The debt ceiling is always rising, so don't worry. If the 2008 crisis survivors had it any easier, I wonder. My income is decreasing, I lost $35,000 this month, and I'm worried about the stock market. Fearing that because I can't contribute to my savings, I won't have enough money saved for retirement.

The government’s debt doesn’t work like household debt because a household can’t print more money to pay its bills, lowering the value of everyone else’s money.

I believe the retirement crisis will get even worse. Many struggle to save due to low wages, rising prices, and exorbitant rents. With homeownership becoming unattainable for middle-class Americans, they may not have a home to rely on for retirement either.

Don't fret, the debt ceiling always goes up. I wonder if 2008 crisis survivors had it easier. I'm concerned about the stock market, I've lost $35,000 this month, and my income is down. Worried I won't save enough for retirement as I can't add to my savings.

"It's better to burden the future generation with debt (taxes) than to burden the current generation with taxes." Fixed that line for you CNBC.

If the debt doesn't matter then the US should stop taxing us. Just keep borrowing the money they spend.

Since the debt crisis could unleash carnage on the stock market leading to economic downturns. We need to be prepared for potential market volatility. how can I secure my $250K stock portfolio against declining?

We can't ignore the potential impact on portfolios. Bonds are often considered a safe haven, and if they crumble, investors like me might scramble. I’ve been investing for 11 yrs and my $1m portfolio has never been this depleted, how i do hedge this?

“Borrowing is a way to not burden the current generation with debt”. So burden the next generation with our debt?

Imagine being so bad with money that you can steal 40% of peoples income and still end up in 33 trillion dollars of debt.

They failed to mention that 70% of our tax revenue would end up paying only the interest payments

Why does it feel like this is a paid ad?

What I got from this video as to the why’s: 1- Everybody else is doing it. 2- Spending in the now is more important than saving for the future. 3- The US is too big to fail. 4- Nothing that bad is happening.

Why would it? Everyone in power knows the person after them will have to deal with it.

You remember in 1913 when the Federal Reserve set up our current money system. Unfortunately, our government has been spending more money than it takes in taxes for many years. Our National Debt is now more than $34 trillion dollars. Our money is not backed by anything, and it could easily crash with so much inflation now.

"If you don't have it, you can't spend it" is grandfatherly advice no one has ever heard.

CNBC: “don’t trust professional economists… trust us…”

I'm going to start telling the bank that my debt isn't real... it's just an accounting record 🤣

It is a government inspired crisis this time. The Treasury have to sell Bonds to cover the trade imbalance and the government spending imbalance. In order to sell them they have to raise interest rates and the old long-term, low risk, low interest, AAA investments (including Treasury Bonds), held by the banks (often due to government regulatory policy), become next to worthless. The next milestone should be soon when the government issue a new batch of Bonds.

When people start saying DEBT IS A GOOD THING that means we are near the end. If our economy does not grow, then we are done. Government treasuries are becoming junk bonds.

You mean when the debt is about 300 billion dollar less at the end of july, not 3 billion less. The debt is so high that the narator cant comprehend and mistaken it.

I cannot believe how Stephanie Kelton, the proponent of this MMT insanity, still has the audacity to come and postulate that debt has no consequences after that insane bout of inflation we just had by doing exactly what she advocated. Debt has consequences, monetizing debt is even worse.

6:20 “But mom all the other kids were doing it as well” 😂

It's mind-boggling how people have the mendacity to say we don't need to pay off our debts. We are spending money we don't have on things we cannot afford.

Those other countries don't have the reserves Currency. That's is why debt Matters to the United States. We need to treat the reserve currency status as a privilege that we have It allows us to live well beyond our means because of that. In my opinion.

This video is wild. Its like me with a ton of credit card debt saying im fine because my neighbor is worse and they havent been thrown into prison yet.

The video showed the recent September Debt to GDP ratio at close to 100%, showing the very worst ratio of approximately 106% to 119% by the end of the war in 1945. Today (Oct 11 2023) our total debt to GDP ratio is at 137.53% and continues to climb uncontrollably as we print money out of thin air.

Inflation is putting my dream vacation on hold. Every penny counts these days, so that fancy getaway abroad will have to wait until this inflation mess chills out.

Debt is a way of living in the USA. Everything is financed from houses to cars, student loans, and even furniture. Everywhere you go, you see everyone seeking opportunities to nickel and dime you. These type of people also get voted into office over time. Summary: The reason why the debt is so high is because we the people let it run so high.

So basically it boils down to the powers that be saying “I don’t need to pay off my debts”. But it’s the everyday citizen that gets the shaft.

They say the debt is merely an accounting record like it doesn’t mean something. Your rent and credit cards are an accounting record of your debts. Once that debt gets too high see what happens.

"Treasury bonds have always been considered an incredibly secure asset" they literally said the exact same thing about the housing market until it collasped under the weight of bad debt.

The United States as we know it is no more. All signs point to 2023 being a year of significant economic hardship for the entire nation. Put your cash to use straight away to increase its value. I was aware that I needed to invest. I had no idea how quickly a few thousand dollars a month would go up. Though it is. Since 2020, I've made about $600,000.

Kelton literally inplied that we can just print money to pay debt. 😂😂😂😂 Staright psyops

Interesting presentation. That one woman who says that the national debt is nothing to worry about comes off more like a PR person than a professor. The cost of debt service is seriously impacting us today, not just future generations. It's easy to say the govt. is just balancing printing money (=inflation) and taxation (=taking money from us). Every dollar of debt service comes out of our pockets either as taxes or inflated prices.

Oh cool! Looks like we need 0 taxes! Just print and borrow from other printers! Sweet!

As a CPA, I'll just say that running a deficit like we do just means we don't tax enough for the amount of spending we have. We either need to raise taxes or cut spending, or some combination of both. Otherwise, we have to run a deficit by issuing more debt which kicks the can down the road to future generations. And as the debt grows the cost of servicing the debt (making payments on it) will continue to take up larger and larger portions of government spending, and with that, will require higher taxes for future generations.

Forget Japan or Singapore, any economist worth their salt agree that both of these countries are pretty much exceptions in terms of public debt and it's still not clear how they manage to survive while having such a high burden. But wait, who's next on that list? Ah yes, Greece, Eritrea, Sudan, Italy, Zambia, Suriname... upstanding examples of nations with well managed public finances.

One reason it is rising is higher interest rates, and more people are retiring over 2002 to 2035 than new workers over the same period

Debt isn’t problem as long as energy is cheap. Energy is resource of everything.

TLDR: If you take a loan to buy a house, that is fine. If you take a loan to buy groceries, you are in trouble. America is taking a loan to buy groceries, every single day.

Common sense has truly become less common…

Big problem US Economy... High cost interest rate... High cost food... income decrease.. Stores are closing.. What is next ?

This is a great commercial for interest groups and Congress complacency towards budgeting. The economy was great in the 1990s when the public debt was decreasing. Public debt/national debt usurp from citizens via taxes.

A normal interest rate is around 5-8%. The 2000s and what happened to interest rates since 2000 is a gross, extreme, abnormality.

If we are to survive in this economy, we need assistance right away. The ETF and stock markets are still quite volatile, just like the property market. My $370,000 portfolio is crumbling, what’s the best way to take advantage of the market?

Don't worry, they'll just re-boot the money printer next year... rinse repeat. What can possibly go wrong? 🤣

If i tried to go into debt,and not pay it back,the banks would take everything i own and put me in jail. Sure is nice to be the government that is allowed to go into debt and not pay it back.

It's just plain ridiculous to say that US national debt don't matter! When debt grows faster than the economy, interest payment will eat an increasingly large portion of national budget, necessitating either more taxes or more cut backs in other govt services. And part of this debt is owed to foreign govts & investors. US dollar being the world reserve currency allows US to cover up the perennial trade & balance of payment deficit. How long will this pyramid scheme last? Does U.S. have to be constantly at war to maintain this status quo?

I have to hand it to this Stephanie lady. She can make a piece of swamp sound like prime real estate. She said…’national debt is nothing more than an accounting method.’😂😂😂 Well lady, you need to convince all these countries that are dumping US dollar because they no longer believe in it.

The federal debt from 09/29/23 to 03/22/24 increased $1,414.79 Billion, over 175 days. That is $8.08 Billion each day and it is an annualized rate of $2.95 Trillion a year, or about 10.56% of GDP.

I'm sure the ones who say we can afford more debt are the same "financial advisors" who doesn't have two pennies to rub against each other because they are up to their eyeballs in debt.

Me: owes $50,000 in student loan debt that the US Government demands be repaid, or my entire life is ruined financially. US Government: owes $33 *TRILLION* and doesn't have to repay any of it. I love this country. There are 2 sets of rules. And the US government gets to play by the other set of rules.

The Japanese economy has an entire lost generation of Gen X/millennials that can’t find work or can’t earn up to their potential. There have been costs to Japan, they just aren’t blatantly obvious.

They knew when they created the debt system and making the dollar the world currency .. they were creating a bs game no matter how it ends 😂

Good reporting, showing two views for every perspective.

"Has debt been inflationary the last 3 decades of fiscal deficits? No... " Uhhh, yeah, yeah it has lol. We got productivity gains like no other time in history from computers, internet, mass marketing and data analytics during that time and the real spending power of the bottom half of the income ladder got poorer while being priced out of education and real estate. We had 2 decades of stimulus in the form of QE and 0% interest and still, people can't afford healthcare, homes, and now food too. Inflation is lagging indicator, and it doesn't point out mitigating factors like one-time productivity boosts like the advent of smartphones. The gap in between wealth and poverty and the volume of hours worked while travelling and on call out of the office should have been making those workers richer all else being equal - but it's not "all else equal", though, because the national debt is money spent lining certain people's war chests and offshore accounts. National debt is fine when the benefits are spent on the people collectively, because then benefits and costs break even (usually with more upside due to economies of scale), but when Musk, Bezos, Gates, Zuck, etc "earn" more money than most countries, it kind of makes you wonder how if a country's debt is supposedly good for it then why aren't billionaires operating on personal annual deficits too? Answer: because overspending and undercollecting is a childishly stupid way to manage a growing pool of money. What this piece's author fails to grasp is just because a bubble hasn't burst does not infer there is no bubble. Some things take decades to unravel, like consequences of national policy. Plenty of military strategists told Putin the war in Ukraine would be days, someone told Hitler he could take over the world, and USA believe Iraq would be an in-and-out kind of affair. The consequences are felt long after we even realized how badly we goofed. Here's the thing, we engineer inflation so we can borrow today and repay it for cheaper later. That's the whole theory behind debt being stimulative in a nutshell, but that also means the person buying that debt will demand a premium to compensate for that future value because they're not stupid either, they don't want to break even on purchasing power for the risk they're taking, that's not how debt is bought either. Debt is bought to make the lender money so if the borrower is depreciating value in the currency in order to make servicing their debt cheaper then there will only be a buyer of debt if the real value of the loan revenues is anticipated to outpace depreciation for both parties - the debtor wants something now rather than later because the time they'd otherwise wait is more costly and the lendor wants an ROI which exceeds forecast future value. The price of debt is the balance. TLDR :: when a puff piece tells you not to worry about national debt they're either lying or incompetent.

This is why there needs to be an age limit within congress/presidencies

"The government's budget doesn't work anything like a household budget." Crazy that it did for every other country from Greece to Venezuela.

The US dollar has lost 97% of its original purchasing power. 20% in just the past 5 years. Very little in those video addresses the loss of purchasing power (inflation) caused by the endless borrowing and money printing

Did not mention needless wars and money being given away either contributing towards increased debt.😊

I think it's safe to say there are many reasons an economy could come crashing down and while debt may not be the biggest concern for the US economy, there are plenty of other bigger concerns (some we aren't even aware of like the 2008 mortgage-backed securities fiasco)

Certainly do not burden the current citizens... Put it on the backs of our children ...bravo .

Pay your debts people. Do not let this piece keep you off the ball of handling debt. Debt is a curse, it is a burden, it is the taker of freedom.

My dad used to tell me the same thing about his debt and not repaying it when i was a kid, he used to tell me there are no consequences to it. And now the banks took everything that was a memory of our family and relatives. Even those property that my grandparents had are also gone. He also took debt in my name when i turned 18, now the banks won't believe me, i had to pay it for something I never enjoyed. Never trust debt kings.

The government’s ability to spend is not bound by tax collection or debt issuance, other than by its own laws. Those laws merely serve as guardrails to keep the money supply from rapidly inflating (and instead, just moderately inflating). In that sense, the government creates an amount of money by spending it into the economy, and separately destroys an amount of money by taxing it and issuing bonds to the private sector or foreign sector. This serves to keep confidence to sell bonds and to de-incentivise wanton spending. This issue is that they don't pay it back. When government debt as a percentage of GDP gets very high but is denominated in its own currency, rather than default in nominal terms (bond become worthless and bond holders are left holding an empty bag) they “default” with inflation and financial repression. They hold interest rates low, have their central bank create new money to buy the bonds, and let inflation run high. Bondholders get paid back, but in weakened currency. As a result, bondholders lose purchasing power on their assets. Inflation confiscates the value from them and from the consumers who's wages lag behind.

I recall Greece was in a bad way several years ago over their debt and other countries were trying to bail them out... and aside from Japan, the rest of the countries on the list above the US are not exactly booming. When you have to borrow money to make payments on borrowed money you've failed, it's like paying a credit card with a credit card.

The scare of debt isn't the inability to pay bills. It is what has to be done to pay the bills, turning into Zimbabwe and Venezuela.

People who have already been holding US treasuries will not see a huge windfall, and the bonds they are holding will depreciate when interest rates rise, so it is actually harmful to them. People who buy treasuries, especially long term treasuries, right now, however, have the chance to have a quick profit if the Fed cuts rate in the near future.

the problem is that we have to pay interest. The problem we think we have a lot of money and become wasteful.

It's the biggest PONZY scam in history. Borrowing more money to pay off the interests and maturing loans. The cycle continue on forever. Sometimes, i wondered why we need to even pay taxes.

Finally interviews with people who understand this. People often perceive government debt and interest as a future burden and compare it to personal or corporate debt. However, this view is limited. Government debt is better understood as an investment in time. What matters is not the debt itself, but the efficiency and value generated per unit of time. In this context, the magnitude of the US debt is less critical if the value derived from it is substantial.

Gaslighting hard at work.

"Money is debt" -Robert Kiyosaki

I love how they didn't say the us government owed the federal reserve, who is not part of the government 33 trillion, and we couldn't ever pay that back

Stephanie Kelton scares the crap out of me. The fact that she is influencing Congress scares me even more. We need more economists like Milton Friedman, Thomas Sowell, Friedrich Hayek…….

This administration has putting so many families into difficult situations, I pray for our country, we need compassion for the American people,

With all the technology we have, you'd figure the public would have more say in what the money is spent on. More transparency. Crazy how a handful of people decide on what tax money is spent on.

When the gov asks where their money is during tax season, I will refer to this video and tell them that one of employees told me that it’s a good thing to hold debt, not pay it and that is my “contingency plan that we use to smooth out, otherwise, what would be big shocks” to my checking account. Sorry, bud. Ain’t got it.

For any dummy who thinks the debt isn't a big deal, we spend 475 BILLION just on the interest alone every year. If we paid off the debt and therefore eliminated that interest, just imagine what 475 billion could pay for in the US. New schools, infrastructure, high speed rail, renewable energy, etc. But no, we keep deluding ourselves that the debt isn't a big deal because, "Bro we'll just print more money!"

Comparing US with the other countries where the Debt to GDP ratio is higher, it worths to mention that almost all the countries besides Japan has significant problems in their economies because of debt. And many of them has high inflation rate.

And yet Japan exports more than it imports. Unlike the US.

6:57 Now, japan is in a recession 😂

The Federal Government has its ample time in reconciliation of its investments, it is still at par with its various instrumentalities in recognition of the details implemented, particularly taxation, as taxation WAS DESIGNED not to enslave any one, but to come to RECONCILIATIONS in its respective points of view, of payments and receivables, protecting employment, its sources of GDP and preservation of the technicalities in businesses, organization, management and distribution of QUALITY, WEALTH and INCOME accordingly.

This is horrific. No one wants our horrible debt.

I don't think that Japan is a good example to follow for America's debt to gdp ratio. They have not seen economic growth for decades. And what about other high national debt countries such as Greece and Italy? They have been having their economic struggles too.

the reason its not as much of a problem in Japan is because Japan does not have a huge trade deficit like the USA.

Why is it that the more I attentively listen to experts on government debt, the LESS I understand? 😶‍🌫️ I hope our debt isn’t handled like our schools, prisons and borders… 🙄

I love how they use Japan as an example but ignore Venezuela and Greece. They also leave out Japan’s dramatic underperformance in economic growth (which improves people’s lives). A lot of the people interviewed are committed to a narrative that fiscal responsibility doesn’t matter but do not have much evidence to support that view.

Money equals debt. As long as the domestic and foreign investors have confidence over US dollar, the economists will keep saying that national debt is nothing more than an accounting record. If that confidence is lost, there will be run on the bank. In US dollar, we trust is the name of the game!

CNBC, nice try at trying to make it look like dept is okay and necessary. Any halfway intelligent individual knows better.

Where there’s debt, someone is getting rich.

It is good to have manageable debt to fuel economic growth but run away debt will destroy the economy in the long run.

It felt to me Ms Kelton was flat out lying in her portrayal. Implying government debt is an 'accounting issue' because it is held by the 'public' (implying a closed-loop) completely ignores who owns bonds (largely the wealthiest 1% - both domestic and global). If deficits and interest rates continue to grow, interest payments to these bond holders not only infringe on social programs now, they ensure the public stays on the hook to continue distributing wealth upwards; unless heavy wealth taxes are introduced to mitigate this burden.

What happens when the interest payment on the debt reaches 100% of revenue?

$ 642 billion in interest last yr on the debt. Only recklessness would continue to allow it.

When the world moves away from the US dollar as a trade and reserve currency, it's gonna be interesting to see how that effects the US debt and economic situation. More and more countries are joining the BRICS and will eventually stop using the dollar for trade. Countries and institutions might even start demanding the US pay down its debt in other currencies. If I was an American, I'd make sure I diversified in crypto and physical gold to be safe from the giant house of cards collapse. Printing money isn't going to help when the dollar is worthless.

Japan's population is a rapidly aging demographic, when people enter retirement they spend way less, which causes less demand, which means less inflation. And because less people are of working age to pay the deficit, you want to keep interest rates low to encourage foreign money to come into Japan. On the flip side, the thing that Japan has going for it is that it is incredibly advanced, therefore it can build and sell wanted products internationally, that brings profits back to Japan, which keeps the yen afloat. I'm no professor but I think the US and Japan face different problems and making the comparison between the two may make people over look the issues the US is facing specifically.

When all taxation revenue goes to the interest, how the government finance works?

It's too bad we don't have any historical examples of countries borrowing beyond their means and devaluing their currency to understand what happens next.