Why America Will Go Bankrupt

Debt monetization is the single greatest threat to America's fiscal future, and it could end up bankrupting the entire country.

Here's why almost no politician wants to talk about this hidden danger.
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[markusfreund]

Of course hardly anyone understands this. This goes so completely and utterly against any basic principle of real-world economy (not to mention "common" sense) that it is unfathomable for just about anybody just trying to apply sound spending or make ends meet. It is also how whole governments and national economies have been safely tucked away in the usual suspects' pockets for decades, if not centuries. And it's all carried out on the backs of all the untold billions of regular Joes and Janes all over the world with no choice but to function as cogs in the machinery, who are constantly cheated out of their work's worth through inflation. And, ofc, taxes, but that's a whole different septic tank. Anyway, thank you for at least trying to raise awareness of what is actually going on.

[cmmittlererminenwerfer]

It's been bankrupt for decades.
Like a tree that has been chopped down, the green leaves are only now beginning to dry up and turn brown.

[Michael_Mears]

Greenspan said as much years ago: "We can guarantee cash benefits as far out and at whatever size you like, but we cannot guarantee their purchasing power" and "The United States can pay any debt it has because we can always print money to do that. So there is zero probability of default." Cheers, from Australia.

[carloaB]

Oh my God I’ve been saying this for years and no one listen to me they keep blaming one political party or whoever’s president at the time for this issue

[adamdrouin]

Funny how economics, financial comprehension or the central banking system aren't ever taught in public schools

[gingerkilkus]

The average American is the foundation of this nation's economy, therefore if their money vanishes, unemployment will rise and the message "You have an unexpected month" will emerge. If you have a lot of student loans that are coming due, that money will run out very soon.

[blatherstorm]

Tried to explain monetization/inflation to a couple of fellas on a survivalist site, they insisted that rising prices define inflation. I appreciate all who attempt to educate folks in basic econ. Thanks.

[KingFernando]

I spent an hour and a half this morning explaining to one of my friends this concept, you’ve done such a good job at summarizing the concept and it’s logical conclusion!

[stacyrynd]

Nice, easy to understand video of one of our country’s massive problems. Thanks Nick.

[diegosolis]

The worst part of this is that it can blow up overnight.

Simply, a very influential debt buyer doesn't buy this time, this tells other buyers that it's probably a bad idea, so they don't. Now, there are not enough buyers, the government defaults.

So they either start to use governmental assets to pay debt, or monetize the debt which then causes inflation because you are LITERALLY stealing the wealth out of EVERYONE who uses your currency. Also, since this can happen anytime it results in serious problems in the stock markets because people didn't have the time to process everything so they react on instinct and the safest bets which is selling if they expect things to go down, and if something just went down overnight it means it will continue.

This in turn means billions if not trillions of dollars erased from the economy, because the value of stock starts to plummet, which means there are now EVEN MORE dollars than wealth to back it up, specially since the dollar is not backed up by anything physical per se.

This leads to hyperinflation, the erasure of wealth and as it is the nature of this world, the one's who suffer the heavier hit are the middle and lower classes, which in turn results in social unrest, which in turn devalues the money even further, which enforces the cycle.


Everything because a bunch of very old pricks decided to ignore common sense. The US is the richest country in the world because it's money removed the upper limit of worth caused by a physical backing, but it also removes the lower.

[RenegadeManta]

We practically are bankrupt. Nearly 50 cents of every tax dollar collected now goes to pay interest.

[AIuminum]

You should probably also mention the Federal Reserve isn't a federal agency. Its a private bank.

[gusloader]

As Senator Everett Dirksen of Illinois said decades ago talking about Federal Government spending: ".... A million here, and a million there, and pretty soon you're talking real money." If Joe or Jane Public writes a bad check, they get in trouble. The Washington D.C. machine writes bad checks and spends money it does not have, and they never get their hand(s) slapped.

[c.leeyoung]

We're already bankrupt we're just waiting for life to catch up with us

[rykbrown]

I absolutely LOVE how you explain complex concepts in only a few minutes. So many content creators blather on to fill time, saying very little of value. You cut straight to the point, in a clear and concise fashion, and I thank you for that.

[garyjohnson]

Last I checked, being $40T in debt and not bringing that much in is the definition of being bankrupt.

[doug]

The problem is we have an entire congress with no clue how to handle money.

[Dewitt]

It gets even worse when you realize the rest of the industrialized countries do this too, and they want the US to foot the bill for most multinational project, peaceful or otherwise.

I grow up hearing geoeconomics was a house of cards and the US consumer was holding it together.

[SG-jsqn]

End the federal bureaucracy. Federal spending went way up during covid, and they're still spending at the same rate. Wonder where your tax dollars are going? Look no further than the US southern border. That's where your money is going: to fund all of the people crossing and funding the adminstration of all the trafficking efforts.

[randyd]

Thanks for that Nick. I feel so much better now. Hopefully, I won't be around when things go bust, but I fear for those who will be here. I seriously think that day draws really, really close, perhaps before the end of this decade. Honestly, I don't know how on earth it hasn't happened already. There must be a breaking point and we must be getting ever closer to it.