Comments by "Grim Affiliations" (@grimaffiliations3671) on "As U.S. Debt Hits Historic Levels, How Close Are We to a Complete System Failure?" video.

  1. No, because taxes don't pay for interest payments. The interest is paid by rolling over existing debt. They rolled over 120 TRILLION dollars worth of debt in 2021 alone. It's foolish to think taxes could every cover that amount
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  2. in what way did everything die?
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  3.  @jsmythib  why would they ever struggle to print it? Both dollars and bonds are just government IOU's. Why would they find it difficult to exchange one for the other?
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  4. how so?
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  5. at least your putting youre money where your mouth is. What do you predict will happen in a couple months?
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  6. Lol she asked if he was an accountant and crumbled when he said he was 😅
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  7. printing is the only way the govenrment can spend
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  8. have a guess how much money the government rolled over in 2021 alone? A wild guess
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  9. it seems to me the people always predicting doom around the corner are the snake oil salesmen
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  10. They will never have an issue paying your social security. They create the money out of nothing. The only risk is that the rising retired population all spend their social security into an economy with fewer and fewer working people, thus causing inflation. Don't think of it as a solvency issue, think of it as a productive capacity issue
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  11.  @jeffpaul6252  Why is what an issue?
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  12.  @jeffpaul6252  That isn't an issue. Those bonds are private sector assets, they're a tremendous boon to the economy. They're only an issue if you doubt the government ability to pay for those bonds. But why would you doubt the governments ability to turn one form of its IOU (Bonds) into another form of it's IOU (dollars)? You shouldn't. It's as difficult as moving money from your left hand to your right. Are you aware that they paid for 120 TRILLION dollars worth of bonds in 2021 alone?
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  13. the private sector cant survive for long without government spending. Private sector can only net save when the government net spends
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  14. federal taxes don't pay for govenrment spending
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  15. Nobody tell Japan, with their debt to gdp ratio of 250% or the UK which reached 250% during world war 2
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  16. they rolled over 120 trillion dollars worth of debt in 2021 alone. Japan is selling bonds right now to support their currency, they will buy again as soon as they are able since those dollar reserves are saving their currency right now. And the government can always buy back its own bonds with no inflationary consequences, as we saw throughout the 2010's
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  17. us debt bonds are bought with money from the govenrments own deficit spending. It's self financing
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  18. debt to networth has never been lower
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  19.  @quintongragg2394  ?
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  20.  @Theozman2  But the budget is just how much the government spends, not how much it has. The government has an infinite supply of dollars. Obviously there's a limit to how much of their infinite money supply they can inject into the economy, but you gotta remember that the government's spending capacity doesn't change whether it has a budget deficit or a budget surplus, it's always infinite. For example, in 2021 alone, the government paid for 120 trillion dollars worth of bonds. 120 TRILLION. Like it was nothing
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  21. the fed has full control of interest rates. Which is why they're way lower than they where in 1980 when our national debt was a lot lower
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  22. so 35 trillion worth of assets to the non government sector? why is that a bad thing?
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  23. im curious why people think the national debt is such a huge problem when its just a stockpile of bonds, which are US IOU's, just like the dollar itself
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  24. Taxes dont fund anything the federal government does. Seriously. It's debited out of existence. They make us pay taxes to create demand for the dollar
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  25. they rolled over 120 trillion dollars worth of debt in 2021 alone, why would they strugle with interest payments?
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  26.  @Hammer4999  What do you mean there isn't enough real money? The government makes the stuff, so it will be available as and when it is required to fulfil any of the governments obligations
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  27. no it aint. government debt is private sector asset. Private sector likes their assets
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  28.  @mrright1068  Because they're the governments liability. Every liability is someone's asset.
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  29.  @mrright1068  Bonds held by the non-government are not government assets, they're non-government assets
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  30. both approaches are wrong. You shouldn't approach the balance sheet of a sovereign government the same way you approach that of a business, Japan would've gone bankrupt a long time ago if things worked like that
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  31.  @TheChinaPlay  Because balance sheets matter to entities that do not have access to an infinite amount of reserves. The numbers on the balance sheet do not increase or reduce the government ability to spend
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  32.  @TheChinaPlay  Governments ability to spend is only limited by it's productive capacity. If you have the labor + resources for something, the money will always be there. Yeah i get where he's coming from, but the difference between the company in your example and the government, is that the government doesn't technically have any "earnings". Federal taxes don't go anywhere, they're destroyed. The gov doesn't "have" or "not have" money. The money itself is just a measuring metric, like inches or points on a scoreboard. It would be foolish to expect a stadium to run out of points to award when someone scores, the government is just the scorekeeper for the dollar
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  33. tax revenues don't impact the governments ability to spend. In fact, federal taxes are debited out of existence upon payment. They dont actually go anywhere
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  34. Accounting is adequate for assessing the finances for a household, business or state. It's not adequate for assessing the governments finances, because they operate in a different world thanks to their currency issuing powers. For example, did you know that taxes dont actually pay for anything the federal government does? They're debitted out of existence upon payment. Also, Government spending is a huge amount of the growth we've experienced post covid, this is almost always the case. The only way for the private sector to run a surplus is for the government to run a deficit unless you have large trade surpluses, which we don't. So until we stop running trade deficits (which can only happen by losing our reserve currency status) calling for a balanced budget is basically calling for a recession
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  35.  @cwcobo  No, taxes do not pay for anything the government does on the federal level. Taxes are debited out of existence upon payment, they don't actually go anywhere. The main purposes they serve are to create demand for the governments currency (the dollar) and to lower our spending power in order to create enough space in the economy for the government to conduct its own spending without causing inflaiton by having to outbid the private sector for a finite amount of resources. The deficit is merely the difference between what the government spends, and what it destroys via taxes. And as the government has access to an infinite supply of dollars, their ability to spend remains unchanged, whether they run a budget deficit or a budget surplus. And no, the government doesn't "borrow" from the world. Dollars have to be spent into the economy by the government before they can be used to buy bonds. Thus those bond purchases are self financing. In other words the money used to buy bonds comes from the governments own deficit spending. That begs the question, if the government doesn't borrow from anyone, why does it issue bonds? Because in the past, bond sales allowed the the fed to drain excess reserves from the banking system. If these reserves were not drained, the overnight interest rate would rapidly fall to 0. But since 08, they fed has been paying interest directly on reserves, meaning bond sales are no longer necessary to control the overnight interest rate, making them no longer necessary at all. So an easy good solution would just be to stop issuing bonds at all when we deficit spend. No more scary national debt increases
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  36. the gov aint a city, it cant go bankrput
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  37. taxes back it up. Thats the only reason they make us pay them on the federal level
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