Is DEBT Threatening the USA’s Future? - VisualPolitik EN

Is DEBT Threatening the USA’s Future? – VisualPolitik EN

[Applause] everything seems to be going amazingly well in the United States the crazy years have returns the economy's growing employment rates are strong wages are rising and taxes are being cut while government revenues are at a historic high [Applause] yes everything seems to be sailing smoothly in the United States let's take a look at the sp500 the most important stock index which covers the 500 largest listed companies in the United States well we've been seeing uninterrupted growth now for nine years therefore it wouldn't be unreasonable to say that if we looked at this indexes graph it would remind us a lot of one of elon musk's rockets don't believe me well check out this data since 2009 that is less than a decade ago the S&P 500 when including dividends has had a return of more than 400 percent just to put some figures on this to give you an idea of quite how much that is if we'd have invested ten thousand dollars in 2009 in this index today we'd have $50,000 certainly not a bad return in recent years to viewers it has been so easy to make money in the markets that almost anyone can feel like Gordon Gekko himself don't jump out of your seat just yet because well here's a question is everything really so rosy or does the US economy have a hidden and less glamorous face well listen up Americans now owe more credit card debt than ever before in history subprime lending is hot again but instead of form home mortgages now the loans are being handled out to car buyers we've seen subprime auto loans increased by 130 percent the other face a visual politic we usually say that things are never as perfect as they seem yes right now the United States is an absolute economic machine a high-speed machine especially for anyone who has invested as we saw in the United States stock exchange however the great American power it's got a problem it's addicted to credit yeah you heard that right companies families governments thanks to years and years of low interest rates almost unlimited credit and Federal Reserve policies practically every institution in the country is submerged in debt you see after the 2008 crisis the world's central banks decided to implement a policy that could be simplified as follows if we issued that is create more money what is popularly known as turning on the money printing machine and on top of that we set very low interest rates we will achieve two things for one we will get banks to lend more money to families and companies so they can consume and invest more and any company in trouble will be able to obtain financing and not have to shut down thus making the economic machine run again and for another with all this new money we can also finance governments so they don't have to make severe spending cuts and so they can continue to consume [Applause] sounds pretty good right well just wait a minute because there's a little problem here and by little we mean huge see this recipe this plan it's got other consequences because of course we're essentially talking about doping the economy and when we talk about economic doping we're basically talking about two things debt and inflation and if you don't believe me well consider this in recent years the United States has been experiencing a golden age more cars are being sold than ever the real estate business has taken off again and all kinds of products are flying off the shelves and of course all of those purchases have to be paid for American families are facing historically high debts which exceed 13 trillion dollars that's more than $40,000 per citizen but give um if you think that's all really quite wrong if instead of taking a look at families we check companies we find a very very similar situation the normal companies over the United States accumulated debts of more than eight trillion dollars nowadays the leverage is higher than it was in 2008 and most of that debt hasn't gone to equipment factories or anything like that but towards buying back shares and paying dividends and these figures are so crazy high that it's almost hard not to get dizzy but hold on just a moment because it's not families and it's not companies that pose the biggest problem the biggest addiction problem is in Washington it's with the federal government and it's with the Trump administration and here's a question I want you to answer it in your mind without having to Google do you know how much money the United States government spends per year well listen up we are mortgaging our future we're mortgaging our children's future we are gonna have to pay this money back at some point and at some point it's going to be impossible the government at the beginning of the year specifically in February of the year 2018 the United States Department of the Treasury published its annual report for 2017 this is a report like the one that listed companies present annually where they state how much they've spent how much they paid how much they owe or what they forecast everything is presented in an easy-to-understand document indeed this is actually quite a good habit for the United States government to have now doing the reports are good but the contents of the report that's kind of like a horror movie in 2017 the federal government alone that is without counting states and municipalities spent or made payment commitments worth four point six trillion dollars this means that by itself the federal government is fighting to be the third largest economy on the planet which is not bad right I mean it's quite a tally but as you can imagine the revenues aren't enough to cover all of these expenses because the government exceeded them by one trillion dollars that is a truly incredible amount it's more than Australia's entire economy to give you an idea every minute that passes every single minute the US government loses more than two million dollars yes if the United States government were a company its shareholders would not be happy the most surprising thing about all of this information is that the year 2017 in the United States it wasn't a year of war or crisis or recession or anything like that it was just a normal year and when I say normal actually mean it was a pretty prosperous year it was a year of economic growth if you know what the result was well the federal government desk now amounts to the astonishing figure that you see on the screen right now that's 20 trillion dollars that's more than $60,000 per American and almost tripled more than a hundred and seventy thousand dollars per taxpayer this means that the United States government real debt exceeds its GDP by 100 percent by the way if you want to take a look at that Treasury Department document you can find it in the description below anyway all of this debt may explain things like this China is reportedly thinking of halting US Treasury purchases and that's worrying markets the United States government debt currently in Chinese hands decreases by 10 percent as compared to its historical highs the NI loss president Donald Trump he's got a plan the president's plan lately it looks like Democrats and Republicans cannot agree on anything however there is a way to achieve this break the piggy bank and distribute the games and that's precisely what happens in February Democrats and Republicans achieved the largest bipartisan agreement in a long time and what was it for well it was to increase public spending this Agreement delivers on our commitment to fully fund our national defense no more short-term ploys and patches Paul Ryan Speaker of the United States House of Representatives where this agreement the US government will increase public spending by a hundred and fifty billion dollars each year essentially just adding more wood to that big old fire until you take into account see that the Republicans did spend eight years criticizing Obama for overspending the president's put it in place as much public debt almost as much debt held by the public as all prior presidents combined what President Obama was elected the national debt was ten trillion dollars today it's over 17 trillion dollars this thing's not gonna solve itself this is getting worse every day and we're running out of time the power really does change everything so it's not difficult to understand the politicians in Washington I mean don't tell me you wouldn't love to spend money that isn't actually yours but that's actually not all during the Trump's tax reform the one that was just approved we talked about it previously on visual politic well as we saw with that tax reform the government's revenues are actually going to drop a lot so the question is if we lower income and increase expenses what do we get well yeah you could probably guess this one it's a really really big deficit so much so that in 2019 the US government's deficit is expected to be between five and six percent of the GDP a huge deficit typical of a country in crisis I mean when there's a crisis we can all understand the government having huge holes in its budget low unemployment low collection etc etc but when all goes well yes we were told that Trump was coming to set order and put an end to Washington's debauchery but it looks like he finally decided to join the party and he decided to do it in style well based on what we've just seen of what many experts are wondering well we've got the question of who is going to buy all of this debt because of course in the next few years the United States Treasury is going to have to issue trillions and trillions of dollars of debt to pay for this huge mismatch and in principle the u.s. is three main lenders that is the Federal Reserve China and Japan they're no longer buying so the result well it seems to be this we expect rising interest rates and a rising debt level to lead to a meaningful increase in interest expense but anyway dear viewer that is just the way things are this is the other less attractive face of the United States now I really hope that in this video the numbers didn't make it too hard to follow but we just thought it was really important to tell you the other side the the darker side of the US economy so that you can really know how things are and why Washington should start taking this problem just a bit more seriously and no printing money is not the solution every time more bills are printed more inflation and more debt come and then things like this happen the dollar slipped to its lowest level in more than three years and we already saw here on visual politic how important it is to have a strong currency and a solid currency but now it's your turn do you think Washington's politicians should cut public spending leave your answers in the comments below as well as in this survey and I really hope you enjoyed this video please do hit that like button if you did and don't forget to subscribe to our channel for brand new videos every Monday and every Thursday and also don't forget to check out our friends at the reconsider Media podcast they provided the vocals in this episode that were not mine and as always thank you for watching the presidents put it in place as much public debt almost as much debt held by the public as all prior presidents combined when President Obama was elected the national debt was 10 trillion dollars today it's over 17 trillion this is not gonna solve itself this is getting worse every day and we're running out of time

24 thoughts on “Is DEBT Threatening the USA’s Future? – VisualPolitik EN

  1. The debt problem is very interesting, especially since there are no real solutions. If cutting public spending was all politicians had to do then it would have happened by now. Say what you want but most of them have a small amount of integrity. The issue is that cutting government spending leads to the same effect that banks denying loans has on the economy, it will tank. I have yet to meet an economist that can tell me how to cut public funding and pay off all debt in any reasonable manner. We are heading towards a collapse of our current banking system, it's only a matter of time, I only hope that we learn how to do things better in the future.

  2. We are 22 trillion in the hole, 16 trillion borrowed just since 2007. And all these assclowns from either party prattle about is how much they are going to borrow – either to support tax cuts and the military or trillions in 'free' socialism. We need to balance the damn budget and start paying down that debt before we end up like Greece….

  3. Stupid Lying Republican Scum: "Obama left the whitehouse at 17 trillion dollars in debt."

    Reality: "Obama left the whitehouse in 9 trillion dollars in debt. We actually lost 1 trillion dollars under Obama."

    Republicans: "LIES! It was 19.85 trillion by the time he left office."

    Reality: "Why would it be lies? Under Obama, the amount of spending from his administration actually decreased. It increased initially, due to the Great Recession and has decreased since, only increasing when Trump came into office, who has no reason to increase since he is suppose to be anti-war, anti-big government, and anti-everything. So why he (Trump) is spending more money? The reason it rose to nearly 20 trillion has to do with missing money in social security due to Republicans taking money out and Democrats doing nothing about it. Even if you add up all of Obama's expeditures, ignore any income from taxation, he would still be less than 17 trillion, much less than nearly 20 trillion accumulatively speaking. So where does the rest of that increase come from?"

    Republicans: "Because liberals do nothing but lie all the time and Trump is GOD!"

    Reality: "Why would you believe that?"

    Republicans: "Because it is true."

    Reality: "Why would you believe that? Something doesn't poof into truth. There needs to be proof, evidence. Where is your evidence?"

    Republicans: "We need no evidence. It is true, by our faith."

    Reality: "You are literally using faith to condemn someone?"

    Republicans: "Uh… uh… you are the devil. The democrats will never win."

    Reality: "The Democrats are the same fucking party. You are fighting yourselves at this point. God damn, you people so fucking stupid."

    Republicans: "AHAHAHAHA! We made you curse. That was funny. You so stupid." fart "AHAHAHAHA!"

    This is you republicans by the way. It must be like looking into a mirror. Braces self for all of the harsh criticism from Republicans as they begin to see themselves and start to deny it

  4. This video left out some unanswered questions which if answered may give a different picture. First you discuss us debt but what about the other side of the ledger? What about the combined debts owed to the US? Also there is the issue of to whom the debt is actually owed. You mentioned the US reserve, Japan and China but I suspect that ultimately a fair portion of the debt is actually owed to Americans.
    It is still a problem but perhaps not as large a problem as presented.

  5. The government can file bankruptcy and just start over. Congress will vote and so will are chief. In the end. The US can do whatever it wants. And get away with it. Because you will never defeat the US Military. In the end the US military backs the dollar. Since everybody thinks they want to live in the US. The Dollar will always be worth money.

  6. you are obvioulsy mis-lead the tax cuts for rich and corporations was at the expense of any tiny savings the middle class still had tucked away. Low wages and underemployment, student loans out of scale with the ability of that gerneration to pay, poor car sales, poor housing sales and starts, and the baby boomers set to all retire over the next 12-15 years but no way to pay the unfunded liability of their social security payments – and with lowest partitipation rate in decades the retirees will not have enough younger people to actaully pay this debt. Currently sitting at 70 Trillion in unfunded liabilities

  7. The problem isn’t the economy it’s government spending and giving tax breaks. to the wealthy and businesses.

  8. 1929-1932 tried cutting budget = depression in 1982 Margaret thatcher in uk good house keeping spending cuts = bad recession – kick the can down the road has been a good strategy so far

  9. The Annoying Orange campaigned so hard to reduce government spending and such… Yet he (in many cases single handedly) has increased the debt and done NOTHING to decrease it. I just pray that by next year people here start to realize how at best he is a con man and a crook. If he wins reelection in 2020 the ONLY thing it will prove is how severely underfunded our education system here in the US is.

  10. The dollar sign behind the amount drives me crazy. Dollar sign goes before the number and cents goes behind.

  11. You do realize that the US debt does not matter right? It is owed to itself! The US dollar is all that matters and its value…if the US goes into anymore debt it would not matter as long as the dollar was still stable which it would be. When the US FED and banking system was being mae this was the whole secret they all knew about and even spoke openly about it..its to big to fail because its money that never has to be paid. It is not like in Europe where you have countries going in debt to bankers who are not even from their own countries thus they must pay. The only debt that would really matter at any point is the US debt to other countries whih is very little.

  12. Say the real problem is globalization when you buy Toyota and Chinese and Korean and all the other World products and American cars are coming from Mexico and Canada you destroy American GDP we actually produce a third of the actual GDP that we didn't 1972 hard to believe since we've had a 24% increase in population so here's the problem you got a lot of lazy people that won't work. And you got a lot of anti-American people about half the country the refuses to support the American economy by buying American products they will only buy something with a foreign name on it so the actual 22 trillion dollar debt that is today is caused by you jack loving sorry non-american pieces of shit and all the foreigners we invite in to give them all that welfare they then spend that money on foreign products lowering GDP lowering everything you can imagine and yes the man in this shows conversation is right about how bad are dead is but you did it America you only deserve the consequences because you didn't buy American and you didn't force American corporations to build it in America just like apple with all that money get it all comes from foreign products they make a huge profit but they destroy America manufacturing jobs we must get on with making America great again and stop welfare in the world we produce the food that feeds the world but we still leave over 2 billion people hungry every day across the world and a good number of them are in America see you throw out so much well for the people that won't work informs them people are willing to go to work you've done until I signed by over taxing them refusing them government help that you refused any Foreigner and it goes on and on and on what's the answer close our borders and another thing you subsidize the production of food in America and then you sell it on the global market for a deal you paid for this by sub sedation now will sell it to anybody even our enemies cheap no more if food leaves this country it must have a 50% export Duty on it and we only accept one tenth of around economy in foreign products not 140% of our economy every year in foreign products nationalism Works globalization doesn't work not when you're the one on the giving end of all the money and get nothing to gain out of it employment and such God bless President Donald J Trump and bluelivesmatter and thank border patrol and other parts of National Security that keep us safe from foreign ideas foreign products and mostly foreigners let's make America great again and stop this stupid globalization it doesn't work

  13. Trump never had the support capable of stopping spending. No one would have. As you mentioned, the only time most of congress agreed on anything, it was to spend more money. Ask yourself: how often have countries with horrid finances, taken the necessary remedial steps? The US federal government used to look like a ship, and it's now a barnacle; but nothing will get scraped off until it's already sinking.

  14. You failed to mention that it skyrocketed disproportionately under his predecessor. This trend has sadly been going on since about 1969.

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