Can the US Keep Spending? A Deep Dive into America’s Debt Crisis
Published: 2024-09-24
Status:
Available
|
Analyzed
Published: 2024-09-24
Status:
Available
|
Analyzed
Predictions from this Video
Incorrect: 0
Prediction
Topic
Status
Net interest expenses are the fastest growing government expense, exceeding military spending, due to the large national debt.
"the fastest growing expense for the United States government is not the military it's not Social Security it's not health care it's net interest expenses for the government because the debt load has become so big that now the interest payments on the debt are now larger than how much money we pay to our own military"
Pending
Tax increases are transparent, with a clear line showing who pays and what it funds.
"if the government creates a new FICA tax we know who's paying this FICA tax because we can see a direct line between where this money is coming from and what this money did"
Pending
US national debt was $1.5 trillion in 1984, representing 39% of GDP.
"In 1984 the United States national debt was 1.5 trillion which was 39% of our total GDP"
Pending
US national debt reached $4.7 trillion by 1994, equivalent to 66% of GDP.
"by 1994 the national debt jumped up to $4.7 trillion which was 66% of our total GDP"
Pending
US national debt was $7.3 trillion in 2004, with debt-to-GDP ratio decreasing to 60%.
"by 2004 the national debt jumped up to $7.3 trillion but the debt to GDP levels actually fell from 66% down to 60%"
Pending
Between 2004 and 2014, US national debt increased from $7.3 trillion to $17.8 trillion, exceeding GDP at 101%.
"between 2004 and 2014 the national debt really jumped up we went from $7.3 trillion up to $ 17.8 trillion which is now 101% of our GDP"
Pending
Current US national debt exceeds $35 trillion, representing 121% of GDP.
"we're now sitting on over $35 trillion wor the national debt which is 121% of GDP"
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Net interest expenses are the fastest-growing expense for the US government, surpassing military, Social Security, and healthcare.
"the fastest growing expense for the United States government is not the military it's not Social Security it's not health care it's net interest expenses for the government"
Pending
Interest payments on US national debt are now greater than the budget allocated to the military.
"the interest payments on the debt are now larger than how much money we pay to our own military"
Pending
The Federal Reserve Bank can print money to finance government spending when the government lacks sufficient funds.
"if the government wants to spend more money that they don't have they can call up the Federal Reserve Bank to print this money"
Pending
Creation of new money by the Federal Reserve decreases the value of individual dollars, as they are not backed by precious metals.
"when you create this new money the value of each individual dollar goes down because our paper dollars are not backed by physical gold"
Pending
Inflation from 2020-2024 is attributed to the government and Federal Reserve printing trillions of dollars.
"the reason why we saw all this inflation in 2020 2021 2022 2023 and even now into 2024 is because the government worked with the Federal Reserve Bank to print trillions of dollars out of th air"
Pending
The Federal Reserve aims for a 2% inflation target.
"The Federal Reserve Bank says that they want a 2% inflation Target"
Pending
Deflation would make government debt significantly more expensive to repay due to the increased value of dollars.
"when you owe money this debt becomes a whole lot more expensive and that would mean that the government would have to pay this money back with more expensive dollars"
Pending
Inflation benefits the government by reducing the real cost of repaying national debt with less valuable dollars.
"inflation makes this debt cheaper it allows the government to pay back this debt with cheaper dollars"
Pending
The US government is currently in a position where its debt exceeds the value of its economic collateral (GDP).
"we're at a situation where the United's government is underwater on their collateral"
Pending
A potential future scenario is the continuous rise of US debt levels and interest expenses to unpayable amounts.
"are we going to continue seeing our debt levels rise and we're going to have interest payment and interest expenses rise to unreasonable and unpayable level"
Pending