Does U.S. debt matter? | CNBC Explains

U.S. government debt stands at more than $21 trillion. Does it matter? CNBC’s Elizabeth Schulze explains.

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[PoliticalMatter]

US is AA+ rating. Rated by US paid companies?

[jryde]

us gov invest in education??? you said prison system wrong

[philipmolina]

Suddenly everyone is now an expert on economics.

[bctopper]

If you want to blame anyone you have to blame the American people. Not enough people care enough or even know about how much debt the US has. They don't pressure their representatives in Congress enough and most aren't politically active. Change only happens when enough people demand action since most people in Congress don't want to lose their jobs by being voted out. Complacency and laziness in America is the real problem.

[sujimayne]

"Government makes money..."
No, government TAKES money.

[cyrussheets]

This post is 7 months old and the debt has gone up 2 trillion since. I wish I could get away with racking up 2 trillion in debt in 7 months..

[casienwhey]

Leaving the gold standard was a big mistake because convertibility into gold helps keep a check on debt spending.

[agent]

Short answer : yes
Next is hyperinflation followed by wars
The end

[towncenter]

I'm held responsible to manage my debt why isnt the governments?

[Drophead]

AA+ rating by the same us company S&P have been cited for contributing to the financial crisis of 2007–08 and gave Credit ratings of AAA (the highest rating available) to large portions of even the riskiest pools of loans during 2007 financial crisis

[kyleivers]

I’m glad Riley Reid went back to college and got a business degree. Very informative video. Thank u

[Singular]

21.2 Trillions debt x 3% interest rate= 600 billions which will be paid from govt budget.

IRS can collect only 3 trillions in revenue but spending bill is 4 trillions.

Interest rate is now set to rise further to around 4% next year.

It wouldnt be a problem if economic growth should continue to expand which means there are a lot of money flowing around.

However there are two problems;

1) Interest rate is on a rise and interest pay out can go up to 1 trillion dollar in a very near future.

2)US is now in a trade war which will drive economic growth down = less money in the economy = less money to refinance Treasury bond(debt) 21.2 trillions+1 trillion budget deficit.

If less investers willing to fund treasury bond the interest rate will go up even further.

Imagine govt has to pay interest over $1 trillion from revenue of $3 trillions IRS can collect.

Massive buget cut will come into play or default to honor its treasury bond payment.

Either case it would be a nightmare to even care to think about.

BTW Trump is an expert in how to handle Bankruptcy, he has a record of 6 times bankrupt.

He always walk out fine. Only him!

[samtoshi]

Just print them those papers ! And turn US to Venezuela lol

[pandem]

coming back to this in 2021, we increased it by 7 trillion in 3 years....holy shit....

[garcjr]

One very important point left out. When the US doesn't have enough money to pay interest on the debt. The Fed prints it. Then everbody pays the inflation tax.

[rboddington]

3:20, "So deep in debt when the next crisis hits that it can't spend its way out of it." Flash forward to March 2020 and the pandemic.

[kleinilyas]

0:45 xD social securiry and health care...
In the USA...haha

[Clckclck]

It's $27 trillion now. 120% of GDP so far. Higher than after WW2. And the US is losing the economic war with China bigly.

[SemiMono]

This is one of very few issues I've found where liberals and conservatives mostly agree.... seems like we should start working on it.

[chamaoui]

People world wide, not just Americans, are completely oblivious to debt. As long as they have homes, cars and entertainment they are totally blind to what’s going on. They will learn the hard way.