Economic Update: How Deficits and Debts Rip Us Off

[EU S14 E29] How Deficits and Debts Rip Us Off
On this week’s Economic Update, Professor Wolff devotes the entire program to explaining clearly and accessibly what government deficits are, why they occur, and who benefits from them.
We show how deficits and debts reward corporations and the rich at the expense of the mass of employees. This show will equip our audience to see through the misuse of deficits and debts in the 2024 election campaigns.
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As always, we thank you for your attention, support, and solidarity.
The d@w Team
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Professor Wolff's latest book "Understanding Capitalism" is available now for purchase: linktr.ee/unde...

[@nicolasbenson009]

The US economy cannot survive without continuous credit and debt creation. The FED will print more money and the average American will go just that much further in debt. Meanwhile, foreigners lust for the greenbook. Their economies are in worse condition than the US... if that's even possible. Someone is going to be left holding the bag...

[@BellamyGriffin19]

They do say gold will crash in a liquidity crunch However, many of those holding precious metals are preparing for such an event. So they are unlikely to be forced sellers. The paper market would tank and hopefully collapse.

[@SandraDave.]

Hearing from an experienced investor who has survived adversity and prevailed is always motivating. It may be frightening when your portfolio goes from green to red, but if you have invested in strong firms, you should maintain growing them and stick to your goal.

[@PaulKatrina.]

It's often true that people underestimate the importance of financial advisors until they feel the negative effects of emotional decision-making. I remember a few summers ago, after a tough divorce, when I needed a boost for my struggling business. I researched and found a licensed advisor who diligently helped grow my reserves despite inflation. Consequently, my reserves increased from $275k to around $750k.

[@Hectorkante]

this is definitely considerable! think you could suggest any professional/advisors i can get on the phone with? i'm in dire need of proper portfolio allocation

[@PaulKatrina.]

I've shuffled through investment coaches and yes, they can be positively impactful to an individual's portfolio, but do your due diligence to find a coach with grit, one that withstood the 08' crash. For me, Melissa Terri Swayne turned out to be better and smarter than all the advisors I ever worked with till date, I’ve never met anyone with as much conviction.

[@momo36542]

More Americans should listen to this instead of listening to the politicians and mainstream media. Good job Professor!

[@abulazad7838]

Time and Space are Divinely Ordained finely balanced in nature with the unseen, intangible progress of our nature, life and living in and around us with its stream of knowledge, experience and wisdom and the other is the tangible, seen evolving world arrogantly restraining the natural order. The two streams of knowledge should be integrated in a harmonious whole. Evil and good are apart of nature so we choose the least of evil, if forced widen the distance from evil and choose the best of good and strive to enhance and character a straight path to achieve Time and Space encompassing absolutely object Truth which reciprocates to establish substantive tangible return. In a nutshell, the Learned Professor finely articulated only the seen world as knowledge not consider human history the money with integrity holding intrinsic and storage value are not equal to advancing virtual fraudulent monetary system and its resources.

[@Richard-ki4nkgm]

Wolf, and many collectivists, explain the problem well. But the solution they offer is probably just as bad....maybe worse. They want money to be a thing created and manioulated by the government under the guise that its for the citizens. But when money is controlled by the government the people in government will use this to further their power and control over the population. We have never had capitalism because bankers have controlled money and with this they also controlled pollititions and information. If there was a hard money, with a set supply, that couldnt be modified, then maybe we could see the result of capitalism. But when bankers "secured" peoples gold (a mildly inflationary hard money) they created more paper money than accounted for (fractional reserve banking, ie fraud). Through this fraud, some bankers were able to buy real resources and influence. They created a central bank in agreement with the government, which ultimately lead to endless money printing which leads to more 'stolen' resources and backdoor deals. So the solution is a hard money that cant be rehypothecated and countless derivatives created... unless you like the debt slavery. This money does not exist. Gold requires centralization and custody. Bitcoin does too. But ultimately any solution requires people to understand that money must not have controllers of the system. The controllers must be all the people so they need to understand these foundational ideas.

[@CarlGerhardt1]

Just because politicians want more and more money to buy votes with(!)....zoinks!

[@mariabelaev6490]

I do not see that. What would you rather, have everyone live in caves? I would rather live in a small appartment (which is, still, much more comfortable than the one l lived in in Soviet Union) and have the capitalists live in mensions, if they want to..... I would rather have the luxury and be considered poor, than have nothing and be considered average. It is just much more comfortable this way

[@charitomunoz8537]

Time to talk about who receives the interest payments.

[@kennysamuel6836]

Professor Wolff, you a natural born teacher. Your work is highly appreciated.

[@henrygustav7948]

Prof Wolff, lying to the left.

[@scroopynooperz9051]

Behold.. the Wolff of Main Street. The prof is tireless - wonder what his secret is.

[@jgalt308]

@@scroopynooperz9051 Avoiding any real work.

[@sven8633]

Appreciated by communist garbage. He is correct that the current state of the West is broken. However, is fixes are what is causing the breaking. More government control is the problem. Ends the federal reserve and 90% of the problem vanish. Without printing press your van future bank roll war, bail out corporations. Grow government beyond is intended power levels. Communism always leads to the exact same failure. Oligarchs and corrupt politicians controlling everthing.

[@82boulou]

This video should be taught in schools across the globe.

[@jillfryer6699]

Absolutely. Be sure there's not still be places where you'd be sacked if you got caught showing it. Worse than porn.

[@jgalt308]

They have been trying...it's all government propaganda, so it's just a matter of which criminal government you are being ruled by.

[@jakerivets2249]

That's not what our schools are for

[@jakerivets2249]

@bully3808 You made a fundamental mistake when you assumed I was a conservative. Our schools mainly serve to indoctrinate students with capitalist propaganda. Your knee-jerk reaction to my incontrovertible first comment is a testament to how successful that indoctrination has been.

[@HuxtableTV]

It is not taught, as it is inside knowledge. It is not considered a good thing if simple peasants, like us, see through covert trickery. 🤨😟🙁😲😢

[@uturniaphobic]

They're called Bonds but the the real word is bondage. they sell our bondage and collect it in the form of "taxes".

[@M.M.Alam.Liberty]

Among the best and honest scholars is Dr. Wolff. Thanks

[@bluewater454]

Now that is funny.

[@budrollin]

​@@bluewater454you may die a virgin

[@joshanderson7358]

Dr Wolff. Tardis, Dr Wolff.

[@alansharp1528]

A top quality presentation, and every word true. Many thanks.

[@TankGump96]

Prof Wolfe is the greatest. Thx for devoting your intellect and hard work to the enhancement of mankind’s well being. Your selflessness is admirable❤

[@daniellahootian6487]

Thank you professor. regards from Sweden ❤

[@mcmxli-by1tj]

Wolff at his best!

[@HuxtableTV]

Thanks for the comprehensive, concise and lucid explanation. It is enlightening in an effortless way and we LOVE it. 🥰

[@David-ro7gm]

One of Professor Wolff's best presentations.

[@JessicaCooper-m4i]

Thanks!

[@ZoomedOut2020]

Very well done Dr. Wolff… Thanks to Lena for the suggestion..❤❤❤

[@HuxtableTV]

❤

[@CarlGerhardt1]

Dr. Wolff explained this every bit as well as Ron Paul has!

[@greatestone4eva]

thanks for doing what you do Dr Wolff. bless up.

[@breft3416]

The truth is agonizing, isn't it? Thanks, Professor!

[@HuxtableTV]

Exasperating and frustrating. As it is skewed, leading to long term disaster, the question is: how to correct it. It is complex to figure it.

[@ourchaneayoub2877]

Thanks pr Wolff for all your efforts and way how you break it down it’s just stunning

[@jgalt308]

Yes, unbelievable, really...

[@jbgant8513]

Professor wolff is fantastic. His explanations are undeniably true. I feel as if I'm breaking some law just listening. It's impossible to deny or misunderstand what is being said. Thank you and Bravo

[@The1Elcil]

Unfortunately his notions about debt, borrowing, and taxes expired long ago. Most countries use "printing" no body is "loaning" USA to be the imperial colonist that it is. The money is fake and used to push the agenda of the power brokers. Modern monetary theory is what it's called. The "budget" is a hoax.

[@jgalt308]

Capitalism is not a form of government...so much for your undeniable truths.

[@The1Elcil]

@@jgalt308 galt wrong as usual. it is a form of government just not how you want to define the term to play your word games.

[@jgalt308]

@@The1Elcil It's not how the term is defined...no word games required.

[@henrygustav7948]

@@jgalt308 It is the form of Govt that matters.

[@godfatherofcinema]

Fantastic analysis, Mr. Wolff, I’d really appreciate it if you could do an entire show on the lottery I always tell people you never see rich people winning the lottery because they don’t play the lottery

[@micnorton9487]

EXCELLENT POINT 💯,, did you ever notice also the rich NEVER have healthcare insurance,, because statistically they're better off paying cash than dealing with a scam ass insurance company?

[@user-zy4wv7yx1z]

Good suggestion. I was talking with the woman working the service desk at my local Meijer. She said some people buy lotto scratches, and they don't even scratch them. They buy them and immediately scan them to see if they won. Very sad, yet another addiction to keep the poor people poor

[@hesaqehusen]

Thanks D'r Wolff for your briefing me

[@mohammedaldhufairi9798]

This is the first time I'm able to perceive such an amazing lecture as it's presented in simplest organized way and I would encourage Dr. Wolf to made all of his shows simple with dictionary as needed to us. What stood out most to me is the ACT that exclude the billionaires and corporations from paying tax, if my understanding is right, but on the other side, when we watch other shows we could realize that other corporations are paying taxes or have cases in courts, if any, as tax evasion. So, how could we understand that corporations are not paying taxes, would .you please clarify it to us

[@yanmuikam6160]

Thank you for this presentation. It's easily understood even to layman like me . Very entertaining too !

[@carlitaticconi6655]

There is no doubt that the government is serving the corporations and the rich but it's also important to remember the effect of the money printing, fueling asset bubbles and inflating away that debt by making us work much harder for necessary goods and services.

[@ScratchGolf2430]

Exactly businesses are passing the costs of doing business onto there employees instead of lords and surfs we have employers and employees!!!

[@carlitaticconi6655]

​@@ScratchGolf2430 That is true but all of us, employees and non, must contribute to paying interest on government debt, through both taxes and also through devaluation of our currency as the money supply is massively inflated in order to manage those debts and all of us are forced to work harder to purchase what we need in a currency with far less purchasing power.

[@HuxtableTV]

Taxation explained the best, ever. Yes. Another facet is the monetary system, explained by Mike Maloney so simply and brilliantly.

[@Richard-ki4nkgm]

Wolf, and many collectivists, explain the problem well. But the solution they offer is probably just as bad....maybe worse. They want money to be a thing created and manioulated by the government under the guise that its for the citizens. But when money is controlled by the government the people in government will use this to further their power and control over the population. We have never had capitalism because bankers have controlled money and with this they also controlled pollititions and information. If there was a hard money, with a set supply, that couldnt be modified, then maybe we could see the result of capitalism. But when bankers "secured" peoples gold (a mildly inflationary hard money) they created more paper money than accounted for (fractional reserve banking, ie fraud). Through this fraud, some bankers were able to buy real resources and influence. They created a central bank in agreement with the government, which ultimately lead to endless money printing which leads to more 'stolen' resources and backdoor deals. So the solution is a hard money that cant be rehypothecated and countless derivatives created... unless you like the debt slavery. This money does not exist. Gold requires centralization and custody. Bitcoin does too. But ultimately any solution requires people to understand that money must not have controllers of the system. The controllers must be all the people so they need to understand these foundational ideas.

[@microbe_rz37-rn1dk]

When Wal-Mart pays .05 cents for a garment and sells it for $12 in the US, what's that? Definitely asset inflation. Yet, no inflation metrics exist for it. If Wal-Mart actually paid a living wage to the garment maker, the sell price of the garment would shoot up astronomically.

[@tuhingatoha1134]

If only I had you, Mr Wolff, as my economics teacher all those years ago....NZ would not be in the position we are today.

[@prasadmulupuri8714]

I wish there are more public spirited economists of the genre of Prof wolff.

[@micnorton9487]

Yeah me too 👍🖖

[@richardbryanesq]

Keep up the good work!

[@mostly_harmless1]

Vielen Dank Professor.

[@mygoodsir539]

This is a very good talk

[@carlosdesousa6712]

👏🏼👏🏼 very well explained. 👍🏼

[@devronfallen]

The truest thing ive ever heard. Highly recommend this video.

[@patriciacvener1968]

Brilliant. Let's do something positive with this information!

[@hardonia1943]

I love your lecture! It is so pedagogic and contains very essential knowledge!!!

[@malchirt]

the facts stated in this video make it a real highlight amongst EU episodes in my opinion.

[@JustKrush27]

Thank you professor for a very informative video

[@elitorres1192]

God bless professor. Thank you for what you do.

[@banurobymusic]

Amazing episode

[@jgalt308]

Absolutely MYTHICAL!!!!

[@jillfryer6699]

Thanks Prof. Bit by bit we are getting it all together. Hope we not too late.

[@thomsghost769]

Mr. Wolffe is awesome. A gem for anyone who desires being enlightened about our economic/capitalist system. It is a tragedy that the folks in charge of the levers of power in our economic system, seem to care nothing about the facts presented by this wonderful man.

[@marycollins8215]

Love that energizing intro music.

[@stephen_pfrimmer]

Thank you Dr Wolff.

[@Dyk949]

What is the best way to make money from crypto trading?

[@ron.porter.10]

As a beginner, it's essential for you to have a mentor to keep you accountable. I'm guided by a widely known crypto professional.

[@ron.porter.10]

The professional is Ms Olivia Harlow

[@SteveJacob232]

Crypto is the best future where people make money and generate good returns.

[@Silver-p3y]

There's literally no restrictions on her platform. I am equally investing from Australia

[@mercelesandaniel]

This sounds very good. How do you do that? I am interested, how do i go about getting started?

[@daniellahootian6487]

tnx for teaching. regards from Sweden ❤

[@JulesWinnfield911]

May God bless you Richard this was such an important video

[@oscargarcia3431]

Bravo Professor Wolff as always you nailed the topic.

[@jgalt308]

What's the topic?

[@Mimicry161]

This is fantastic. You explain things so well!

[@mrjones9497]

Excellent show. This explains a lot about government debt and deficits. Certainly, there needs to be a roll back of the Trump tax cuts ASAP.

[@naimrashid3908]

Great show

[@PoliticalEconomy101]

Every war is a banker's war!

[@micnorton9487]

🎯🎯🎯

[@timevaporwave]

The only point of US imperialism is to enforce the US dollar as the world's reserve currency. Without the military, everyone would see our economy for what it is: a banana republic.

[@angelicafrancisco3943]

We are all stuck , between a rock and a hard place in this years 2024 election between two hustlers . We have all been bamboozled .

[@alvarny77]

It's not a matter of candidates, it's their donors. They can fund a few more candidates if you want and still nothing will change.

[@nicklebuck]

Get out of the city, start a homestead, and arm yourself. There are criminals running this country. Becoming aware is step one, fighting back is step two

[@nicklebuck]

Wish I could comment.....

[@shawnshamim1756]

Education is key to empower citizenry to understand how gov functions

[@CarlGerhardt1]

Yes, especially learning where our 'money' actually comes from.

[@SamsonAlemayehu-s4k]

I always respect you

[@jeffdorris5321]

Something he forgot to mention is that most bonds are tax free profits. Meaning that you dont have to pay federal taxes on the interest earned from the Bonds that you own. From loaning the government money.

[@HuxtableTV]

No wonder, that ordinary peasants like us, are no match. We don't have treasure islands either.

[@CarlGerhardt1]

Well, that would only be state and local government bonds, (and now, also some 'private' bonds that 'serve a public purpose'). Corporate bonds are still almost always taxable.

[@peggykarp]

Great show! I'd love to hear Professor Wolff do a follow-up program on how the US borrows from other countries, eg China, and how that affects us.

[@dopaminey9946]

We the people must learn to organize once again and learn that we deserve a decent life. To understand our govts is revolutionary

[@jgalt308]

And who do you imagine is going to provide it for you?

[@dopaminey9946]

@@jgalt308 US. Who else but us.

[@jgalt308]

@@dopaminey9946 Then "deserve" has nothing to do with it.

[@oafish3989]

@@jgalt308 do you know what deserve means?

[@jillfryer6699]

Understanding is only the start. Why you should have to fight for something you deserve is a drag. Maybe its better to say you WANT a decent life which is totally reasonable and you're going to organise to fight for it. Also reasonable. Leave issues of the deserving and undeserving and whats owed to whom for what somewhere else, a time wasting distraction for the waste paper basket.

[@choosiewhoo1700]

A great professor. Thank you.

[@billfrenger8955]

Thank you Professor Wolff. How much of the government debt. is from military and war spending? Why don't the American people have a say in how much is spent for military and war?

[@Breakfast_of_Champions]

This is my prof🤩

[@257.4MHz]

When printing money, the people who first have access to it get to use it in the uninflated economy, then it loses value with each next use

[@mohammadmossayebi2609]

Thank you professor

[@spanky7277]

I was most definitely listening Thank you

[@mohd.sufianbinhassan5623]

Professor Wolff, can you make a video on what would happen to the US mounting debt? I am from Malaysia and I would like to know. tq

[@igorberest3436]

Здравствуйте. Спасибо за ваш труд.

[@leon3589]

Can we please get a follow-up video on other types of fooling taxes that we get? Like the Lottery and Tariffs. It would be useful to go into detail of all the scams that they do - things that don't pass off as taxes. Please!

[@jermainemyrn19]

We should only have a president like this

[@stanbimi]

This should be mandatory economics class material for high schools and colleges.

[@jillfryer6699]

So well said Prof. Scams all the way down. Its warming to hear someone like Prof Wolff say it. Its only painful when someone like me tells their friends 'why are you bothering with this lottery silliness? Cant you see, dont you know etc' "You gotta be in it to win it" is the response. Which is too close for comfort to "If you dont fight you lose." There's a lot of work to do. Have to buy those 3 books too.

[@Quantum789]

I love prof wolff!!

[@justamaninTN]

Amazing video!

[@DANVIIL]

Should have defined what money is because most people have no idea.

[@faizalmacho8960]

LOVE WHAT PROFESSOR SHARED BRAVO RUSSIA AND CHINA. MORE PRESSURE MORE STRONGER. SHINING LIKE A DIAMOND

[@gerhard7323]

For self-serving prevailing narrative reasons, we're all encouraged to fixate on 'the public debt', but we should actually be fixating on 'the private surplus'. The latter being equal to the exact penny of the former.

[@rjacobsen0]

Will you do a segment on Modern Monetary Theory and how Democratic Socialism sees or interacts with MMT? I'm curious. Or will you refer us to reading material for non-economists that might explain it? I already read Stephanie Kelton's book "The Deficit Myth". (Maybe you already taught about MMT?)

[@henrygustav7948]

Professor Wolff has contact and access to MMT economists but he is a dogmatic Marxist. He has been preaching doom and gloom about Government finances for many many years. It would be embarrassing for him to switch gears and start talking about MMT whether or not he believes he is wrong.

[@alleggett9354]

I have watched Prof Wolff for many years and he makes a lot of good points. His economic history discussions are excellent. He doesn't give MMT any credit that I've ever noticed. I have also studied MMT for several years and have a decent understanding thereof. I consider it to be a factual description of the way the federal monetary system works in the U.S. and quite a few other countries. It's a shame that he hasn't looked into MMT enough to discuss it. Warren Mosler is the grandfather of MMT and knows it inside and out. Stephanie Kelton is excellent and there are many others. It's worth learning and you will find it very enlightening!

[@WarrenPeaceOG]

@@alleggett9354 I agree. I had to stop the video after 8 minutes because it was hurting my brain. My baseline is MMT and the broad outlines of Keynes

[@alleggett9354]

@@WarrenPeaceOG I think Warren Mosler could get through to him.

[@larrysheetmetal]

YOU need to do a pod cast on the FACT that 95% of corporations on the stock market has managements that do not own 1 % of the value stock of the corporation AKA they no stake in if it's profitable or not !!!! because they have GOLDEN PARACHUTES, if the company goes under THEY WALK AWAY WITH BANK ACCOUNT FULL OF CASH AND WORKERS AND STOCK HOLDER LOSE !!! most stock holder are fund that have retirement money to invest.

[@ernestbellande2822]

Hello Prof. Wolff. Provided the leaders that call the shots in matters of economy, politics , hegemony ,etc. accept to listen to reason and take emergency steps to redress the course of the country; what do you think these steps could or should be and how long it would take to see a real progress?

[@9729CBailey]

This dude broke it down dummy style. Good job

[@protectorp]

Thank you professor!

[@ArriveByTesla]

The intro music to DWolf sounds like final boss music 😂

[@brocklanders6969]

How government over taxes us and overspendings.

[@Chinook-tj9bv]

It is good thing that there are many people and countries willing to accept USD$ without any questions about the USA's huge deficit. If there wasn't that confidence in the USD$, then... yikes!!!

[@JeffThomas0001]

Subsidies are the repayments.

[@avtarsingh8948]

As always, brilliant. Thank you. David Schweikert has mentioned this also. Delaware is the tax haven.

[@DavidMoore987]

*If you are not in the financial market space right now, you are making a huge mistake. I understand that it could be due to ignorance, but if you want to make your money work for you...prevent inflation*

[@EdgarBossen]

Interesting, This is superb! Information, as a noob it gets quite difficult to handle all of this and staying informed is a major cause, how do you go about this are you a pro Investor?

[@CasonSearan]

I feel Investors should exercise caution with their exposure and.exercise caution when considering new investments, particularly during periods of inflation. It is advisable to seek guidance from a professional or a licensed expert in order to navigate this recession and achieve potential high yields

[@DavidMoore987]

Prioritizing effective personal finance management holds greater significance than the sheer amount saved, irrespective of income source. Consulting a certified financial advisor can offer tailored strategies to optimize financial results by reducing expenses and enhancing income, regardless of whether it's earned through employment or investments.

[@MichaelGillespie-MG]

Brian Humphery Services was my hope during the 'bear summer' last year. I made so many mistakes but also learned so much from it, and of course from Brian.

[@MichaelGillespie-MG]

He is really a good investment advisor. Was privileged to attend some of his seminars.that's how I started my own crypto investment

[@denisross2923]

Very good explanation of fiscal policy but some public services are paid by insurance companies. These include social security pensions, unemployment insurance, Medicare et al.

[@richarderwin2369]

Thank You

[@angelicafrancisco3943]

Thank you Professor Wolff for a very honest critique of our government’s complicity in ripping off the American worker .

[@wolferr1]

I'd love to hear your explanation and critique of MMT

[@henrygustav7948]

Professor Wolff has contact and access to MMT economists but he is a dogmatic Marxist. He has been preaching doom and gloom about Government finances for many many years. It would be embarrassing for him to switch gears and start talking about MMT whether or not he believes he is wrong. The National debt will bankrupt the USA! The US has been bankrupt for over a hundred years now lol and people still gobble this stuff up.

[@willeisinga2089]

35 Trillion State Debt. Going to Double to 70 Trillion. No Problem. Part of making Money. 👍

[@gerhard7323]

Anyone who doubts this should ask themselves why, as the economy apparently grows annually and the nation gets richer, why many people feel and are effectively getting poorer.

[@milantomich6568]

And this will never change because most don't care. How many thousands of years is this already going.

[@gerhard7323]

It's not just totally 'irrational', it's totally immoral.

[@davidluckens3479]

Back in 1987 Wallace Wilkerson ,whose main political consultant was the young James Carville,won the Ky Democratic Gubernatorial Primary by proposing a state lottery.Long story short,he won the primary in a major upset,and ofcourse,trounced the Repub candidate in the general election.Kentuckians got the lottery,which feeds off the dreams of our large number of low wage,poorly educated ,exploited class,which also pays a 6cent sales tax on everything except food and medicine.Ky is a concentrated oligarchy where the rich,and corporations pay very little in taxes in relation to what they extract from the people and the land.Don't even mention the Eastern Appalachian part of the state the Coal Industry blasted to smithereens with "Mountain top Removal to get at whats left of that resource.But,hell,we got the lottery-thanks for another probative lecture,Peace.

[@Peace_Guard]

So is the lottery actually double-funded, by the 6 cents of taxation + the lottery ticket prices? Or are the lottery tickets cheaper due to taxation, so it's a split like 50/50 or else?

[@jarirutanen8762]

Deficits are necessary for creating money (reserves) to make public investments. Interest payment on reserves is unnecessary and should be abolished.

[@Peace_Guard]

I don't think you understood the video. They're not necessary, because you can fund through taxation. People always have lower needs per let's say month than the average sum of the value of what they've produced during this time. The difference can be taxed and public projects and all other necessary activities funded from it. You can also use export surpluses also an additional source. Funding through debt, money printing and tariffs (if they're not used for their actual purpose, but as a funding method) should all be illegal and punishable with life sentences.

[@henrygustav7948]

@@Peace_Guard Professor Wolff suffers from faulty Marxist dogma understanding about how money works. The video is wrong. The Federal govt pays for things one way and one way only and that is through credit accounts which is in fact money creation. When the Federal govt collects taxes, that is the redemption of money and money deletion. The difference between the two is known as the deficit, also known collectively as the savings of the economy, held as cash and bank deposits. Taxation can not "fund" anything. In the USA, US dollars come ONLY from the Federal govt. Govt spending funds taxpayers with dollars. Taxpayers DO NOT FUND THE FEDERAL GOVT. Money IS debt, $= debt. Money is a debt instrument. Every Fed reserve note has this sentence written on it. "This note is legal tender for all debts public and private."

[@jarirutanen8762]

@@henrygustav7948 , thanks for a refined extensive answer! No debt means no money and no monetary economy only barter. Gov debt is just theoretical, only private debt is real.

[@CatPDX]

Thank you!

[@KoDeMondo]

Three hundred trillion dollars. That is the record debt which global governments, households, financial corporates and nonfinancial corporates owed in June 2022, as estimated by the Institute of International Finance. The $300 trillion is equivalent to 349% of global gross domestic product, 26% higher than the pre-GFC figure of 278% (June 2007, see chart 1). The $300 trillion works out to $37,500 of debt for every person in the world, compared to a GDP per capita of just $12,000.

[@micnorton9487]

Sounds about right, and SURPRISE SURPRISE,, while there's approximately 300 trillion in floating debt owed by all entities, you know where they all lead to? RIGHT BACK TO THE TOP 5% of earners,, the United States has been going steadily deeper into debt to the tune of what, 5 or 10 trillion dollars a year? Coincidentally enough, the 1% are grabbing probably 30 trillion dollars a year while the other top 6% grab another 15... It's a financial criminal La cosa Nostra where the financial sector criminals OPEN PLUNDER the world economy,, running the table on America and the world through the Federal Reserve and the international monetary fund...

[@Peace_Guard]

If it's owed internally between non-rent-seeking entities, like vast majority of China's debt, then it's fine.

[@micnorton9487]

@@Peace_Guard Yeah what westerners don't understand is in a closed system like China or now Russia,, debt is handled by financial institutions with the object of increasing economic activity across the entire economy,, NOT to get a bunch of greedy psychopathic slobs rich... There is still some American or European style corruption in the Russian system but it's being allowed to grease the industrial machine,, unfortunately extremely driven people like the people who understand Mass capital resource exploitation tend to be sort of self-centered and greedy so a certain amount of latitude is being extended to Russian oligarchs who will keep their eye on Russia while still getting fabulously wealthy...

[@Reemdaddy83]

I don’t think I would say they figured it out borrowing $$$

[@wanalwi7097]

Terima kasih Prof, banyak ilmu baru dan kefahaman berguna yang saya pelajari. Teruskan usaha yg murni ini.

[@kedaikugroup7158]

Indonesian has one people likes prof. Mahfud M.D, right?

[@PardaJan]

Could you please make a video , How the moneytory system works? Thanks

[@boogalaloopala2738]

'War is a Racket' by Major General Smedley Butler - 1935. There's an audiobook on YT

[@smelyzzajko]

Well said! I am curious what would happen if we had money with a limited validity, say 1 year. The government would print these money every year depending on its priorities, and the resources available, then they could circulate for a year in economy, but expire after a year. What consequences would this have? Any studies on the topic?

[@henrygustav7948]

You are already describing what is happening now. The Govt spends its money into the economy, then throughout the year and especially on April 15th, we have to pay taxes. The money we have is called our savings. Deposits which are held in checking and savings accounts. This is also known as the Federal governments deficit (Govt spending minus taxation).

[@smelyzzajko]

@@henrygustav7948 it seems you have a problem reading or reasoning. What I describe is that the money validity expires after a year. Current money never expires. They only accumulate in the wrong hands, give power to undemocratic entities and lose their value through inflation. Taxes-based money-expiration effect is minuscule. Also, currently they are "printed" mostly by private banks by issuing loans, whereas what I describe is that a democratic government would be the only authority to produce them. This would solve a lot of problematic issues and failures of capitalism.

[@rocaverde2829]

So the national debt is owed to the rich and the corporations. And that answers the question as to default. Will never happen!