America's $36 trillion in debt. That's the number so big it
almost stops meaning anything. But it's still money owed to
someone. People point to China holding
hundreds of billions in US bonds, yet China itself drowns
in trillions of its own debt. Look at that made in China.
Their banks hold American debt. Our banks hold theirs.
Europe holds Asian debt. Asia holds European debt.
Every nation borrows, every nation blends.
And together humanity now carries $300 trillion in debt,
collectively triple the size of everything the planet produces
in a year. So who's it all owed to?
The truth is that nobody really knows, because debt no longer
moves in straight lines. It moves in loops, like I'm
moving right now in a circle. Can you see that?
Wow. Governments borrow from
citizens. Citizens lend through banks and
pension funds. The interest flows back to those
same citizens and the wheel turns again.
Debt has become the engine of the modern world, a self
spinning machine that works in One Direction as long as it
never stops. Long before credit cards, debt
was a promise, A bag of grain returned after harvest, a favour
repaid in kind. The heck is this?
Then kingdoms learn to monetize those promises.
They sold their debts to the public.
They called them bonds. Debt bonds.
Centuries later, after 1971, Nixon united the money from
gold. I have directed Secretary Conley
to suspend. Temporarily the convertibility
of the. Dollar into gold.
Or other reserve assets. The promises became the currency
themselves. Now governments could print what
they used to owe. And so they did.
From that moment on, growth and debt became the same word.
The actual creation of this debt is self annihilating in the long
run because it's actually constraining future growth.
You can say it's it's pulling it forward, but it's at the cost of
later sacrifice. You have to service that debt.
And so it's pulling down growth and productivity while at the
same time increasing the service cost of debt, which is interest.
And when those two things cross, it's like that you're in a debt
jubilee situation. It just has to blow up.
I mean, what goes on Muslim? Yeah, but debt jubilee there it
will be no debt jubilee. Right, I would say agreed, there
has to be. I would just say default,
implicit or explicit. That's that's a better, better
way. So they're trying.
This is already a default, and they're trying to implicitly do
that through inflation. The different.
To to, but when every country is trying to do the exact same
thing, it just feeds the machine faster and faster and
misallocates faster capital faster and faster.
United States borrows mostly from itself, banks, insurers,
pension funds and your savings by the bonds that fill the gap
between what the government earns and what the government
spends. This gap is called the federal
deficit. Federal deficit.
It's the distance between tax receipts collected from the
citizens and the promises made to those citizens.
Highways to build, soldiers to pay, retirements to secure,
healthcare to provide. When Congress passes a budget,
the Treasury prints those promises.
And those promises, they're financed by you.
Not directly, but through your savings account, your pension,
your insurance policy. That's how the governments
finance the money that you set aside for the future is the same
money the government spends today.
Now, if it sounds circular, it's because it is.
The government borrows from its citizens to fund its citizens,
supposedly. And when it pays that interest,
the money flows right back into the same loop.
And the government pays the interest.
That money doesn't just vanish into the ether, it flows back to
the lenders. But here's the quiet truth.
Not everyone is a lender. Most Americans live on the
spending side of the Ledger, paying taxes, buying groceries,
servicing their own debts. Those interest payments go to
those who already have capital to lend.
It's your savings if you have them, someone else's if you
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The net result of this hyperinflation of the currency
and even the dollar at 7% a year, it's 7% monetary
inflation, but they say it's only 2% inflation.
But the result is the hurdle rate for companies is 8-9
percent. So what happens is they either
LBO themselves, they basically have to load up on debt and go
to negative working capital like the Toys-R-Us situation.
Even Marvel Comics. Why does Marvel Comics have to
have billions of dollars of debt like that?
You know, why do why do we load great companies with lots of
debt? It's because because the
combination of taxes and inflation makes it impossible
for the equity to work or hold value.
And so we've driven so many companies into debt and so many
companies into bankruptcy. Or what happens is companies go
on acquisition binges and they started buying up company after
company after company because they have to grow their top line
more than 7% and the organic growth of all their divisions is
less than 7%. And you know, it's the result of
all those things is capital destruction.
We're destroying people's lives. We're destroying good jobs.
We're destroying communities. We're destroying the
manufacturing base of the country instead of having a
hundred different healthy companies that will all get
like, what happens if like there's only one university left
in the world? You know, like instead of having
100 choices, 100 cities, 100 companies, a hundred colleges,
100 whatever, you end up just having the monopolies.
Left, the system rewards those who are positioned upstream.
You know, the ones whose money works while they sleep.
Those guys. If you think about it, every
interest payment is a redistribution of time and those
who work for it to those whose money lends it out.
The same cycle that keeps the economy alive is the same one
that keeps it tilted. It's a closed loop, yes, but not
an equal 1A rhythm that hums quietly in the background of
modern life. Borrow, spend, earn, repeat,
borrow, spend, earn, repeat, borrow, spend, earn, repeat,
repeat. So if you were stuck in that
system, wouldn't you want to get out?
Wouldn't you want to own something that you're not paying
a bank for? America is $36 trillion in debt,
dudes, and the rest of the world is holding a similar staggering
amount. That's not just a regional
problem. That's a crumbling system, and
we need something to exit out of that system.
That's where Bitcoin comes in. Bitcoin is an open money, a
borderless money, a finite money.
It's unconfiscatable and it's mathematically designed to rise
in value over time. Should be a no brainer.
If you don't want to get sucked into a $36 trillion vortex, best
get some Bitcoin before there's no Bitcoin left for you.
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mining today at SAS mining.com. Thank you so much for watching
this entire video. If you made it this far, kudos
to you. I experimented a little bit on
this one. I took my liberties.
Let me know what you think about it in the comments below.
Also, I want to give a couple of shout outs to some enjoyable
comments that I received in my previous video, Why Bitcoin
booms in October. You can see it here.
It's linked right here. So the first one comes from
Tango Bato 977. Good show if you don't know
about money. Wondering what's your
profession? What do you know all about?
Would like to see a video about that.
Thank you for your comment very much.
Danga bota 977. I am a professional YouTube
video maker and I went to training to do that but my
background is in filmmaking if that's what you're asking.
Now, how can I make a video about filmmaking and Bitcoin?
Comment number 2 is either restock the Simply Bitcoin hats
or take them out of the store crying emoji.
Nico, this comment is actually for you.
So if you're listening, restock some simply Bitcoin hats back in
the store. I guess they're a hit.
Anyway, I'm oceans this is beyond Bitcoin.
Until next time.