@GustautBokosh
Us (goverment): hey, we need more money to redistribute. Can we tax you more? Rich people: no. Take a loan. Us (goverment): oh.. okay.. * Goverment is us, everybody
@omuribep
This is an excellent video. Lots of things to learn & master about macro global economy. Good job, FT !!
@jackshultz2024
While it’s true that the public debt is the private sector surplus, there’s a problem in that the public debt is widely held while private surplus is concentrated in a very few hands. Essentially it’s a transfer of public wealth to private wealth.
@Good.Evening.Mr.Britain
They’re literally soft launching a Great Depression for us
@bobkent2334
As every addict says: "I can get off the drugs any time I want."
@alexsteven.m6414
Tariffs will increase costs of finished goods and components used throughout US manufacturing. This will be an immediate and huge hike in inflation. To fight inflation the Fed will have to hike interest rates which will be wonderful for the billionaires but possibly take away the middle class. Inflation is so high that consumers are literally taking debt for basic life necessities. Collapse has indeed begun..
@Chocolate_teapot420
As my man Gary Stevenson says “if you have a system where all the money goes to the rich, and you have no way of taxing that back, in the long run, you will bankrupt your government and your entire society”.
@SadSamba
As always, FT content is 10 levels higher than any others. Keep it up! Thank you
@jeanlefranc3817
For the most part, debt is the symptom of mankind’s deep wired belief that all problems will somehow disappear in the future.
@keatkhamjornmeekanon7616
I love this video because it's a solemn warning to governments around the world.
@JA-pn4ji
15:17 That Stonybrook Professor is nuts. She doesn't account for foreigner's surpluses supporting US debt. Foreigners are not as benign as domestic savers. Japan has high government debt levels because the holders of Japanese debt are domestic savers, not foreigners. Foreign investors (re: Kyle Bass's Hayman Capital) even attempted to bet against the BOJ (Widow-maker trades) by shorting Japanese bonds. However, time and again, such speculators were crushed because domestic savers refused to be stampeded into sell positions. Italy is also able to maintain high debt levels because of domestic savers in the form of resident banks and investors. If footloose foreigners are overweight in your sovereign debt markets then, like the UK under Truss, you're screwed! I somewhat agree with Russell Napier 24:33 that governments can force debt onto its own domestic savers, but that would come at a cost. The abandonment of the free market principles that underpin capital flows i.e. the introduction of capital controls. Russell further argues that there are a lot of savings worldwide, and that's just it. It is owned by foreigners! As to abusing savers, the UK government and its resident banks are already engaged in this with suppressed savings rates. There is an argument that the inevitable destination of the escalation embedded in Trumpian tariff policies is capital controls exemplified by policies exerted by Malaysia during the Asian economic crisis. As Trump seeks to bridle the global markets for goods, then you can expect restraints on the global market for capital to follow suit. The argument goes that, if Trump seeks to tariff trade then why should the rest of the world support US debt markets with their resultant falling trade surpluses - as they've hitherto undertaken?
@liberalcynic
Perhaps it is time governments tax those who benefited from debt being free and driving asset inflation?
@jeffDwyer1
The U.S. economy relies on ongoing credit and debt generation for sustenance. The Federal Reserve is expected to increase the money supply, leading to further debt accumulation for the average American. So how exactly can we guard against the coming financial reset Like what are really the best strategies to make our portfolio recession proof against the incoming financial reset? I'm very worried about my $310k stock portfolio.
@PASCALDAB
We are debt slaves. We are paying debts from borrowing done in our names, without our consent for the most part. But rather than get a bill in the mail, the interest is built into every good and service we buy. We are the embodiment of debt because the cost is paid by the very lifeblood of the consumer, earned over a strictly limited time called a life. We live on a prison planet.
@CoretteLécuyer
It's a bit annoying and unfortunate. When i was born, the national debt was $2,150 per person. Now it's over $100,000 per person. And I'm not even that old. It's truly alarming and best advice get out of debt, make regular investments and be debt free and financially stable.
@Isabellamartinez21901
My main concern is how to survive all of these financial and political crisis, especially in light of the US political power scuffle. The government has really called things more difficult for its citizens, and we can't sit back and bear all the consequences of the bad governance.
@danrayson
I love the end "deficits are good!" and shows pictures of "infrastructure" such as wind farms. You know, the wind farms that everybody wants and loves? Yeah, those ones.
@vijayb9571
Excellent analysis, thank you FT
@ji8044
This was actually superbly done. I was very impressed.
@biafranrepublican4389