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How Bitcoin Exposes the $36 Trillion Debt Problem | Beyond Bitcoin · Simply Bitcoin

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  America's $36 trillion in debt. That's the number so big it
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  almost stops meaning anything. But it's still money owed to
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  someone. People point to China holding
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  hundreds of billions in US bonds, yet China itself drowns
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  in trillions of its own debt. Look at that made in China.
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  Their banks hold American debt. Our banks hold theirs.
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  Europe holds Asian debt. Asia holds European debt.
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  Every nation borrows, every nation blends.
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  And together humanity now carries $300 trillion in debt,
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  collectively triple the size of everything the planet produces
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  in a year. So who's it all owed to?
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  The truth is that nobody really knows, because debt no longer
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  moves in straight lines. It moves in loops, like I'm
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  moving right now in a circle. Can you see that?
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  Wow. Governments borrow from
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  citizens. Citizens lend through banks and
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  pension funds. The interest flows back to those
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  same citizens and the wheel turns again.
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  Debt has become the engine of the modern world, a self
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  spinning machine that works in One Direction as long as it
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  never stops. Long before credit cards, debt
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  was a promise, A bag of grain returned after harvest, a favour
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  repaid in kind. The heck is this?
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  Then kingdoms learn to monetize those promises.
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  They sold their debts to the public.
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  They called them bonds. Debt bonds.
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  Centuries later, after 1971, Nixon united the money from
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  gold. I have directed Secretary Conley
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  to suspend. Temporarily the convertibility
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  of the. Dollar into gold.
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  Or other reserve assets. The promises became the currency
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  themselves. Now governments could print what
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  they used to owe. And so they did.
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  From that moment on, growth and debt became the same word.
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  The actual creation of this debt is self annihilating in the long
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  run because it's actually constraining future growth.
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  You can say it's it's pulling it forward, but it's at the cost of
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  later sacrifice. You have to service that debt.
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  And so it's pulling down growth and productivity while at the
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  same time increasing the service cost of debt, which is interest.
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  And when those two things cross, it's like that you're in a debt
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  jubilee situation. It just has to blow up.
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  I mean, what goes on Muslim? Yeah, but debt jubilee there it
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  will be no debt jubilee. Right, I would say agreed, there
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  has to be. I would just say default,
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  implicit or explicit. That's that's a better, better
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  way. So they're trying.
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  This is already a default, and they're trying to implicitly do
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  that through inflation. The different.
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  To to, but when every country is trying to do the exact same
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  thing, it just feeds the machine faster and faster and
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  misallocates faster capital faster and faster.
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  United States borrows mostly from itself, banks, insurers,
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  pension funds and your savings by the bonds that fill the gap
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  between what the government earns and what the government
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  spends. This gap is called the federal
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  deficit. Federal deficit.
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  It's the distance between tax receipts collected from the
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  citizens and the promises made to those citizens.
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  Highways to build, soldiers to pay, retirements to secure,
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  healthcare to provide. When Congress passes a budget,
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  the Treasury prints those promises.
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  And those promises, they're financed by you.
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  Not directly, but through your savings account, your pension,
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  your insurance policy. That's how the governments
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  finance the money that you set aside for the future is the same
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  money the government spends today.
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  Now, if it sounds circular, it's because it is.
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  The government borrows from its citizens to fund its citizens,
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  supposedly. And when it pays that interest,
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  the money flows right back into the same loop.
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  And the government pays the interest.
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  That money doesn't just vanish into the ether, it flows back to
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  the lenders. But here's the quiet truth.
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  Not everyone is a lender. Most Americans live on the
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  spending side of the Ledger, paying taxes, buying groceries,
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  servicing their own debts. Those interest payments go to
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  those who already have capital to lend.
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  The net result of this hyperinflation of the currency
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  and even the dollar at 7% a year, it's 7% monetary
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  inflation, but they say it's only 2% inflation.
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  But the result is the hurdle rate for companies is 8-9
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  percent. So what happens is they either
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  LBO themselves, they basically have to load up on debt and go
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  to negative working capital like the Toys-R-Us situation.
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  Even Marvel Comics. Why does Marvel Comics have to
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  have billions of dollars of debt like that?
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  You know, why do why do we load great companies with lots of
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  debt? It's because because the
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  combination of taxes and inflation makes it impossible
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  for the equity to work or hold value.
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  And so we've driven so many companies into debt and so many
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  companies into bankruptcy. Or what happens is companies go
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  on acquisition binges and they started buying up company after
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  company after company because they have to grow their top line
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  more than 7% and the organic growth of all their divisions is
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  less than 7%. And you know, it's the result of
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  all those things is capital destruction.
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  We're destroying people's lives. We're destroying good jobs.
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  We're destroying communities. We're destroying the
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  manufacturing base of the country instead of having a
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  hundred different healthy companies that will all get
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  like, what happens if like there's only one university left
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  in the world? You know, like instead of having
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  100 choices, 100 cities, 100 companies, a hundred colleges,
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  100 whatever, you end up just having the monopolies.
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  Left, the system rewards those who are positioned upstream.
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  You know, the ones whose money works while they sleep.
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  Those guys. If you think about it, every
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  interest payment is a redistribution of time and those
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  who work for it to those whose money lends it out.
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  The same cycle that keeps the economy alive is the same one
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  that keeps it tilted. It's a closed loop, yes, but not
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  an equal 1A rhythm that hums quietly in the background of
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  modern life. Borrow, spend, earn, repeat,
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  borrow, spend, earn, repeat, borrow, spend, earn, repeat,
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  borrow, spend, earn, repeat, borrow, spend, earn, repeat,
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  repeat. So if you were stuck in that
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  system, wouldn't you want to get out?
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  Wouldn't you want to own something that you're not paying
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  a bank for? America is $36 trillion in debt,
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  dudes, and the rest of the world is holding a similar staggering
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  amount. That's not just a regional
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  problem. That's a crumbling system, and
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  we need something to exit out of that system.
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  That's where Bitcoin comes in. Bitcoin is an open money, a
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  borderless money, a finite money.
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  It's unconfiscatable and it's mathematically designed to rise
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  in value over time. Should be a no brainer.
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  If you don't want to get sucked into a $36 trillion vortex, best
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• 7:28
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  mining today at SAS mining.com. Thank you so much for watching
• 7:57
  this entire video. If you made it this far, kudos
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  to you. I experimented a little bit on
• 8:02
  this one. I took my liberties.
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  Let me know what you think about it in the comments below.
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  Also, I want to give a couple of shout outs to some enjoyable
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  comments that I received in my previous video, Why Bitcoin
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  booms in October. You can see it here.
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  It's linked right here. So the first one comes from
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  Tango Bato 977. Good show if you don't know
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  about money. Wondering what's your
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  profession? What do you know all about?
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  Would like to see a video about that.
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  Thank you for your comment very much.
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  Danga bota 977. I am a professional YouTube
• 8:35
  video maker and I went to training to do that but my
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  background is in filmmaking if that's what you're asking.
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  Now, how can I make a video about filmmaking and Bitcoin?
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  Comment number 2 is either restock the Simply Bitcoin hats
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  or take them out of the store crying emoji.
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  Nico, this comment is actually for you.
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  So if you're listening, restock some simply Bitcoin hats back in
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  the store. I guess they're a hit.
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  Anyway, I'm oceans this is beyond Bitcoin.
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  Until next time.