Allow me to simplify this episode. The devil has investments that you can't avoid and if you invest in them you might be okay. If you want to know who the most evil people in the world are study mining especially Canadian South African British and American. Carlyle? Devil's Advocates. Moss aids these.
@@juicymelodic Inflate the debt until it appears "OK" and "usual". Use You All. Thus a $2.3 trillion dollar fleecing of the Treasury after inducing a bioengineered hegemonic takedown is shrugged off more easily when the debt is $34 trillion as opposed to under $10 trillion not so long ago. That unpayable student loan 20 years old isn't looking so ugly with wage and asset inflation of today. But todays graduation debt seems literally UN believable.
@@Madasin_Paine I don't think you understand my point. Inflation is always proportional to money creation. Money creation IS debt. You can't inflate debt.
Exactly! And they don't mean for us to ever be free. Taxes don't run the govt, they are a means of removing excess dollars from the system. The more money is printed, the more dollars need to be taxed back out and the poorer we will all be. But the bright side is that you can get lots of free stuff with a 90% tax rate. Free if you don't consider them taking everything first a cost to you
Not good for dollar, the 50 year petro dollar agreement with Saudia Arabia expired today and the Saudia king says he will not renew it. Dollar will weaken even more.
You should know by now .. mark is a get rich Quick guy .. he will push anything to increase his wealth from suckers .. seriously .. i was waiting for the Shitcoin commercial. But we got his AI one instead🤣
I surmise that whoever it is that hides behind the curtain of the FED is the same folks who have caverns of gold and keys to the best think tanks. We have been accustomed to digital dollars for some time. They are convenient. I suppose that I do not have a problem commoditizing our labor into currency as well as also commodify silver and gold. The debtors are not the masters. We all live on Roman tax farms. Notions of national sovereignty are generally specious. You will be absorbed.
@@Kurt1969 nothing to fix. The debt is an asset to our pension funds, businesses, banks and investors. Why would you want to get rid of peoples wealth?
This makes sense. If a lot more work is done by computers owned by corporations that pay no tax. GDP can triple with no increase in tax take. That will spell disaster.
Why do they install this crap when it's undoing society! Why do they do it just cause they can? We have already surrendered our mfg base to China and robots do the rest.
Saying that this is a debt based economy, nobody talks about the fact when they create money based on a loan they don't create the interest that has to be paid back
I agree with you. They create the amount of money on loan, but they do not create the amount of money for interest payment. There is no way that the principle and the interest can be paid back. This is an inherent systemic problem of this financial system in which money is created based on debt.
@@mehmettirpanci3262 That image began to get traction in the 1980's as we saw inflation eat our savings. The original Offering of the Treasury in 1970, was a system that backed the FED printing Dollars with the Sales of Treasury Securities. ( Notes and Bonds) It worked til 2002 when Colonial Interests began to cost too much. Now the idea that Fiat Currency is worth anything without Treasury selling Notes, appears to have hit a snag? They borrowed, sold more Treasury Paper than they can pay for, and the Federal Reserve Note should lose Value. The Media reproduces the line about the interesting effects. But the Currency has lost all Value 20 years ago. Those of us who predicted they would never get Fiat Currency to last 10 years were proven wrong. They made it for 30 years.
Are there contingency plans for the inability to pay..? My first job paid $1.65 per hour and I had a wife and a child and lived comfortably on $98.00 a week.. Out of 100%, I paid my mortgage and bills with 50% and the other 50% went towards entertainment and savings.. Now that same 100%, 95% goes towards bills and 5% goes to a McDonald's cheeseburger and fries.. lol.. They took it ALL in my lifetime, and I'm 66 years old w/2 cancers..
Is not most of the debt held by the Federal Reserve? Congress should abolish the FED and make them eat their own mis- management of the countries monetary policy and then all of Congress should resign for their participation.
Fun fact: JFK was the last politician in power trying to abolish the FED hold on printing money. Six months later after signing executive order 11110 doing just that, he was shot. The order was then cancelled by hus successor.
The Federal Reserve is a cabal of global bankers who do indeed hold the majority of the debt of the U.S. Unfortunately, Congress works for the Federal Reserve.
It's rather interesting that my response to your comment regarding the F.R. got immediately deleted. I think that demonstrates what we're up against as much as anything. That the people who benefit from manipulation of the system will do everything in their power to keep us subservient and silent.
Yes I'm a long term investor but steered clear of that one. It honestly reminds me of the Tesla hype train and overvaluation. I never invested in it either. If you do decide to mess with very hyped up stocks be prepared for a large dip when the greedy decide to all get out but you didn't get the message.
Thank you to our host. Masterfully done. The problem is two-pronged: Congress won’t discuss repayment; and, 2, Congress won’t discuss funding other than through more borrowing
@@minime8048 i understood that bitcoin is the only really decentralized system. The so called shitcoins are linked to a company/CEO or are not based on proof of work concept. Rules and can be changed.
@rIcmark can you point to any country in history that has switched from fiat to based-currency model? I’m not aware of any country at any time in history that has gone this route.
@@bhargi4692 there is no 'they'- ther's no choise but inflation if more dollars circulate in a 'free' economy. USA is a LONG WAY from the formal definition of 'hyperinflation', though moving there quickly.
It does increase corporate profits, but corporations dont share and its why wages are pretty much the same as 1980 with 41% of Americans live on 40k/ year.
No your not .. your borrowing from a wizard that makes money out of thin air, that loans to the government, on the promise to pay back 10 fold to the wizard .. The name of that wizard is fed reserve 🤑
To address the national debt, the government could theoretically introduce a new currency, assigning it a value surpassing the total debt, and then render the new currency illegal. 😅 Then start using gold and silver.
Yes government needs to issue the currency, with no interest. No, not gold backed, as guess who owns the majority of the gold......central banks. Silver, maybe not, as the world only produces 800 million ounces per year, and the majority is going into tech, EV, and solar.
This is the problem with Americans, you live in a bubble. Obviously you know that you do trade with other countries right and most of those no longer want to settle payments in your currency, some even own part of that debt. Problem is that you live beyond your means, through credit cards and your gvt overspends on proxy wars and military bases around the world.
Everyone should read three works: 1. The Law by Fredric Bastiat 2. Economics in One Lesson by Henry Hazzlitt 3. Basic Economics by Thomas Sowell Anything by Milton Friedman, F. A. Hayek, Walter Williams, Murray Rothbard, Ludwig von Mises.
You forgot maybe two most important writers, Eustace Mullins (an extension of Ezra Pound), and John Kenneth Galbraith. The Green Book by Khadaffi would too help you understand how pervasive our slavery is 😤
The debt gets issued at auction through Treasury Notes. So the US Citizen owes whoever holds those T-notes. They're all over the world. China, Saudi Arabia, Japan many many banks and even me. I hold some of these notes.
Its not about repaying it.. Never has been. It gets rolled over all the time.... Its about keeping the annual cost at a sustainable level based on tax revenue. And don't forget that the Fed does not charge the Treasury interest on the bonds they hold.
i love how the reporting on this stuff is always so misconstrued, like nobody has any idea what they are talking about and totally don't understand it at all.
@@safeandeffectivelol That's a short term problem. Rates are only going to stay at 5% until the economy slows or goes into a mild recession, at which point Fed will cut drastically and in a few years we'll be right back to zero. Next 12 to 18 months sounds about right. Would 5% be sustainable over the course of several years and even decades? Almost certainly not, but they won't be staying at these levels for very long.
@@safeandeffectivelol No, lowering rates would not trigger inflation. All the remaining excess inflation is in rent, and lower rates actually lowers housing inflation
Most of our national debt is to the Federal Reserve. With the stroke of a presidential pen, we can nationalize the Fed and call our debt null and void. This option will not disturb any government programs.
Another great video Mark. One suggestion - please reduce the volume of the background music in your intro - it is hard to concentrate. I was checking 3 other tabs because I thought there must be another video playing in the background. Thanks. Other then that. Keep them coming. Great work.
The government keeps Borrowing in order to spend rather than Taxing to spend. If the taxes reflected actual spending we would have balanced the budget when Reagan was borrowing and spending instead of kicking the can down the road.
Just watched this video and one thing that struck me was an earlier graph with the trend lines of debt growth and the trend lines of the last graph (gdp growth) were the same. It looks like these growths in GDP may have been caused by the expansion in debt rather than the various 50 year technology cycles. So with that assumption no you cannot grow your way out of the debt crisis as they seem to be in lock step.
Its the central banks fault for lending money they dont have to loan and then calling it money which is fraud and where is the fiat currency to pay of the interest?
the government needs to spend more than it taxes, or the private sector will get squeezed until it collapses. Luckily we don't have to stop spending to stop adding to the national debt, we could just stop selling bonds.
@@grimaffiliations3671Inflation from money printing will quickly undermine confidence in the dollar. Better to line up suckers at the card table than to announce to the players we brought an extra deck.
@@cheeseman9967 - The Pentagon has something like $25 Trillion dollars in undocumented transactions. It has yet to pass an audit. Even if a small percentage are fraudulent, you can buy a lot of countries with that money.
This is why debt forgiveness needs to happen more often. But, it's the greedy that caused this. The greedy will never forgive debt. They are bound to it and only it.
@@grimaffiliations3671- no, they really don’t. The “Fed” is not a governmental agency but rather a cabal of the world’s largest 5 banks. They are not federal and have zero reserves. What little “reserve” is held is by the treasury and is held at Fort Knox which has not been audited in decades. Sorry, it’s all a sham. Read, The Creature from Jekyl Island or research Eustice Mullins. Just don’t search via google or wiki. No facts there…
Lost society...I’m listening to a professional financier tell me that austerity measures aren’t good! How is proper budgeting, having surpluses, and paying off debt by cutting and slashing wasteful spending ie- being fiscally responsible is a bad/non-feasible thing? Lost society. Stay within budget and cut government spending, departments and programs. Great video always and very informative. Thanks and vote conservative
It will take massive moves on innovation at the expense of potential intl trade deals. There's a crapload of things we're not even up to date on in the US that innovation could be used to solve. But there are competing interests. We're more than likely cooked.
mathematically not possible to repaid. even if all the billionaires in the world decided to move all their wealth and homes to the US and pay taxes to the US.
Total National Asset is much higher than Total National Debt. They can and will continue to print more. However, other currencies will collapse before the USD does.
Every one loves a uneducated parrot.. try the least dirty shirt in the laundry line ... try this one .. its the only dirty shirt in the laundry ..and you will see things differently .. you can thank me later 🤗
Hello Mark, enjoyed this video and the information. My opinion is NO we can't grow our way out of debt. Why, because of the same reason most Americans fall into the trap of "Lifestyle Inflation" the more money we make, the more money we spend, politicians are not different, they are worse when it comes to spending.
As long as the FED can print USD and lend it to the US Gov whenever it need money, even the US GDP cannot repay, more and more loan investments will just be remaining on the books forever to cause more and more inflation unless the US can "indirectly" force other countries to do the pay back for them🤔
As far as monetary economics go, its a zero sum game. That considered, the debt being more than amount of money in circulation indicates a high amount of circles of debt; as in parties that owe debt to each other mutually. If you get a bunch of accountants and lawyers to follow the paper trail of debt, who owes who etc... at least 1/3 of the debt breaks down into smaller debts that need to cancel each other out.
It’s difficult for central banking to come up with a total number for all the money in the world because of the fractional reserve system of money. It keeps multiplying with every deposit. Most of all U.S. government spending is possible through borrowing credit from the Federal Reserve. According to the Grace Commission report, all the income tax collected goes to the Federal Reserve for the interest of the debt, not the principal. By law, every U.S. citizen is responsible for the debt of the dollar. People don’t seem to realize the consequences. Common sense would say people should be very nervous at this point but they aren’t even talking about cutting back on spending. Borrowers who default on paying back the credit often are foreclosed so the lender to recoup losses. Keep in mind you already don’t own your property. They refer to it as “real estate” and that is usury, not ownership. The state writes bonds against your land which wouldn’t even be legal if you actually owned your land. Another concern is a bail-in, where they take your money from your account to payback the loans. Bottom line, the U.S. citizen is the loser in this.
We cannot grow our way out in the west , because 1. we are not producing enough engineers to keep up with India and China, 2. our prime population cohort has peaked. 3. we are falling behind in education and health
Don't worry they have AI to replace you, and Robot's don't pay Tax, no jobs no money, so where is the profits going to go, back to create more Robots till people are no longer required. Like the Supermarkets tills with no people. Banking with no people and then the Banks close down and you have a Cashless Society. Then if you are a good Boy or Girl we will give you an allowance. If you are not being good you'll have nothing and then we end up in a violent lawless society when people realise that AI don't need you. You'll be controlled by a Machine that has no emotions, no empathy, who created AI people who refuse to think about the consequences of their own actions, where has people like that normally end up, prisons.
Ask yourself these simple questions: 1.) What is the TRUE total National Debt ? 2.) Who/ Where is this money owed ? 3.) Can terms be agreed to halt further Interest charges, penalties and fees ? 4.) Who owns the USA ? 5.) What actual powers and control does the USA Government have over the Nation? 6.) Who and Why is the National Debt allowed to escalate to this level? --
easy…look at US foreign policy pushing the world towards nuclear Armageddon. Small factions of the global elite think that 30% will survive a nuclear therefore all debts will not be paid - ie a global reset on debt and population reduction at the same time!
I’m a bit confused. We have at most $100 Trillion in actual money globally and over $300 Trillion in debt. How can you borrow money that doesn’t exist? And, who is lending this money that doesn’t exist?
Just borrow as much as possible and buy Bitcoin. Then crash the dollar and your loan and all the other debt denominated in dollars will also be devalued into nothing.
So, who does the country owe this money to? Who are we paying to continue living on this rock we call earth? Is there a real answer to this? WHO DO WE OWE MONEY TO???!?
Tell your producer to go full-screen with your tablet. We can't see or read anything you have going on that touchscreen, but we got many lovely angles of your studio layout.
If you're a multi-billionaire, trillionaire but have more debt than you have access to liquid capital, there's no problem as long as you continue generating income at those levels and lenders are willing to lend. Taxes only go up, the US corporation could go on like this indefinitely except the squeeze of the American worker. Eventually taxes will be too high, motivation to participate will decrease. Right now though the debt is meaningless, just a number. There will be a reckoning eventually but this could continue another 100-200 years. 30 trillion, 700 trillion, the number doesn't matter until someone comes to collect. Who wants to collect from the US.
taxes don't pay for anything the government does. When you pay tax, you're returning money the government already spent into the economy, you're not giving them new money. And even if taxes could pay for things, it wouldn't come close to covering the governments expenses. They rolled over 120 trillion dollars worth of debt in 2021 alone
Mark: Pleas explain what happen to people like me who have a lot of money in purchased Treasury Bills? When you keep hearing about the fact that the Gov won't be able to pay everyone what happens to existing holders of the T Bills? Please expalin. I read yesterday that Buffett owns 3 percant of all the Treasury bills outstanding.
It won't be kinetic war. Once the world stops buying US debt, it forces us to balance our budget. The government can't borrow anymore. That means cutting trillions in federal spending wiped out and a depression. The other option is to have the Fed create trillions to buy that debt which results in hyperinflation that crushes the working class. Most of the current debt is held by retirement plans and financial institutions. They will be wiped out.
It's about the whole world losing confidence in the Dollar. They want to use their own currencies now, instead of using Dollars for transactions. Dollars are coming back to the US, creating more inflation. Less demand, less value.
The specter of losing the ability to borrow debt is the pressure at hand. Most of the treasury holders are domestic owners, so military response isn't the main consideration.
I can think of two things that would grow GDP. First is to balance the federal budget. This happened in the 90s and the economy grew and revenues increased without expanding M2 by more than 1-2% annually. This not only held the dept in check but it also allowed for greater increase in GDP. Second would be to restructure the tax system of the government. The current tax structure is based on income. This is by fare the worst thing to tax. Ask any politician why the government taxes alcohol and tobacco so heavily and the usual response is "to discourage its use". The follow up question then should be, "Why do you tax work?" Income being the result of work. A far better thing to tax would be consumption. The first benefit is that it is completely voluntary. The more one consumes the more taxes are paid. The second benefit is that it incentivizes work. What ever you earn is what you keep. This also includes corporate taxes. The response often heard is, "That will just make everything more expensive." Not necessarily. When producers are freed from the tax burden on profits, they can afford to lower their prices on the goods and services they provide. " What is to keep greedy corporations from just pocketing the profits?" you ask. Nothing really but for one thing, competition. In a free capitalist market, if a producer sees that lowering prices will increase their share in the open market, they will and anyone who wants to compete will need to do the same. Even with a 15% retail consumption tax (considered revenue neutral), total outlay for consumable products will remain stable. Everyone wins. The consumer retains more of their earnings and producers are more flush with funds to modernize and increase productivity thus also lowering the production costs. It will also attract investment in domestic business with the attraction of investing where profits and gains are not under the gun of unpredictable tax policies. The only fly in the ointment is the 16th amendment of the constitution. This must be repealed in order to prevent the government from one day instituting another income tax. Until 1909, it was unconstitutional to tax income. At the time it was ratified, the income tax was said to be voluntary. We can see that didn't last. It was also supposed to be temporary to pay down war debt. The original income tax rate was 1% on earnings over $5,000. We all know that $5000 could buy a lot more than it does these days. The highest rate was in 1944 at a whopping 94%. It just goes to show that politicians never met a tax they didn't like. This makes repealing the 16th amendment imperative. We cannot allow the government this power ever again. It is the most regressive and punitive tax structure ever devised. This could be part of the productivity miracle we need to pay down the nation's debt. I'll get off my soapbox now.
Here’s an idea: What happens if we all just STOP paying taxes and any and alll debt! We will stop this machinery from working. We can show we lost faith in this fiat currency by no participation, stop paying any taxes and debt. If we all do this what happens?
It would have to have substantial participation, mostly by people who are self-sufficient. Beyond the practical ability to incarcerate or seize assets. Our society is so atomized that mutual trust is non-existent so it would be tough to organize any resistance. The American Revolutionaries mostly grew up in the same towns over generations and knew each other and frequently related to each other like John and Sam Adams.
@@cheeseman9967 If most if not all American decides to participate then it will happen! When people realize the scam we are in and stops participating it can def break this corrupt machinery down
Yes, we can grow our way out of the current debt to GDP problem. Will we is the question? Art Laffer had some great comments on one of his recent interviews. We can't grow our way out if we have the wrong policies. Prof. Laffer's "5 pillars of prosperity" are worth considering, they are the good policies we need. .
Most of the 1980s growth was caused by military spending assisted by massive increases in the money supply by the fed. We didn’t get as much obvious inflation because of cheap imports and the fact that the way inflation and unemployment numbers were calculated were altered to make them appear lower.
Sorry Mark you are part of the kick the can down the road problem!! Your answer is to simply go with the flow and buy all risk assets! You discount how quickly this will turn. Bitcoin has shown that it is completely correlated to equity markets and it will tank along with everything else.
repaying is EASY, just inflate the value of the debt so that what's on the sheets isn't as heavy because the currency is worth much much less. imagine an 80 dollar pound of beef, or 15 dollar loaf of bread, and anyone earning below 200k is below the poverty line with people saying you need 1 million dollars a year to have a decent life.
@@grimaffiliations3671 i know, no government ever does it, they just keep inflating the baloon until they intentionally pop it when they are ready to start over with a new currency that the citizens are forced to use.
Super interesting as always. I don't think the downside you describe on labor market will be on the shor term only though. AI is looking not to enhace but to replace...
I think your video was and is very informative and Id like to learn more so that I could be a part of the solution of helping the US come out of debt and be successful once more like we used to be before our national debt spun out of control thank you.
Mark, we are screwed on the debt issue. We are also screwed on climate change. I, like you, am heavily invested in Bitcoin, Gold, Silver and other hard assets. Thanks for the video! Very informative. However, like Colonel Trautman said to Rambo, “it’s over Johnny”!😊
We are screwed by the efforts to stop climate change. Which is why in about 5 years, anyone who mentions climate change will be laughed at if they’re lucky.
Mark, I did not hear you mention currency depreciation/ devaluation of the currency by an act of government to make the economy more competitive on the world stage. This has happened before and is in economic history books. It seems this is the fastest and easiest thing to do but, of course would punish people the most who have small financial resources.
GDP is the total production based on the dollar and when the value of the dollar is skewed so is the GDP. Right now they are skewing the dollar to make inflation not look as bad as it really is, this also makes the GDP look better than it really is. AI certainly helps certain sectors of our economy but much of it will be unaffected by it unlike the computer/internet boom.
I doubt we’re going to be able to grow our way out of this. We currently have so many different issues all occurring at one time and our government is more concerned with how they can consolidate more power and control rather than relinquishing it; which would drive productivity. Less barriers into a market more opportunity for competition.
Now.... my mortgage contract..... and my car loan contract........ these are CONTRACTS written to be paid in U.S. Dollars nowhere in my Contracts does it say payable in USD - or whatever the currency of the Realm may be....... So if " they " make the USD worthless...... why is that my problem ?? I can walk down the road, pick up the worthless paper lying against the curb and go pay off my contracts... right?
Isnt the bulk of the US debt held within the US. The government has many (extremely unpopular but wildly effective) tools. Including but not limited to just voiding all locally held debt
Add probabilities to the 4 scenarios. Default likely highest probability. Ok. So what to do to protect our money? That is the main thing to talk about.
Hey Mark, I think that bright light is washing everything out and making the presentation screen hard to see.... Maybe not the best lighting choice m8. (I watch on my 75" tv), maybe it's different for people watching on a phone or computer screen, idunno ~ thanks for the video/info
