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Is the global debt of over $300 trillion really a problem? And does debt for the global economy work in a different way from debt on an individual level? In this video we’ll explain who holds all the debt that countries and businesses owe, and whether this will be a big problem in the near future.
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A technical question, that may warrant its own episode: who owns the "debt"? If a bank creates money and lends it, the bank would own the money. Of course, most commercial banks do not do that, they create a secondary emission – a money bubble, which eliminated when the debt is paid back. Still, the question of ownership and property makes this whole story unclear to me.
Some economists have projected that both Canada. and parts of USA could slip into a recession for a portion of 2023. A global recession, defined as a contraction in annual global per capital income, is more rare because China and emerging markets often grow faster than more developed economies. Essentially the world economy is considered to be in recession if economic growth falls behind population growth.
I love the timeline at 8:50 in the video. Especially where 1990 steps in and hides the 2007/8 financial crisis. 🙂
I will write a cheque. How much is it again?
Debt going up is only money printer go brrrrr. If assets in the world are fixed, then why do we add a new zero to our debt every 10 years… it’s just printing money so the few on the top can steal our time and labor. And it can all be solved by ending the fed.
The underlying problem with your analysis is that you're assuming that the value of global assets stays the same over time. If, for example, you take out debt to buy overvalued assets, the value of those assets will eventually crash while the nominal debt will remain unchanged, thus exacerbating the debt problem. There is no reason to believe the economy will keep growing indefintely, but it has become clear that government debt will keep growing, as governments aren't willing to accept any form of significant downturn. It's a vicious cycle, it's a bubble economy.
lol 300 trillion is impossible for the world to have.., most countries dont have that much of debt except for UK EU and USA… EU has 30 trillion debt and USA 30+ trillion debt.. that is 60 trillion or near it… I dont believe 240 trillion has been borrowed by the other countries..,
9:48 – I was never able to beat SimCity on super Nintendo and get the Mario statue. ???? I did beat RC Tycoon, though!
8:48 "time travel was invented by the global economy in 1990".
The debt issue has always confused me and I didn’t know enough about economics to articulate the question properly to find an answer. I didn’t get who we owed money to and why so many were nonchalant about such a staggering amount. This video has cleared up a lot of that thanks ????
Lol all fake, who's gonna come collect….aliens lol…wake up open your eyes…you were born into a scam
The problem with countercyclical fiscal policy is that public sector spending is fundamentally different from private sector spending. Private sector spending occurs when the person doing the spending believes it will profit them in some way. Sometimes that belief is mistaken, but on the whole private sector spending leads to increasing wealth. Public sector spending is driven by political concerns, not maximizing profit. This leads to things like the US government funding cowboy poetry because the Senate Majority Leader was from Nevada. Indiscriminate spending on welfare and education has led to massive reductions in the returns on that spending, and useful infrastructure spending is rarely "sexy" enough to attract significant political support (and in many cases draws political opposition).
it's just…some number at this point.
Could you do a video on Real Estate and why it's often immune from the Supply and Demand law? Like how Landlords can sit on empty homes without dropping their prices despite their being more empty homes then there are people who can afford them (both in rent and in buying).
10:50
Why won't we just a global debt forgiveness
One point to clarify this, the wealthy do save up enough to buy their next assets. They do not save as a means of building wealth or as a retirement strategv.
Amazing video and thank you for breaking it down!! Despite the economic downturn, I'm so happy ????I have been earning $ 60,000 returns from my $7,000 investment every 12days
"government should tax more"- that's where you are wrong, kiddo
@13:40 4% Intanibles?
Brilliant and very pleasant to watch, thank you for theses ????
Can you make a video about the difference between value and price? I think not makibg this distinction muddies all your videos.
A great reset is needed to restore equality and accountability to the world. Those nations and gvts that have heavily borrowed from others to sustain a high quality of life, while simultaneously exporting inflation to those nations, should feel the pain of this unjust enrichment. Of course, this being the real world, it’s unlikely to happen anytime soon.
The issue of real estate appreciation is that on a global level it creates no material value like said in this video, but on other scales (be it a person, a family or a company) it has infinite value because of the infinite rent income. There's even the feedback loop that real estate investment is even more valuable because that makes the asset itself always increase in value over time (despite short term crashes).
This is largely why the first home purchase for primary residence is the number one priority investment, and it's also why mega corporations like Blackrock are buying more and more family homes for the infinite value they will provide (along with control of money supply going into their hands, since renters become dependent).
Aahh 90k….I'm rich af boi!!!!!!
Money is an emotive impingement,
it is the power to influence and is as fragile as public confidence.
You make it seem legit and complicated. its really not.
Its much simpler than that.
All national and the global economy is quite simply just an enormous ponzi scheme.
There is no real value, dept or money, Its all just power. The power to print new money.
The only reason it works is because of inflation, i.e growth and devaluation of the currency.
Its like playing monopoly, then taking money from another set when your money runs out, making the value of the currency less and less.
Its all just a global scam to keep coverments in power running. To call it "debt" is to be blind, there is no debt, its never going to be returned, it cant ever be returned.
5:39 okay, but do scientific probes count as exports to other planets?
Debt per capita is the most important metric and the US is on par with most other developed countries.
Debt is good