Why America Will Go Bankrupt

Debt monetization is the single greatest threat to America's fiscal future, and it could end up bankrupting the entire country.
Here's why almost no politician wants to talk about this hidden danger.
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Host: / nickfreitasva

[@adamdrouin2295]

Funny how economics, financial comprehension or the central banking system aren't ever taught in public schools

[@andrewcopple7075]

They can be, but they aren't mandated. I was taught about half of this in school. But it would have been easy to take alternate courses.

[@graysonshaw1621]

They teach Econ in AL and GA, no sure where you are.

[@axetroll]

Because it's a scam

[@Shrouded_reaper]

@@graysonshaw1621 Oh they teach you about how your currency is endlessly created from thin air, is impossible to ever pay back and that you are paying taxes for the endless pyramid scheme? No I don't think they teach you about the financial system.

[@adamdrouin2295]

@@axetroll What is a scam?

[@markusfreund6961]

Of course hardly anyone understands this. This goes so completely and utterly against any basic principle of real-world economy (not to mention "common" sense) that it is unfathomable for just about anybody just trying to apply sound spending or make ends meet. It is also how whole governments and national economies have been safely tucked away in the usual suspects' pockets for decades, if not centuries. And it's all carried out on the backs of all the untold billions of regular Joes and Janes all over the world with no choice but to function as cogs in the machinery, who are constantly cheated out of their work's worth through inflation. And, ofc, taxes, but that's a whole different septic tank. Anyway, thank you for at least trying to raise awareness of what is actually going on.

[@user-ze3sg6ix1u]

So fucking well said man, it's no wonder the average person thinks socialism works. They don't understand what the government has to create this issue. Monetary policy isn't sexy or sensational to talk about. It's boring, but if people were apprised of it they'd understand how it is fundamentally paradoxical. It can't work

[@alejandroalayon320]

Makes me wonder why people dog on btc and then they dont question this.

[@andrewcopple7075]

Because the media encourages them to take that approach on both. A spine suffices, brains need not apply.@@alejandroalayon320

[@Munce72]

Read "The New World Order" by Ray Dalio. It happens over and over again...

[@oftin_wong]

There's no excuse for any economists to not be aware of it It's been playing out like this for hundreds of years. The real problem is that economic growth is based on human greed ...growth is seen as good ...no growth is seen as bad It's too simple ...economies should be able to plateau without shareholders losing their marbles But they don't because ....greed

[@Michael_Mears]

Greenspan said as much years ago: "We can guarantee cash benefits as far out and at whatever size you like, but we cannot guarantee their purchasing power" and "The United States can pay any debt it has because we can always print money to do that. So there is zero probability of default." Cheers, from Australia.

[@Ultrajamz]

Basically turns you into Weimar Germany

[@kirklaird5020]

Good point. But it would create an enormous amount of turmoil in the world economy. The repercussions might be worse than simple bankruptcy.

[@jaimeosbourn3616]

@@kirklaird5020 Global financial collapse?

[@bobburnitt5761]

Isn't it SICKENING. Like a DRUG ADDICT, the USA is destroying itself right in front of the WHOLE WORLD. For a while, Alan Greenspan was the most POWERFUL man in the world. When he said that ***HE*** "could make paper money as good as GOLD", I knew he was INSANE. He started to believe his OWN Bull $hit.

[@grimaffiliations3671]

@@kirklaird5020 The repercussions of what? You can't go bankrupt in your own currency

[@AIuminum]

You should probably also mention the Federal Reserve isn't a federal agency. Its a private bank.

[@lakeguy65616]

its not a private bank, its a quasi government department

[@joshuagould548]

Yea, not a private bank. It exists because of the Federal Reserve Act of 1913. Read more.

[@AIuminum]

​@@lakeguy65616 It's a private bank with the special ability to print money out of thin air as well as loan out that money with interest. Way to show your ignorance, bud. 😂👍

[@joshuagould548]

@@AIuminum And I stated that it wasn't a private bank because of the Federal Reserve Act of 1913. Way to refuse to see the truth, "bud" 😂👍

[@joshuagould548]

Federal Reserve has to do what Congress mandates (because of the Federal Reserve Act of 1913). There's nothing private about that. Way to show your stupidity "bud" 😂👍

[@carloaB14]

Oh my God I’ve been saying this for years and no one listen to me they keep blaming one political party or whoever’s president at the time for this issue

[@user-ze3sg6ix1u]

It's so frustrating

[@neilreynolds3858]

It was obvious after 2009 but nobody in DC wanted to stop spending so much.

[@bobburnitt5761]

BOTH Political parties practice the same crap. It is ALL THEY KNOW. They can use this horrible policy to BUY VOTES. It is so insane.

[@grimaffiliations3671]

@@user-ze3sg6ix1u The government doesn't "borrow" its own currency, that wouldn't make sense

[@user-ze3sg6ix1u]

@@grimaffiliations3671 It quite literally borrows money from the central bank in the form of Treasury notes

[@17cmmittlererminenwerfer81]

It's been bankrupt for decades. Like a tree that has been chopped down, the green leaves are only now beginning to dry up and turn brown.

[@grimaffiliations3671]

You can't go bankrupt in your own currency

[@fastwell4459]

Haha, just wait a few years, you’ll see

[@diegosolis9681]

The worst part of this is that it can blow up overnight. Simply, a very influential debt buyer doesn't buy this time, this tells other buyers that it's probably a bad idea, so they don't. Now, there are not enough buyers, the government defaults. So they either start to use governmental assets to pay debt, or monetize the debt which then causes inflation because you are LITERALLY stealing the wealth out of EVERYONE who uses your currency. Also, since this can happen anytime it results in serious problems in the stock markets because people didn't have the time to process everything so they react on instinct and the safest bets which is selling if they expect things to go down, and if something just went down overnight it means it will continue. This in turn means billions if not trillions of dollars erased from the economy, because the value of stock starts to plummet, which means there are now EVEN MORE dollars than wealth to back it up, specially since the dollar is not backed up by anything physical per se. This leads to hyperinflation, the erasure of wealth and as it is the nature of this world, the one's who suffer the heavier hit are the middle and lower classes, which in turn results in social unrest, which in turn devalues the money even further, which enforces the cycle. Everything because a bunch of very old pricks decided to ignore common sense. The US is the richest country in the world because it's money removed the upper limit of worth caused by a physical backing, but it also removes the lower.

[@Brandon-1996]

"Everything because a bunch of very old pricks decided to ignore common sense." "Don't blame on evil what can be explained by ignorance." I think it's well past time we stop blaming their actions on ignorance.

[@Pan_Z]

Politicians well know what they're doing too. The common sense solutions would be to raise taxes or cut spending. Because both are unpopular, they choose the option which hurts future generations.

[@diegosolis9681]

@@Pan_Z Politicians are always POS'. It's like with Climate Change, everybody saw it coming and they did nothing, now that is upon us they are using it to pass legislation to suppress rights and destroy familiar business to achieve corporate monopoly over basic services like food. It's disgusting.

[@neilreynolds3858]

They actually do have the assets to cover the debt but they've made laws against selling them off and they really have no motivation to stop spending anyway: They keep getting richer and they keep getting reelected and promoted.

[@ShapeshifterOS]

Monetized debt is exactly what bonds are with nothing to peg the dollar to. Too many people are stuck in last century thinking. There's no more gold standard. There's no more need to even print most dollars with the rise of the internet. Any assets used to create loans get deposited in other banks which themselves become loans and also are used by banks to buy treasuries. The same dollar ends up getting shared around 100x over. The whole system is beyond bloated and corrupt at this point.

[@RenegadeManta799]

We practically are bankrupt. Nearly 50 cents of every tax dollar collected now goes to pay interest.

[@ShapeshifterOS]

Taxes don't actually pay off debt or get used by the government. Taxes are just a means of removing dollars from the economy to lend false value to the system and control inflation. Interest on loans is the other means of removing money from circulation.

[@user-mw9ep3ss2m]

Tried to explain monetization/inflation to a couple of fellas on a survivalist site, they insisted that rising prices define inflation. I appreciate all who attempt to educate folks in basic econ. Thanks.

[@c.leeyoung4678]

We're already bankrupt we're just waiting for life to catch up with us

[@user-xl5kd6il6c]

Not you, with your grandchildren

[@chrish3e]

Bro has so much truth people don't even recognize it.

[@grimaffiliations3671]

@@user-xl5kd6il6c You can't go bankrupt in your own currency

[@user-ze3sg6ix1u]

@@grimaffiliations3671 yes you can, you just end up spending so much it's worth nothing which is the same effect

[@grimaffiliations3671]

@@user-ze3sg6ix1u Hyperinflation is a different story, and one that will never happen in the US. A nation would need to spend far beyond the productive capacity of their economy for hyperinflation to take hold, and the US is very far from utilizing the full capacity of their economy. As for the traditional meaning of bankruptcy, default, that can't happen either since the US borrows exclusively in it's own currency. It can simply keep rolling over any payment that comes due. In 2021 alone, the US rolled over 120 Trillion dollars of debt. That's trillion with a T, in one year.

[@doug6259]

The problem is we have an entire congress with no clue how to handle money.

[@aetius7139]

US spends too much on foreign aid and military budget. If we cut that, that would put us on track on fiscal budget.

[@josiahfalls5304]

I spent an hour and a half this morning explaining to one of my friends this concept, you’ve done such a good job at summarizing the concept and it’s logical conclusion!

[@baldeagle5835]

It’s called Theft.

[@Project_Amirani]

It is called capitalism, because Government is just representation of collective will of Businesses and Banks that have nothing to do with wage laborers - 90% of USAs population. USA is oligarchy not a democracy. Regular people have no say in how country should work and two parties and their candidates that you can "vote" is just illusion of choice between two factions of Corporations and Bankers inside the country.

[@stacyrynd7110]

Nice, easy to understand video of one of our country’s massive problems. Thanks Nick.

[@Dewitt667]

It gets even worse when you realize the rest of the industrialized countries do this too, and they want the US to foot the bill for most multinational project, peaceful or otherwise. I grow up hearing geoeconomics was a house of cards and the US consumer was holding it together.

[@bastobasto4866]

You grew up hearing lies.

[@lakeguy65616]

Treasuries were considered the default Risk-Free investment. As such, it should have the lowest interest rate for debt securities for a given maturity. That's no longer the case. For example, 10-year government bonds from Germany, Italy,, Spain, the UK, and Japan all how lower coupon rates than 10-year US Treasuries. Global investors demand a higher rate to buy US debt because it carries a higher risk of default. Italy's debt is viewed as safer than US debt.

[@nonyadamnbusiness9887]

That's just one more "The World is Batshit Crazy" flag for me. Italy, for me, has been a sort of limit on how politically crazy a country can be and not fall into failed state status.

[@crosslink1493]

You might want to look a little deeper at the European countries. Except for the few European countries who are not members, all of their debt is "backstopped" by the E.U.'s financial division (I forgot its true name), so each E.U. country's individual debt is not truly its own individual liability. Not sure about Japan's debt, I'll have to look in to that, but I think its on par with the USA, the Japanese citizens just pay more in taxes to cover it IIRC.

[@28pbtkh23]

⁠@@crosslink1493 - backed by the EU Central Bank, based in Frankfurt. You are correct on the other point: each country in the EU is responsible for the debt of every other country, even if they are not members of the Euro currency. Thus Britain - and ultimately its citizens who pay taxes - was liable for debt in the Eurozone, even though it was not a member of the Eurozone, because it kept its own currency. Maybe now people will understand why most of us voted to leave.

[@bastobasto4866]

Japan is a bad example - it's a completely different beast, and it can't really be compared to other countries. The Japanese will buy bonds with 0% interest, basically just giving part of their money to the government for free; it doesn't make sense.

[@NobodyAnywhere-xi9dz]

@@28pbtkh23 What did it bring you? Your Tories are the same cronies as everywhere. Plus the EU was also founded to create the possibility to create the same good life for every European citizen, no matter how average you are (this is the key difference to the US). Portugal successfully no has a lower debt/gdp ratio than Britain. Greece finally got an investment grading again. Spain was at 100% debt/gdp before corona, jumped to 120% in 2020 and is now already back to 110%. I am certain Italy will be taken care of as well during the next decades. UK doesn't look rosy at all. You just jumped above 100 too

[@Blakehx]

We need part 2… what do we do about it? Vote for politicians who run a $10 billion deficit instead of $20 billion? I mean I guess that less bad

[@ironclaw6969]

I wish our deficit was only billions...

[@commonsenseisntcommon1776]

If only voting wasnt rigged!

[@Codster121]

I think the deficit is about $30 trillion now (probably more) and counting.

[@ironclaw6969]

@@Codster121 34 trillion and counting, not counting unfunded liabilities

[@Codster121]

​@@ironclaw6969 It will probably be $140 trillion by the end of the year... The national debt is already greater than the US GDP. If you've ever played Superpower 2, national debt being higher than your GDP triggers economic failure, and that is game over. (When that game came out in 2001 the national debt was much less than the US GDP.)

[@motofunk1]

Because that is the plan. It's not some byproduct of incompetence, it's the intended result of the plan to get everyone on CBDC.

[@neilreynolds3858]

An economy made up of two classes - the rich and the poor - is much easier to control than one with an unruly middle class. They're starting to understand that letting the middle class grow back when they needed their money was a mistake. They can get rid of the middle class and run the government on a deficit.

[@Barbara-jn2gw]

yeh

[@garyjohnson8026]

Last I checked, being $40T in debt and not bringing that much in is the definition of being bankrupt.

[@grimaffiliations3671]

No because the governments debt is our asset

[@nonyadamnbusiness9887]

Now explain how we've been able to export our inflation for nearly 80 years and what happens when we lose that ability.

[@grimaffiliations3671]

The only way we can export inflation is by taking actions that strengthen the dollar, or other countries taking steps to weaken their currency against ours

[@gusloader123]

As Senator Everett Dirksen of Illinois said decades ago talking about Federal Government spending: ".... A million here, and a million there, and pretty soon you're talking real money." If Joe or Jane Public writes a bad check, they get in trouble. The Washington D.C. machine writes bad checks and spends money it does not have, and they never get their hand(s) slapped.

[@grimaffiliations3671]

No such thing as money you dont have when you make the money

[@joeavent5554]

Weimar Republic with wheelbarrows of Marks to buy a loaf of bread comes to mind...

[@cdevidal]

While the govt owes trillions of US dollars, so does the rest of the world. They have many debts denominated in US dollars, that can only be repaid with US dollars. This increases demand for the dollar to repay their loans, putting a strong headwind on inflation. Otherwise, we'd have seen hyperinflation long ago. I'm not saying we cannot, but I don't think it's going to happen tomorrow. Edit: What about the Yuan becoming the global reserve? You can make any currency a global reserve but until those debts are paid off people will still demand dollars. And the IMF is very good at pricing loans affordably in dollars for nations to not want to refuse.

[@seekinggodseekingtruth]

And what about china trying to make the Yuan the global currency? This will surely impact what you’re saying if successful

[@trollingpcgames]

@@seekinggodseekingtruth The yuan is even more manipulated than the dollar and china's currency is not transparent enough for countries to trust it with all their holdings, and from what we know the yuan is printed in bigger quantities than the dollar. For the dollar to lose it's reserve statues there needs to exist a currency to replace it and there are no economies stable and big enough to take its place, the euro would have been the only contender but it's pretty much pegged to the dollar and europe has its own problems. And brics have too many differences between the member states to create a new currency since it would need to be controlled by someone and they would certainly not give china more power by deciding to use the yuan. America can pay of a debt far higher than the one it has now so america can go on printing at this pace for 40+ years before it really gets to be a crisis. The current debt problem is an easy fix just stop running deficits and the debt will payoff itself. These types of videos are hyping up problems to appear bigger than they are and a lot of the time it's even produced by china or russia who want to convince you that the dollar is failing.

[@Aurumfae]

@@trollingpcgamesthe threat isn’t from outside of the US. It’s from within. There’s truth in your statements about the dollar not being able to be thrown off yet, but if we continue to print money, hyper inflation WILL occur, which will destroy the economy and citizen unrest will rise (far worse than what it is now. It won’t be comparable.) Yes, this will take time. Years. But if this continues-funding wars, raising the debt ceiling, no control over inflation in relation to the labor force-America will be thrown off, but not by China, Russia or any other enemy, but by our own greedy globalist government.

[@user-ze3sg6ix1u]

Yea you're right, but that's why there is a slow de-dollarization going on. And in the meantime we'll still have good old fashioned regular inflation

[@user-ze3sg6ix1u]

​​@@trollingpcgamesthis video isn't hyping anything up. It's simply just explaining how the govt gets it money and how it can lead to hyperinflation. We're already in a crisis lmao, mortgage payments alone are up 20% in a year. Which isn't even included in inflation, like gas prices, which are also up.

[@SG-js2qn]

End the federal bureaucracy. Federal spending went way up during covid, and they're still spending at the same rate. Wonder where your tax dollars are going? Look no further than the US southern border. That's where your money is going: to fund all of the people crossing and funding the adminstration of all the trafficking efforts.

[@user-fy6ii5uo7g]

"Will" go bankrupt? We already are.

[@edschneidmuller9496]

and have been for years

[@grimaffiliations3671]

You can't go bankrupt in your own currency

[@jasongarland3165]

The thing you didn't mention is the government also has the ability to raise taxes to raise revenue which, once they begin to stare into the Abyss of bankruptcy, I guarantee they'll try.

[@GregMoress]

Every now and again I think of Daniel Shay and his rebellion. I've only ever met one other person who also knew of him, and he informed me how the government responded in kind.

[@ironclaw6969]

They can try, but most folks have nothing left for them to steal.

[@TheOpethOfMastodon]

They'll cut welfare, foreign aid and tax corporations and smaller businesses into oblivion. Basically turn the country into a war time economy, which is why countries relish going to war when their economic outlook is bleak.

[@ShapeshifterOS]

They don't need to raise taxes. Raising the Fed rates has the same effect of easing the debt burden. Then when jobs get purged, like we are starting to see now, there will be less dollars circulating through the economy.

[@jaimeosbourn3616]

@@GregMoress I've a book on his rebellion.

[@williamzk9083]

Maybe Americans will go through what Weimar Germany did. I can see why they’re trying to ban crypto and why gun control.

[@jackjeffery1536]

Bingo! Those who do not learn from history are destined/ doomed to repeat it.

[@jackjeffery1536]

All God given American rights hinge upon the second amendment.

[@jackjeffery1536]

It's a good time to draw near to The Lord Jesus Christ.

[@jackjeffery1536]

Historically governments can and do turn against their citizens. Remember President Burden's blood red speech?

[@Bookhermit]

That WOULD the the case if most of that monetized debt money creation were going into the real economy - but most of it is NOT. MOST created money simply goes into investment asset pools of various kinds and is NOT used to buy physical goods or services. These purely digital "assets" CAN grow endlessly without any serious consequences - UNTIL THEY ARE USED! So, the current policies of the USA (behind the scenes) is to make sure these asset pools are NEVER put to use in the physical economy. The wealthy love this - they get endlessly more wealthy, so long as they keep most of that wealth "in the system". Eventually, of course, some big player will quit playing the game and attempt to "cash out" their investments. If a large enough player does so, it will cascade into a global crash almost instantly, unless the Fed steps in with a bailout, which is what they've managed to do in every such situation so far. How much longer they can keep it up is an open question.

[@perrytornado]

The economy is not Capitalist/ Conventional economics is akin to a legalized Ponzi scheme/ That's how the economically wealthy accrue their monetary wealth/ The system itself is the worst, most heinous crime of the 21st century, and, of course, the less stupid egotistical swindlers profit while the enslaved masses stress themselves to death budgeting to prolong their wretched slave existence/ From the true Capitalist perspective, the economy and politics are preposterous absurdities/

[@nancywhitehead219]

We have no gold. They don't care 😢😢😢😢

[@crosslink1493]

There is still a gold reserve, but nowhere near enough to cover all the paper bills and metal coins in circulation.

[@davidcooke8005]

Just wait until the BRIC nations issue their own 'world' currency. Once the dollar is not the default currency we can no longer just print money. Now go take a look at the debt clock, not the upper left corner, but the lower right. There is no way to overcome numbers like that. The reset will be epic.

[@TheOpethOfMastodon]

A BRIC world currency is too farcical. The euro still has the best shot at replacing the dollar if it comes to that.

[@grimaffiliations3671]

@@TheOpethOfMastodon Nah, you need to run large trade deficits to replace the dollar, the Euro more or less balances out

[@Sherman62]

About 20% of U.S. revenues are spent on interest on our debt. One trillion dollars or perhaps more annually. It is one of the largest expenses in our "budget". This can easily spike up as bond rates are driven higher as the video explains. If you think our debt is meaningless or "not real money", consider yourself disillusioned. Anyone who has let credit card debt get out of hand and interest rates go up should understand this trap very well.

[@NobodyAnywhere-xi9dz]

the problem is debt spending now creates good times, because the consequences are in the future :(

[@grimaffiliations3671]

The debt isn't paid for by tax revenue, it's paid for by simply rolling over any bonds that come due. The government rolled over 120 TRILLION dollars worth of bonds in 2021 alone. That's trillion with a T. The idea that taxes could ever cover that amount in silly. They can do this forever because they control the currency our debt is denominated in. The other reason it's nonsense is the main reason, and it's because taxes don't pay for anything the federal government does. They're debited out of existence at the IRS. The money we're using to pay taxes comes from the government in the first place, so our taxes don't give them new money, they just cancel out what they've already spent. You can test this out yourself, the next time you pay federal taxes, do it in cash at a physical IRS location. They'll literally put your tax money in a shredder

[@rykbrown1893]

I absolutely LOVE how you explain complex concepts in only a few minutes. So many content creators blather on to fill time, saying very little of value. You cut straight to the point, in a clear and concise fashion, and I thank you for that.

[@KalonOrdona2]

Also they use their own citizens as collateral

[@analogman9697]

Yep. Your name in all caps on legal docs as well as birth certificate have brought that about. We are legally considered to be "property". Rarely come across someone who's aware of that.

[@rodmcisaac3]

Sounds like history repeating itself. My dad told me of people with wheelbarrows full of cash (I do not remember where) to buy just some basic food.

[@richardlucas5234]

Weimar Germany 1918 - 1933. Followed by Adolf Hitler.

[@analogman9697]

Weimar Republic in Germany, right before Hitler took over. They'd throw away the money and keep the basket it was in.

[@robw9435]

I once saw a photo of a woman in the Weimar Republic. She was loading stacks of Deutsch Marks into an oven because the bills literally had more value as fuel than as cash.

[@grimaffiliations3671]

The US didnt just get its economy wrecked by losing a world war, and it didnt get forced to borrow in forign countries. We're nothing like weimar

[@godwinmanuel6963]

When a politician says, "We have to solve our debt problem and it will require all of us to sacrifice" that will be the end of his or her career.

[@grimaffiliations3671]

Good, we don't have a debt problem so no one needs to sacrifice. We can stop adding to the debt tomorrow simply by stopping the sale of bonds

[@codybailey855]

Its such a mind-bender that moat people do not understand the absolute shit sandwich we are about to eat.

[@grimaffiliations3671]

people have been claiming that for over 100 years. We're fine

[@scottflora8876]

Those corporation's owners, and countries own politicians in D.C., and they relegate whats going on in our country, not the constituents they are supposed to represent... a balanced budget will get us out from the oligarchs tyranny, but that's not the status quo...

[@randyd9805]

Thanks for that Nick. I feel so much better now. Hopefully, I won't be around when things go bust, but I fear for those who will be here. I seriously think that day draws really, really close, perhaps before the end of this decade. Honestly, I don't know how on earth it hasn't happened already. There must be a breaking point and we must be getting ever closer to it.

[@MitchM240]

Thomas Sowells Basic Econimics should be required reading in every High School. The problem is we used to have at least one party that was fiscally responsible. Now the GOP just gives lip service to it. Politicians on both sides of the isle refuse to make any cuts in spending. It is a simple equation. We are going to collapse, just a matter of time.

[@LarryLunchbox]

It all ends when the US dollar is no longer the reserve currency of the world….but no one knows when that will happen

[@DeeezNutttts]

That my boy is happening now

[@grimaffiliations3671]

That aint happening any time soon, and it can only happen if the rest of the world starts running trade deficits against us. That eould give us a big trade surplus, which isn't a bad thing

[@mustang607]

And here was thinking the federal government was already bankrupt in common economic sense.

[@diogenes505]

We are already there my brother.

[@SuperBobcat68]

I agree, except the Fed doesn't use it's newly created money to buy new government bonds. For as long as the private sector wants to buy US Treasuries, inflation won't be a problem.

[@354sd]

Twenty years of war and 800 bases around the world doesn't help either

[@timoconnor4282]

Nick, Technicality, but important. It is illegal for the federal government to print money. That is done by the Federal Reserve, which is a horde of private banks that do the Federal government's bidding in exchange for special treatment.

[@Xeverous]

Every govt spending should be tied to raising taxes. It's inase that only the govt can separate buying stuff from spending money.

[@zevfarkas5120]

Inflation - the rate at which people figure out that fiat currency is essentially worthless.

[@JimRyser]

We’ve been bankrupt for a very long time.

[@searchthewind99]

We were opening ourselves up for bankruptcy since we passed the Federal Reserve Act in 1913. We could have had the government print debt free currency that would only be used as needed. No buying from the banks with interest. No allowing the banks to use fractional reserve lending. We tried this before the Revolution and it worked before the British Parliament took it away and we tried to preserve it after this country was founded but ultimately the banks won out.

[@grimaffiliations3671]

We can still go back to debt free spending, we just need to repeal the amendment to the federal reserve act that made it so the fed has to sell bonds. Instead, we could just go back to the fed giving the treasury an overdraft. This would allow us to fund deficits with debt free money

[@searchthewind99]

@@grimaffiliations3671 We could but I doubt that would happen. The banks make money printing money and they're not going to give that up voluntarily. The banks print money for almost every nation on earth.

[@justinvanburen8259]

Damn!!! I wish people could see that!! And finally do a balanced budget for the government no more over spending!!!

[@lachlanm3439]

I did not know this was a SECRET.

[@camelprotector]

Question is when will it happen?

[@williammatthews2948]

It's happening as we watch this video.

[@Shrouded_reaper]

Things are starting to break and hit the fan already, it's only going to take one little piece failing and the weight of quadrillions of dollars of debt of unfunded liabilities, derivatives and shit you never even heard of are going to hit the fan big time. They can kick the can for probably another 5 years, 10 years is my guess, 15-20 on the absolute outside if they can pull out massive austerity measures which isn't going to happen so yeah.

[@grimaffiliations3671]

@@Shrouded_reaper Wrong. They can kick the can forever, as long as they keep borrowing in their own currency. In fact, when you have no foreign currency debt, borrowing at all is optional. They could stop selling bonds and adding to the debt tomorrow of they wanted to

[@Nostrildumbass2019-lq2cn]

California already is 74 billion in debt, thanks Gabbie Nuisance .

[@Solipher]

Printing money right now is the dumbest thing anyone can do. The worlds about to go through a financial shift, we don't whose dollar will come out on top. Last financial shift, the USD came out on top, that was through dumb luck. Printing money right now means you are devaluing your economy.

[@grimaffiliations3671]

wrong

[@zevfarkas5120]

The ultimate "too big to fail"...

[@crazy0300712]

The biggest issue for the US is that in theory, historically, they could run massive deficits because there was no other currency that could rival the US Dollar. But as China and the rest of Asia develops it'll economically dwarf the west. And that region will probably reduce it demand for dollars over time (See BRICs).

[@grimaffiliations3671]

so?

[@freedomwriter1995]

He needs to do a video on why Healthcare sucks and what needs to be done to fix it.

[@contumelious-8440]

US healthcare is the best in the world. You are more than welcome to go elsewhere to get your health taken care of, I imagine many people would gladly give you a free one way ticket to go away forever. The COST of US healthcare can be very high. THAT, however, is a separate issue from, "healthcare sucks". I am already paying 30% in taxes and have no interest in raising that amount to subsidize people who won't spend their own money for health insurance (Universal Healthcare). I would find it amusing if the US adopted a tax plan similar to Norway's when the people who won't pay for health insurance suddenly find the government takes it out of their paychecks anyway (the irony is most of those people are the ones pushing for universal healthcare). Not amusing enough to desire the tax increases for everyone, though, not to mention turning healthcare over to the government to regulate....

[@freedomwriter1995]

@@contumelious-8440 the fact that Healthcare cost so much, even with insurance, and that there are so many loopholes that insurance companies and hospitals use to avoid paying for and doing the procedures is what I mean when I say "Healthcare sucks".

[@freedomwriter1995]

@@contumelious-8440 also, the fact that private insurance is so expensive is another issue he should talk about. I'm a libertarian, I believe in the free markets ability to solve a lot of our problems. However, I'm also a pessimist who knows how anything and everything can be corrupted and twisted so that it only benefits a few rich and powerful people.

[@freedomwriter1995]

@@contumelious-8440 you shouldn't have to go into massive debt just to get life saving surgery or be condemned to live with a debilitating, but not life threatening, condition just because you’re insurance company refuses to pay for it for some greedy and selfish reason. Sadly, that happens all too often.

[@freedomwriter1995]

@@contumelious-8440 However, I will agree that a socialist system of Healthcare would also be terrible as well as having its own horrors and flaws. The Charlie Gard case, and others like it, in the UK just being one example of the dangers of socialized medicine. Sure; the chances of the experimental therapy working were several billion to one but that doesn't mean that the government had the right to pull the plug.

[@damonf6564]

Get a properly full House of Representatives and pass legislation that gets rid of The Federal Reserve. Vast majority of the debt is owned by The Fed. Then create US Treasury Notes that are backed by the gold in Fort Knox. Make that Dollar (US Treasury Note) a fixed value to the gold in Fort Knox. Simple, but far from easy.

[@RaycerX19]

Youre right Nick, they need it keep the lights on, AND... line donors pockets, topple forign governments. Fund the military industrial complex. Invest in big pharma, bail out banks and speculator mistakes. I could keep going, but few of these benefit citizens we just get the credit card bills.

[@selohcin]

Gotta love Modern Monetary Theory!

[@fatcheesecorp8010]

A deficit isn't byself horrible or a high debt amount but instead a high debt to gdp and deficit to gdp which is still happening nonetheless.

[@ronbyrd1616]

A humorous tangent...if 34 trillion one dollar bills are stacked on top of each other, they will reach the moon and back 3 times + .

[@jdluntjr76226]

And that is why I use those increasingly worthless dollars to stack gold and silver- real money for over 5000 years

[@grimaffiliations3671]

debt was money before gold was

[@jdluntjr76226]

@@grimaffiliations3671 keep believing that

[@josemarcassoma255]

Debt Monetization is the same solution that Hilter applied in Germany ...

[@ct000374910]

There's a channel on YT called 1dime where they talk about how the US government funding deficit is supposedly a myth. The channel claimed that the government could easily fund all sorts of infrastructure and social projects, simply by printing more money. Supposedly, there would be no repercussions for doing so and inflation would not be a problem. They then started going on about how the government needed to nationalize all resources and seize the means of production so that everything would belong to the people. For a second I thought he was joking, then I realized that he was serious. The whole time he talked as if it was all so obvious to anyone initiated in advanced financial theory. I was so mad I could spit by the end of that guy's podcast. It's hard to believe that there are people who unironically believe in crap like that. I have to wonder if he had any real-world experience in finance at all.

[@grimaffiliations3671]

He lost me with the seizing the means of production part, but he's actually right about the first half. As long as the government spends within the capacity limits of the economy, it can never go bankrupt. This is because we borrow in our own currency

[@TacoTruck17]

Yes!!

[@snicklefritzd3612]

I have talked about this, as a lay person for a very long time. I had no idea it had a name....lol.

[@matt46142]

Declare bankruptcy. Change to a soft gold standard.

[@HansZarkovPhD]

30 trillion in debt? Could your family not go bankrupt if it was 300k in debt for any length in time.

[@grimaffiliations3671]

government budget is nothing like a household budget

[@freerunner1953]

That's it, I'm buying large amount of gold and living off the grid

[@JohnSmith-cq7lk]

The forth turning.

[@reason2gether]

In other words, we are all going to be millionaires soon! The only problem is a loaf of bread will cost one billion dollars!

[@jogeanJPtambot]

How informative

[@JarvisBlay-wd3ms]

Act of 1871 , Act of 1933 emergency banking act ....In another words, It's been broke ...But hey, What do I know

[@patrickdaniel1942]

What can we do about it?

[@Stephen-zq2wf]

Central Banks need to Change the Rules ...

[@ShapeshifterOS]

This is actually incredibly false. For starters the government doesn't need to print money. The vast majority of dollars in existence now only exists electronically. They don't need to print to cover the cost of new treasuries. You're right in saying that it is becoming more difficult to sell bonds to foreign investors and countries. This just means they'll have to rely on loans between the banks and the Fed more instead. The USD is its own sovereign currency, this means the government can make endless amounts of it at will. The only issue is how much inflation that can cause before we the people reach a breaking point resulting in revolt.

[@ShapeshifterOS]

You do however still end up with the same conclusion.

[@grimaffiliations3671]

@@ShapeshifterOS You don't end up with the same conclusion. The US doesn't need foreign investors to buy it's bonds. It doesn't even need to sell bonds. Selling bonds was just a way for the fed to control interest rates. But now they pay interest dirrectly on reserves, so selling bonds are no longer necesary

[@analogman9697]

My bet is that gold/silver will trade way down so the fatcats can shake out the timid and buy at a bargain.

[@Bookhermit]

That already happened. The current values are ALREADY far below anything rational.

[@analogman9697]

I hope so. But the rich are treacherous and unpredictable.@@Bookhermit

[@rossspyke2362]

Yeah, our country is pretty much effed.

[@bhamptonkc7]

The government will always fund and protect itself

[@vikramaddanki8083]

then its not really "kind of..." as you said. Its real, its a practicality.

[@godwinmanuel6963]

And in November, we will all elect or re-elect politicians who will add trillions to the national debt.

[@bloodgout]

I mean maybe the extremely wealthy and corporations could pay their fair share in taxes

[@TheOrderofTheBoanerges]

Not worth a Continental, phrase of the past. Soon it's not worth a USD, or a buck

[@markknox182]

But wait , is inflation not transitory ? 😂

[@jimwerther]

That's a really bad typo at 1:48, Nick.

[@TheEmpressPalpatine]

Weirmar! It took a wheelbarrow of Marks to buy a loaf of bread.

[@Pan_Z]

"Monetising the debt" and "Quantitative easing" are two terms every citizen should fear.

[@grimaffiliations3671]

whats the difference?

[@Pan_Z]

@@grimaffiliations3671 QE technically doesn't require printing money, but in practice it does.

[@grimaffiliations3671]

@@Pan_Z how so? QE is just an asset swap

[@rickkearn7100]

Understand the concern here but, the world's banking families won't let that happen. Cheers.

[@lv4077]

Accumulation of an enormous debt has weakened our economic outlook,increased interest rates and weakened the purchasing power of our currency.Monetization of our debt is a clever way of saving,print the hell out of the currency,inflate the dollar and pay interest on the debt with key strokes on a computer.

[@grimaffiliations3671]

debt didnt increase interst rates

[@lv4077]

@@grimaffiliations3671 Really? You try selling your country’s paper when your currency’s value has dropped.Fed needs to raise rates to attract buyers.When Feds fund rates and of course bank rates go up lenders still have to maintain profitability so longer term rates go up.

[@grimaffiliations3671]

@@lv4077 The debt is many times higher than it was in 1980, yet interest rates are many times lower than they were back then. The interest rate is a policy choice, it is not determined by demand or the market. It goes where the fed wants it. If our interest rate was determined by the market, it would've exploded in 2008 like it did for some European countries, instead it went down

[@lv4077]

@@grimaffiliations3671 Total national debt is of course much higher today but the ratio of debt to GDP in 1980-85 was only in the 40% range now it’s approaching 120%.Volker was much more aggressive back then and I’m sure Powell is being “encouraged “ to keep the Fed funds rate as low as possible in an election year.The Fed isn’t as independent as they insist..Apparently “fighting inflation “ was a an actual concern pre-MMT,

[@grimaffiliations3671]

@@lv4077 We were at 120% in 2020 but that didn't stop the fed dropping rates to 0. EDIT: It was actually 132% of gdp in 2020

[@truthvfiction]

“Go” bankrupt? We’ve been insolvent since before 2012.

[@grimaffiliations3671]

nonsense. You cant go bankrupt in something you create out of thin air

[@truthvfiction]

@@grimaffiliations3671 Yes, you actually can. Take a walk down memory lane and look at the Weimar Germany government after WW I. Don’t be a naive democrat.

[@grimaffiliations3671]

@@truthvfiction they were forced to take up debt in forign currencies. Try again

[@truthvfiction]

@@grimaffiliations3671 The US has borrowed itself into foreign debt for 60 years. This has resulted in a critical mass per annum interest payment now exceeding the U.S. GNP. This, by textbook definition is insolvency. There is nothing to “try”. It’s basic empirical mathematics. How can you not seem to understand this?. The United States fiat system is bankrupt. Mindless, wasteful leftists did all of this to stay in DC. You will pay for it whether you like it or otherwise.

[@truthvfiction]

@@grimaffiliations3671 Like US debt sold to foreign nations for the last 60 years? Are you 7 years old or just stoned every day?

[@cartmemes5034]

I’m richer than the federal government

[@darinfonder1388]

And yet they give you a credit rating

[@cartmemes5034]

I don't even have a credit card and I'm in my late 20s. Lmfao@@darinfonder1388

[@grimaffiliations3671]

lol

[@johnCjr4671]

Greed ! 😢

[@emmanuelyorac8571]

America it will not Bankrupt. The whole world using U.S. Currency dollars

[@THETRIVIALTHINGS]

Solution?

[@martinpalm5]

The price of housing needs to go down, and more families. More real America.

[@Aurumfae]

Go back to the gold standard (which will never happen.)

[@mountainghoti1671]

Cut all excess spending. Ride out increased inflation for five+ years. Stop the Fed from printing more paper money than is required. yearly.

[@Shrouded_reaper]

@@mountainghoti1671 All that does is kick the can down the road. There is no solution, there is a reason single every country that has ever used tried fiat currency has experienced a currency collapse. BECAUSE ITS A FUCKING PYRAMID SCHEME. We got lucky this round and managed to kick the can for a long time thanks to the huge productivity gains brought about by mass mechanisation, automation and computerisation of work over the last century or so.

[@Munce72]

Great work Why! Scooby snacks for you. Praying for Israel. My allegiance is to Liberty, the Republic, and Democracy.

[@darkgalaxy5548]

But we can always print more money. It worked for Weimar Germany, didn't it? Right?

[@grimaffiliations3671]

weimar borrowed in foreign currencies so they couldn't just keep printing

[@jusrarsh4109]

It’s over -over kids…..

[@hiskiamartin805]

😂😂The fed owes an unknown entity more than 32 trillion dollars. Where this entities have acquired the money from puzzles those that think 😂😂

[@patientestant]

Great explanation of Bidenomics and the inflation production act.