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.

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.

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.

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

"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.

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?

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

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

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

Why does it feel like this is a paid ad?

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?

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

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.

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.

"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…”

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.

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

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.

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.

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.

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.

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.

"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.

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.

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.

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.

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.

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.

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

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

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.

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.

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.

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.

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?

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.

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 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.

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

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?

Debt is not bad itself, it is an indicator... If you have to borrow money means that your living is higher than it should actually be. It is not sustainable in the long term. Means there is something wrong in your earnings/expenditures ratio. You cannot borrow money forever - more you borrow harder is to get more debt. Creditors don't want to expose themselves too much to one debtor. It is too risky. Debt means move the burden solving the issues to someone's else shoulders. Debt is the indication that something is really wrong...

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.

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.

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)

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.

The UK used to be in the same situation as the US, it ran up its debt because it didn't matter as it was the reserve currency then suddenly it wasn't, then came decades of high taxation and stagnantion. Something that the US has got to look forward to.

Common sense has truly become less common…

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.

5:12 Honestly, the main thing i have to say about this is that debt-to-GDP basically means nothing to the US who can quite literally increase debt as a means of increasing GDP. The US will bever have a debt-to-GDP ratio anywhere past 100% as it essentially draws in excess liquidity from other countries due to the dollar standard. The point of this is to show when other countries will ultimately cascade over 100%.

The federal government taxes 3.5 Trillion and spends 5+ Trillion every year. The debt is 33 Trillion. If you buy a 10 year Tbill, you will not cash in that bill without the efffects of Hyperinflation. Most of you don't know that.

"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.

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.

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.

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.

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 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.

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.

It took the FED alone nearly 5 trillion to put the 10 year yield from 1.9% to 0.3% in 2020, back then the total debt was just 27 trillion. Fast forward 4 years, now the government has 34 trillion in debt, a higher 10 year yield standing at 4.1%, a FED doing QT instead of QE, a sugarcoated 3% inflation rate, and a government that borrows monety like there's no tomorrow; the million dollar question is when the FED really starts to cut rate, how much impact can it really have on long term debt yield? If they can't effetively bring the long term yield down, what would happen to the small businesses who needs to borrow, how about tech giants' buyback cost?

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

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

So in other words, the US debt is great since people from other countries will give us their dollars, which we can then pay back by simply printing more dollars to begin with, essentially stealing from them and exporting our inflation. The reason that may work now is since other countries have assumed massive debt as well, but it won't work very long. One way or the other, this nation is in for higher inflation for a long time to come.

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

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

So, debt is not considered borrowed wealth? When I pay down my debts that's value given up for my loan payback. How is debt not considered wealth owed? Or as you say, an accounting thing?

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

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.

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!

This is the reason that inflation is up 33 Trillion is an surmountable amount. Some banks might forfeit and the credit line and apr just going to hurt the consumers pocket. We need to be more assertive and less spending and borrowing.

What year is it?

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.

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

The most commonly used ratio is the government debt divided by the gross domestic product (GDP), which reflects the government's finances, while another common ratio is the total debt to GDP, which reflects the finances of the nation as a whole. GOVERNMENT Debt to GDP in the United States is expected to reach 133% of GDP by the end of 2023. ONE HUNDRED AND THRITY THREE PERCENT.

The problem isn’t the debt the problem is the cost to service the debt. The cost of servicing the debt is growing faster than tax revenue is growing. So there is continually less funding for all other services.

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.

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.

What the heck happened to that us governmen a year ago like it was exterminated

6:57 Now, japan is in a recession 😂

When you've got the biggest boomstick you don't have to worry about debt 😂

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.

Number 3 debt is interest payments after social security and military. The top 3 expenses way above health, Medicare, education, veterans, etc. the top 3 double digits rest single digit expenses of government

There is no need to pay back. You can just print more money and dilute the currency, then the actual value of debts decreases. And repeat.

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.

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.

The one question that Google or anyone else will never answer is..." Where does the money come from that the government spends and also..." Who gets the money that is paid as interest on the debt "?

If I can continuously create credit to exchange for tangible goods, aren't these items essentially free to begin with?

I am not an economist. However, I understand that when interest rate is not zero, the interest payment could be an issue. There are two ways to pay for it. One is to pay by tax revenue. The other is to print more money, ie. having the Fed reserve bank to purchase the debt. The problem is that this way causes inflation. Inflation is acting like a tax to everyone. There is really no free lunch.

When other nations get concerned about the US government's irresponsible behavior, they may stop buying treasuries. This can also happen when you sanction other nations such as Russia, China, etc. and make countries nervous about being involved with the US monetary system. The US dollar became the reserve currency because the world saw it as the best option for international trade...the choices being made lately by the US gov are causing countries to rethink that. So going into ever increasing debt during these times could lead to the death of the US dollar..to keep this scam going you need suckers to keep buying into buying treasuries. OH and using Japan as an example of debt not being so bad? Insane. Japan is in big trouble.

One very important function of debt is to restrain government spending, which is the purpose of the debt ceiling.

A wise man once said, and I might paraphrase: "A Nation that is in debt in not free". He was Sweden's finance minister in the 1990's and he then became Prime Minister for a decade, presiding over a fall of Sweden's gross debt-to-GDP ratio from 70% (which was considered as being abnormally high) down to 40%, and it recently fell to below 30% and beating Denmark in the rankings.

In a debt based economic model, if you don't parabolically inflate the debt, the system implodes. Get ready, it's coming!

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

Do other countries have the same effect if they go into debt? I notice the usa US largely unaffected bu it's debt.

At current rate of increase in the debt, within five years or so interest payments on the debt will increase from 2% to 30%. I doubt the economy will increase anywhere near enough for comfort.