How Can the US Keep a Trillion Dollar Debt?


If you look at countries with the most debt
compared to their GDP the USA is not top of the list, and we could say that’s a good
thing for the country. That’s because when it seems that a country
is unable to pay the money back it could lead to panic and hamper economic growth. According to the World Bank the debt-to-GDP
ratio shouldn’t exceed 77 percent for a long period of time or the economy will suffer,
and indeed the USA’s debt is over 100 percent of the GDP. We looked at a live USA debt clock and it
told us the country’s national debt was almost 23 trillion dollars, which if you divide
that between every citizen it would mean each person owes almost $70,000. Whether this should bother the average American
is something we’ll look at today. Before you get worried we should say that
just about all countries have a national debt, not every country, but almost every country. These debts are for the most part sustainable,
but some countries do owe way more than their GDP. But these countries don’t just go broke. A country doesn’t just stand around pulling
out its empty pockets saying sorry guys, we don’t have any money, we can’t even afford
to cut the grass at the Royal Palace. With that in mind, how does this national
debt thing work? We went to the website The Balance because
when it comes to matters of money those guys seem to have all the answers. We’ll let The Balance explain the two kinds
of national debt. This is what the website said:
“The first is debt held by the public. The government owes this to buyers of its
bonds. Those buyers are the country’s citizens,
international investors, and foreign governments. The second type is intragovernmental debt. The federal government owes this to other
government departments. It often funds government and citizens’
pensions. An example is the U.S. Social Security retirement
account.” The federal government spends the cash, say
on military, and in the USA that’s a huge amount of money. Healthcare is also a big expenditure. But when the government spends people find
work and they in turn spend and this keeps the economy healthy. So in a way it’s good to keep that spending
going. If the debt remains moderate then the interest
rates on the debt can stay low and in turn the government can keep its deficit without
getting into trouble. It’s only when the deficit is too high and
the debt becomes unsustainable that bad things happen. We are told the small increases in debt are
good for the economy, but if the increase is too big this will lead to skyrocketing
economic growth. That might sound good, but with the boom comes
a bust. What goes up must come down, so countries
are careful not to spend too much too fast. The Balance tells us that debt that just keeps
rising over a very long period of time will at some point lead to a slowing down of economic
growth. The interest payments will have to be paid
and so at some point some cash needs to be paid back lest the debt get out of hand. If things do get out of hand then the outcome
will be less spending and that will mean businesses borrowing less and people not being employed. Interest rates will also rise. This is bad for everyone. If people don’t have a job they spend less
and in turn businesses lose out. If no one is borrowing because of high interest
rates and fewer people are working and not spending what can happen then is a recession. No one is borrowing and no one is buying. Now the banks are looking at this country
and thinking, hmm, it can’t pay its debt so we are not going to invest anything. They worry the country will default on its
debt. Inside the country you have a recession and
no one wants to invest in that country. At some point the country in recession just
can’t pay off its debt and this could lead to a financial crisis such as what happened
in Greece. So if anyone is going to invest in this country
in crisis they will demand high interest rates. This will slow the economy and it might lessen
the value of the currency of that country. The Balance explains it like this:
“As the currency’s value declines, foreign holders’ repayments are worth less. That further decreases demand and drives up
interest rates. As the currency declines, imports become more
expensive. That contributes to inflation.” How does any of this affect you? Well, two-thirds of the U.S. debt is actually
owned by the public. The other third is owned by federal agencies. The public owes around $15 trillion, and as
you know, that’s around $45,000 per person. The U.S. per capita income is $33,205, so
how does this work out? If what the USA makes in one year, the GDP,
is less than it owes then how come it just doesn’t go bankrupt and have one of the
crises we have talked about? The simple answer is other countries have
a lot of faith in the U.S. economy so countries such as China and Japan keep investing. This keeps the interest rates in the U.S.
low and so the crisis is kept at arm’s length. Now, the problem is if the debt just keeps
increasing and countries start to lose faith in the USA to pay back its debts. Experts tell us the debt will indeed keep
rising, and some economists are worried that countries will soon start demanding higher
interest rates. This could lead to a financial crisis in the
USA. In an article called “The National Debt
Dilemma” this was written: “By 2023, the deficit will have risen for
eight consecutive years, the longest such streak in U.S. history, surpassing a five-year
run during World War II. On this steep trajectory, the publicly held
U.S. debt will nearly double to more than $29 trillion over the next decade.” But does this even matter, lots of countries
have debt? According to the experts it could matter,
because if interest rates rise then more money will have to be spent on this debt. That could mean less cash going on things
such as infrastructure, education, or research. This slows the development of a nation, of
course. On top of that, how much money is spent on
humanitarian operations around the world, or overseas military actions, will also be
affected. If countries start seeing the USA struggle
they will also likely stop investing, and this will in turn be bad for business and
bad for the average Joe in the USA who is looking for a job. He will have less cash to spend and the economy
will suffer. The very worst outcome is what experts call
a debt spiral and a financial crisis. The article we just mentioned said this is
what might happen after that: “It could hamper the country’s ability
to navigate future economic crises. In the view of some experts, massive debt
accumulation could undermine U.S. global leadership by eroding Washington’s ability to respond
to future crises.” We found some politicians that said the debt
and the future debt is not sustainable and indeed the USA is heading towards a crisis. This will weaken the country and it might
not be such a powerhouse as it once was. Erskine Bowles, the Democratic co-chair of
President Obama’s bipartisan National Commission on Fiscal Responsibility and Reform, said
this, “If I had to give you an analogy, I would say that the deficits are truly like
a cancer, and over time they are going to destroy our country from within.” But we should say a lot of people don’t
share this doomsday scenario opinion. They say the deficit is sustainable but most
agree that it should be reduced over time. Some economists argue about this a lot and
there is an ongoing debate as to how much this debt matters. And that’s kind of the current argument. Some people are asking does the debt even
matter and others are talking about a crisis in the pipeline. Many say as long as the economy remains robust
then there is just no need to pay off the debt. That economy is pretty vibrant as things stand
and the US dollar is in good shape, so at the moment the debt is very much sustainable. Whether it will remain so is a divisive issue. Does the debt actually matter? Tell us in the comments. Now go watch “What If The US Budget Was
Only $100 – How Would It Spend It?” Thanks for watching, and as always, don’t
forget to like, share and subscribe. See you next time.

100 comments on “How Can the US Keep a Trillion Dollar Debt?”

  1. k0p says:

    Just came here to laugh at the comments of people thinking sOcIalIsM and wEaLtH rEdIsTrUbUtIoN will magically solve all of their problems.

  2. Sabizo Ojoj says:

    how can a country with a private bank end up like this LOL

  3. Alex H says:

    Finally it's gonna reach 23 million I mean billion I MEAN trillion, whell the debt is going a bit slow latelly we need to do more accomplishments.

  4. goldreserve says:

    1. US debt is in $US, currency may be devalued long term but no risk of default
    2. Global interest rates are falling or even negative so cost of debt falls
    3. Rates are still higher in the US than competing reserve currencies Japan, Euro, British pound
    4. Triffin's Paradox. As world reserve currency US must maintain enough $US supply to meet global demand

  5. Alex H says:

    A ressesion whell Hong Kong will have that and US will spend money and HOW DO GOVERNMENTS HAVE MONEY AND GIVE IT TO EACHOTHER THE CURRENCYS ARE DIFFERENT!!!

  6. Andras Jonas says:

    I'm afraid it will have to be written off one day. I have no clue what is going to happen, how it's going to play out: war, crisis or a boring afternoon but it will happen. There is no way of bringing it back to manageable levels within a reasonable amount of time.

  7. thorium222 says:

    As long as a democrat becomes president once in a while and reduces the debt again as they historically usually do, then this is nothing to worry about. If the republicans continue to get the presidency, although fewer people vote for them compared to the democrats, then the US will go bankrupt rather sooner than later. Trump for example does an excellent job in eroding any confidence in the US, going constantly back and forth on his word and portraying stupidity on a whole new level that even George W. Bush didn't reach.

  8. bigtx77 says:

    obama added 11 trillion to the debt.

  9. Martini says:

    Actually it's a debt of 26 trillion and currently going up by 45.486 thousand dollars per second.
    Every citizen has a debt of 85 thousand dollars. And every working citizen has a debt of 146 thousand dollars.
    But no, you're right Trump is doing great👌

  10. Jeferly Giraffe says:

    While here in Canada we're only in 2.2 trillion CAD in debt 34%.

  11. contrerados says:

    How can the US keep a trillion dollar debt?

    It makes others pay for it. The US Armed Forces is a debt collection agency

  12. darkking98 says:

    We need communism

  13. shiva Subramanian says:

    As long as US spends more money than any country on earth to stay updated on the technology especially on military. There is no need to worry & don't forget about the federal reserve (the central bank of central banks).

  14. Cocoa Heart says:

    Sometimes I wonder..why do we have money? Why can’t we share? Then no none would suffer.

  15. iamagi says:

    How could not have data from Sweden for national debt?
    It super easy to find.

  16. Striker says:

    Read it as “Trillion dollar bet” and was never been so confused

  17. Vinzy says:

    Brcause we have a hulk

  18. Adam Zain says:

    yay Malaysia is 100% percent or more ( oh sorry 😔)

  19. gck82s says:

    HAHAHAHAHAHAHA The dollar is dead, the usa is bankrupt

  20. Money Recall says:

    Debt creates the money so paying it off destroys money. Meaning that paying off all the debt would eliminate the money supply.

  21. james adams says:

    Don’t go poor. Not broke.

  22. Kuba Šperkis says:

    I think U.S. will invade Venezuela soon

  23. Martin de Vries says:

    My country, The Netherlands is orange, more than 100 percent, actually it is 50 percent(exactly in 2019), Belgium to the South has more than a 100.

  24. Zid96 says:

    So it short its all ok till China say no more money for you and well go into depression with no way out.

  25. Jasper Edwards says:

    lesson from thr US :
    Own the bank a million dollars, the bank control you.

    Own the bank trillions of dollars, you control the bank

  26. Aaron gibson says:

    Americans that one friend that keeps asking to "borrow "money and says they will pay you back but never does

  27. Lycan Thorpe says:

    Thanks Boomers

  28. Norbert Hegedus says:

    And that's why Bitcoin will rise, like a phoenix from the ashes! We need decentralized money and payment system!

  29. DK RT says:

    print fiat money tax on invented money

  30. Marv says:

    Just wait for the next economic crisis the US will die.

  31. ironcityblue says:

    Everything will be freeeeeeeee because duh wun pursent!!!!!

  32. Harold 2526 says:

    Does anyone see those things at the top left?
    Reminds me of the Roblox menu
    You can see it pretty clearly at 0:54

  33. Weed says:

    It’s all about paying someone back

  34. Clifford Cadio says:

    When you’re in so much debt, rebels may occur.

  35. KI Ryan says:

    Debt makes the world go round

  36. Wilhelm Huber says:

    Fiat currencies is per the definition enslavement. This video was probably sponsored by Rothschild and Rockerfeller.

  37. Cameron Sams says:

    We pay in payments

  38. Byte and Barq says:

    How to pay back debt: pay it back in annuity. One day at a time.

  39. Rob Grant says:

    It’s a Shell Game
    We owe China
    China owes US, pun intended

  40. Toasty_42069 says:

    Go watch Half As Interesting’s video called a trillion doller coin.

  41. M1Z says:

    You guys should be a news team not on tv but like on the internet I know you guys a trusted source so I would really appreciate if you guys expand your business

  42. NateAtNyte Gaming says:

    America be dumb sometimes

  43. a b says:

    the usa has atleast 100 trillion debt so in what reality are you living and its more around about 200 trillion if they would come clean

  44. Moey M says:

    This is the scam of capitalism to keep people in dept

  45. NIEDERHOFER TX says:

    How much money do other countries owe the US?

  46. SUS a.k.a. Pink Guy says:

    is Bailout not an option?

  47. SUS a.k.a. Pink Guy says:

    gets born already in debt US goverment: Stonks

  48. geoffrey max Mordecai says:

    The debt doesn’t matter as long as our constitution and the valor of our people are manifest destiny and American Exceptionalism!

  49. Tim Z says:

    Why pic shows unhappy man just don't pay back debt should not exist

  50. Matias Rømer says:

    Money is simply a tool the elite uses to control us all. And when there is no clean water and no food left. We'll realise that money cannot be eaten and is indeed worthless.

  51. Ultimate Loserking says:

    U. S is too much burger

  52. John Miller says:

    When it comes crashing down in 2025, thank a boomer

  53. Tupac Shakur Remixes says:

    Who do we owe the debt to though?

  54. Sariq Ahmed says:

    Does the Debs Matter?
    Depends on China

  55. bhwre says:

    Buy silver

  56. WayneTwitch says:

    Well it don't help country's owe us 16 trillion so really we are not in dept that much

  57. zhi pei zhou says:

    2019: this video
    2020: how can the us keep a 2.8 trillion dollar debt

  58. lonelyPorterCH says:

    Wenn, switzerland hasnt so much debt and I like that^^

  59. OIL says:

    0:52 ok Greenland,mongaila se, SWEDEN!

  60. Dr Jp says:

    Am I the only one who thinks it was a pretty naive approach about that situation?

  61. Duricas says:

    This is why i don't vote democrat.

  62. Paul Michaels says:

    The only reason the US debt is manageable at the moment is artificially low interest rates, the federal reserve is suppressing interest rates by purchasing us bonds and pumping money into the banks..

  63. Superboy 16 says:

    2019: How can the U.S keep it’s Trillion dollar debt?
    2029: How in the world could the US keep it’s quadrillion debt?!

  64. Nospam Spamisham says:

    There is no debt.

    What you call the national debt are promises the current government has made to earmark funds for future projects. Future administrations are going to flat out ignore all of this and spend money however they wish.

  65. blackandgold51 says:

    One of the main reasons the USA is in debt of high is because for one,the government spent as in military , spent too much of the F35. Which the funds for the F35 could've instead wen into other existing aircrafts with update/upgrades , such as the F15/F18s

  66. xd TatorTot 823 says:

    Just make more money

  67. masterhause says:

    Britain is still waiting on the US to give that money back

  68. name surname says:

    Because no one can bill them since they are the foremost military power?

  69. banana king says:

    Do a face reveal with your girlfriend

  70. The SOVIET SNIPER says:

    The title: How can the us keep a trillion dollar debt
    Them: first let’s waste time on talking about obama

  71. I would fuck that says:

    so does that mean I'm not really broke, just ecological growing?

  72. Toby G N says:

    I apologise for all the comments i spammed a few days ago i was just exited and wanted to know more about the new russian missile I am sorry i dindt think it through before i did it

  73. Banks of Barcelona says:

    The petrodollar means debt isn't an issue

    Until it collapses of course

  74. Brad Schmidt says:

    international trade and transaction are based on US dollar, bigger the debt help raising its monetary value, higher monetary value will increase purchasing power for US consumer and open up bussiness opportunity in foreign country. debt isn't always bad espesialy if your debt raising your own curency
    sounds complicated?

  75. Shen Bapiro says:

    Abolish the three big welfare programs and problem solved

  76. YeshuaAgapao says:

    They redefined what could be counted towards GDP in the last decade, allowing it to be inflated without actual real growth.

  77. YeshuaAgapao says:

    Trump is a professional in running up debt and renegotiating it away.

  78. rhynoklein7 says:

    Give all US citizens a UBI

  79. ime1729 says:

    It doesn't matter. It's just introducing money into the economy.

  80. noah wiggs says:

    The us has a bubble economy and when it pops its investors will have to take a haircut. The only question is will the us default or will it print money to pay for its debts and unfunded liabilities.

  81. Mr. Jag says:

    type HESOYAM few time

    (spoiler: GTA SA)

  82. Gersain Castelan says:

    So if you have dual citizenship you own two debts??

  83. CONQU1XD says:

    VOTE YANG 2020

  84. ASSAULT VEHICLE ACQUIRED says:

    So if y’all need money then just print more money. Simple.

  85. Andrew Keener says:

    I feel that the United States needs to payoff its debt.

  86. Djdakiller325 / Dj Studio's says:

    U.S.A. :Prints there own money

    Also U.S.A. :Can’t pay debt

  87. THE BUDDHA 420 says:

    If I go into debt one dollar I can no longer get money but they’re 23 billion and just keep going wish I could do that

  88. Jonathan waugh says:

    Seems to be a propaganda video..
    If I didn't know better

  89. Ben Anderson says:

    XRP/ODL/eSDR/Reset coming to the world in 2020

  90. M AL-RASHID says:

    The last infographics of the year !<33

  91. Bruce DaBuc says:

    What if we print 23 trillions to pay for it? 🤪

  92. David Lee says:

    Why u think the US started a trade war with China ?

  93. Walter VT says:

    70k each citizen or family!?! Very different.

  94. Jason Gastrich says:

    Credit rating is important.

  95. TheMatrix101 says:

    well seeing as the united states foots the bill for almost every single country's defense….id say it's pretty easy.
    time for those countries to start paying up though.

  96. TankiGaming with RichardRocks2016 says:

    Maybe because they threaten all of the countries that speak up?

  97. Nightenstaff says:

    Debt also helps maintain peace. When we take money from another country, a clause says the debt will become void if we ever go to war with that country. This makes war vastly more expensive than without that agreement and becomes a factor when deciding to go to war. Also, even though we have a huge debt, we loan money to people; including the people we're borrowing money from. When you weave all the threads together, it helps mellow out large debt. All that said, the US debt is approaching too large. And it can become a factor if US ever loses global support.

  98. am d says:

    How did you like the Rothschilds illegally creating the Federal reserve in your country America….A nation in debt means it's people are slaves….Throw out the Usurous Rothschilds and their minions and problem solved

  99. The Lego Reviewer says:

    Just sell some nukes off to North Korea

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