The Crash Course - Chapter 13 - Debt
Economy | Information | History | Online | Facts | World | Global | Money
The fundamental failing of today's global economy can be summarized simply: Too Much Debt We have taken too much of it on, too fast, in too many markets around the world, to have any hope of making good on it. Not only does the math not work out, but also on a moral level, we are placing a tremendous obligation on future generations that will unfairly limit the prosperity they can enjoy tomorrow in order to finance our consumption today. In the US alone, total credit market debt stands at over $57 trillion and is doing its damnedest to continue expanding exponentially. Since simple math shows us that this debt level cannot be supported, the key questions to ask at this stage are: Will the unsupportable debt disappear via default, or inflation? And very important: When these debts do disappear, who will take the losses?
Comments
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ààànd ààànd ààànd :-p
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fantastic material
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The 735k per family isn't really accurate. That's an average of all debt but every family isn't really the owner of that debt.
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hey Chris, what do you think of Japan and their way of approaching the problem. They basically tried to stop the debt from growing via austerity and that didn't work, the country went in a very bad recession. Now it just seems that they embraced even more the concept of "debt", they are over 1 quadrillion... what do you think about it? thanks
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If the government owes so much money to its citizens, the population must be very wealthy ..providing they get their cash back...which is doubtful.I guess?
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Chris -
It would be desirable if you created a "YouTube playlist" which includes an ordered list of all of your "Crash Course" videos. -
"They" in my previous comment is the Federal Reserve. "The federal government accounts include the two Social Security trust funds, which together hold 16 percent of the total federal debt."
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Also a note: if debt doubles let's say in every 10 years, in 2114 everybody will owe 200 Billion USD, and in another 100 years everybody will owe 200 Trillion. If you believe in infinite growth and you assume the purchasing power doesn't increase so much and you will still have a 100 USD bill then... it means 1024 and 1048576 times bigger GDP, which at our level means if you today buy one car in every 5 years, in 100 years, you will buy a car in every 2 days. In 200 years you will buy a car in every 3 minutes. Of course it is nonsense, the future consumption can't follow the debt growth and "grow out the debt".
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I would like to make a note. At 8:00 you see a chart massively getting bad after the gold standard was fully dropped. Since than everybody on the world have "just a paper" money backed by the faith of people. And once the "money" fails, the faith won't be restored. Check out the history of Hungarian Pengő. I have a silver 5 Pengő, a hundred from the same time, 6 years later a billion, and few months later they printed 100 quintillion note (20 zeros aftet 1). Note that the silver 5 pengő after few days of printing out this huge note worth more. Think about it, what does guarantee that the USD can't get into this spiral? Maybe in lower scale, but the danger is evident. You will just get used to salaries in millions and gasoline in hundreds, these are just numbers.
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You can actually prove that the future cannot be substantially more than the present by looking at energy markets. Energy closely correlates to GDP, and we are running out of cheap energy. Also our planet is hitting its pollution capacity. Labor means nothing if we can't use more energy to amplify our stable labor resources.
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Thank you for posting such a clear account of this topic. I now undertsand it better. God help us in the future!.
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Well Explained and an Eye Opener of Debt per person in the USA
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Who do we owe this debt to? Do you have the data that show where this debt go to and who is borrowing? Does this $57 trillion include the CDS?
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Great information...thank you.
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