U.S National Debt Is Spiralling Out of Control

[@bryanwong4740]

Warren Buffett once said, “I could end the deficit in five minutes. You just pass a law that says that anytime there is a deficit of more than 3% of GDP, all sitting members of Congress are ineligible for reelection.”

[@TheIcecoldorange]

Life isn’t that easy. Looking up at the rich for hot takes on budgeting is laughable.

[@bryanwong4740]

@ kzbin.infoVPp7TVYBTAM?si=tzTbOB7p07xFk7h3

[@Llkc60]

Bernie Sanders once said, "if billionaires like warren buffet would pay the same amount of taxes the bottom 50% does there would be no deficit". how about doing that?

[@bryanwong4740]

Respect to Bernie Sander! Warren Buffett has been transparent about his personal tax payments. In 2015, he reported paying approximately $1.85 million in federal income taxes on an adjusted gross income of $11.6 million, resulting in an effective tax rate of around 16%.  Moreover, Berkshire Hathaway, the conglomerate he leads, is a significant taxpayer. In 2023, Berkshire paid over $5 billion in federal taxes. Additionally, in 2024, the company sold a substantial portion of its Apple stock, realizing nearly $97 billion in taxable gains, which could result in a tax bill of approximately $20 billion.  It’s also noteworthy that Buffett has advocated for higher tax rates on the wealthy. His 2011 op-ed in The New York Times led to the proposal of the ‘Buffett Rule,’ suggesting that individuals earning over $1 million annually should pay a minimum effective tax rate of at least 30%.

[@Llkc60]

@bryanwong4740 I didn't read that ai generated response.

[@AndreiKohler]

11% from corporations?😂😂😂😂

[@goldeneastgun]

You forgot to mention that rich people "donate" to law makers to write the rules in their favour so that they contribute the least in taxes, while taking the most via subsidies. As well, when they print their way out of a situation, our personal wealth declines, effectively skimming wealth away from the average citizen in the form of inflation. Essentially, the rich make money from the middle class and the poor is supported by the middle class via social services. Predatory practices, greed and corruption has been eroding the middle class since the 70s, resulting in the social and political tension that we are experiencing today. Solution? Taking dark money out of politics will encourage our leaders to work in good faith.

[@The_10th_Man]

Wrong. The solution is cutting the budget dramatically. Of course they will never do that, so get used to inflation it’s going nowhere and that is 100% your governments fault.

[@lars3283]

LMAO, what is this skewed perception of reality? The top 1% accounts for 42% of all income tax revenue. On what planet is that the least in taxes? 50% of the US population pays for 97.7% of income tax revenue, while the other 50% pays for 2.3% of income tax revenue. You want to know why everything has been in decline since the 70s? Because that's when the US came off of the gold standard which has allowed them to print unlimited money whenever they want resulting in massive deficits, relentless speculation, and insane inflation. No one will ever be held accountable when we can just print money out of thin air and leave it to future generations to figure out - the debt ceiling is the perfect example of that. You know how the US is planning to pay off its debt? To inflate its way out of it. That means devaluing your money for the rest of your life. Enjoy! The rich will be protected because they can invest their money to protect against inflation. Meanwhile, the poor will be hit the hardest because they have no way to counter endless inflation.

[@goldeneastgun]

@@lars3283 You dolt. 1% account for most of the tax revenue because they hoard all the money. Individually, they pay less than us PROPORTIONATELY or none at all. Look it up. Taking the USD off the gold standard was their solution (in part) to the mismanagement of funds. But that’s not what I’m talking about. Look up “productivity pay gap”. US productivity has been consistently up and to the right, while the compensation starts to flatline in the mid 70’s due to a series of policy changes, lobbied for by the rich using pseudo logic like trickle down economics, resulting in a gap that equates to billions, if not trillions. Take a closer look at the relationship between law makers, corporate elites and the media. They’ll all in bed together. The massive debt is a result of this corruption + ineptitude. They will never be able to pay if off. They’re not even pretending to anymore. They have no choice but to print. All you're doing is repeating what I said about inflation. They are skimming our wealth in order to pay for their mistakes and their corruption as evidence by stuff like failed government audits. You don't honestly believe that politicians work for their pay, do you? Stop corporate hand outs in the form of tax breaks, subsidies and other loop holes. As you’ve said, they don’t need it as evidenced by stock buy backs. Rebuild the middle class. And this all begins by taking dark money out of politics.

[@goldeneastgun]

@@lars3283 KZbin keeps removing my replies. Gee, I wonder why?

[@goldeneastgun]

@@lars3283 1% account for most of the tax revenue because they hoard all the money. Individually, they pay less than us PROPORTIONATELY or none at all. Look it up.

[@Anaxiphanes]

The higher the debt to gdp the more sluggish the economy will be experienced, even if reported numbers still look good. Most Americans have just started getting a taste of this in recent years - in particular think 2022.

[@pure_the0ry]

The most sluggish the economy the higher the debt to gdp (as a sluggish economy = lower GDP). Its reverse causality and this guy is lying to you

[@That1SupportiveFriend]

According to google, a good debt to income ratio is 35% or less and anything over 43% is considered too high. Last I checked, the dti for the us government was over 100%.

[@pure_the0ry]

What happens if it goes over that ratio? The actual academic research indicates there is NO magic ratio, not even 90% as proposed by Reinhart and Rogoff which is the most well-known study and has huge methodological issues. Neither you nor the video creator can actually explain what happens when debt service becomes too great

[@Red-Check-Mark]

The US credit rating has also been downgraded as well. Further issuing uncertainty towards buyers.

[@teddymills1188]

Explains a complex problem that few understand.

[@braddeicide]

lol temporarily increase the debt ceiling. Excuse me while I temporarily breathe oxygen.

[@Red-Check-Mark]

XD This made me laugh my ass off. The US is screwed regardless of what happens. Interest payments alone will account for a couple trillion with Trump's policies slated to cost hundreds of billions of dollars or more. Trillions dumped into the country as the world shifts from the dollar. Too much dollars in the US means hyperinflation...means stores raise prices and purchasing power of the dollar shrinks even lower.

[@chris.bcfc.keeprighton.5685]

Let's hope that there isn't another banking crisis.

[@waichui2988]

Never. The printing press is always ready, 24-7.

[@arandmorgan]

Imagine giving asset holders the ability to depreciate currency through levying debt against their asset's, thus increasing the value of their assets and allowing them to borrow, even more money! Genius.

[@wpelfeta]

In my opinion, the government should never carry any debt during normal circumstances, because it's not a for-profit business. It makes sense for a business to borrow money to fund initiatives to increase future profits. However, a government is the opposite of for-profit. It's an entity that must spend money to do things that are not profitable but are for the benefit of its citizens. For example, funding social welfare, funding border security, funding scientific research, foreign aid, etc. These are all good things for a country. You could even make the argument that these things can be profitable in that protecting a healthy, happy citizenry leads to economic growth. But it's too indirect and hard to measure. You cannot run a deficit every year and pay billions in interest on something that will never pay for itself. It adds a premium to the cost of anything the government tries to fund. The only time a government should go into debt is in response to catastrophic emergencies. Being in constant debt is dangerous, because if the government suddenly needs to borrow to fight an emergency, there will be greater risk of entering a hyperinflationary death spiral.

[@jimg8413]

The US government has no debt. That $36 trillion is dollars the federal government already spent that thrir owners have parked in treasury securities savings. It isn't dollars the government owes -- it is dollars the private sector owns. You should know that.

[@maximayr9297]

The US feels as superior now as Japan did in the 1980s, while facing the same big problems as Japan. I don't know if it ends well, but the bond yield curves suggest that it will not

[@welanduzfullo8496]

not how it works

[@maximayr9297]

@welanduzfullo8496 yield curves are the best Indicator that we have for a recession. If a recession hits, there needs to be even more government spending to get out of it. That means even more debt. Why does it not work like that??

[@welanduzfullo8496]

@ nope

[@welanduzfullo8496]

@ bro pretending like "best indicator" means something, its bad/mediocre at best. they predict with an average recession likelihood of 54% 1-6 months post inversion, 53% at 7-12 months, peak at 60% at 13-18 months, and sharply drop off with 14% at 19-24 months and 17% at 25-30 months. Throw in the confidence interval and predictability is, well pretty bad.

[@thenoodlebuddy]

Stagflation is a big risk too. Imagine the pain of economy not growing, your wages not growing (kind of what is happening now) but prices going through the roof! Setting us up for a disaster

[@DMAN590]

Dude, it was already reported last year that the interest payments on the debt surpassed defense budget. I don't know where you're getting your information from, but it's milk toast

[@RANDELLBurden]

Adaxum’s focus on real utility is impressive.

[@cpkadam]

Can someone throw a light into this 👉 being the world’s reserve currency and through trade demands the US$ the national debt can be paid off.

[@herpagondaderpalice]

Taxes DO NOT fund the government they just take money out of supply, all government spending is finance through printing. This is called modern monetary theory and it’s the current practice of a lot of governments

[@ankitagarwal5926]

That's wrong, printing can only be done by fed not govt

[@herpagondaderpalice]

@ and how do people get jobs at the fed?

[@DionysusSavior777]

A currency issuer can never default. The only consequence to printing money is inflation. How that inflation gets distributed is political. The rich in the US will be fine. The poor will not.

[@nietur]

The debt holders lose, that's a lot of rich people. Pensioners and other bond investors lose, too. The rich who have their equity in real assets, would be unaffected. The poor who have nothing, would be unaffected if the salaries would increase proportionally. The poor with debt (student debt, mortgage, car loan), would win.

[@NahuCommNS]

@@nietur That's a BIG assumption of yours, to think wages/salaries would increase immediately to inflation levels... in the meantime of that happening, your *insert X fiat currency here* become worthless and you can't even buy food.

[@antonfriberg881]

They are never going to default but the economy and the stock market can stagnate like crazy. Look at Japan in the 80s and 90s

[@nietur]

@@NahuCommNS Doesn't happen immediately, yeah. Big assumption of you that is has to be hyperinflation. A negative real interest rate has the effects I said, no matter if it's -1% or -13000%, which would be hyperinflation.

[@NahuCommNS]

@@nietur Maybe you haven't noticed the US is much closer than it seems to such an event, it only needs a spark to light up all the gasoline that's already spread everywhere. It could happen in many ways though.

[@Robis9267]

What nightmare? Markets are chill about it

[@12345678924439]

Youre joking right?

[@NahuCommNS]

Markets are people, and people are stupid.

[@chargermopar]

They know Zirp and Brrrr will be here later this year.

[@sparkyfromel]

Markets care only if the interests are paid , the crisis point to find buyers is when the interest rates are accelerating up fast

[@classicalmusic1175]

LOL.

[@RykerMcDuffy3487]

But what happened to all the MMT Democrats were talking about when they blew up the budget?

[@i_like_beer-o2f]

If you think that only one party is responsible for the national debt you are ignorant

[@RykerMcDuffy3487]

8T in the last 4 years alone, not during a global crisis, while entirely ignoring inflation. Democrats did that. We spend nearly $1T servicing debt becsuse Democrats blew up the money supply

[@Red-Check-Mark]

@@RykerMcDuffy3487 So, only Democrats vote on all of these projects and the debt ceiling? Republicans are just as much at fault because, for decades, they never balanced the budget either.

[@JWEATHERSBY]

It won't end well.

[@jordhuga271]

It will for Elon.

[@MehtapHasan-h5v]

Adaxum’s team looks solid, and the project seems well thought out. I’m cautiously optimistic.

[@y0uCantHandle]

Sounds like politicians are just playing musical chairs, instead of doing something meaningful, just waiting to see who is left without the chair when the music stops

[@asan1050]

Hamish, Thank you!.

[@TruthOrOpinion]

Corporations and wealthy donors owe the American taxpayer 40 Trillion dollars. This debt does not belong to WE THE PEOPLE.

[@oracfirebrand9591]

The U.S. will not run out of money and can't default. Because the Fed can keep QEing the size of the M0 base money reference point. The problem comes if you keep adjusting base money supply with QE, which all out credit dollars rely on as their point of reference, you reach a denouement point. Being the price of everything looses value as useful information signals. The result is rapidly increasing asset prices, unexpected waves of high inflation in life's necessities, and most economists that continue to believe base money is the most stable reference point, because, what else is there? At the individual level, the physical world is always the most stable reference point. This is what most economists don't see. Because they don't study economics at this level. The physical world matters more to us than price.

[@pinkyskids]

Has been reset to 0

[@shadowninja6689]

US citizen here who's studied this issue. There's a few things you got wrong, which to be fair a lot of people get wrong. 1) The debt ceiling is almost certainly illegal, and would almost certainly be struck down by any court if it was ever challenged. This is because debt ceiling is NOT in the constitution, it's just a law, just like other spending laws congress passes. If congress passes laws that money must be spent on things, but doesn't pay for it, then those spending laws and debt ceiling contradict each other, and the courts must strike one of these laws down. And any judge would just take the easy approach and strike down the debt ceiling in such a scenario, as the alternate would be some random judge telling congress what it can and can't spend money on (which raises it's own constitutional issues since congress is supposed to decide how money is spent, not some random Federal judge). 2) The US HAS defaulted on it's debt before, very briefly. It happened a few decades ago, when congress was a day too late to raise the debt ceiling, so some investors didn't get paid their interest in time. Interest rates shot up some as a result of this event.

[@The_10th_Man]

It doesn’t need to be in the constitution. Any law just can’t directly contradict the constitution.

[@DuhGamingCommunity]

@@The_10th_Manthe point he is making is that the debt ceiling, and the USA’s legal obligation to pay there debts conflict eachother. And since neither is constitutional, they could be ruled in favor either way. But the easy option is to just strike down the debt ceiling because like he said a random federal judge isn’t supposed to tell congress how to spend money anyways

[@dinglemckringleberry9429]

No we dont - we just let the pentagon lose a couple of trillion every couple of years and dont put it on the books.. Duh..

[@Betweoxwitegan]

Budget deficits are normal and typically advisable, the problem with national deficits is the lack of dynamic and effective economic policy, for example not raising taxes on the wealthy or having to much of a debt ownership imbalance.

[@kalobrogers235]

Absolutely hilarious comment, so you think the problem with the government spending more money than they have, is that they're not taking other people's money at a higher rate in order to spend even more money that they don't have, you should be a comedian.

[@Betweoxwitegan]

@kalobrogers235 Is the states money...

[@kalobrogers235]

Another foolish comment, so now all legal tender produced by the government is permanently and perpetually owned by the government. Also, incorrect, once you have possession of your assets it is not the government's after you gain possession according to the US constitution and they have no legal authority over your legal tender.

[@The_10th_Man]

It’s the most inefficient wasteful entity the world has ever seen, giving them MORE money is not the solution.

[@Betweoxwitegan]

@The_10th_Man Make it more efficient then, you obviously don't do that by electing a billionaire cabinet to office through. It's the government's money, it prints it, it owns it, you're renting it, just like you're renting the rights to land, property and resources. The moment you stop being efficient with those resources relative to what the state can do then it should be bought off you and nationalised, this is evidently true in essential inelastic demand suppliers like utility companies.

[@gordongekko2781]

The deficit has grown too large to be remedied by tax increases OR spending cuts. It will require both. The people at the top are going to have to start paying their fair share of taxes, and the people at the bottom are going to have to find a way to make it on less government support and public services.

[@GolemDude]

Yes but by the time congress figures that out, it will be too late and the Dollar will have to be sacrificed

[@gordongekko2781]

@@GolemDude Yes, that will probably be the case. Most likely Congress will continue to spend like mad and cut taxes for the rich until the national debt becomes so large that the US Treasury market starts experiencing failed auctions. When that happens, the Federal Reserve Bank will step in and buy up as much of the debt as necessary to keep us afloat. Everything will return to normal for a year or two....then we'll be hit with several years of exorbitant inflation.

[@carlaboutte8164]

If they payed their debt they would have received some freedom's

[@plica06]

Ah yes another video filled with charts and graphs.

[@tHebUm18]

We sure would be in a better fiscal position without those huge 2017 tax cuts to super rich people who are already running away with all the wealth our economy generates.

[@tHebUm18]

And 2001 and 2003 before that. And 1980's before that. All increasingly funneling money to the super rich so everyone else (including the government) gets poorer and is indebted to the people we keep sending all the resources to.

[@zarifi94]

Hi Hamish, thanks for the great content, good to have you back making videos. Can you please share an analysis spreadsheet for 2025? Thanks again

[@reubenhowden3967]

Within the first minute, you claimed that government finances are like household budgets. That's a myth, and it's not helpful to perpetuate myths. The US is the issuer of a fiat currency, so it will never default on its financial obligations. Connecting tax dollars paid to interest paid by the government is a false narrative. It's not a debt in the traditional sense, like you or I overspread on a credit card. Government debt refers to others holding bonds in US dollars. A central/federal government MUST run a deficit to maximize economic growth. Every time the US government has achieved a surplus, a recession or depression has followed because the only way to create a surplus is to pull money out of the economy. Government deficits put money into the economy. Cutting spending on public services is the worst solution. Austerity in the UK was a disaster for this reason. The government could spend a lot on public infrastructure and boost GDP if it wanted to. It could also stop funneling money upwards to those who keep it out of circulation.

[@Haberdasher0213]

The US doesn’t want to end the deficit. As long as the dollar is the reserve currency, the debt is a boon as it forces foreign reserves to become reinvestment into the US. It’s the real reason why BRICS countries want to end dollar hegemony (and likely to be unsuccessful from the looks of it). The US has the power to spread inflation to the world with impunity. You do not know what you are talking about AT ALL.

[@whereareyourshorts]

2 now in 2 weeks , great!!!!!

[@ti2809]

why does it matter? i'm not american

[@WALLYDRAG502]

Does the propaganda machine ever stop wasting effort?

[@ErhanRamazan]

Adaxum’s roadmap is ambitious, but the concept is interesting enough to take a chance on.

[@Marshall-p6w]

Great thoughts! | started investing earlier 3 months ago .with a start of 30k. I made my first 100k USD last month. Today, I have a decent $260K nest egg. My only regret is not starting earlier. This comment serves as motivation for all those who haven't made returns from investments, do not give up, the right investments will change your life. I should retire soon as long as things remain this good…

[@nietur]

They can always print money and pay off all the debt.

[@dyc215]

Until a certain point

[@Hnsl_be]

So why dont they do it to avoid paying interest on the debt

[@GolemDude]

And the poor will be using Benjamin Franklins’s face as toilet paper to save money

[@braddeicide]

We need Trump to start a trade war lol. Collect a few billion in tariffs and lose a few trillian in business.

[@oracle1238]

U.S. doesn't have a problem, we have it

[@frklnchg]

No shit sherlock. You don't saayyyyyyyy

[@otavongryf1379]

Please inform yourself how our financial system works. The debt is not a problem at the moment

[@EatThePants]

blah blah blah we’ve had a debt problem for longer than i’ve been alive. nothing new in this video. boring clickbait essentially.

[@JB-mc1mm]

Government funding is NOT "kind of like your household budget". Goodbye.

[@jacobschwing7482]

lol you take that too seriously.

[@JB-mc1mm]

@@jacobschwing7482 I wish. But I hear that too often and too many ppl take it at face value.

[@nietur]

Yup. I can accept it as intro for people who have never heard of it. But apart from that, it's harmful people think that. Well, we're not gonna get MMT so widely accepted that the gov can print without having to take on debt.

[@bobmcbobbington9220]

Since americans are equally in debt, it sort of is like the household budget for americans. Their debt isn't a "problem" until they can't pay the minimal payment...which is happening, ironically, at roughly the same time our government is starting to sweat their interest payments.

[@waveril5167]

Trump will make it so much worse smh

[@jacobschwing7482]

Probably, since he likes debt. Time will tell.

[@The_10th_Man]

Oh so did debt fall under Biden, Obama? This issue is systemic and whoever sits in the white house is irrelevant.

[@Ulkuhanilknur]

Adaxum’s roadmap looks highly promising.

[@HayriUmut-r1b]

Solid utility backing ADX’s potential.

[@COLUMBUSJennings]

Adaxum’s presale equals huge potential gains.

[@MILTONSchmidt-f7z]

Excited for Adaxum’s next steps.

[@MucahitHuseyin-j5w]

Adaxum’s concept is interesting-worth checking out if you’re looking for a new project.

[@CeyhunGokten]

Hi everyone, Adaxum’s roadmap looks solid. It’s worth taking a look.

[@MadonnaAndrade-p2c]

Adaxum’s tokens are a great addition to any diversified portfolio.

[@ilknurMehmet-j7e]

Adaxum’s presale is selling out quickly. Might be worth a closer look for those interested.

[@Tymelost]

HAHAHAHAHA trump is so poor.. musk is poor.. HAHAHAHAH

[@FerdaAysel]

Hey, check this one out: Adaxum’s presale could be a sleeper hit.

[@TFearFactory]

$grrr gorilla technology group will outperform this year

[@OzgulTeslime]

Hey everyone, Adaxum’s tokens are selling fast-don’t miss out on the presale.

[@NatachaMontalvo-h3v]

Adaxum’s DeFi potential feels real.

[@wiztuga]

Like spending less on defense 😂 but also spending less (or better more efficiently) on healthcare and education 🫠. Also maybe limiting the ability for billionaires to evading taxation (never gonna happen but okay 🙃)