Understanding the National Debt and Budget Deficit

In which John discusses the US national debt, the federal budget deficit, plans for shrinking or eliminating the deficit, and tries to provide some context to the political rhetoric and statistics that are constantly thrown around in an election season. Along the way, I hope you'll understand why the United States' sovereign debt hasn't led us to an economic crisis, but also why budget deficits need to shrink in order to ensure that credit remains inexpensive and the US continues to enjoy the trust of the world economy. (Friendly reminder: Educational videos, by extensive precedent, are allowed to be longer than 4:00.) Here's why I think the gold standard is a bad idea: 1. By restricting money supply to the supply of gold, you risk shrinking the money supply just because of a shock leading to a disruption in supply from mining. This creates a lot of volatility in the money supply for no reason. 2. The gold standard limits a government's ability to respond to changes in the market, which can (and has) led to unescapable deflationary spirals. 3. Far from inspiring investor confidence, its implementation would crush it: http://www.ocregister.com/opinion/gold-369936-standard-money.html Posters and stuff: http://dftba.com My tumblr: http://fishingboatproceeds.tumblr.com My twitter: http://www.twitter.com/realjohngreen HERE ARE A LOT OF LINKS TO NERDFIGHTASTIC THINGS: Shirts and Stuff: http://dftba.com/artist/30/Vlogbrothers Hank's Music: http://dftba.com/artist/15/Hank-Green John's Books: http://amzn.to/j3LYqo ====================== Hank's Twitter: http://www.twitter.com/hankgreen Hank's Facebook: http://www.facebook.com/hankimon Hank's tumblr: http://edwardspoonhands.tumblr.com John's Twitter: http://www.twitter.com/realjohngreen John's Facebook: http://www.facebook.com/johngreenfans John's tumblr: http://fishingboatproceeds.tumblr.com ====================== Other Channels Crash Course: http://www.youtube.com/crashcourse SciShow: http://www.youtube.com/scishow Gaming: http://www.youtube.com/hankgames VidCon: http://www.youtube.com/vidcon Hank's Channel: http://www.youtube.com/hankschannel Truth or Fail: http://www.youtube.com/truthorfail ====================== Nerdfighteria http://effyeahnerdfighters.com/ http://effyeahnerdfighters.com/nftumblrs http://reddit.com/r/nerdfighters http://nerdfighteria.info/ A Bunny (\(\ ( - -) ((') (')

Comments

Gingerbread Man: He was totally wrong about the reducing deficit and his projected outcome for increasing defefites has come to pass. Everyone is missing the point though. 1. Borrowing money and never paying it back when there is an interest payment attached is not a long term winning strategy. 2. Who is collecting the interest payments and what do they intend on doing with all that money. We are talking an accumulated wealth of around 30 trillion dollars,

Also the first clear indicator of a corrupt government is that they borrow money rather than properly tax the rich and the corporations so that they always have enough revenue so that they dont need to borrow any money. They find it all to easy to borrow money, on the peoples behalf and bribe them with it to buy their votes rather than tax the rich and the corporations,

In Australia the taxation department published the income, taxable income and actual tax paid of every company that had an income over $100,000,000. There are just over 2,000 of these companies, domestic and international. Over 700 of them paid $O tax. Of the rest, not one of the companies paid the stated corporate tax rate in fact the majority got away with paying less than 10%. This is clear corruption on the governments part as they do not close the loop holes that are being used to avoid paying tax. The less they pay, the more the middle and lower class have to pay and the more money the government borrows to make up the difference.

Gingerbread Man: You are all being distracted from what is actually going on. The plan which has been pulled off flawlessly is for the privately owned Federal Reserve bank to collect such massive interest payments that they will accumulate enouth wealth, so that if they then crash the US economy to a level as low as the 1929 crash or worse, they can multiply the buying power of the money they have accumulayed in interest payments that they will have the equivalent of between 300 and 600 trillion dollars to spend on whatever they want,

That was always the plan from the begining. Get the US governent hooked on borrowing money rather than tax the rich and the corporations, build up the debt so that it is so large that the associated interest payments will end up being a majority of the governments revenue. Then they have to borrow more and more money and the interest payments get larger and larger, until they have enough money to buy a controlling interest in the planet. It is a hostile plan for world domination without military force.

How will you know when they are ready to activate their plan. They need to do two things:

1. They need a patsy in the role of President. Tick.
2. They need ro move all their investments that they don't want to fall in value and are not strategic, out of the US. They need to do this well before they crash the economy. You can't very well do it the day before as that would be too obvious. The Rothschilds moved 50% of their investment in the US out of the US in the first 6 months of 2017. Now I can't say for sure how long they will wait so that it is not suspicious. They want everyone to be pointing at Trump (the patsy) and laying all the blame on him. That way they can walk into every stock market across the planet and buy up as much as they can, because when you crash the US economy you take the whole planet with you. So I would say that any time soon the event will happen and the patsy will get thrown under the bus and the Rothschilds and their 6 friends, the group that own the Federal Reserve bank, will off load all the US currency before it becomes worthless.

ዓደይ ሓላል: I am watching this in 2018 for my macroeconomics class

Kenneth Will Garrow: $21 trillion today. Probably $30 trillion by 2025 or slightly later. When does this become a problem in your view?

Jacob Jacob: I worry that AI is going mean we only need about 30% of the population working in the next 20 years - some things need to change and fast. Maybe an off topic rant, but some "crazy" what ifs I wonder about.. like WHAT IF we stopped allowing the use of paper cash and disconnected (somehow) from the US dollar and moved to some kind of block-chain transactional system - I suspect Wall Street and banks would collapse but from the ashes would rise a very strong and REAL economy (and tax base) and market maybe 5+ times bigger than we've ever had. WHAT IF we declared bankruptcy (as a nation) and refused to pay back China? WHAT IF we stopped all domestic welfare and global aid programs? WHAT IF we surrender some personal freedoms and allowed the government to use new technology to ID and track everybody. WHAT IF, we stopped defining and tracking civil unions and families? WHAT IF, we stopped tax breaks for religious institutions? WHAT IF the government stopped caring about the health of it's citizens beyond tax credits for living healthy and heavy taxes on things deemed unhealthy like fast food, candy, soda, prostitution, smoking, drinking and drugs? WHAT IF every individual was responsible for themselves allowed to ultimately die if they have an unfortunate accident or event they can't cover? WHAT IF all bathrooms were private, personal and individual but taxed and maintained by the government - that right, all places of business of certain size or type would require public bathrooms and access would be taxed. WHAT IF, we did levy some big protective tariffs to encourage made in the USA? WHAT IF the internet super highway was just another federal roadway maintained by the government all citizens had access to, but simply taxed like the tolls? WHAT IF we did institute more luxury taxes on anything fancy and special like sports cars, box seats first class air plane seats, etc?

I think we could probably pay the entire deficit in no time and focus on things like technology and energy if only we are willing to re-invent and reboot the country like this. It's likely the kind of revolution our four-fathers would have wanted us to have given the language and spirit of the US Constitution.

Yna Nutshell: At least change the title to National Debt of US. -_-

Jon dow: https://www.youtube.com/watch?v=a7f6Z26w0yY

Shmozone: I had to watch this for a political science class
Doesn't matter though because I enjoyed it, 10/10

Pi Rho: I like this guy's crash course videos... he has a special way of holding your interest and a healthy doze of humor to match.

AkiHimura: Wait, I thought the people owes the money to the Federal banks?. Since most of the bonds belong to them?.

AlexHuaTian: the american debt to foreigners is over 21 trillion. Its the largest debt in the world. Im surprised countries like China havent dumped the dollar yet. american exports will never cover 21 trillion dollars. americans simply arent capable of exporting that many goods.

Patel Vidhu: Budget deficit will create inflation and more debt problem.

GorillazGames: " businesses spend more than what they take in, as well they should".

I don't know if I agree with that. I own a transportation business, and if I spent more on fuel repairs and Technology then the revenue generated from customers, then I would say that my business is failing

LiuYe: No. Chinese military budget is definitely larger. The american military is just no comparison.

Luiz H. Padovani: dude, i had to check if the video was sped up. was not. you're a machine.

NOBEL DJ: triggered people in comments

Sarah Kuzell: Yeeeeeeah, still confused.

Skinny Bones Jones: Ahhh so Green knows more than Rand AND Ron Paul...hmm

THOMAS million: https://youtu.be/8cT-hNSBF1g

Diego Solis: Speed on 1.5 and this is perfect

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