The TRUTH About the National Debt

The national debt at $30 trillion is a staggering amount. However, it doesn't even come close to the total of the true debt load, which includes unfunded liabilities. But with the recent few years, we know that the federal government spends money into existence through debt monetization via the federal reserve money printing. So with the Fed backstopping the deficit, does the debt even matter anymore?

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I am not a CPA, attorney, or licensed financial advisor and the information in these videos shall not be construed as tax, legal, or financial advice from a qualified perspective. Linked items may create a financial benefit for Heresy Financial.

#debt #fed #inflation

[johndrake]

Laurence Kotlikoff, a professor at Boston University, had calculated total unfunded liabilities at some $210Trillion around 10 years ago or so. He has been periodically publicly warning about this but has been predictably ignored by the media.

[forspamhaha]

Please never stop, I absolutely love these videos. Thank you for the all the effort you put into making them.

[dragonslayer]

Its like a bunch of college freshmen signed up for a credit card behind their parents back but theyre the heads of a nation and the parents are 300 million citizens trying to survive

[MMikeP]

The "Great Society" was a set of domestic programs in the United States launched by Democratic President Lyndon B. Johnson in 1964-65. The main goal was the total elimination of poverty and racial injustice.
Johnson signed into law both the Elementary and Secondary Education Act and the Higher Education Act, federalizing public and private education in ways that had been unthinkable in the American experience until that time. Johnson and his team were the architects of two new massive entitlement programs that would provide health care for older Americans and for the poor, Medicare, and Medicaid. Never before had there existed a permanent, immovable role for Washington in an Americans health care coverage.
Medicare had about 20 million people enrolled by 1966; there are 60 million today; there will be 80 million within two decades. Medicaid began with 4 million beneficiaries; today, that number is 70 million.
Johnson didn't stop there. New programs emerged in a steady stream. Food stamps, arts and humanities agencies, environmental edicts, a new Department of Transportation, and a new Department of Housing and Urban Development. The modern welfare state was born.
Johnson, in a speech at Washington's Howard University, suggested that poor black families should be given a guaranteed, government-provided income. Johnson and his policy team believed that expanding government funding for broken families would help save them. Instead, it incentivized single mothers to remain unmarried. By expanding welfare state programs to Americans who were already experiencing serious stress and hardship, it deepened the problems of illegitimacy, fatherless homes, and other cultural problems. Millions of Americans soon were engulfed in permanent chaos and dysfunction. A plague of fatherlessness ensued, with nearly 72 percent of all American black children being born to single mothers by 2015.
Johnson came to office in late 1963, more than 90 percent of American babies were in homes with married parents. The 1960 census showed that nearly 9 of every 10 children from birth to 18 years of age lived with married parents. While illegitimacy had grown to about 8 percent from 4 percent between 1940 and 1965, it then exploded. By 1990 the rate would be nearly 30 percent.
Today more than 40 percent of all Americans are born to unmarried mothers. More than 3 of every 10 children live in some arrangement other than a two-parent home. Cohabitation continues to climb and has become an acceptable norm for millions of Americans.
Political economist Nicholas Eberstadt of the American Enterprise Institute concluded: The official poverty picture looks even worse the more closely one focuses on it. The poverty rate for all families was no lower in 2012 than in 1966. The poverty rate for American children under 18 is now higher than it was then. The poverty rate for the working-age population (18-64) is also higher now than back then. The poverty rate for whites is higher now than it was back then. Poverty rates for Hispanic Americans likewise are higher today than back then.
As Ronald Reagan, who was California governor during some of the Johnson years, said, "In the 60s, we waged a war on poverty, and poverty won."

[deadend]

It's all nonsense. Unfunded liabilities are a serious problem but you can't even count it when you have a debt based currency system and a government that operates in the negative. You're just compounding negatives. This isn't an economy it's a joke and it has been for 80 years at least 50.

The thing is debt isn't money we've been using it as money since either 1971 or 1913 depending on how you count it but it's not money.

Entire problem is the United States went bankrupt in 1933-4 and has never come out of bankruptcy.

[atananaev]

I think the reason why the US was able to sustain this system for so long is that the US dollar is the global reserve currency, which means that the pool of wealth is much larger than just the US citizens. The US government is basically screwing the whole planet. Eventually it has to end though and it's not going to be pretty. With the pace of ever increasing money printing I think they will very quickly gamble away all the trust in the system that was built for hundreds of years.

[Freeforexsignalontelegrann]

Amazing video once again, but It’s quiet a mix up in my head when I Read about people grabbing multi-figures monthly as income in investments even in this crazy days in the market, any pointers on how to make substantial progress’s? Will be welcomed

[dallasron]

Why does the word “theft” come to mind?

[littlecherokee]

Joe, that is one of your best video!. Clearest explanation of debt, monetization and inflation I have seen.

[marcusmoonstein]

Back in the 1970's the city of New York ran on a permanent budget deficit. They funded this deficit by having a monthly auction of New York city bonds where bankers would buy the bonds for their portfolios and supply the city with the cash it needed.

Until one day nobody arrived at the auction to buy the bonds. The bankers had decided the city was so far in debt that the bonds might not get paid and so refused to buy any more. Financial reality will always catch up with you.

[jeffreyhernandez]

It’s crazy to look back at this video and see total liabilities at 111 Trillion and now it’s at 181 trillion in unfunded liabilities in just 11 months.

[vex]

It's well over 200t now. We're done. Get ready.

[drew]

Paper to silver ratio was growing at a rate of 1.5:1 roughly every 24 hours, now it's basically frozen/slowed down. That exponential rate of change is trying to be hidden. That ratio is now 342.5:1

[rosequartz]

This was excellent, there was so much mathematical philosophy applied to economics, Heresy Finance is absolutely brilliant.

[bigkennyboy]

Awesome explanation Joe. You are a gifted teacher. Keep up the good work!

[kosmas]

Heresy, You are very Logical !! Bravo!!only (The Federal Reserve board led by (Volcker )raised the federal funds rate, which had averaged 11.2% in 1979, to a peak of 20% in June 1981.could save us now!! BUT, anyone? has the guts out

[stevethompson]

Around the 4:12 mark of your video, I always see the same old chart, again and again. Not once have I seen a chart that had skilled craftsman listed. Right now a journeyman electrician with 10 years under his belt and depending on the area of the country they practice their craft, can make between 65 to 100K. And we don’t carry any student loan debt.

[AleksPTA]

As a non US person, in 1980 the US was the world's biggest creditor, the USSR was a debtor, what happened by the end of the decade?
By 1983 the US became the world's biggest debtor (go Reaganomics) and post 1990 the US continued to spend and it is where it is
Now China is the world's biggest creditor, Russia after 30 years of pain is also a major creditor, the US, the world's biggest debtor
This is all relative when you ready the daily news
This video counts future debt but not future taxes thus the absurd debt number, but $30trillion is absurd in itself
The only thing backing the USD today is the US nuclear arsenal and military bases around the world, therefore if the US wants to pay off its debt within a generation, just over to the living standards of the citizens of the former Soviet union over the last 30years
I don't wish that on anyone but the window is closing unfortunately
Fingers crossed from my end, my American friends pull thru without disasters

[danieldwyer]

Hey Joe, please respond to my post. As I see it, money is an illusion. Bear with me. When you go to the store, the store has pizzas. People come in with their money and the pizza's are bought and consumed. It there was no basis of money and people weren't allowed to waste (if you buy it, you eat it), what is produced is also consumed, a zero sum game. Usually when I go into the store, pizzas are still in the freezers indicating enough pizzas are made to satisfy consumers. You could argue that more people would eventually want pizza and there would have to be some metric to how much each person can get (hence a price in dollars). The more people that want the pizza, the higher the price goes.

Ok, so what happens if people don't have the money to buy the pizza. Eventually the price comes down until there is a stability in pizza demand and pizza supply. But what happens when someone makes up a plastic card and gives it to someone with the idea of them paying off the pizza in the future. This artificially raises the price of the pizza, because demand has gone up with future money being spent. This not only affects the price the person using the plastic phony money, but everyone who wants to buy that pizza.

This has a spiraling effect where everybody ends up paying more for everything, meaning, if you want that pizza, you too might need to use the plastic phony money to compete for it (think houses). If everybody would just stop using credit, everything would be more affordable for everybody.

Point being, we've created this financial problem ourselves by overspending for everything using money we don't actually have simply because we don't have the discipline to delay gratification. The practice of doing this raises the cost of everything for everybody.

Please, help!

[jeffreymarshall]

The primary buyer of US debt of late is the Fed money printer. That “QE” bought us some time but is now resulting in higher and higher inflation. Since it’s quite obvious to most people that the US has zero chance of paying it back, who is going to continue to loan money to the US government? Considering the high risk of default, the US is going to need to offer higher and higher interest rates which, ironically, will force the default to happen. We’re screwed.