Today we’re talking about the United States Governments’ debt load. We all know its grown to a monstrous stack of $30 trillion us dollars.
So the question on everyone’s mind is, as the debt, and the cost of the debt keeps growing, how long can they go before they default on their debt?
In this video, I’m going to give you the answer to this and it might surprise because it’s probably not what you’d expect to hear.
Timecodes
0:00 Video Overview
0:48 Intro
0:55 How Much The Debt Has Grown
2:01 Interest Rates and Debt
6:01 How Will The Government Afford to Pay Debt Obligations
9:22 Implications of Rising Interest Rates
11:06 Why Has The Balance Sheet Grown So Much
13:33 How Deep Will Deficits Stay?
17:38 Outro
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#USDebt #Defaults #InterestRates
Great video!! Thank you Joe
Great subject to discuss and understand.
A subject that everyone should become knowledgeable about.
? The US cant default on its debt. It simply prints. Credit Card comparison is a joke. Shows zero understanding of government debt.
In your example, the credit card company should be run by the card holder. And if the holder decides not to pay, maybe other card holders will suffer too.
It’s happening Now ! This is why you Must own Precious Metals….
Can you please make a video on the US PMI ranking? He speaks about this quite a lot. Would love your take on this.
If you loan the government a $1000 and we assume that the inflation is 3% per year for a maturity period of 20 years, you will essentially lose 60% of the value of your loaned money to the government.
Print, print, print but will the rest of the world still want those Ponzi dollars?
Get rid of the fed
@heresyfinancial Joe, you have just described how the US Treasury and the Federal Reserve are working in partnership to finance the biggest Ponzi scheme of all time. Not only is the FIAT currency system an effective Ponzi Scheme – the financing of the US Government is exactly the same. Bernie Madoff got a 150 year prison sentence for running a $64 Billion Ponzi Scheme but here we have the whole US financial system (incl $30 trillion of debt) being nothing more than a Ponzi Scheme and the two main cohorts get away scot free. Is it any wonder the BRICS have had enough!!!
so its basicly a ponzi scheme?
even if they convert all treasuries to fed debt the end result is a currency crash
Many years ago I saw some charts of all the different scenarios. They all seemed to converge in disaster by 2024. That’s what gold pilled me. We didn’t know what would happen, just that something dramatic would occur near the end. Now we’re finding out.
Technically.- the US government can't "default" if it lets the fed buy all its bonds, but I think that the same distinction could have also been made to describe the situation in Zimbabwe. If the federal reserve purchased all government liabilities (treasury bonds) from foreigners and continued to purchase all US debt in the future, then it would still create economic problems equal to whatever would have happened in a default. That's because the same market value of Fed's liabilities (dollars) must be exchanged to foreigners to retire the US governments liabilities. The act of the Fed buying all the US treasuries from the foreigners would flood the world with more dollars and immediately hurt the purchasing power of the dollar to buy any other assets priced in dollars. Future US budget deficits would end up causing the Fed to spend more money into circulation. Foreigners and holders of dollars would need to spend dollars on something and it would likely cause prices of globally demanded things like food and energy to rise further. Default or rising prices could also put pressure on our government to use protectionism or wage/price controls which have been shown to be problematic throughout history. Ultimately it seems like no matter what – the only fix for this is better fiscal policy meaning that budgets need to be balanced through less government spending or much higher taxes on everyone.
Great video. My question is where does the interest money go? As the Federal Reserve is a private bank then does this money go back to individuals and potentially back out into the economy?
Amazing video and thank you for breaking it down!! Despite the economic downturn, I'm so happy ?I have been earning $ 60,000 returns from my $9,000 investment every 21days.
Great Video: Sounds like a recipe for hyper-inflation.
Low interest rate, weak USD, injects fiat into foreign countries; high interest rate, strong USD, takes wealth back to the U.S. If things get bad enough, the industrial-military complex is always ready to help drop some bombs. US government's MO basically.
The U.S is royally fucked ?
Edit* economies and countries collapsing/protesting/rioting – feels like the wef’s plan is going perfectly. “You’re fucked, here’s the solution”
When you explain it like this, sound pretty much that the government is running a ponzi ?
…so if the Fed buys all the debt and keeps growing its holdings won't this create an inflationary spiral?
2:54 – 3:33 Isn't this definition of Ponzi scheme?
Well, when this game gets old and stale and people atch onto the BS, they'll just wipe the board clean and start over hence, a currency reset. (wash & repeat).