i fully support the usa defaulting on its debt. if its broken and you keep on putting glue/tape on it sooner or later it will break breaking it sooner than later is better.

Why didn't u talk China already reduced it's US debts holding from 1.3 Trillions to 800 Billions and keep offloading it?

31 trillion my butt, Kissinger/pentagon steals that over the weekend :P

Why do you believe a government that makes it's own money can go broke in the currency it makes? Also why do you still believe our taxes pay for government operations when Covid proved we don't tax or issue bonds to spend. If we want to spend money we do and don't raise taxes or sell bonds to do it.

US National debt is nothing but an accounting record of all the dollars the US Federal govt has spent since inception, which is has yet to tax back and sits in our economy as our savings. It is not debt at all, its part of our money supply and there is no problem with it other than the distribution of those dollars. Its not something our grandchildren will have to pay back. Its not a burden on our children. The Fed govt can make any amount of payments it wants to and does not spend peoples taxes. The difference between spending and taxes is the deficit, which necessarily equals our SAVINGS.

It's much more than that... It's kind of cyclical imo with a little bit of external influence

Yeah we need to get rid of the old people, because young people are great with credit. 🤣

Nah... let's JAPAN PAY FOR IT

After all, we're freely handing them a world that is already been built. They will do the same for their offspring. This is how life works.

We're borrowing against our children's futures in more ways than just our national debt. We're building unsustainable infrastructure systems that they won't be able to afford to maintain, and we're polluting the environment for them to either pay to clean up or live with the health consequences of.

It is a bit different because the US can print the currency it owes its debt unlike Italy.

I think you guys are still in this period tbh

Amerikkka is spoiled...hence it's printing press goes nonstop cos the is enslaved by the $ cos world runs on it atleast and indefinitely will see till other credible baskets come to bear

us will just print more $$$

"Taxes couldn't be lowered" yet they were lowered, for the most wealthy People and thé biggest international compagnies how evade happily Taxes. Richard is blinded by the economic doxa. A sovereign state is not à compagny. A state could decide to tax 20% of any wealth above a certain threshold. It has been done in the past (France, 1946-1949). Abstate could also tax at an exorbitant rate above a certain pay grade : USA under eisenhower had a 97% marginal tax rate.

It’s simply so they can have this fight every year. Just like china’s most favored nation status back in the 2000s. It’s non debatable but it was brought up to debate regardless.

Because automatically writing yourself a blank check is not actually responsible. The whole point is to place a constraint where the people spending the money have to actually explain why it has to be borrowed rather than the country working off existing tax revenue.

@@defenstrator4660 so its simple, any time we have to pass a bill that increases government spending, pass a debt ceiling increase to compensate. you are already showing where the money is going, its going to this new spending venture.

@@ShadowAraun Yeah, that’s missing the point. The reason the debt ceiling is there is to try and stop spending money you don’t have. Unless it is some sort of future benefit borrowing is simply stealing the money of those in the future to spend in the present. You get the stuff, they get the debt. The idea is that if you should not be able to simply borrow and tax. That there must be some fiscal responsibility to live within your means. It can be done. During the 90s both Canada and the US had balanced budgets. So why people treat it as an alien concept is beyond me,

@@defenstrator4660 the idea of raising the ceiling being tied to bills that increase spending is EXACTLY to limit the bills that increase spending. so we can stop spending money we don't have.

Correct.

Let's cut out the engines of the plane in order to see what happens

"What happens to those nations that run out of cash either one goes commie or ones goes fash. Million dollars for a loaf of bread can't wait to bash my neighbors head print money. " Remember this song?

I find it unnerving that Warren, Sanders, and AOC claim that having a reserve currency means we can spend infinitely without consequences, _and people believe them._

@@badluck5647 Hey hey hey, not every politician has the time to read history okay? Pandering to political extremism is very time consuming I’ll have you know!

@@NormalPerson053 Not necessarily, the UK lost its reserve status and have managed fine (until it decided to shoot itself in the foot). But yeah that’s a gamble best left not taken…

That’s pocket change

@@tioswift3676 Oh really! Try carrying $31.4 Trillion in loose change and get back to me 😂

@@tioswift3676 you from Zimbabwe

@@jirachi-wishmaker9242 hahahaahaha

Perhaps not such a bad thing. Two possible outcomes: you convince others you are successful and can make the payments (thus they are invested in your continued success) or they are unconvinced and seize your assets. Good luck. Or thirdly, debt forgiveness though that is somewhat in category 1 of convincing debt holders but now we're approaching levels of nuance involving debt and politics that I can neither articulate nor understand properly to succinctly write in a comment.

They better do it cos US is in trouble if they don't increase it.

@@kicapanmanis1060 increasing the dept ceiling will only cause more dept, the more dept the more the U.S. dollar will lose value. No value, everything will come to a stand still and everything will probably crash. They’re only causing more economic damage by not paying the dept.

Exactly

The crisis comes when you devalue the currency and destroy every dollar denominated contract, including loans.

No. Thats not true. Everytime you print money, the value backing it gets divided by the increased amount of printed dollars. If your gdp does not increase to compensate for the increase of debt or printed dollars, your purchasing power goes down. Hence inflation. This idea that you can do this with no consequence is blatantly false.

quippy: The country or, government, does not print money. The Fed does.

@@LuciferArc1 you contradicted your own point. First you said the value backing dollars is divided every time you print money, then you said that is only the case if the gdp does not increase. Which is it? does it devalue every time you print, or only when theres no growth?

Mostly because they don't have a choice. If you want a dollar denominated loan, you to buy treasuries

US doesn't let "choices" to emerge or stay. Because it will crumble their establishment. More importantly its allies helps US to do that for easy US-Pound & US-Euro swap.

The US can really do anything it needs to keep the markets ok, but can the average citizen be able to handle what the government puts them through.

what choice do they actually have? the reality is that nobody believes the US is paying back anything, but they have to act like it. otherwise their companies will collapse along with the US and the dollar

Republicans. Call them out.

That's actually illegal. The Fourth article of the 14th amendment makes it illegal for the US to default on its own debt. Edit: Oops, wrong section.

@@Krevvs The government HAVE to reduce spending and raise taxes. You can't continue kicking the can down the road.

@@Krevvs Nah. This bullshit is present and common with the entire political sphere in the US.

@@Krevvs We are going to default eventually through not paying, or inflation, better to do it honestly and get it over with. We need massive cuts to government

Nice twisting of words

@@jonnyd9351 ?

just a reminder that neither party cares absolutely nothing about debt when they are in charge. so, it will rise. will that ever matter to the one who has the biggest GDP and biggest military? probably not. but then again, they are being awfully sweaty about china and encircling them for really no good reason.

@@Redmanticore I agree, my point is one party lies and says tells their voters a story which sadly many of their voters believe. There's a reason fox lies and misinforms their viewers.

@@jonnyd9351 explain

Your name is longer than my biography. Legendary

If u know mandarin it’s pretty funny

She's unique in the field just got to keep to her instructions and you Excel.

Have seen lots of inspiring testimonies about this broker lately...I guess she must be really good…l'll definitely make out time to connect with her anyways

It's not up to date it's already it's months before it should upload this

Ugh, spambot thread

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Its because people can't stomach the idea of having to deal with spending cuts and a slow down of quantative easing

But what are the consequences? Economists do not agree on when the tipping point is or if there even is one. The US has sovereign currency that isn’t beholden to the price of a good (ie a Fiat currency) or another government (Euro). Running a surplus takes money out of the economy through taxation. Government spending stimulates economic activity, either by adding to the capital stock (roads etc), wages (government employees) or direct transfers (tax credits, assistance programs, social security, etc). Running a deficit ensures that more money is distributed. Inflation can be controlled by both interest rates and through taxation. Your retirement plan, social security administration, banks, and long term investors use bonds as an investment tool. If the government didn’t issue treasury bonds then you wouldn’t have access to a long term and safe investment. You’d be reliant on real estate, stock prices, or business investment as your only means of investment.

As they should. The debt ceiling is about paying debts that have already been incurred, mostly through obligations that have already been approved by Congress. Reducing government spending during economic expansion is a budget conversation.

what are the consequences of the debt? A functioning government? Growth?

​@@grimaffiliations3671 everyone can ask to be paid at the same time 😈

And I happen to own multiple post office boxes

Not just the children in the USA. The rest of the world and their children pays too.

what children? We have the lowest marriage rates and births rates, and it's keep declining

having children will be too expensive and people will avoid having them. The tax slaves the government is expecting just won't be there.

A lot of billionaires and millionaires are being made everyday but none are contributing to the debt ceiling. Imagine being a millionaire but your country’s debt is in 31T 😂 fake rich i may say

Putting a bunch of descriptive nonsensical words together doesn’t mean you’re smart

the debt ceiling makes no sense

@@grimaffiliations3671 There is technically always a debt crisis with fiat currencies as every single printed dollar has interest on it and it is basically a loan of dollar + interest. Problem is at the point of taking the loan/printing currency, funds for that interest do not exist so we could never pay our loan back completely. This is why deficit spending is crucial.

@@anton3437 every printed dollar doesn't have interest, the fed just sells bonds equivalent to the difference between spending and taxes, and those bonds are the ones with interest. But the fed only does that to control interest rates, they could deficit spend without selling bonds if they wanted to

@@grimaffiliations3671 dissolve fed dissolve dollar

Waiting for dedolarisation

Eventually, this will economically destroy America. It is no joke. Math doesn't lie, politicians do.

We are in big trouble. The debt service cost is exploding. It will be $700 billion by early 2024. That is close to what the federal govt spends on the military.

anime and lgbtq always wants to keep you on edge

Yeah, russia had a low debt to gdp ratio in the late 90's and still defaulted, meanwhile japans' debt is twice the size of it's entire economy and it's fine. What determines whether or not you default is whether or not your debt is in your own currency. If it is, you're fine

@@grimaffiliations3671 yeah, but the problem is, you become reliant upon said situation and if and when that changes you are now saddled with a mountain of debt. The US is lucky right now that the world at large is favorable towards us and sees us as a good trading partner. But that can very easily change, especially with China looking at large.

@@howardbaxter2514 But the nature of sovereign debt means you can conduct fiscal policy however you see fit regardless of any changes in trading patterns. Because a nation that borrows in it's own currency does not need domestic of foreign investors in order to spend or control their interest rates. The world could stop being favorable to the US, and it could lose it's reserve currency status and it would still be able to operate the same way. After all, plenty of non reserve currency nations operate this way today

The US wouldn’t be affected on current debt/bonds. That’s the problem for the debt holder….suckers!!!😂😂 But it would affect future US borrowing…😢 Btw, US also a holder of current US debt.

@@howardbaxter2514 It can change, but not very easily. It would be very hard for anyone to replicate US value to the world, as you have to be actually physically capable of doing so, and no one is close yet. US military, specifically Navy plays a large role in this and its not likely to change to near future.

they don't have empire privileges, they just have monetary sovereignty like a bunch of other nations

Fuck Argentina

People also forgot that the one law that actually got passed through the Trump presidency was a $T tax cut to millionaires and billionaires.

Nothing was/is stopping them.

That’s irrelevant unless you can go back in time.

You wouldn't want the US to be entirely debt-free though, as that would also dry up the government's credit. Budget surpluses (which are problematic in their own way, but that's a different conversation) would have created an incentive to offer more Treasury bonds.

That’s incredibly misleading. The 1990s were a completely different time before 911 2008 and the pandemic.

Yeah, why should that debt be repair.

why? Theres no opportunity cost to interest payments

no, just governments who borrow in their own currency

Nothing is forever

“War on false terror” to be exact, we didn’t belong there

I mean only if dept as a percentage of GDP is increasing. If the debt is increasing more slowly than the economy is growing then we could hit debt ceilings while literally owing less and less debt.

@@EdMan102292 right now, tomorrow exists

You mean, other than offing a merchant and taking all his stuff?

@@Loislikes If you off all the merchants, who's going to buy all your loot? Merchants are the only npcs that make it to the end in every game.

@@roberts.9299 Not every merchant. Just the ones with good loot. 😂

Good news! Check out his latest video.

That's not true at all, it's because they have monetary sovereignty. All their debt is in their own currency, just like the US

If the U.S. defaults, it would cause world-wide economic panic.

@@grimaffiliations3671 true but like howard says, if we default, almost everyone defaults

@@noahjones9833 No, Japan would not default. Heck they've already retired half of their national debt

@@noahjones9833 sure, but we have alternatives, like russia and china. world wont end if America fumbles. it just gets a new management.

You're living through the Great Reset. You ain't seen nothing yet.

The vast vast majority of government spending is for healthcare and social security. Then the military.

@@EdMan102292 Yep. Things like infrastructure cost almost nothing compared to those three.

@@EdMan102292 That's one fact that endlessly pisses me off about people who complain about things like US healthcare and welfare. We already spend 1/3 of our budget on social security and unemployment and around 1/4 on healthcare. The military spending is higher than most countries at around 15% but that's in large part due to the fact that the rest of the world depends on the US for security. As the war in Ukraine has proven Europe hasn't been spending their fair share and relied on America to pick up their tab for the last couple decades and that's just one area the US safeguards. Even then the US military spending isnt high enough to solve all or even most of our problems; most experts say a country should spend around 2% of their GDP on defense and the US spends a little over 3% so even if they got it down to that 2% level it would only free up around 5% of the budget. That isnt a silver bullet either, most military spending goes right back into the economy in the form of infrastructure, R&D, and public works and further gets some of the costs recouped by selling equipment to other countries. The US also sends a lot of aid in the form of "military equipment", even humanitarian aid is taken out of that military spending since things like food aid is often in the form of MREs and the US military conducts things like rescue operations and disaster relief (just look at the disaster in Haiti).

nothing is causing problems. The US debt is perfectly sustainable, because the fed has ironclad control of our interest rates. They will always make sure inters payments are below the growth of the economy

@@grimaffiliations3671 That isn't always going to be enough to avoid issues. If that was the case the government would have gotten rid of the debt ceiling permanently long ago.

I’m not an economist but someone in another comment here kinda answered you. They said the problem is not the debt at all befause we own the currency. The problem is other countries’ belief in our currency. If we push our privilege too far and another world currency is established, we’re screwed.

it wont be an issue in the future either

@@grimaffiliations3671 see, I’m calling absolute bullshit on that. It will be an issue in the future if we don’t take steps to mitigate it. You say the US will be fine, but what happens when our allies and the world decides to not invest in us? What happens when the international laws we hold dearly break down, and the debt collectors of other foreign entities come calling? Such a notion baffles me, especially when history tells us otherwise. We are likely one series of unfortunate events from all of this going out the window.

@@howardbaxter2514 We'll be fine when the world decides not to invest in us, because foreign investment does not determine our ability to conduct fiscal policy as we see fit. That's the beauty of sovereign debt, you cannot default on debt denominated in your own currency

@@grimaffiliations3671 the debt to GDP increased from 30% to 120% in the last 40 years. Debt servicing will soon be the biggest subject of government spending, above social security, and military. This isn't a sustainable path

@@mephistoss238 It is sustainable, debt to gdp ratio is not what determines your vulnerability to default. Russia's debt to gdp ratio was low when they defaulted in the late 90's, meanwhile Japan's debt has gone up as high as 250% and yet they've never come close to default. Whats the difference? One had sovereign debt, and the other had debt denominated in foreign currencies. That is the key to assessing your potential for default, how much of your debt is in someone else's currency. If anything is unsustainable, it's a balanced budget. Because the private sector relies on government deficits to stay afloat. If the government balances its budget, it would be pushing the deficit onto the private sector, thus causing a recession. Every recession in US history has occurred after a period of deficit reduction

Exactly

Borrowing against the future without regard will make the punishment worse in the end the entire monetary system is a scam meant to enrich those that have direct access to the money printer

A debt limit is good in theory but in practice it’s just a tool of political bickering

Road to a 100 trillion

Under a Gold Standard we'd not have a "debt limit crisis" since you cannot, with gold, manufacture money out of thin air, as you can with fiat money. Unless you believe in "money non-neutrality" (a fancy way of saying, short term, you can grow an economy by printing money, a bogus concept espoused by both free-marketeer Milton Friedman as well as his nemesis, socialist John M. Keynes), then fiat money is the reason we have a crisis now.

Oh noes those poor old people who got in that situation through nothing but their own stupidty. They set up the sytem in the first place, let them face the consequences. If they really are good people their children will likely remember. Otherwise what makes them so special? Let them eat scraps like everybody else.

That is why it is foolish to aim to cut the US debt. The private sector relies on government deficits

Or they could maybe start holding some of these government agencies accountable for having taxpayer dollars just disappear. The DoD hasn’t passed an IRS audit is 20 years and there is something like 3.1 trillion dollars that they just have no idea where it went. That is 3.1 trillion taxpayer dollars just disappearing into thin air that could be used to stimulate the economy or pay off debt. The DoD is also only one agency, there are plenty more with probably just as high amounts and money like that stacks up FAST.

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