Will the National Debt Kill the US Economy? || Peter Zeihan

We need to start paying off our debt. Debt is no different for personal finance than for national finance. The US did not have a national debt until the 1980's. Before that, we were the largest creditor nation. Tax cuts for the wealthy and corporations, coupled with massive increases in military spending was what created our national debt.

To start paying off this debt, we need to bring back New Deal levels of taxation on corporations, and the upper income tax brackets. Supply side economics caused two recessions, and was leading us into a third one under Trump. Trickle down economics does not work because corporations and the wealthy do not treat money like ordinary people do. They stash money in foreign banks, and buy land that is about to be built/drilled on. In both cases, the government can't tax their revenue.

Keynesian economics built the most most robust, middle class economy ever seen. We built the most impressive system of highways in the world, and put people on the moon under Keynesian economics. It can do it again in this century.

One of the smartest guys that manages to always get things wrong

The whole world will move away from the terrorist USA and join BRICS. It’s what happens when you overthrow democracies and weaponize the dollar.

Obama wasn’t during a time of peace. But nice try

So much happiness and joy $47k weekly returns has been life changing. AWESOME GOD I now have a house and can now afford anything for my family even with my Retirement..

Not a word on the trillions of $ of taxpayers money burned in various US proxy wars.

Actually not burned but transferred to the MIC and their politician friends.

Not to forget upcoming trillions $ to be wasted in the proxy war in Ukraine and next proxy war in Taiwan

Truelly shamefull

Trump spent more than he should but Trump had covid, which included a trillion+ just for the vaccines he bankrolled. Biden and Obama had no excuse

Anyone who stays in Britain or applies for asylum will be required to undertake two years military service.

Illegal migrants will very soon be offered contracts to rebuild the Ukraine infrastructure with Russian cash. The document of understanding with Sunak outlines planning to rebuild the western Ukraine is in advanced planning stages.
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At the US national average hourly wage of $20/hr, based on the 40hr workweek for approximately 161M persons in the workforce: it would take 271 years to pay off the $35T National Debt figure. that doesn't account for fulfilling basic daily human needs of food, clothing and shelter. Nor does it account for continued ongoing expenditures of $4T budgets or compounding INT on the debt. So, even if one were to cut the contribution in half to 50%, now we're talking nearly 550 years. There is not enough expendable labor to produce the amount of value to ever pay off this nut in our lifetime or the lifetimes of the next 10 generations.

Printed money is not debt, hard to pay a computer back I would say.

The US cannot "go bankrupt" in USD; it's impossible. Where is that $35 trillion anyway.. it's in the economy, right? If US government spends 100 trillion and only taxes back $65 trillion, where's the $35 go? We can have inflation, but we can't be forced to default– only by political choice, like if MTG opens her fat mouth.

Wrong. Us Boomers did not raid these funds. Democrats expanded use of these funds to buy more votes. Medicaid goes to younger people, not Boomers.

Aha !!! Thats why they are letting all the Immigrants in…

To prop up our coming generations

this is such a bad analysis, you can't compare the US to Japan. In Japan the youth can at least afford a basic roof over their heads.

Trump added 7 trillion dollars to the national debt. The real question is, "Will the Republican Party destroy America?" Yes

So one way to save the US economy is to do it like Patreon, only give services those who contribute.(Lets call those people Citizens)
Of course like Peter says about his Patreon channel, those governments organizations would have to be responsive to the Citizens.

lol why ya'll get so triggered when someone doesnt want to do videos in the confines of society, lmao bunch of NPCs go out in the wild

Charlatan Zeihan, The US has far more government debt than the Eurozone or China, the structure of the US government debt is much worse, with a weighted average maturity of around 5 years, the shortest one among major economies, which means as much of a third of the entire US national debt will be rolled over over the next 12 months at higher rates which will continue to make interest payments explode until the US faces either a sovereign debt crisis or a currency crisis. The US is DONZO!!!

I will definitely pay to see this guy starting his day.

LOve the vids, but you looked like you could use some O2 – I mean the sceneray is georgous, but 13,000 ft?

Professor Bill Mitchell: The whole MMT journey to date has been to caution readers about the actual nature of constraints on government spending rather than the false constraints taught in economics courses around the world and wheeled out continually by self-serving politicians and lobbyists. By showing there are no intrinsic financial constraints on such spending, MMT, in no way, is advocating a carte blanche. Every resource that is currently in productive use cannot be used elsewhere – obviously. Every idle resource has a number of possible uses – obviously. We understand perfectly that once we get to full employment that there are likely to be "trade-offs and the need to prioritize spending programs cannot be avoided.” Trying to suggest that this point is ignored by MMT writers is an absurdity. … The first fact that anyone should grasp when trying to work out what MMT is, is to aprpeciate that MMT is not a regime that you ‘apply’ or ‘switch to’ or ‘introduce’. Rather, it is a lens which allows us to see the true (intrinsic) workings of the fiat monetary system. It helps us better understand the choices available to a currency-issuing government and the consequences of surrendering that currency-issuing capacity (as in the Eurozone). It lifts the veil imposed by neoliberal ideology and forces the real questions and political choices out in the open. An MMT understanding means that statements such as the ‘government cannot provide better services because it will run out of money’ are immediately known to be false. Such an understanding will change the questions we ask of our politicians and the range of acceptable answers that they will be able to give. In this sense, an MMT understanding enhances the quality of our democracies. In this sense, MMT is agnostic about policy, bar its preference for an employment buffer rather than an unemployment buffer to discipline inflation. In general, it makes no sense to talk about an “MMT-type prescription” or an “MMT solution”. To make that MMT understanding operational in a policy context, a value system or ideology must be introduced. MMT is not intrinsically ‘Left-leaning’. A Right-leaning person would advocate quite different policy prescriptions to a Left-leaning person even though they both shared the understanding of how the monetary system operates. In the simplest possible terms, MMT describes and analyses the way in which ‘fiat monetary systems’ operate and the capacities that a government has within that system. Currency sovereignty requires a government to issue its own currency, floats it on international markets, and only issue liabilities in that currency. Such a government has a monopoly over currency issuance. Here it is important to note that MMT distinguishes between ‘currency’ and ‘money’, a nuance that escapes most of these critics. The task of such a government is to provision itself with real resources to deliver its socio-economic program. It creates a demand for its otherwise worthless currency by requiring all tax liabilities to be extinguished in that currency. The government spends its currency into existence through the purchase of goods and services from the non-government sector (so-called government spending) which provides the non-sector with the funds necessary to pay its tax obligations. The consequence of this logical ordering of events (spending to fund taxation) is that currency-issuing governments do not have to ‘fund’ their spending and can never run out of currency. Saying otherwise is as stupid as saying that a football game has to stop 3 minutes into the second-half because the scoreboard has run out of points to post! It also means that a currency-issuing government can purchase whatever is available for sale in that currency, including all idle labour. The appearance of idle labour, for example, is evidence that the government has not spent enough relative to its tax take – so taxes are too high and/or spending is too low. In turn, this means that the unemployment rate is not a ‘market’ phenomenon or a choice of individuals (the mainstream dogma) but a political choice of government. The ideology of mass unemployment is thus exposed by an MMT understanding. Further, a currency-issuing government is not like a household, which uses the currency and faces intrinsic and binding financial constraints on its spending. The household analogy is popular in mainstream macroeconomics but provides us with zero understanding of what the capacities of the issuing government are. Unlike a household, the constraints on government spending are not financial but real – limited by the goods and services that are available for sale. The core MMT developers argue that all currency-issuing governments enjoy monetary sovereignty as outlined above. We should not conflate the capacity to purchase available goods and services with some ability to provision an economy with adequate real resources. Issuing one’s own currency doesn’t make a nation ‘rich’. A nation with limited access to real resources either locally or through trade will still remain materially poor even though it is sovereign in its own currency. Sovereignty means the government can use its currency capacity to ensure the resources that are available are always fully employed in one way or another. — "Governments do not spend by ‘printing money’. They spend by creating deposits in the private banking system usually facilitated through the central bank." "Outstanding public debt is just past fiscal deficits that have not yet been taxed away. The reality is that the government borrows back some of the non-interest bearing currency it previously spent into existence. In return, it provides an interest-bearing financial asset." #LearnMMT Source: https://billmitchell.org/blog/?p=43015

I’m American and my fiancé is German. The childcare programs are insanely good and available in Germany due to the demographics crisis. We are going to have three kids. Godspeed my fellow Americans. 🫡

5:30 The only problem I have with this, is every other country had the US dollar to fall back on, and have used it. If the dollar inflates at a high rate, I'm pretty sure the bond and treasury market would make a bad footing for everybody, and the US would probably get the brunt, because you'd not only have the dollar losing value, but other countries cashing in and putting dollars back into the country, instead of rolling over debt.