The Greek Debt Crisis Explained in Four Minutes


Good morning Hank, it’s Friday! Good morning Hank, it’s Friday you know in my hug bucket? Greece. every time I see Greece just wanna give
it a big ol’ hug. I don’t, however wanna give them a 150 billion euro and therein lies
a problem. Okay, so I wanna to talk about sovereign
debt today, but just to establish at the outset that this is not a particularly
political problem here the Chart of the gross federal debt, by president as a
percentage of GDP. As you will notice, the fluctuations have
nothing to do with whether the president is blue or red. The same is true in other
developed countries as well. Okay so Hank, to begin let me tell you
one of the great rules of economics. If you are rich, you have to be a idiot not to stay rich
and if you are poor you have to be really smart to get rich. This is true for individuals but also
true for countries. Fancy Pants countries with Fancy Pants currencies have all kinds of advantages over developing countries, including that we are able to borrow
money cheaply. In fact, because the Fancy Pants countries can
borrow money so cheaply it actually often makes sense to run a deficit. And the reason for this is that in the
long term our economy can grow faster than the cheap cheap debt were requiring
to pay for our economy to grow. So that is not inherently bad for
nations. The famous example of this is that in 1945 the United States had a debt that
was more than a hundred percent of it’s GDP. And our deficit was more than twenty
percent of our GDP and that level with debt immediately preceded the largest
expansion of our economy in history. Also the largest expansion of our waistlines
in history. Yes that’s funny, we did get fat. So debt is not bad, but debt that you can’t repay is very bad. The trick of Fancy Pants countries being able to borrow money cheaply has always been that the market
assumes that fancy pants countries are basically guaranteed to pay you back. And when I
say the market assumes I mean the market iassumed until two months ago. When it realized that Greece fancy pants
country with a fancy pants currency maybe can’t pay back its debts. What’s
interesting is that Greece is probably technically in a better economic
position that America was back in 1945, but for a variety of reasons, some of them very legitimate the market is so that Greece won’t be able to pay back its
debt, which in turn has led to new debt being much more expensive, which has in
turn made it completely impossible for Greece to ever pay its debt. You see, Hank, it’s a circle,
and its vicious. That’s where they got the term.This raises the
possibility that fancy pants countries with fancy pants currencies might not pay
back the money we loan them, which will probably raise interest rates
for a lot of fancy pants countries, which could lead via the vicious circle
to more defaults, higher interest rates, more defaults, higher interest rates, I could go on like
this forever. Which will be very bad, like we would yearn for the days of 10 percent
unemployment. All of which is complicated by the fact we’re coming out of a worldwide
recession in the total economic output in the world is smaller. So there’s less money coming in taxes
but governments still need to spend approximately the same amount of money and for everybody that says the problem is wasteful
government spending we aren’t even close to a a balanced budget. I mean the United States
would have to eliminate both its two biggest expenses, Social Security and
Defense, in order to even come close to balancing
the budget. The only other way to shrink the deficit would be raised taxes which
is not generally seen as a good idea during recession. So the problem with
sovereign debt maybe not being as cheap as it once was, isn’t the fault of any one political
ideology, it’s kinda everybody’s fault. So basically Hank, I don’t want to alarm you,
but I do think we should all buy unicorn pinatas and hide our valuables in them. Actually Hank the unicorn strategy won’t work because we have to keep
loaning each other money, and we have to figure out a way to loan confidently, like we did back in 1945. That’s where the EU the IMF are working
so hard try to nail down a bailout plan for Greece. And if fancy pants countries can’t continue
to convince us that our money is as safe with them as it is inside of a unicorn pinata
they will lose the cheap money privilege they have enjoyed for centuries. And history tells us that once a stupid
rich man gets poor, he doesn’t usually get rich again, unless
he is Donald Trump. Hank, I’ll see you on Monday. Hank, I told you I’d see you on Monday, that’s your signal to stop watching but nerdfighters there is still time to participate in our secret
project click here for more info. Here, I made it a heart for you. Click.

75 comments on “The Greek Debt Crisis Explained in Four Minutes”

  1. crazy peanut says:

    Fuck euro, draxma is better!
    A burger costs 800 to 900 draxmas!

  2. ari_ lapis says:

    europe no, the WORLD needs greece

  3. Akumu74 says:

    maybe Trump should be running for president in Greece.

  4. DMSProduktions says:

    I can explain it in 1 word: MALAKA!

  5. Peter Knowles says:

    The solution for Greece is probably similar to the solution adopted by Iceland + leave the euro.

  6. Jackson DeCourcy says:

    Who's Hank?

  7. Sans says:

    Germany and trump

  8. Adrian Duran says:

    a nation of ruins, in ruins

  9. Pablo Gaspar says:

    dude he "unless". omg that deserves a mogoltauge. But in this case, its different bc its Donald Duck we're talking about, he doesn't deserve one bc he is too stupid to do anything great. Oh the irony, and he expects to make America great again lol.

  10. にゃあエイリアンMeowAlien says:

    The ending is GOLD XD

  11. TOXIC GAMES says:

    To everyone who insults Greece in some comments below: Shut up! You
    criticise only from the government's mistakes! The half of the words you
    use every day come from the Greek language! The democracy was born
    here, in Greece! Because Greece don't have plenty of money, that doesn't
    mean that it doesn't worth anything. All the shit that is written in
    comments are actually criticism to the government but they got more
    general and insulted Greece! How would you feel if your county was in
    the same situation and people from other countries wrote insulting
    things about your country? Would you like that?

    We are proud we are Greeks despite the difficulties. We won't let anyone
    to insult our beautiful country. If you don't like us, don't listen to
    OUR anthem; just go listen to YOUR anthem! Got it? We are Greeks and we
    love our country and we don't care what the hell you think for us, just
    don't tell us! WE ♡ GREECE!

  12. Mr. Skeleton says:

    i used to love germany, i still do but lately they turned to that kind of bully that grabs a younger kid, turns it around and shakes it till the last coin falls

  13. Yatsura2 says:

    Well, greek government also paid pensions to people that died over 20 years ago, so theres that… XD

  14. Emm Kay says:

    3:30 Donald Trump Reference. Lots of these in old Vlogbrothers videos. Why is that?

  15. Gnomelord0 says:

    Remember back when Donald Trump was just a joke within America rather than a joke at the expense of America

  16. Guy Geva says:

    Wait a sec. Did Trump even exist 6 years ago?
    I mean it was even before the 2012 elections

  17. XY Liang says:

    Donald Trump became the U.S. president by the way.

  18. Cj Haas says:

    Lol trumps prez now lol

  19. Chicken says:

    LOL at the donald trump thing

  20. Joshua Grahm says:

    You can't give people sh*tty loans. That is the lesson of this recession.

  21. RiNickulous says:

    Dude Donald trump is now our president. Even though historically he is the only rich man to ever get poor and then rich again.

  22. Joshua Eckhardt says:

    This is a dumb waste of time. He doesn't actually explain ANYTHING about Greece's debt. He refers to Greece as a "fancy pants" (seriously?) nation and implies it had a currency comparable to Germany or the US. They did not. He keeps referencing the US debt. Newsflash: there is nothing remotely comparable economic wise between the US and Greece. F minus on this lame video.

  23. Dwight Anderson says:

    EU's fault.

  24. Gor434 STM says:

    the government spent on luxuries, in some cases gave its people more then they needed cause they are lazy greek snobs and a great deal of them dont pay taxes, and then they almost go bankrupt and what is their solution? lets protest like little brats and demand to leave the euro zone cause they are forcing us to save some money, and that is unfair, although we borrowed billions from that same euro zone. But hey, who cares about that.. its their fault for givving it.. ain greece gonna give no money… in the meanwhile lets completely ignore this and focus on making a neighbouting country change its name and making another neighbouring country admit that their land is greek, cause we gotta get ourselfs some more occupied land if we think of solving this money problem, we are ready to change city names, county names everything thats necessary to prove our point … neighbours beware we, the incompetent pennyless hatefull grekos are coming for you, and no one will stop us cause we are the descendands of god (that is no kidding what their government has made them believe, how craY craY right? xD)

  25. Donavan Caudle says:

    we spend more on Medicare and medicade than on defense. the defense budget is only 17% of our total federal budget. you're wrong.

  26. JJ Collins says:

    so hurry

  27. Eve Leger says:

    when you sorta laugh at the trump thing but now he's president so you cry instead

  28. Duggy Dugg says:

    The Greek gvt is the same as gvts all around the world.. The jerks borrow money they should be issuing inside of gvt… Free from DEBT

    OUR DEBT IS 20 TRILLION.. HOW ARE WE BETTER THAN GREECE ?

  29. A Kh says:

    can you stop talking so fast ??

  30. A Kh says:

    I haven't learnt anything

  31. Christian Jones says:

    Damn you hindsight

  32. Eric Codecire says:

    A bunny
    ((
    ( – -)
    ((') (')

    An anti-bunny
    )/(/
    ) + +(
    )),( ),(

  33. JR NYC says:

    One word that caused Greece's collapse. "Jews"

  34. Joshua Lapura says:

    Modern Greeks are not descendants of Ancient Greeks!

  35. MC ShadoWalker says:

    Makes Donald Trump Joke 6 Years Ago Trump elected president comes in news headlines

  36. Poké Tube says:

    your so dumb. how do expect us to understand this. ur so f**ken stupid

  37. Carl Sagan says:

    Watching this when Trump is president… I hate this reality

  38. Longlive Macedonia says:

    Hi everyone check out Indigo Traveller great videos on Macedonia 🇲🇰 and other countries ✌️

  39. emil skovgaard says:

    "As you can see it has nothing to do with whether the president is red or blue" It's only the top 3 that are blue.

  40. delosombres says:

    Banksters are the problem.

  41. Robert Gorden says:

    Filled with half truths. Simplistic. The stuff that comes out of the establishment media and economists who work for banks, corporations and governments. In other words this is mostly BS.

  42. Thomas Rees says:

    John Green ??

  43. Dom Jervis says:

    If I owe you $5 and don't pay it back, you will eventually forget about it. You will just never loan me any money again.
    If I owe you $5,000, you will be on my case until I at least pay you back your prinicipal
    If I owe you $5,000,000, my problems become your problems.
    Greece is playing the rest of Europe thusly, and saying that the only way out of their "situation" is through New Loans!
    I found a roll of pennies in my desk drawer. Wonder if I can get a Greek Bond for it. I'll frame it and put it up in my room LOL

  44. rose - rosnes says:

    This was back in 2010 now it’s 2018 and we have Donald Trump as a president

  45. Jackninja5 says:

    0:28 So Venezuela?

  46. Vibhas Kulkarni says:

    Lol! That's funny 😂😂😂

  47. XDX says:

    greece should not pay a single euro back.the debt must be erase and leave from EU and Nato immediately

  48. Wolfgang Kenshin says:

    Sad that left-wingers have gone completely into hiding. Clearly, intellectual content was largely produced by those who would be critical of Trump even in his milder days, but now, they've all cowered as an incredibly vocal minority has swarmed comment sections across the web. Will no one tell them the harsh reality they need to hear?

  49. Kristoff Bjorgman says:

    Did you just predict the election of Trump?

  50. Jeff Caligari says:

    Greek debt explained in 2 minutes and 32 seconds
    https://www.youtube.com/watch?v=yLmd0100T9g

  51. salman raza says:

    Great video… question to you, since US owes most of its debt to itself (fed bank), what happens if we forgive our own debt?

  52. fastandeffective says:

    Αγαπητέ κύριε Γιάνναρε,

    Σωστά όλα όσα γράψατε, και λίγα λέτε.

    http://www.capital.gr/arthra/3290254/to-ethniko-sustima-astheneias-antikatestise-to-esu

    Θυμηθήκατε να πείτε στους δημοσιογράφους του αραβικού τηλεοπτικού δικτύου "Al Jazeera" πως επί κυβερνήσεως Νέας Δημοκρατίας χιλιάδες απόφοιτοι Ιατρικής του ΑΠΘ πλήρωναν 300 ευρώ σε διεφθαρμένους καθηγητές Πανεπιστημίου για να περάσουν με άριστα τις πτυχιακές τους εξετάσεις;
    Ακόμη δεν ανακλήθηκε κανένα από αυτά τα χιλιάδες αγορασμένα πτυχία του ΑΠΘ.

    Θυμηθήκατε να πείτε στους δημοσιογράφους του αραβικού τηλεοπτικού δικτύου "Al Jazeera" πως επί κυβερνήσεως Νέας Δημοκρατίας 2.000 διεφθαρμένοι γιατροί ΕΣΥ, στα δημόσια νοσοκομεία, τοποθετούσαν ακατάλληλα ορθοπεδικά σκευάσματα της εταιρίας DePuy σε νοσηλευόμενους ασθενείς, για μίζες;

    Θυμηθήκατε να πείτε στους δημοσιογράφους του αραβικού τηλεοπτικού δικτύου "Al Jazeera" πως επί κυβερνήσεως Νέας Δημοκρατίας 4.500 διεφθαρμένοι γιατροί ΕΣΥ, στα δημόσια νοσοκομεία, υπερσυνταγογραφούσαν απερίσκεπτα πανάκριβα αχρείαστα πρωτότυπα φαρμακευτικά σκευάσματα της πολυεθνικής εταιρίας Novartis, για να λαμβάνουν τακτικές παχυλές μίζες από τον τροφοδότη Ελβετικό τραπεζικό λογαριασμό της πολυεθνικής εταιρίας στους εδώ καταθετικούς τους λογαριασμούς;

    Έως πότε θα καταπίνονται τις δικαιολογίες τους για τη διαφθορά με το τσέπωμα μαύρου χρήματος, οτι δήθεν έκαναν κλινικές νοσοκομειακές έρευνες, οτι δήθεν έκαναν ομιλίες σε διεθνή συνέδρια, οτι δήθεν δημοσίευαν επιστημονικά άρθρα, οτι δήθεν έκαναν παροχή ιατρικών υπηρεσιών στα στελέχη της εταιρίας, κτλ;

    Πότε θα παραδεχτεί ανοιχτά η Νέα Δημοκρατία οτι όλοι αυτοί οι επικίνδυνοι επίορκοι γιατροί έθεταν εσκεμμένα σε θανάσιμο κίνδυνο, κατά συρροήν, τους ανυποψίαστους νοσηλευόμενους και μη ασθενείς;
    Πότε θα παραδεχτεί ανοιχτά η Νέα Δημοκρατία οτι όλοι αυτοί οι φακελάκηδες τσάκισαν οικονομικά τα Ασφαλιστικά Ταμεία, τον ΕΟΠΥΥ, το ΕΣΥ;
    Πότε θα αποδεχτεί επιτέλους η Νέα Δημοκρατία οτι 4.500+2.000 γιατροί ΕΣΥ, περίπου ένας στους 2 δηλαδή, έπρεπε και πρέπει να απολυθούν οριστικά από τα πόστα τους στο ΕΣΥ;

    Γιατί δυσκολεύεται να παραδεχτεί τα αυτονόητα το κόμμα της Νέας Δημοκρατίας;
    Μήπως οι 4.500+2.000 γιατροί ΕΣΥ ήταν κομματικά στελέχη της κεντροδεξιάς παράταξης;
    Μήπως υπήρχαν συμφωνίες κάλυψης των παρανομιών των διαφόρων φαρμακευτικών εταιριών σε ανώτερο πολιτικό επίπεδο;
    Μήπως γνωρίζουν οτι υπάρχουν και δικά τους υψηλόβαθμα πολιτικά στελέχη μπλεγμένα σε αυτές τις κακουργηματικές υποθέσεις, οπότε κάνουν το παν για να καλυφθούν/ξεχαστούν/παραγραφούν τα εγκλήματα;

  53. Red River says:

    mentioned Donald trump before he was ultra-infamous

  54. Debbie Disla says:

    I’m just saying I’m greek but if u talk any bad about Greece don’t ok you could but GREECE IS THE MOST BEAUTIFUL PLACE EVER greeks are the best ppl ever some ppl r good some bad but most good they had debt but went through it YAY CANT WAIT SO EXCITED TO GO TO GREECE NEXT YEAR WITH MY FAMILY! YAY!YAY!

  55. Transcendian says:

    I didn't know MMT in 2010 either. The Fancy Pants Euro the Greeks use is not their currency. Hence the Greeks were conquered by the ECB & German Banks. 14 Greek airports are now owned and operated for the next 60 years by the German Management Corp. Fraport. Italy was advised by Warren Mosler to use the Lira in and for Italians without outright rejecting EU membership but saving itself from the same Econ War as enslaves Greece. In the US during the Trump Admin. States are being set up for debt as they do in fact suffer from the same vulnerabilities as the nationstates of the EU. Why this was not a problem before had to do with how Congress voted for Bills that distributed US Treasury dollars throughout the States. "States have to get used to doing without the help of the US Treasury." Steve Minuchin US Treasury Secretary. He may as well have said "The US Treasury is the exclusive reinsurer for Wall St. banking & Goldman Sachs." The US Treasury is elastic & not at all like the State Treasuries that are dependent on taxes and finite. The US Treasury will provide the money for whatever the US Wants to buy to very large numbers for things & services sold in US dollars that it makes. There is no danger of hyperinflation as in Weimar Germany because Germany had to get French Francs to pay for its war debt. It is like how nations induced to borrow from the IMF have to pay in US Dollars. Next thing you know all the rich grab up the US Dollars and move that money somewhere else and make their poor and working people pay. Current case is Argentina received 50 billion from the IMF. All of it is Economic Warfare in Capitalism.

  56. Derk guez says:

    It's cute how he presents himself as an impartial narrator and begins the video with 2 min rant about how debt isn't that bad Hahahahahha nice try there Mr. GREEN

    If you really want to fool us into believing that you're impartial, describe the situation objectively and then describe how both sides of the political spectrum understand it….

  57. ASMR STINGly GAY TRIGGERS says:

    Greece is the best civilization of the ancient time….but what Happed now.

  58. Harry Potter says:

    I want a unicorn pinyata! 😢

  59. Jeronimo Tamayo Lopera says:

    LONG LIVE DONALD TRUMP.

  60. Eric Claeyborn says:

    I can explain the Greek debt crisis in one word… SOCIALISM.

  61. Tapiwa Ndudzo says:

    Slow tf down 🙄

  62. Scott Korin says:

    As of 2019, the Greece debt crisis has settled down. I am not an expert, but I'd you are interested in how, I'm sure there's a good article about it somewhere

  63. ras yildo says:

    GREXIT.. Greece should leave the EU. Every day it is getting more poor and more debt.. After GREXIT, Greece should deny the DEBTS..MERKEL is running the country…Everything sold to Germans..

  64. Jim Field says:

    Would any one join the Euro?

  65. ҉K҉N҉I҉G҉H҉T҉F҉I҉R҉E҉6҉6҉ says:

    greece is a dumb country. you live in the middle of eu. you are getting billions of €€€ from eu. your negihbor is after china the biggest growing country in the world and according to real growth maybe faster then china. but still you somehow manage to get bancrupt and stay bancrupt for decades xD

  66. Trill • Force Hound of Predor Skal'Nas says:

    Look at all of these brainwashed people. Jesus Fucking Christ.

  67. stochastic24 says:

    This is filled with falsehoods. Did you even research anything you said or think about it?

  68. Jürgen Grabner says:

    I vási mias enoménis Evrópis eínai i epísimi glóssa, dedoménou óti aftó dimiourgeítai móno símera, aftí i Evrópi den eínai pragmatiká epithymití! An egó, os Evropaíoi den boroún kan na diavásei to mou í epísimi glóssa ton apofáseon tis EE, í tha éprepe, i EE eínai éna diktatorikó kataskévasma! Antí gia mia enoméni Evrópi dimiourgíthike i Vavylóna !!! Kai étsi eínai na katastrépsei tous ygieís anthrópous! I EE charaktirízetai apó diarkeís paraviáseis tou nómou kai epiválletai apó tis mi kyvernitikés organóseis se város ton laón tis Evrópis kai ektíthetai se politikés apeilés kakóvoulou, analithí politikí! Eínai oi megalýteroi laïkistés kai politiká parásita pou emploutízontai me tous forologoúmenous kai ypiretoún ton eaftó tous !!! Ópos U.a. K. SPD-Scholz, amoiví symmetochís 365 imerón !!! Pará to gegonós óti i eniaía agorá tha prépei na échei apístefti anáptyxi ypotíthetai, aftó eínai to mikró ánthropo sto drómo stin Portogalía í tin Elláda, eíte stin Italía í tin Irlandía, aftí i díthen megálo gegonós den eínai típota, apolýtos típota gia na eínai !!! Den eínai megáli i Esthonía, i Lithouanía, i Irlandía kai óla ta álla prépei na agonistoúme gia tin anikanótita ton politikón mas parasíton stin BT / EE perí aferengyótitas ámesa? Poios ypothétei óti i Germanía prépei na plirósei, poios tha eínai láthos! Eínai díkaio? Eínai i enopoíisi tou chréous sti synthíki tis EE? Óchi! Aftí i omáda MKO, oi ekprósopoi omádon symferónton kai ta chrimatopistotiká systímata ypodoulónoun tous eléftherous laoús !!! Xaplónoun kai exapatoún !!! sígoura na meiósei tin EE sto eláchisto, den eínai sýmfono metanástefsis, ópos i evropaïkí neolaía mas eínai ánergoi, kai Reislammisierung kai den chreiázetai peraitéro exislamismó !!! Ópoios échei diavásei to Koráni, saría kai tzichánt, xéro óti to Islám den eínai mia thriskeía me tin énnoia tis pnevmatikótitas, afto-anakálypsi kai tin anazítisi gia tin fótisi !!! Kai nai, móno mia Evrópi tis Patrídas kratá tin Evrópi mazí! I Gallía sta galliká, i Italía stous Italoús, i Polonía stous Polonoús kai oúto kathexís !!! Sti synécheia, na synergasteíte se pragmatiká thémata! Allá óchi perissótera vaktíria pou diatypóthike apó psychikés asthéneies poinikí paiderastí marxistés, kapitalistés, sosialistés os mia néa pankósmia thriskeía ston apóicho mias néas pankósmias táxis (ta paidiá Ticker) NWO! Se mia Evrópi tis Patrídas, Amín !!! Allá apó 5/26 eínai ta Christoúgenna kai to ble thávma égine Jürgen ♥ ♥ ♥ ♥ ♥ 😂😂😂 prósfata Jürgen 🙏 Namast'e

  69. email saya says:

    ten seconds explanation:
    1. Greeks are lazy, they thought when they joined EU, every Greek would get billion euro for free
    2. corrupt government

  70. Yeo Wei Shain says:

    Dude, you didn't touch on the Greek economy

  71. Simo Haya says:

    greece a nation of thieves that stole the money from hard working European tax payers

  72. Rubicon Cinematics says:

    Why the hell did John from 2010 just mention Donald Trump?

  73. DoctorX17 says:

    John, it's 2019, and there's nothing to click for the secret project

  74. frengt terma says:

    Love Greece from Turkey

  75. kathleen smith says:

    Kid is TOTALLY CLUELESS — sad that people are viewing him. The IMF and ECB are not looking to help Greece that is a lie —- Greece is like a guy who gets a sub prime loan — the BANK IS NOT YOUR FRIEND. It is called predatory lending and when Greece can't pay the debt back (which the IMF & ECB know it can't) – Greece will be forced to privitize its infrastructure PORTS, Rail Roads, Airports, Roads, Parks — ect. These things will be bought up on the cheap with borrowed money by Private Equity and Hedge funds —- the people will be left enslaved to these new masters. Whose families will have a forever toll road that makes it so they will never ever have work or do anything again. This is the Plan.

  76. Melanie s says:

    Lol shitty greeks. Steal Germany the money. Germany should buy this crap country for 5€. More not

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