The Deficit Myth: The Biggest Lie In Politics | 1Dime

How quadrillions , the DEBT ?

Thatcher was DEFINITELY lying! What an excremental specimen of humanity she was.

There is no way that the likes of Bezos, Musk, Isa A Khalifa, Arnault or Adani would tolerate the devaluation (or abandonment) of the value of the US dollar.
Whatever the perceived financial standing of the U.S. , these people would demand that the Dollar would have a value.
Which goes to the question of National Debt. Just to whom do we owe all this money?
Smoke and mirrors.
All you need is food, a roof over your head and a means of keeping warm.
The food doesn't have to be more than some solid rock in a cave. Food does not need to be more than will sustain your life and warmth can be provided by a small pile of burning wood.
Baa, baa sheep. 
Oh that's not right. Sheep have wool coats and acres of grass to graze.

I just want to crawl in a hole 😭

"Governments with currency sovereignty cannot run out of money" - so, there should be no problem in Sri Lanka, the government could just print more money. There was no reason to dismiss former UK PM Liz Truss, we could have just printed more money. Damn shame, she was comedy gold.

"If the state didn't enforce tax collection... the value of the currency would become worthless" wait, what? I thought we could just print money. You make it sound like taxes do ultimately pay for spending.

Governments can choose to spend as they wish. The US Govt could fund a universal income of 250k per year to everyone. But it gets that money back by issuing bonds. If the finance ministries of China and Saudi Arabia, say, decide that's a stupid idea, they won't buy the bonds except at loan shark rates. Money really is a giant confidence 'scam', it works until enough people call bullshit, then it doesn't and it's back to shiny shells.

Would be much better without the awful music in the background - so difficult to focus on what is actually being said with all the terrible circus music.

12 minutes in. And this just feels like slavery to the government but with extra steps. Will keep watching.

If governments with sovereign currency have the privilege to create money at will, please explain the role of the Central Banks in all of this and what, if any, obligations are engendered by this money creation by the Federal Reserve . Why is the Federal Reserve needed at all?

Ah yes those dumb libertarian who had a theory of credit money before MMT.

So how does this work with the euro? From my understanding, the euro is issued by the European Central Bank, which is managed by all the central banks of each of the eurozone countries, each national bank essentially being a shareholder for the ECB. So who gets to decide when to print money? Is it decided at the EU parliament, even though not all members use Euro as their currency?

Do local and state governments destroy money as well? or are those taxes actually used to fund the local/state government?

The deficit is used to explain that if you lower taxes, then people will create new jerbs !

someone didn't take an economics course. The issue is not deficit per se -- but capacity to borrow that costs. Morons like this caused the 80's high rates.

I highly recommend reading Graeber's Debt book and, in particular following up his citations of the Historian Seagrave's work on early monetization in the Mediterranean Iron Age and in particulare the idea of what Seagrave calls "fiduciarity" (look up that term in Graeber's index and you'll be on the right track). The depiction of governments inventing taxation in order to create demand for their currency goes beyond the present day model of fiat currency right back to sacrosanct idea of money as stamped bullion, which, as Seagrave demonstrates, held a purchasing power in excess of its bullion value (i.e. even stamped gold and silver coins were, in practice, at least partially fiat currency). The entire practice of market economies follows from state intervention to create money, and not the other way around. Final key point; the metal from which the coins were stamped was as a general rule brought to the mint from the treasury. The taxing authority was not raising funds, it was putting out its own money, then asking for it back. By giving the money to soldiers, and requiring it to be paid back by civillians, the state created the markets that turned the general population into a system for provisioning its soldiers, but the money still came from the state to begin with. Mad props to Pamphleteer for sending me down this rabbit hole.

"I'll explain everything about MMT!" proceeds to name a few dudes and explains nothing about MMT

Interesting

haven’t heard inflation mentioned even once , this is kindergarten level economics

What imminent climate catastrophe? Did you make this for your "Intro to Socialism" class at Lefty Tree Uni? The idea that the public debt both cannot and SHOULD not be paid back sounds a lot like student loans, so that certainly fits! It's absolutely unreal that you don't see the connection between our grocery bills, and the unrestrained, runaway, and foolish spending of the Biden admin.

This video is bs.

keep a eye out on the number count of drone shot down in ukraine and the red sea, we are witnessing the decay and helplessness of outdated military equipment , 4 day ago 14 drones in the red sea and 28 in ukraine was shot down at 2 -3 million ea. that 64-80 million lost for 600 buck drones in a day, that the 50 billion ukraine spend a month. drone are the future. on top of this.
china stop selling that metal that used for cruse missile, and the oil reserve at 40%. if war break out oil goes to 120 + a barrel. both war are unsustainable in our each cost 1-3 million missile ea. we have to buy the raw earth process copper chips metal etc. you cant print that.

To claim tax revenues arent used to pay govt bills is a lie. Hes either just lying or trying to be too cute here.

If deficits dont matter why tax the population?

You said we should “Make sure inflation doesn’t get out of hand”. Hmm isn’t that the conservatives entire argument? You want to claim we can print money without consequences, but the consequence is inflation and that would most harm the people without access to loans and appreciating assets. You’re advocating for inflationary policies that would disproportionately harm the poor. How can you not see it?

Sir, you have a fundamental misunderstanding of the difference between money and wealth. Wealth cannot be created by governments. They can only create digits of currency, and ultimately it is the free market that decides what those units of currency is worth.
I have a bottle of wine that is only filled 4 cm from the bottom. Government claims they can fill it up again. I lift my bottle up so government can fill it, and they pump tap water into it, filling the bottle to the cork and say, "there, we gave you more wine." No, they didn't. The liquid in the bottle is now worth less than it was before.

These Keynesian theories you're showcasing fall apart very quickly when we all go to the grocery store, and we're paying 20-30% more for our food than we did before the $6 trillion in covid relief that was dumped into the economy two years ago.

Wealth is completely different than money. If I plant an acorn, the acorn grows into a tree, I harvest the lumber, and make 20 rocking chairs from the lumber grown from that acorn, those rocking chairs are wealth. That, sir, is how WEALTH is created. I can trade those chairs for money, the amount of money I get for those chairs is an agreement between the purchaser and myself. Government has no say whatsoever what the money, which they creates, is valued at. Government creates NOTHING.

nifty... lets see..
1. The Deficit is not what he said it was at all, the Deficit when it comes to our government is the amount of Debt being added each year to the over all debt. Or in other words, our government spends more money then it brings in via taxes... When he got this wrong, I knew I was going to be in for a ride lol.

2. The Fed is in fact a Central bank, but its not ran by our government.

3. Inflation is not just any increase in costs, its a increase in cost due to one of two things, the loss of value of a currency due to the loss of the thing that gives it value, or the increase in the total amount of currency in circulation above any increase in the thing that gives if value. In a gold standard system, that would mean if a bank lost gold but didn't pull currency out of circulation, the value of the currency drops and thus inflation. In the gold standard that also means if a bank printed more money without adding more gold, the value of all currency would go down and thus inflation. In our system, which is a fiat currency system, our currency gets its value not on the amount of gold any bank may have in its vaults, or even the amount of gold our government is hiding in some mountain somewhere, but rather in the faith or trust of those who accept it or use it.. So its the same in some regards but different in others. We get inflation if people trust our government less, or if the trust in our government stays the same and the Fed adds more currency to the total supply, or if both people loose trust or faith in our government and the Fed adds more currency to the total supply. Taxes has no effect on Inflation, as not all cost to the consumer increases are due to inflation.

4. The bigger the system in which a currency is added, or trust is loss in our case, the more time it takes for inflation to actually happen. Our system is huge and dwarfs all known gold standard systems of the past, and thus our currency takes more time to inflate or loose value. In our system, it can take a long time for the inflation which is caused by adding more currency into our system, honestly it can take years and years.

5. Government budget downfalls are covered often by the Fed, so when our government spends more money then it brings in via taxes, it is operating in a deficit and thus the Fed creates currency to pay that downfall and how ever much the Fed creates gets added to the over all debt. When our government has had a balanced budget in the other direction, it pays extra to the Fed to pay down that debt, this happened under Bill Clinton, though I think it was ended when he was replaced.

6. The U.S. government does not actually have currency sovereignty, as the Fed has the power to say no, as it is a privately owned and controlled bank. From my memory I can't recall a time in which the Fed said no to our government, its not very smart for the Fed to not pay the downfalls of our government money wise. As long as the Fed keeps adding currency to the total supply in that manner, inflation will keep happening and our government won't fail due to the debt it has.

7. I can't think of a good reason why these things would be wrong in this video, and I could go through many many more points than what I have, but since no one is likely to read this and I did it for myself, and I have other things to do at this time, Ill end it here.. I honestly don't know why people don't understand the difference between inflation and other ways our cost of living increases, its not anywhere near as hard to understand as people make it out to be.. Supply cost increases due to any other factors than what I have explained, are just cost increases, they are in fact not inflation...

Wow this guy is clearly on the left which is fine I am as well but this guy literally just used a conservative talking point to prove his point, he didn't say taxes are theft but he sure made an argument for it

Thanks!

Spoken like a true leftard communist, what a load of total crap

What the hell are you talking about?

So deficit spending would only cause inflation if the supply of the purchased resources is constrained...

Inflation since covid was created by a supply shock, and then increased when the government gave taxpayers more buying power. Both of those things are gone now, so inflation is naturally going down. If the current shipping problems in Panama and in the Red Sea persist, we could have another supply shock. (Slightly off topic, but just something I've been thinking about.)

If the government isn't run by borrowed money, how come the debt service increases as the interest rate increases? If the money is not borrowed, why do they pay interest on it at all? Except for bonds, which are explained in the video.

This is the stupidest video I have ever seen in my life. It just came on for some reason and I actually lost my remote momentarily. I was stunned by the utter stupidity. And you're talking like you have the faintest idea what you're talking about. This is a far-left communist dream list of how America works, not a rational take whatsoever. What does money care if you hate conservatives or not? Which you make clear you do. What a nutcase. Where do I even start?

1) Public debt doesn't care if it gets repaid, unless it's spent on things YOU don't like. That goes completely unexplained. Things you like are free health insurance, free tuition, and free housing. You don't like war or presumably defending the country's border from hostile actors. For some unexplained reason, the government paying for your online PhD in queer theory and never getting paid back has no effect on the economy, but repelling a foreign army actually does have to be repaid because it's not good debt? Makes no sense.

2) Leaders of other countries, like Thatcher, or either idiots or lying about economics to trick everyone. You, on the other hand, are the real, truth-telling expert. It really is as simple as a 5 year-old might presume--just print more money.

3) The government does not get, nor does it need, your tax money to fund its spending; if that were really the case, do you think they would run a deficit in the first place? LOL LOL LOL LOL LOL LOL.

4) Now talking in my voice, the patently obvious effects of this insanely stupid "theory" are inflation (which was happening at generation-high levels when this was published, due to the exact social deficit-spending that you claim is great) and eventually hyperinflation, which in the later stages will irreversibly obliterate the economy. Which means the country will run out of money when they can't even afford to operate their printing press and defend from the rebels at the same time. And you address this overarching objection to your entire fringe theory by claiming that the gov't can't just send everyone $1M checks because inflation exists? That's it?

5) You seemed a little aggrieved by people comparing the gov't to a household. Then you spent sometime insulting some strawman about doing this. There's only ever two reasons to make this comparison. 1) Money is fungible and 2) The arithmetic is easier and makes no important difference when you scale down the amount of zeroes. No one thinks the government is married with kids and might be getting a happy ending at the Asian massage. At no point did you ever make an important distinction between the two, except inarticulately claiming that the government cannot declare bankruptcy the same way a household can. You appear to be arguing that numbers, especially 0 and negative, have no meaning. You strongly suggest that the government can stop taxing, can wipe out private debt, can issue 1M checks to everyone without consequence. Then you go on later to contradict, not explain, this nonsensical talking point. Contradict might be too strong, as it's all just nonsense.

Now i understand, Actually it was a good deal for US to leave several billions of dollars of worth weapons in Afghanistan then to actually use that wealth(over a period of 20 years) on building schools, industry and infrastructure in Afghanistan.

Is there any introductory video about the three "prices" of money, namely, interest rate, exchange rate, and purchasing power?

The National Debt is the printed-out-of-thin-air fiat principal and the usurious-interest-taxes that you "owe" to the mega-criminal banksters, the corporate criminals and the slave wage-paying, job-destroying employers.

Do you have a video on "the birth of money"?

I have to pinch myself....now punch myself in the face. Four hundred billion crocodrillion left blogs ,vlogs and podcasts and no one talks about bullshit debt, or private property.
Idiots

Its at the point where they have nothing at all left to offer and have played themselves out, and now they are too busy bitching between themselves to discuss things like.......I don't know, revolution for instance? History repeats itself. Will the real Leon Trotsky please standup

Buy you a coffee, I would buy you a chain of coffee shops, if I wasn't in so much debt😁

Why does the US government have to involve the Federal Reserve. The Fed just creates the money out of thin air and charges the government interest to borrow it. I may not have this exactly right, but why pay interest to the Federal Reserve. Why doesn't the government just print or create ledger money itself and eliminate the interest payments?

Modern Monetary Theory explains how the current system works pretty well.
Too many people are still clinging to ideas from the gold standard and applying them in their analysis of the current system, which distorts their understanding of how it works. I support the gold standard, but it is not the current system.

Nitpicking: The proof of the Pudding is in the eating. Eating determines whether or not it’s good. There is Proof in alcohol, but not in pudding.

Cannot run out of money, but can rapidly devalue your money

Has Modern Monetary Theory not already been disproven?

Saying that gov'ts with currency autonomy can't run out of money because they can continue to issue/create more currency is somewhat of an over simplification. The more money a gov't issues, the less value that that currency has (a contributing factor to inflation). If you keep adding a thimble of water to a bottle of wine, eventually you end up with wine coloured water.

Eventually, any given fiat currency will become so watered down that no amount of adding 0s to a commercial bank's account will have any ability to pay for services a gov't provides or the goods it needs to purchase.

In other words, the party can't go on forever.

In other words, taxation is a scam foisted on us the unwashed--dah rich & dah poor.