One of the core issues between Elon Musk and President Donald Trump’s feud is over Republican’s “big, beautiful bill” in Congress. Musk is concerned about how much it raises the national debt.
The U.S. national debt is on its way to $30 trillion dollars and is projected to be more than 100% of GDP at the end of this year. So is that… bad? Let’s look at what the debt is, how it affects the economy and how much is too much.
Chapters:
0:00 Nerves about U.S. assets
0:55 How the debt works
1:53 How much debt is bad?
3:06 The interest payment problem
3:40 When the debt becomes unsustainable
6:14 How to fix it
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U.S. trade deficit cut in half on record drop in imports: https://on.wsj.com/3ZkCdiP
“It can be avoid. It should be avoided.” But will it? No, of course not. Barring a miracle from AI or nuclear fusion (I’m only partially joking), this will likely become our economic future.
so why we sending money to ukraine if we are broke? oh i forgot sleepy biden
El proble deuda es a nivel global,todos los paises estan mas y mas endeudados,a tal punto q solo apuntan alpago de intereses ,nadie reduce su deuda,ya que es imposible cuando el dinero es creado con deudas,y multiplicado x los bancos x reserva fraccionaria,igual los intereses q tambien son multiplicados ,no existe dinero para pagarlos y entonces se pide nueva deuda para que exista dinero,pero quedando mas endeudado y asi continuamente….
The nore debt the more more Cost if living goes up
Do like China print more money have debt desolved. That's how China did it. For China it was not magic it's common sense.
The so-called debt is a ridiculous red herring. Governments aren't like households; nobody's going to come in and repo the furniture if we don't pay our bills. But that's impossible unless Congress refuses to authorize spending. Congress actually creates whatever money it spends out of whole cloth; it's completely unnecessary to tax people or sell bonds in order to spend. The private sector depends on government spending newly created money into the economy; cutting government spending–austerity–hurts the private sector's bottom line and the economy as a whole.
The danger of government spending is that the government may create money at a higher rate than the economy generates goods and services; when that happens, so does inflation. Small amounts of inflation are good: it motivates people to invest rather than sit on their money. But significant inflation is bad, and can be counteracted by encouraging increases in productivity, taxing back a lot of the surplus dollars in circulation, and selling bonds.
But bondholders aren't lenders in any real sense: Congress doesn't need them to spend money, and the interest it pays bondholders are really just an additional subsidy to the haves at the expense of the have-nots whose benefits and services are cut back in order to satisfy WSJ and others who use scary talk about deficits and paying back the debt to enforce austerity policies like those unleashed by DOGE and the Trump regime.
This was a bit of a missed opportunity…and debt is okay until it is "suddenly" bad is clever but wrong. Example: Federal spending GROWTH and tax revenue trends show that we are spending too much more than we are are taxing too little. This is an important point to make. The worst thing is to raise taxes and raise spending more and thus limit the future magnitude of feasible tax increases to solve the problem. You get the point.
You know when you have that paper that has to written, but you keep procrastinating and before you know it's a crisis. It's like that
I gotta thank Trump for this one if this really is finally the match being lit in this gasoline, atomic bomb infested, white phosphorous laden market the bubble might actually finally pop and when it does I just hope the bankers aren't bailed out this time too.
Can one explain as $ is the global currency they can print as much as they want right and solve this problem.
The price of gold has boon creepily stable for the last month.
The war on terror did cost something
I invest in real estate since I came to the conclusion that Neither political party will fix this issue, we will just see more inflation since we can’t borrow our way out. Assets will increase and the dollar will go down.
Never Becuase is made up.
Don’t worry ????we have an experienced president ????bankruptcy.
175 is a total guess.
Doge failed
Cut loss of your spent money invest into a higher yielding dollar
Devaluation of dollar's as easy as changing countries currency to stronger dollar yes a lower amount but then receive larger returns.like a lower dollar buying Bitcoin for a stronger purchasing power or return value.
My money is on that when the day comes something truely bizarre is going to happen.
As Elon said tag this one for the future.
Related but unrelated but related, this is why I've always argued for investing social security reserves in private equities. People will argue "the stock market is volatile" and I'd say yes, it is, but the stock market has NEVER not bounced back and the day it doesn't, it'll be because we're facing economic problems so dire, that money will no longer have value anyway.
Given that most in Congress are millionaires, they won't support what is necessary to fix it
since it would take money out of their pocket.