Can the United States Afford to Pay its Loans? | Vantage with Palki Sharma 

Comrades, A wise man once said, u can print money but not the commodities - Mr.Vladimir Putin

They never intended to pay this😂 they know they can’t. That’s why they always want dollar as a global currency at any cost. Keep printing the money

Certainly. Exchange-Traded Funds (ETFs) are popular for long-term investments due to their diversified nature. ETFs offer exposure to a wide range of assets, such as stocks, bonds, or commodities, which can help reduce risk. Some top choices for long-term investing include broad market index ETFs, sector-specific ETFs, and bond ETFs, as they provide potential for growth and income over an extended period while minimizing the risk associated with individual stocks.

at this rate it will become 50 trillion in next 5 years

Despite offering much higher interest rates, US bonds seem like a much tougher sell than they used to be. As an American, I wish the United States had never gone off the gold standard.

How many trillion dollars lost for unnecessary War in Iraq Syria rybia Afghanistan Ukraine Gaza Somalia Ethiopian Lebanon Sudan....???😢..

I'm looking for some investing advice. I never seem to be able to discern patterns, alternatives always work against me, and I can't make good use of scanners. I'm seeking for a simple, reproducible passive income approach that can supplement and eventually replace my wage income.

The US national debt is more than $34 trillion, with 22% of it held by foreign entities. The US also has $40 trillion in unfunded Medicare liabilities and $26 trillion in unfunded Social Security liabilities. The US dollar is the dominant reserve currency, backed by its perceived strength, allowing the US to print unlimited dollars as long as the world maintains trust in it. The US dollar is the backbone of US power, and any actions that undermine confidence in the currency threaten to destabilize its position of dominance. Each unilateral sanction imposed by the US risk damaging the stability and credibility of the US dollar, leading to dire consequences for the nation's power and influence. The US is the only country actively undermining the strength of the US dollar. The freezing of Russia's $300 billion currency reserve by Western governments may lead countries to reconsider investing their funds in US Treasury bonds and finding ways to reduce their use of the US dollar. A significant portion of US dollars is held outside the US, estimated at 60-70% of all US dollars in circulation, due to its status as the dominant reserve currency and wide use in international trade and finance. The one trillion dollar trade deficit of the US is a consequence of being the reserve currency, as a strong dollar makes it difficult for US businesses to export goods and services while simultaneously making it easier for other countries to sell to the US. Countries are expending resources and labor making goods and shipping them to the US in exchange for green pieces of paper. The US is sending back mostly empty containers. The US budget deficit is $1.7 trillion in 2023 which must be paid for by selling more Treasury bonds. The interest on this debt is greater than the military budget. To pay the interest on its debt, the government sells more Treasury bonds, leading to a cycle of increasing debt. The US printing of dollars has been exporting inflation in other countries for decades, but will eventually increase US inflation. Raising interest rates to fight inflation decreases consumer and business spending, increases the trade deficit, and higher interest payments on government debt. Other countries will respond to the US raising of interest rate by raising their interest rate, risking global recession. The Plaza Accord addressed this issue in the past, but it will be challenging to implement such measures now. A well-run country collects taxes to fund essential services and infrastructure. In the US political system, wealthy corporations and individuals can lobby for tax breaks. The shortfall in funding for the US government has reached $34 trillion. Instead of collecting taxes from wealthy corporations and individuals, the government pays interest to them. Banks hold Treasury bonds for their safety, liquidity, regulatory compliance, and potential profitability. When interest rates on Treasury bonds rise sharply, the decrease in bond values reduces liquidity and makes it harder for banks to raise cash quickly. This causes depositors to lose confidence, triggering a bank run. In response to the current bank run, the government is issuing Treasury bonds to raise funds to compensate depositors for any lost funds. There are $19 trillion in deposits in US banks. The estimated unrealized loss on US banks' financial assets is $1.94 trillion, while the total size of their equity is $2.1 trillion. SVB had taken a $15 billion loss, while their capital is $16 billion. Around 2,315 of the 4,800 banks are currently sitting on assets worth less than their liabilities. It's a systemic issue. A similar issue is being played out with risker Mortgage-Backed Securities (MBS) valued at $12 trillion. The new Bank Term Funding Program (BTFP) helps prevent discounted bondholders from taking losses when they have to sell them urgently. The BTFP accepts discounted bonds at face value to be used as pledges for loans to inject more money into the economy. Risking more inflation. It's a Ponzi scheme. Ponzi scheme cannot taper. We reached the can and there is no more road.

The last US bond auction sale, saw little to no interest from buyers.. While China and many countries are dumping US bonds and swapping it for physical gold.. Japan is in a world of hurt as it has a lot of US treasuries, and it’s own currency is in trouble.. Many central banks are stockpiling gold, due to war risk and US debt default..

I feel sorry for the U.S. citizens While the U.S. prints to pay off its interest on the loans it borrowed from other countries. The inflation rate in the U.S. skyrocketed, raising the cost of living for U.S. citizens. That is why so many are homeless and can't afford healthcare.

One point to clarify this, the wealthy do save up enough to buy their next assets. They do not save as a means of building wealth or as a retirement strategy

THANKS for simplified on such Important Information ..

A lot of American would not like you my dear you speak the truth . Their are a lot of fool still believe their dollar has a great value

US looking at the map: Who else needs democracy? We can't afford this shit. 😂

US comfortably going the Zimbabwe way. One bread will cost 1000 dollars very soon.

GREAT DEPRESSION GREAT DEPRESSION GREAT DEPRESSION COMING SOON

They keep kicking the can down the road, until there is no more road.

Awesomely covered

Great news piece

Simple solution 1. Reduce defense budget. Nationalize all defense companies (mainly Lockheed Martin) 2. Stop foreign aids 3. Don’t get involve in wars 4. Get out of NATO

Just today, they are working on giving over 100 billion dollars in aid to Ukraine, Israel and Taiwan. Some spending cuts :D

❤🎉Excellent Palki ji

Best example for virtual capital. Also they kept their assets more bubble ways. Migration drives often for house market. Making more houses, financing virtual fund from the bank. So the book value and asset value increased by values of fund.

US 🇺🇸 then -🗿🗿 US 🇺🇸 now -🤡🤡

Already past the point of no return..

why not? just keep printing the money... no problem at all... it's been free and strategic solution for decades for them...

Shameful government Dept banks are killing American with high loans sad to hear about the best country in the world 😢😢😢

Gold rocks, IMF fake

Been hearing this for 10 years now , they will keep continue to increase debt without batting an eye 😂

US is interested involved in other countries matters. To provide materials they provide funds and borrow more funds. Etc.

Basically, the US is no different than Pakistan, the only difference being the US has the muscle power to keep riding the debt wagon.

Any government has three options - (1)issue for government bonds (2) decrease spending and increase earnings through taxes (3) print more money. Earlier, they used to print a lot of money when their inflation was low and they could get away for decades. Now this option of printing money is not there at least until the inflation is out of control. So they have to increase borrowing. Once or if the inflation is under control or inflation is transferred to the other countries then they will be back to printing money. It seriously affects other countries like India too. The best way is de-dollarization. Minimize your dependence on US dollar. Then US will collapse if no one is interested in US dollar.

The Party that does spending cuts will lose elections. Both Party will run the government to the ground first before making any changes to spending.

Do more stories about how interest rates and inflation are causing foreign governments to become destabilized, i.e. Cuba, Haiti, Ecuador, Ubekistan, Lebanon....

Thanks!

Ukraine is waiting for money😢😢😢

Borrows more money, prints more money. As long as you can print money without limits then you can borrow without limits.

USD denominated debt is no problem for USA as they have printing press. It is a problem for those who can't print USD!

prints, prints, prints and prints the dollar is the correct word

ITs easy to pay just print more Fiat papers no gold backing.

Think you very much for jo ale s deliwery voze Exili i mikinka ten Slo nevím kde kdo víkend❤❤❤

That's why Granny Jennet visits China so often to request not to dump American bonds and instead request more more bond to be purchased but in front of gullible American public she says that we will sanction China . The reality is China went beyond sanction .

The end (for the good old USA) is near.

Palki ma'am it is good to see you having recovered from the cold for the past day's.

Why do people and businesses continue to invest their energy into a credit-based system with an insolvent debt?

Great video.

With hyperinflate currency yes

Good analysis and delivery

Decouple India from US economy . Sell US debt . Buy More Gold. That is exactly what’s happening and countries are buying more and more Gold

It's a financial lesson which INDIAN schools fail to teach , how to utilise your debt to your advantage.

Zimbabwe

BRICS

Please make a well-researched documentary on 'from where, how much loan countries are getting at what conditions'.

Exactly how empires collapse!

No it's not like home loan It's like ponzi scheme

There is always a first time for every thing. We are in a BIGGGGGGGGGG Trouble. Depression depression.

Dear Palki, If you can elaborate debt vs GDP analysis in comparison to other countries, that would be wonderful and carry more weight.

Dollar is getting Dangerous

Good video

Print more papers

Concerned about the reckless spending by US

The best broadcaster in the world 🌎🌍 you are the best shama

Highly risky...

Governments are repaying their existing loans by taking on more loans. So public debt is as valuable as a mortgage backed security.

If you want democracy you has to pay to US 😂😂😂😂 Look at how worst of Japan Yen now 😢

As long as you keep inflating the currency, you can adequately meet debt payments. The debt from the 1960s is being repaid/serviced at 10 cents on the dollar. That doesn't seem to bother anyone, because they keep on doing it.

USA technically has no debt because it is in own paper currency printed by the same country. As long as dollar determines world economy....

I mean it's not like they have to pay their debts in Yuan. In theory they can pay off their debts as fast as they can print. It's like loaning money to a friend who you know is not good for.

The US also has the most gold reserves in the world.

World should reject US$ as worlds reserve currency asap. Otherwise its a disaster for the world because of US spending beyond its earnings.

Yes the system is broken.. that’s plane for all to see ., the question is how long before it stops working altogether.

GREAT ANALYSIS !!!! AND MORE THAN THAT YOU ARE REALLY BEAUTIFUL 🥰🥰🥰

We need to do something.

Who is their creditor? 🤔

The US owes its allies Japan and EU $1 trillion apiece, it owes China and Saudi Arabia close to $2 trillion apiece, and it owes its own American people $26 trillion in IOUs

Beautiful vid. Now you talking instead of gossiping.

People in not only US but also those across the world, to stay aware of Central & state governments to stay aware and not take huge loans just like that in their respective countries

Misses palki we print money forget about it

No problem. They will not pay. As long as the world is using US dollar, they can print and use it.

Defund wars

Democracy political system encourages leaders to be populist. Leaders will outbid each other to give goodies to the "people" or rather top 1%. As a realist, the US debts will NEVER comes down until something break. The denominator, i.e., the US GDP of USD28 trillion is a boosted number by money printing or debts. When the bubble bursts, the US economy should fall back to the G7 average of USD45k per capita or $14.85T. And with a debt of $34T, the debt ratio will be 34/14.85 = 229%. This will be apocalypse.

Most valued currency is usd Inr is depreciating everyday no one is concerned

If you are curious what that amount would look like in cash . A million dollars worth of $100 notes weighs 10 kilos or 22 pounds. A billion weighs 22,000 pounds. Start loading freight train cars with money , 44,000 pounds per car . You will need 17,000 car loads of money or a train 178 miles long … that amount simply does not exist ..

To address your question directly, yes, the United States has the capacity to pay its debts. Despite its large debt burden, the U.S. has historically been able to meet its debt obligations through various means, including taxation, borrowing, and economic growth. While the debt level is substantial, the U.S. economy is also one of the largest and most dynamic in the world, which provides a solid foundation for managing its debt. Why would it “erupt”?? There is no indication of that…

Ma’am make a video on India’s increasing debt.

🤣thats how we do it !! USA..YOU GIVE YOURSELF A LOAN ..and then u defaullt it ..so now everyone has to pay the fine 🤣

In 2007 the banks loaning money to banks froze up almost overnight. And lending stopped. We are headed towards an inflection point.

Governments don't pay their debts, citizens are held liable to pay the debts for them. The real question is how and when are citizens to pay the debts of the government. In USA it's 200k dollars per head/ citizen

The US was born in debt. It can be traced back to around the time when America became a country

Just dream up more bitcoin, problem solved. 👍😁

If the us government is even remotely serious about staying within a budget let alone paying off the debt, then we need to make vast and significant cuts to spending. And since about 75% of all government spending goes towards welfare, welfare needs to be the first to go. Unfortunately, no one seems to be ready for that conversation.

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

IMF, world bank is Belongs to America 😂😂

Politicians primary responsibility is to accumulate debt for the people. It's the citizens who vote them in that bear the cost of the debt.

Palki Sharma ji, you have a large number of audience. You should promote Indians to purchase silver. That should trigger good buy to US dollar.

As a Pakistani I am so much concerned about human rights and women girls daughters sisters mothers rights situation in USA 😎

It’s just a circus

For example like money lender companies, they hire people to collect outstanding debtors. who in this world can send debt collectors to collect money from the US. The US won't be paying anytime soon and there is nothing every one can do about it

I wish I could borrow money and never worry about paying it back. I tried that once and didn't turn out so good!

As long as the poor countries are foolish and helpless to hold US DEBT to hold the value of it's domestic fiat money. Us has no problem to pay any amount as interest for the existing debt because the entire dollar paid from US is created from the AIR without any COST.