like stock funds, rather than holding bonds individually at a stated interest rate. Buying bond funds is therefore far less predictable.and often far less safe than buying a bond at a reasonable stated rate and holding it to maturity. Of course if you might be forced to sell an individual bond to get it's value, it is no safer than a stock or than a bond fund.
Tax for goods & income will skyrocket, citizens will hard to loan / borrowing, interest rates will crazy high, gov. asset will be sold, 800 US army base all over the world will be reduced, health & educations will be effected, domino to micro economy.. - simple say USA will be the second Rome Empire.
It would be the end of American hegemony, the collapse of NATO, the end of most speculative stocks and a the end of billionaires and trillionaires... that doesn't too bad to be honest...
I’ve noticed countries heavily in debt, when an election brings in new leaders who try to tackle the overspending, they first go with austerity- big tax hikes & spending cuts. But populations only put up with that for so long. After a year or two, they rebel. Smart leaders will read this and switch to making the investor community take the hit. Sovereign states can terminate that debt, and no, its not forever. Argentina did this and were able to borrow again after less than 10 years.
The Germans did that in the 1920 and early 1930's... it became cheaper to wall paper houses with deutchmarks than to buy wallpaper... there's actual photos of this.
Why? Who cares if the U.S. owes money? Just about all of the things in life you enjoy and/or take for granted would disappear if that were the policy. So the U.S. has a huge debt. Oh well…
And the longer we wait, the more painful it’s going to be, unless we start seeing real progress on paying down the debt anytime soon, we just need to reset and get it over with
35 TRILLIONS US -DEBT (= the official number! ). Can you ever imagine how much money that is ?? ( It means a sum of 35 000 BILLIONS !! ). But that is only the appearance of visible debt. Insiders ( for instance: US-Investor Jim Rogers ) however proclaim that the real amount of total US debt is somewhat close to 200 TRILLIONS !!! That's the real face of the US and not those fairy tales in movies and superhero comics. Now they will litter another 250 Millions more for corrupt Billionair and Clown Selenskij. People, beware of the „Greenback“ !! You will lose everything .
Like his topics. Always interesting. Not sure what he was saying about the third way? He mentioned that most people don't have savings and that default wouldn't affect them. A portion of the assets at the banks are Treasuries. If they were to default, the banks would be insolvent. That just doesn't mean savings that would include Damand Deposits (checking accounts). Those would include the company you work for Payroll Accounts. So not just going to affect people who have money but also the people that make money. It would be disaster. The way they would do it is have hair cuts. That is when they reduce the amount owes and pay in interest. They would say instead of us owing you $1000 we now owe you $800 (or whatever they say). They can do that a few times. That is how a default would work. Not 100% at once. Eventually to a point when manageable.
You think all those starving people aren't going to notice that you are looking plump and well-fed? You better have lots of weapons stored up also to defend your stash.
Surprised that you didn't note the main reason the debt can't be cancelled: The debt IS the money supply. That's the fiat system in action, with 100% of the money that exists having been created by loan, and the national debt acting as the lynchpin debt that backs the system.
I can fix this easily enough with the following steps: 1. Freeze federal spending at current levels. 2. Freeze all taxes at current rates. 3. The fed issues up to $100k vouchers to every household to reduce or eliminate personnel debt. 4. Mandate all tuition at higher learning institutions who receive federal subsidies not to exceed $25k a semester. 5. Mandate all mortgages are not to exceed 20 years and interest not to exceed 5%. 6. Mandate all credit card companies APR cannot exceed 10%. 7. Enact a federal sales tax (not to exceed 10% of GDP) on all goods and services that only goes to paying off the federal debt. 8. Enact a 100% tax on income for employers who earn more than 200% of their lowest paid employee. 9. Freeze all prices on nesscary goods, grocery items, electrical and water services. This is just a start.
May be USA are not going to pay - remember, USA emerged from the second World War as e very rich state. They are trying to profit by using this method to stave off inancial collapse once again
1837: Andrew Jackson (In 1835, the $17.9 million budget surplus was greater than the total government expenses for that year.) By January of 1835, for the first and only time, all of the government's interest-bearing debt was paid off. Congress distributed the surplus to the states (many of which were heavily in debtPresident Andrew Jackson is credited with paying off the entire national debt of the United States in 1835, marking the only time in American history where the country had no debt at all; this achievement is often associated with his presidency.
What happens when BricS currency start floating in the world. Currently, there are 152 countries have joined to BRICS how that impact tge dollar value and the effect on US economy.??????
Idk if it will directly be put into the world economy. The way it’s been explained to me is that it’s to be used Between the governments of these countries. It will still affect the dollar, but it’s not supposed to be like the euro
@@JB-yb4wn China did issue 2 Billion USD bond in Riyadh at 3-4 basis points recently and the 3 year bonds are oversubscribed by 20x. The 5 years one are at 50x oversubscribed. The next thing you know, UST had to issue bond at an interest rate that they cannot afford just to compete with China's USD bond. Given the temperament of Trump, how likely tension will escalate. US is already spread too thin and Europe has no army. It will be a nuclear disaster very quick if not handled wisely. You and I and everything we love is fucked
@@AlexanderNevermind-j8m Sure, but these aren't treasuries. The Chinese need US funds badly and since the US is restricting trade with China, they have decided to issue US backed securities to get Saudi suckers to ante up some US dollars in the expectation of getting a higher than normal return. Would you trust the PRC with your money? Obviously a lot of dumb people did, or maybe the Chinese accepted cash? Then we have a money laundering situation.
😭FED RESERVE, BANKS, FINANCIAL INSTITUTIONS, INSURANCE CORP., PENSIONS, SOCIAL SECURITY, STATES AND CITIES, AMERICANS... OWNS 90% of our debt! CHINA, RUSSIA, JAPAN, EU ....EITHER SOLD AND/OR STOPPED BUYING years and months ago- they only owe 10%!
This would be the great reset, except the Government owns everything. Months & months ago someone explained that people who have equity in their homes...depending on how much debt they have ...might get that forgiven. All other debt on assets would be confiscated. Imagine the insanity of it all. So many read about the 'debt jubiliee' never realizing it is about returning the assets to the loaner...not free stuff to the debtor. You return the asset and the loan is forgiven. Sounds like forced bankruptcy to me.
@@GrandmaKit yeah I agree. But that’s not how Debt Jubilees used to work. The Jews used to forgive debts or else they would be chased out of town and killed. Now they are not afraid of getting chased out because they have Israel. Ban jews from banking imo
1) reduce the spending by 10% across every department for 10 years 2) create a zero deficit budget 3) remove unions from Government positions and fire the poor performers
The US govt spend was $6.31 trillionlast year... 10% of that is $630 billion... that isn't even 30% of the interest owed last year let alone the rollover... 😂
@6:30 you mean like Milei is doing, in Argentina. Have you re-evaluated your position on the possibility of the US Govt. amending the Constitution, to allow the FED to be incorporated, into it; as a separate Department, Joe. I remember you discussing this, some months ago.
It would be interesting to compare the effect of this with South Korea's financial crisis in 1997 when they could no longer service their debt. And with the more recent near collapse of the UK's bond market (requiring the BoE to buy bonds as several pension funds were over exposed) when the Truss budget announced unfunded spending.
Money can be created using shale oil and other natural resources as a partial backup. The monies can be printed without external borrowing. It would be a new currency system without traditional transactions to generate funding. Laws and taxation policy could control the inflation with the aid of competitive trade and selling practices. It can avoid runaway inflation with some spending controls.
Its one of the reason countries that have begun to ask themselves the question, snd starting to distance thrmselves from the $, so as not to fall into this dilemma.
If employers only pay with a company check drawn against their bank, or direct deposit, how can employees receive their pay while trying to avoid either bank going under?
In my opinion, America will not honour Chinese investment, but they'll not yet make the same decision YET with Japanese and UK bond holders. However, down the road their times will come just the same.
You forgot to mention the pension funds are heavily invested in US debt. That would hurt the every day American in a huge way…jeesh. You’re an expert 😵💫
The USA only has to pay off the minimum monthly or annual payments. It does not have to pay it all. What is needed is a new currency creation system that avoids borrowing from outside the government. It can be done with natural resources being nationalized and future sales revenue providing some relief. The government would borrow from itself against future sales.
It's called "declaring bankruptcy", with one very important difference: the US holds the collateral, which is the blood, sweat and tears of the citizens, not the Fed. The Fed has no collateral at all--their currency was guaranteed by the indebted populace.
😭 BANKS, INSURANCE CORP., PENSIONS, STATES AND CITIES OWNS 90% of our debt! CHINA, RUSSIA, JAPAN, EU ....EITHER SOLD AND/OR STOPPED BUYING years and months ago- they only owe 10%! ILL BUY THE TRILLION DOLLAR COIN for $ . 10!
The US would lose world dominance. The US dollar would tank, as trust would be eroded. It would lose its reserve status. Inflation would be staggering. All savings would be wiped out….kiss your 401 gone and those who are lucky to be part of defined pensions. Social security would be drastically cut. A very dire matter.
The USA hasn’t paid principle on the derby in thirty years. The country paid interest on the principal. That’s why the total debt amount keeps growing.
Germany printed fiat Marks after WWI it basically became worthless, then they came up with a new currency backed by German land. They bought back their debt at a significant discount to its worth in fiat Marks. The debt that they had which was denominated in Marks wasn't worth very much anymore. The war widows that lived off bonds became destitute. Those that owned land and equity did better as prices went up for the customers of these companies as the mark devalued.
And what if the they sold all federal land except that needed for actual business/buildings, and then repriced gold on the books from $35/oz to market?
It’s technically impossible to ever pay back all the money it borrowed from the federal reserve, since the federal reserve prints money out of thin air each dollar the fed prints has interest attached to it and since the federal reserve only prints the principal the money to pay back the interest on it doesn’t exist, say you were to go back to the very first loan the government took from the federal reserve say that loan was for 100k dollars with say 4% interest, the federal reserve prints the 100k ( the principal) that 4% interest doesn’t exist and the only way to pay it back would be to borrow more money which in turn would also have interest attached to it, if you were to pay back the federal reserve all the money it’s owed then there wouldn’t be any dollars in existence and there would be all that interest that is still owed. It says in the constitution that only congress shall coin and mint money which would make the federal reserve ( a private bank btw )unconstitutional same with federal income tax because you can’t have a direct unapportioned tax
Excellent explanation of inflation, and its effect on the bond market and various other notable things. Looking at what happens at the extremes often helps to understand how a system works. Basically the government is a legal counterfeiter of money, and the whole world is paying for America's inflation, because the US dollar is the dominant global currency. Everyone would become counterfeiter if legally allowed to do it (laser printers are pretty good these days), but the dollar would quickly become worthless, because everyone knows its counterfeit. At the moment we are at the stage where counterfeit in the economy is undiscovered.
The Euro dollar system that now has more dollars that the US economy never existed after WW2. So inflation will be much much higher than between 19r5 and 1980. There will be just too many dollars if the demand for the dollar fell globally.
If U.S. defaults on its debts, few countries would want to trade in U.S. dollar anymore. So what good is printing money? U.S. companies which rely on raw materials or supplies from abroad need to pay in foreign currencies. If they don't have enough foreign currencies, they will downsize or stop their operation. Expect massive bankruptcies and lay-offs. Back to "subsistence economy" where priority is given to production of basic goods needed for survival, or to "real economy" where what matters most is having access to commodities and services. Capitalism which prioritizes "growing the money" is caput.
We All Need To Keep The Faith And Hold The Line And Trust The Plan That Only In Father Gods Divine Timing ⏱ We We Will Than See And Embrace All Our Prayers And All Our Life’s Dreams To Come True Amen 🙏
they have decided many many years ago. no politician has any intention of supporting any attempt to pay the debt. it would be the end of their career, and we all now which matters to them. the changes it would take to pay will never be allowed by the public. that is what got us here. the government has to be everything to everybody and take care of them and pay for everything. say you are going to cut anything and try an get elected.
Option 1 means nobody will ever lend money to the US government again. The trust is lost. The government is forced to cut spending because deficit cannot happen any more. Option 2 means printing a lot of money. This will create massive inflation - food will be so expensive that poor people might starve to death.
But what about four year default on interest ...to slash Government spending by 50% by a new Department of Government Efficiency? Lenders only lose out on 4 years of interest.
Treasuries are not debt they are a liability. We don’t borrow money. We sell treasuries as an asset. Consider it a savings account. There is no debt. There’s no reason to not pay it back. The government has the ability to spend to infinity. Of course there are consequences in the form of inflation but we have the physical ability to do that. Inflation is also not so simple that more spending means more inflation. “Paying off” the “debt” means removing money from the economy which would cause economic collapse.
Why does it seem the ONLY time politicians say "We Can't Afford this program is when it's SS, Medicaid or Medicare? Never that 30 billion $ for a single aircraft.
@valerieprice1745 Amen 🙏 Love ❤️ Your Comment May You My Sister Always Stand Strong In Faith And Truth Like A Lion Fearless Amen 🙏 May All Your Prayers And All Your Dreams Come True And May You And Your Family Always Stay Safe And Blessed Always In Life’s Journey Amen 🙏
@valerieprice Amen 🙏 I Appreciate You And May You Always Know You Are Father Gods Precious child Loved Always And Your Never Alone To Face Any And All Obstacle’s In Life’s Journey And His Angels Are With You All Through Life’s Journey Amen 🙏
Politicians used to talk about budget deficits as a big problem. They don’t bring it up anymore.
Yes, people will try to spend as much as they can before declaring bankrupt.
Ask Kamala Harris the debt question ?????
Beware the quiet ones!!!
No candidate talks about the debt.....they have nothing to say
Yeah of course they don’t talk anymore. Reducing debt absolutely requires RAISING tax AND REDUCE spending. Neither would make the politician popular not to mention both together.
The INSOLVENCY of a banana repulic.
Or hyperinflation. At this point it’s binary.
Worse than Zimbabwai
Don’t lend this “Banana Republic” any money! US can’t repay!
This is the fall of Rome all over again
No the US admin don't think alike. Just keep borrowing and printing.
92 years of chaos to follow? maybe not.
No, it's not Rome, that was then. It's the US, this is now
@@HLC64 That’s exactly what the Roman Empire did, they also had lots of immigration that wasn’t ‘legal’ either, just like now.
I think this is much worse than it was with Rome. Unlike modern American Empire, Roman Empire was honest in its imperialism, and spirit of superiority its culture. Romans fought for their unity and superiority. Modern americans are fighting for opposite - diversity, money, and anti-nationalism. Modern USA is fighting for what weakens it, so it will fall ten times faster than Rome.
US defaulted when it removed gold standard
Absolutely, from iou’s to fiat overnight then the market rallied just like Tulip Mania 1636, pending the crash similar to 1637.. I’m a perma bull until the printer stops.. then down she goesssss. Can someone check, I’m lazy.. is the interest we’re paying on national debt greater than GDP yet?
Really? They defaulted on their treasury obligations also? I thought they just lifted the fixed exchange rate with gold...
It happened way before that.
@@SimpleAbundance Nope. Probably won't be for a few more decades. Besides, the debt problem will just be solved with printing money and inflation like always. Can't wait for a $50 dollar big mac combo.
35 TRILLIONS US -DEBT (= the official number! ). Can you ever imagine how much money that is ?? ( It means a sum of 35 000 BILLIONS !! ). But that is only the appearance of visible debt. Insiders ( for instance: US-Investor Jim Rogers ) however proclaim that the real amount of total US debt is somewhat close to 200 TRILLIONS !!! That's the real face of the US and not those fairy tales in movies and superhero comics.
Now they will litter another 250 Millions more for corrupt Billionair and Clown Selenskij. People, beware of the „Greenback“ !! You will lose everything .
When money is backed by debt. What's happening if government don't back debt? Collapse of currency.
For the common person can't afford groceries homes car because dollar is weak
It means the dollar has no value but you can use it to light up your burner to keep yourself warm for the winter. Time to know how others felt in a war torn country when their money turn into ashes. What comes around goes around.
Not just that every imported item will become expensive and exported item cheap.
No, not if the country's debt is in its own currency.
Our money is backed by the reputation, goods and services of the US.
Imagine how much better the world would be if the politicians were not allowed to borrow any money. We might feel poorer, but at least we'd have to face reality.
Wrong.
If the govt stopped borrowing, it would be exactly like the crew of a leaky boat stopping bailing.
The boat sinks.
For the USA that would mean a catastrophic collapse of everything and millions of deaths.
@@trobertday1390 It's possible and centralized, But It's called a sovereign money system or full reserve banking. Irving fisher advocated for it in the 1930's With his 100% money and the public debt.
Read: Money and Debt: The Public Role of Banks
It's possible and centralized, But It's called a sovereign money system or full reserve banking. Irving fisher advocated for this in the 1930's With his 100% money and the public debt
Read: Money and Debt: The Public Role of Banks
@@1philliph Which will happen anyway, because the water is leaking into the boat faster than they can bail it out.
people who borrow money can't afford what their borrowing the money for people hate car payments what if they saved that money for 4 or 5 years then they could pay cash for a car a $100 a week is $5,200 a year that most will wast on stupid crap
It's disheartening to think that our tax dollars are being spent on international interests instead of tackling our own nation's challenges, such as rising rents and stagnant wages, which are making it difficult for me to make ends meet. In fact, I've been forced to dip into my savings to keep up with the increasing costs. However, I'm determined to make the most of my situation and invest the remaining $100,000 in a non-retirement account to secure my financial future. Advice on how to grow this sum would be greatly appreciated, especially considering the current economic climate.
For now, avoid index funds, mutual funds, and individual stocks, and opt for a stable 5% fixed-income option. Set aside funds for when the market recovers significantly, and consider diversifying across asset classes, short-term low-risk investments, and consulting a financial advisor for personalized guidance to secure what you have left for your financial future.
I agree! A financial advisor will help guide and create a tailored plan for growth and stability.
45% of Americans do not invest in the financial market because of lack of guidance. Every year you don't invest, you are falling behind. I’m hitting numbers in the stock market I used to dream of… Going from $50k to $600k in my portfolio is surreal all thanks to insights from my financial advisor
Who are you working with please ?
Glen Howard Chester my trusted CFA, is a prominent figure in finance. Just search the name to see his credentials and experience.He's a wealth of knowledge for navigating the financial landscape.
Very much appreciated, just copied and pasted his name on the web, easily spotted his consulting page and was able to schedule a call session.
yes, but they would not be able to borrow ever again.
The US defaulted in 1972 and the world kept buying US treasuries
@@b1burckdifferent time, still seen as the last frontier. Now any nation could be the seed in a sense and that’s what the world is trying to see with rumbling the “empire”
@@b1burck At that time they could convince the Saudis to sell oil only in dollars forcing all nations to acquire dollars to buy oil.
@@b1burck But that was politics/ budget negotiations, not an inability to pay.
I don't see that as a bad thing since they can't live within their means and aren't responsible with debt.
I remember when Germany cut off their credit to Greece. Germany told Greece that starting austerity was mandatory. It’s time America’s creditor cut us OFF! I remember decades ago when Australia’s inflation was so bad that citizens took their pay directly to hard goods stores to buy stereos and other goods that would hold their value or increase in value! Plus they were tradable. Dry goods like food!
Central banks are now the lenders.
Sounds just like the Weimar Republic back then.
Australia or Austria?
Yes I was referring to the economic information roller coaster that Australia was riding four plus decades ago. However there have been many run-a-way inflation trains over a century in many countries around the world!
We're going to have to downsize the budget, one way or another. Either you make the hard choices now, or you have the choices happen to you. Congress hasn't had the guts to do the former yet, so buckle up.
A smaller government would alleviate this issue
Cut veteran aide, tax the church, stop funding red states.
what happens when a ponzi scheme does not pay interest anymore?
Everything collapse. The main difference with Japan's debt is that, the US one is hold in its majority by other countries/third parties, meanwhile the japanese one is only 30%.
We can think like the japanese debt was already paid with inflation, meanwhile the US one is inside a vicious circle w/o escape.
So, keep printing it is got it!
Most of U.S debts are owned by American companies and U.S intra-government agencies.
Only 20-25% of the debts are owned by foreign entities.
Meaning if the debts are defaulted, the Americans investors will hurt the most.
Japanese national debt is extremely high but it is 95% domestic and on top of that, it is an export-oriented economy. It produces more than its need. So it can sustain itself.
The U.S is a import, consumption-oriented economy. If the debts crash... Hyper-inflation.
@@BYD-Gold You didn’t address my key point. Japan has the ability to effectively 'burn' a significant portion of its debt, as much of it is held by the central bank through fiat issuance. This means the cost of servicing this debt is already largely absorbed by the Japanese economy itself. In contrast, the U.S. central bank holds a much smaller proportion of national debt. This distinction highlights a crucial monetary perspective.
@@rya6701
The U.S dollar is the proprietary of U.S federals.
The U.S federals is the central gov of US.
If the USD fails, so will the central gov of U.S. And if the federals fails HARD! Multiple states will be seceded.
In the past, there were political parties that overpromised their voters, like printing money endlessly to paid off the debts or making banana decisions related to economics.
That is also why the Federal Reserve is granted "partial-independency" in the early establishment period. In order to make monetary policy more effective and NOT politicized.
However, due to U.S increasingly more involved in the foreign-affairs after 1950s, the monetary policy has been weaponized again and again and again.
While by de jure, The Fed Reserve is "independent"
But by de facto, it is an extension of U.S Treasury and department of state.
Again, if the debts defaulted, the biggest losers will be average Americans and the unity of 50 states (and other territories of U.S federals).
@@BYD-Gold I don’t see it that way. I believe that the well-being of investors is of minimal interest to the government. Its primary concern is to service the debt; without doing so, it risks losing access to debt markets.
Furthermore, as I mentioned earlier, a significant portion of U.S. debt is held by foreign countries and various third parties. It seems limiting the definition of third parties to only those from abroad is unnecessarily restrictive and made my words to be redundant.
I also don’t view the issue as primarily stemming from the balance of payments related to imports and exports. Instead, I believe it arises mainly from inadequate monetary and financial policies.
Finally, I contend that if the U.S. debt were to collapse, inflation would primarily be driven by the influx of dollars returning to the U.S. (fewer countries will want or need dollars), with rising import prices playing a significant role. In other words, even the prices of domestic production will hyper-inflate, as the cause of inflation will be primarily monetary. This seems to be something planed, It will be a time of monetary chaos and time to pay the bill of years of monetary abuse for Americans.
When someone doesn't pay his debts, it is called robbery. Paying with something without any value could be considered the same.
Meanwhile in Europe our governments specifically get upset with people expressing this view.
They're more inclined to "learn" from US example than decide to restrict trading with a proven insolvent party
CALL it whatever you want.. WHO CARES ???
WHO ?? ONLY (#@&/?!--...HA HA HA HA
Bye bye US Dollar 😂
No Dollars, No Wars
Dollar took 40 years to become a reserve currency. We have to wait about 40 years to let dollar go away
@DontMansion yeah but where about 30 years into that process
@@DontMansion We're not in the 1800's anymore everything's moving faster and we have a solid alternative building for 15 years with a sharp acceleration in the last year, so I'll bet It will take way less than 40 years
But the dollar is the only thing preventing a civil war in the USA
It is not true that for all of US history the deficit and debt have always gotten bigger. There were periods of deficits and surpluses before 1913:
From 1796 to 1811, there were 14 budget surpluses and only 2 deficits.
In the 20 years following the War of 1812, there were 18 surpluses. President Jackson eliminated all US debt in 6 years.
The problems we have are tied directly to the creation of the Federal Reserve and the implementation of a permanent income tax, both in 1913.
The first steps to correct the current issues would be to eliminate the Federal Reserve and declare a debt jubilee -- discharging all Federal Reserve debt.
And how do you encourage bank lending..on a scale that's needed globally today? Getting rid of the Fed would cause a global collapse and depression
@@b1burckthat’s why there’s a new system being put into place right now
Yes, I seem to remember control of US currency has changed hands between We The People and globalist bankers about 8 times. For example the war of 1812 was fought because the globalist controlled First Bank of the US charter expired and Congress refused to renew it. We surrendered control of the Second Bank of the US to globalists after the treaty of Ghent. The British just defeated Napoleon which freed up thousands of seasoned troops to fight in the US. There was a good chance we might have lost that war. Andrew Jackson found out about the real reasons for the war of 1812 and defunded the Second US bank giving control back to We The People. Today all global currencies are controlled by a hand full of bankers who in turn control the world. The control of the issuance of currency it the root of power and evil.
@@b1burckSome say that that might not be a bad thing in the long run. A cleansing of excesses is probably long over due….🤨🤔
@b1burck A global collapse and depression is EXACTLY what is needed to return back to sound money. It's much better than going the Zimbabwe (hyperinflation) route.
YOU COMMUNICATE EFFECTIVELY AND CLEARLY ❤
We need less politicians
Can't blame China for selling off US treasury bonds. 😅
Japan sold 61 billion dollars worth the other day
New Zealand Government Bonds were hooked up to inflation
Yes because republicans refuse to pay their bills.
Nope. But you can blame Trump. He wanted to start trade wars and fights. Be careful what you wish for, you may just get it
All of this really means that the average tax payer is providing human labor for absolutely 0.
Chattel slavery
@@matteberry58 Exactly....all unfolding in a hyaline prison as most are not even aware of the chains they wear. For a dollar earned they give back 1.20. Hence credit card debt overflow.
😢
Be thankful you are allowed to exist.
Count blessings.
Default on debt will bring on financial ruin for most Americans. Including my wife and me. My kids will live to see recovery. Bring it.
America would never again be a super power... by the time the US recovered, we would be in a multi-polar world with the US at the kids table. 😂
Your average American might not have much cash in the bank... but their employer does. Good luck getting paid on Friday. The USG defaulting on UST's would destroy the global financial system. The entire supply chain that provides food, energy, medicine etc would entirely break down. The inflation you experience doesn't happen in a vacuum- there are massive non-fiscal deflationary pressures like open borders, globalism and technology advancement that effectively push back against money printing. My concern is those counter-pressures to all the money printing have a limit and I think we are getting close.
And we can finally transfer to the best form of money out there, Bitcoin
@@MisterTrollypolly That will also take a hit. You cannot convert to USD anymore. And all US nodes would stop, because they can't pay their electricity bill. Trading or paying would be difficult. And you are very lucky if your local groceryshop would accept bitcoin.
@@SPeeSimon not as much as you think. To think electricity would just turn off is nonsense. Some grocery stores already accept it and to implement it is simple.
@@MisterTrollypolly How does the power remain on when nobody is getting paid? Everyone from the coal mines, trains, power stations, linemen all would continue to work even tough their paycheck no longer comes?
The rest of the world will be fine especially with the new moves Briks are making only the US will be screwed this time
Add all those unfunded entitlements, it’s about 200 Trillion
It's not entitlements it's alot of funded retirement that has been blowed on something else.
thats why US starting a war in middle east and ukraine russia to destroy their debt,
Just the unfunded entitlements are 200 odd trillion... the national Debt is on top of that...
@@scottbraun1069Medicare, medicaid, retirement and US military spending is all unfunded...
I have been listening to many channels about global financial information and I would say you come across as the most interesting one out of them all.!!
Fat hope, 😂 America always think they are exceptional, Trump threatens all to use USD or else, typical gunboat diplomacy
Bricks 🗿🗿🗿 (Hold my cup)
I'm so happy that I live in a BRICS country, the future is here
Does no one remember what happened when Saddam Husein bought oil with swiss francs?
Crystal clear explanation as always
That's why most of international lenders have started selling us treasury bonds into gold. If us govt goes default ,dollar would come down ,all the goodies imported would cost much more ,prices would sky rocket .standard of living would fall sharply....
The governments creditors may find out that those government bonds will amount to a tax on people silly enough to lend to government.
Much more than a tax it would totally ruin millions of Americans holding treasury bills and notes. It seems most Americans don't understand ANYTHING about Treasury bills, notes and bonds. Too, Most individuals.apparently only invest in Treasury bonds, if they do at all, through bond funds, which behave very differently than holding individual bonds, because the return on bond FUNDS very often varies with market sentiment, like stock funds, rather than holding bonds individually at a stated interest rate. Buying bond funds is therefore far less predictable.and often far less safe than buying a bond at a reasonable stated rate and holding it to maturity. Of course if you might be forced to sell an individual bond to get it's value, it is no safer than a stock or than a bond fund.
What if the federal government was forced to have a balanced budget? No more borrowing to pay the bills.
Tax for goods & income will skyrocket, citizens will hard to loan / borrowing, interest rates will crazy high, gov. asset will be sold, 800 US army base all over the world will be reduced, health & educations will be effected, domino to micro economy.. - simple say USA will be the second Rome Empire.
No More Aircraft Carrier,NATO Will Defunct
It would be the end of American hegemony, the collapse of NATO, the end of most speculative stocks and a the end of billionaires and trillionaires... that doesn't too bad to be honest...
hyper inflation
Reduced services and higher taxes. The same as if you lived to a budget. Reduced spending increasing income.
I’ve noticed countries heavily in debt, when an election brings in new leaders who try to tackle the overspending, they first go with austerity- big tax hikes & spending cuts. But populations only put up with that for so long. After a year or two, they rebel. Smart leaders will read this and switch to making the investor community take the hit. Sovereign states can terminate that debt, and no, its not forever. Argentina did this and were able to borrow again after less than 10 years.
Just make sure have enough paper and ink. Add a few more printers and run 24/7.
The Germans did that in the 1920 and early 1930's... it became cheaper to wall paper houses with deutchmarks than to buy wallpaper... there's actual photos of this.
The government should only be able to use what it gets in taxes instead of borrowing and going into debt with the people's money.
But then you won't vote for them.
Why? Who cares if the U.S. owes money? Just about all of the things in life you enjoy and/or take for granted would disappear if that were the policy. So the U.S. has a huge debt. Oh well…
Hyper inflation or debt default are the only possible scenarios.
War is the third option. Send in the military and extract the wealth.
There is another scenario you forgot, WW3.
And the longer we wait, the more painful it’s going to be, unless we start seeing real progress on paying down the debt anytime soon, we just need to reset and get it over with
35 TRILLIONS US -DEBT (= the official number! ). Can you ever imagine how much money that is ?? ( It means a sum of 35 000 BILLIONS !! ). But that is only the appearance of visible debt. Insiders ( for instance: US-Investor Jim Rogers ) however proclaim that the real amount of total US debt is somewhat close to 200 TRILLIONS !!! That's the real face of the US and not those fairy tales in movies and superhero comics.
Now they will litter another 250 Millions more for corrupt Billionair and Clown Selenskij. People, beware of the „Greenback“ !! You will lose everything .
@@GolemDude we can't pay that down
Like his topics. Always interesting. Not sure what he was saying about the third way? He mentioned that most people don't have savings and that default wouldn't affect them. A portion of the assets at the banks are Treasuries. If they were to default, the banks would be insolvent. That just doesn't mean savings that would include Damand Deposits (checking accounts). Those would include the company you work for Payroll Accounts. So not just going to affect people who have money but also the people that make money. It would be disaster. The way they would do it is have hair cuts. That is when they reduce the amount owes and pay in interest. They would say instead of us owing you $1000 we now owe you $800 (or whatever they say). They can do that a few times. That is how a default would work. Not 100% at once. Eventually to a point when manageable.
If things go 100% to zero holding anything US... You can't run away from it... You hold physical things... Or find something outside of that system.
Gold or any valuable minerals
You think all those starving people aren't going to notice that you are looking plump and well-fed? You better have lots of weapons stored up also to defend your stash.
@@PracticaProphetica lol 😂 don't make it obvious like how Rich ppl do with wealth.
Our debt is accruing at $128,000 per SECOND!!!
Surprised that you didn't note the main reason the debt can't be cancelled: The debt IS the money supply. That's the fiat system in action, with 100% of the money that exists having been created by loan, and the national debt acting as the lynchpin debt that backs the system.
I can fix this easily enough with the following steps:
1. Freeze federal spending at current levels.
2. Freeze all taxes at current rates.
3. The fed issues up to $100k vouchers to every household to reduce or eliminate personnel debt.
4. Mandate all tuition at higher learning institutions who receive federal subsidies not to exceed $25k a semester.
5. Mandate all mortgages are not to exceed 20 years and interest not to exceed 5%.
6. Mandate all credit card companies APR cannot exceed 10%.
7. Enact a federal sales tax (not to exceed 10% of GDP) on all goods and services that only goes to paying off the federal debt.
8. Enact a 100% tax on income for employers who earn more than 200% of their lowest paid employee.
9. Freeze all prices on nesscary goods, grocery items, electrical and water services.
This is just a start.
Tell us more about the element of private ownership of the Fed.
Use google
@@thelawenforcementproject2705google belongs to who?
He is not AI chatbot.
***** @2:55 @3:10 @3:19 @3:35 @4:03 4:18 4:25
Even if USA want to pay , they can hardly pay for it….where will they get the money….
They will have to do what anyone defaults does... backs new loans with hard assets... basically be giving away state owned assets as collateral.
@@maigepresents5840 if it happens its a good thing then usa will stop funding and supporting terrorism against india so its a good news
May be USA are not going to pay - remember, USA emerged from the second World War as e very rich state. They are trying to profit by using this method to stave off inancial collapse once again
WE UNITE & MAKE WEALTHY AMERICANS & FOREIGNERS PAY 100.% !
You're right about that.
Doesn't consitution forbid failing to pay debts?
😂 The government wipes its butt with that on a daily basis.
1837: Andrew Jackson
(In 1835, the $17.9 million budget surplus was greater than the total government expenses for that year.) By January of 1835, for the first and only time, all of the government's interest-bearing debt was paid off. Congress distributed the surplus to the states (many of which were heavily in debtPresident Andrew Jackson is credited with paying off the entire national debt of the United States in 1835, marking the only time in American history where the country had no debt at all; this achievement is often associated with his presidency.
Only thing he did
What happens when BricS currency start floating in the world. Currently, there are 152 countries have joined to BRICS how that impact tge dollar value and the effect on US economy.??????
Idk if it will directly be put into the world economy. The way it’s been explained to me is that it’s to be used Between the governments of these countries. It will still affect the dollar, but it’s not supposed to be like the euro
Right. Because when Ethiopia, the United Arab Emirates, and Iran are all working together, the possibilities are endless. 😂😂😂
Well Paul, why don't you look at the countries backing BRICS and let me know if they are pillars of financial strength?
@@JB-yb4wn China did issue 2 Billion USD bond in Riyadh at 3-4 basis points recently and the 3 year bonds are oversubscribed by 20x. The 5 years one are at 50x oversubscribed.
The next thing you know, UST had to issue bond at an interest rate that they cannot afford just to compete with China's USD bond. Given the temperament of Trump, how likely tension will escalate. US is already spread too thin and Europe has no army.
It will be a nuclear disaster very quick if not handled wisely. You and I and everything we love is fucked
@@AlexanderNevermind-j8m
Sure, but these aren't treasuries. The Chinese need US funds badly and since the US is restricting trade with China, they have decided to issue US backed securities to get Saudi suckers to ante up some US dollars in the expectation of getting a higher than normal return.
Would you trust the PRC with your money? Obviously a lot of dumb people did, or maybe the Chinese accepted cash? Then we have a money laundering situation.
Great explanation.
😭FED RESERVE, BANKS, FINANCIAL INSTITUTIONS, INSURANCE CORP., PENSIONS, SOCIAL SECURITY, STATES AND CITIES, AMERICANS... OWNS 90% of our debt! CHINA, RUSSIA, JAPAN, EU ....EITHER SOLD AND/OR STOPPED BUYING years and months ago- they only owe 10%!
So basically sell all US treasury bonds now. Also, long-term planning!? I dont think the US even heard of the conceot.
pension funds would be hit hard
Thanks Joe
Never going to happen 💯💯💯
All I know is that it’s not my debt, I didn’t spend the money. The government people who spent the money should be 100% responsible!
what if all americans maxed out their credit cards, can we get a debt jubilee
This would be the great reset, except the Government owns everything. Months & months ago someone explained that people who have equity in their homes...depending on how much debt they have ...might get that forgiven. All other debt on assets would be confiscated. Imagine the insanity of it all. So many read about the 'debt jubiliee' never realizing it is about returning the assets to the loaner...not free stuff to the debtor. You return the asset and the loan is forgiven. Sounds like forced bankruptcy to me.
@@GrandmaKit yeah I agree. But that’s not how Debt Jubilees used to work. The Jews used to forgive debts or else they would be chased out of town and killed. Now they are not afraid of getting chased out because they have Israel.
Ban jews from banking imo
Govt spending more than the collected taxes should be illegal.
Have you seen the average American?
1) reduce the spending by 10% across every department for 10 years 2) create a zero deficit budget 3) remove unions from Government positions and fire the poor performers
The US govt spend was $6.31 trillionlast year... 10% of that is $630 billion... that isn't even 30% of the interest owed last year let alone the rollover... 😂
@6:30 you mean like Milei is doing, in Argentina.
Have you re-evaluated your position on the possibility of the US Govt. amending the Constitution, to allow the FED to be incorporated, into it; as a separate Department, Joe. I remember you discussing this, some months ago.
It would be interesting to compare the effect of this with South Korea's financial crisis in 1997 when they could no longer service their debt. And with the more recent near collapse of the UK's bond market (requiring the BoE to buy bonds as several pension funds were over exposed) when the Truss budget announced unfunded spending.
Money can be created using shale oil and other natural resources as a partial backup. The monies can be printed without external borrowing. It would be a new currency system without traditional transactions to generate funding. Laws and taxation policy could control the inflation with the aid of competitive trade and selling practices. It can avoid runaway inflation with some spending controls.
Its one of the reason countries that have begun to ask themselves the question, snd starting to distance thrmselves from the $, so as not to fall into this dilemma.
Great info, thanks Joe
If employers only pay with a company check drawn against their bank, or direct deposit, how can employees receive their pay while trying to avoid either bank going under?
The only thing that really matters? Cash flow / circulation.
Finally I understood, to who govt owes money!!!!
In my opinion, America will not honour Chinese investment, but they'll not yet make the same decision YET with Japanese and UK bond holders.
However, down the road their times will come just the same.
The entire federal government should no longer take pay checks until the debt is payed off.
You forgot to mention the pension funds are heavily invested in US debt. That would hurt the every day American in a huge way…jeesh. You’re an expert 😵💫
You say “americans” but what about the businesses that pay the 8:27 Americans that don’t have any savings?
The USA only has to pay off the minimum monthly or annual payments. It does not have to pay it all. What is needed is a new currency creation system that avoids borrowing from outside the government. It can be done with natural resources being nationalized and future sales revenue providing some relief. The government would borrow from itself against future sales.
It's called "declaring bankruptcy", with one very important difference: the US holds the collateral, which is the blood, sweat and tears of the citizens, not the Fed. The Fed has no collateral at all--their currency was guaranteed by the indebted populace.
There was a guy who said the only time US national debt deceased for a while.. was when they collect Taxes..
Every one of those scenarios sounds actually better then what is really coming .
Damned of we do, damned if we don't
😭 BANKS, INSURANCE CORP., PENSIONS, STATES AND CITIES OWNS 90% of our debt! CHINA, RUSSIA, JAPAN, EU ....EITHER SOLD AND/OR STOPPED BUYING years and months ago- they only owe 10%! ILL BUY THE TRILLION DOLLAR COIN for $ . 10!
The US would lose world dominance. The US dollar would tank, as trust would be eroded. It would lose its reserve status. Inflation would be staggering. All savings would be wiped out….kiss your 401 gone and those who are lucky to be part of defined pensions. Social security would be drastically cut. A very dire matter.
Defund the government. If I was this bad with money I would be thrown in prison.
The USA hasn’t paid principle on the derby in thirty years. The country paid interest on the principal. That’s why the total debt amount keeps growing.
3:43 ok but would there be a point in buying that debt? Like would it be a holding game of eventually it'll give ota original value back?
Germany printed fiat Marks after WWI it basically became worthless, then they came up with a new currency backed by German land. They bought back their debt at a significant discount to its worth in fiat Marks. The debt that they had which was denominated in Marks wasn't worth very much anymore. The war widows that lived off bonds became destitute. Those that owned land and equity did better as prices went up for the customers of these companies as the mark devalued.
And what if the they sold all federal land except that needed for actual business/buildings, and then repriced gold on the books from $35/oz to market?
It’s technically impossible to ever pay back all the money it borrowed from the federal reserve, since the federal reserve prints money out of thin air each dollar the fed prints has interest attached to it and since the federal reserve only prints the principal the money to pay back the interest on it doesn’t exist, say you were to go back to the very first loan the government took from the federal reserve say that loan was for 100k dollars with say 4% interest, the federal reserve prints the 100k ( the principal) that 4% interest doesn’t exist and the only way to pay it back would be to borrow more money which in turn would also have interest attached to it, if you were to pay back the federal reserve all the money it’s owed then there wouldn’t be any dollars in existence and there would be all that interest that is still owed. It says in the constitution that only congress shall coin and mint money which would make the federal reserve ( a private bank btw )unconstitutional same with federal income tax because you can’t have a direct unapportioned tax
Us debt is unpayable.
Excellent explanation of inflation, and its effect on the bond market and various other notable things. Looking at what happens at the extremes often helps to understand how a system works. Basically the government is a legal counterfeiter of money, and the whole world is paying for America's inflation, because the US dollar is the dominant global currency. Everyone would become counterfeiter if legally allowed to do it (laser printers are pretty good these days), but the dollar would quickly become worthless, because everyone knows its counterfeit. At the moment we are at the stage where counterfeit in the economy is undiscovered.
End of being reserve currecy. End of Petrodollar.
The Euro dollar system that now has more dollars that the US economy never existed after WW2. So inflation will be much much higher than between 19r5 and 1980. There will be just too many dollars if the demand for the dollar fell globally.
If U.S. defaults on its debts, few countries would want to trade in U.S. dollar anymore. So what good is printing money? U.S. companies which rely on raw materials or supplies from abroad need to pay in foreign currencies. If they don't have enough foreign currencies, they will downsize or stop their operation. Expect massive bankruptcies and lay-offs. Back to "subsistence economy" where priority is given to production of basic goods needed for survival, or to "real economy" where what matters most is having access to commodities and services. Capitalism which prioritizes "growing the money" is caput.
Can't wait.
I honestly wouldn't doubt it. I truly believe they will resort to this route.
We All Need To Keep The Faith And Hold The Line And Trust The Plan That Only In Father Gods Divine Timing ⏱ We We Will Than See And Embrace All Our Prayers And All Our Life’s Dreams To Come True Amen 🙏
Yeah, that's the answer 🤔
Round and round we go
Thank you very much...
Uncle Sam’s credit card is maxed out.
they have decided many many years ago. no politician has any intention of supporting any attempt to pay the debt. it would be the end of their career, and we all now which matters to them. the changes it would take to pay will never be allowed by the public. that is what got us here. the government has to be everything to everybody and take care of them and pay for everything. say you are going to cut anything and try an get elected.
US should try it
Option 1 means nobody will ever lend money to the US government again. The trust is lost. The government is forced to cut spending because deficit cannot happen any more. Option 2 means printing a lot of money. This will create massive inflation - food will be so expensive that poor people might starve to death.
Stop letting politicians spend over 35k a year in office furnishings would be a good damn start
All social security funds are in bonds too
But what about four year default on interest ...to slash Government spending by 50% by a new Department of Government Efficiency? Lenders only lose out on 4 years of interest.
As soon as someone explains state deficit comparing it to private debt, xou know the person has no idea what it is.
Treasuries are not debt they are a liability. We don’t borrow money. We sell treasuries as an asset. Consider it a savings account.
There is no debt. There’s no reason to not pay it back. The government has the ability to spend to infinity. Of course there are consequences in the form of inflation but we have the physical ability to do that. Inflation is also not so simple that more spending means more inflation.
“Paying off” the “debt” means removing money from the economy which would cause economic collapse.
Why does it seem the ONLY time politicians say "We Can't Afford this program is when it's SS, Medicaid or Medicare? Never that 30 billion $ for a single aircraft.
Because the ability to project force is much more valuable.
We've done it before. Nixon taking the US off the gold standard was a genuine default on the debt.
@valerieprice1745 Amen 🙏 Love ❤️ Your Comment May You My Sister Always Stand Strong In Faith And Truth Like A Lion Fearless Amen 🙏 May All Your Prayers And All Your Dreams Come True And May You And Your Family Always Stay Safe And Blessed Always In Life’s Journey Amen 🙏
@@mariosaati7110 Christ is risen! Truly He is risen. Thanks for your reply. What a nice thing to say! God bless you and keep you. :)
@valerieprice Amen 🙏 I Appreciate You And May You Always Know You Are Father Gods Precious child Loved Always And Your Never Alone To Face Any And All Obstacle’s In Life’s Journey And His Angels Are With You All Through Life’s Journey Amen 🙏
Sir, can you do a video what would happen to stocks, housing if us dollar crashes to half.
I think the government 1st spend and then mop up the liquidity through tax.
The cost of overwhelming force is overwhelming the US, The American nightmare