The Real Crisis We Should All Be Worried About

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Let's talk about the real crisis that America is facing right now. This growing debt bubble that no one seems to be talking about!...

2020, Probably the weirdest year that I’ve ever been alive. Everyone’s worried about this virus that’s been going around the world. It’s caused a global shutdown, everyone’s staying at home, businesses have closed. It’s all across the news and on the forefront of everyone’s mind. But there is another crisis, that is going on behind closed doors, that no one is talking about. And that is, the extraordinary amount of debt that we have now racked up.

The United States is currently sitting on, over $25 trillion dollars of national debt. Then we got to look on the other hand, how much are they actually bringing in. They’re only brining in $3.4 trillion dollars in tax revenue. So that’s $25 trillion that they owe, and a mere $3.4 trillion that they’re bringing in.

Now I just want you to take a step back and think about that for a second. If the United States, were to take 100% of their tax revenues, not spend it on social security, medicare, national defense, all of that, but instead use it to pay off their debt, it would take them over 7 years to pay of all of their debts. And of course that wouldn’t happen because we need our tax revenue to go to useful things, like social security.

https://www.usdebtclock.org/

And the scary thing about it all is, that we are adding to this debt pile. You know we’re giving away all these stimulus checks, we’re bailing out small and big businesses, $750 billion in loan and bond offerings for big businesses and up to $600 billion for small and medium sized ones. In total the Federal Reserve has pledged to pump more than $4tn into the financial system.
But at the end of the day someone has to pay for that money. And with regards to that massive debt pile someone will have to pay that off. And if not pay it off, they will have to at least pay the interest on it.

So currently the United States has to pay over $480 billion dollars per year of interest on the debt that we have. That’s over 10% of the total tax revenue that they bring in. So let me just explain that real quickly.
The government how they get money. Is through tax. Obviously they tax the citizens of the country. Generally speaking the government is meant to use this tax again for the citizens of the country. This generally speaking should go to 5 key things. 1: Social security which is for people retiring. 2: Medicare and Medicaid which is for health insurance. 3: National Defense. 4: Safety net programmes for people facing hardship and 5. To pay interest on the debt.

Now generally speaking obviously you want as little percentage of the money to go towards the interest payment on the debt. You want you tax revenue, for social security, and for medicare and for helping others face hardship, not to be paying off your debt. Currently interest payments is over 10% of our budget and that debatably is too much.

But maybe you could argue that 10% is an appropriate figure. However the problem is that it’s getting worse…
You see ever since the last financial crisis more and more of the percentage of the budget has been allocated towards paying in interest on the debt. In 2009 it was 5.3% of the budget. Then it started climbing. 5.7, 6.4, 6.8 until today, where it’s currently at 10.1%.

And this is expected to keep climbing and some experts are predicting that in a decade it will be 1/5th of the total budget. 20% going to pay off debt.
There is no doubt that that is too much and should be going towards the things that matter. Our health. Our retirement. Our defense. The poor etc.

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DISCLAIMER: It's important to note that I am not a financial adviser and you should do your own research when picking stocks to invest in. These are just some of my viewpoints, by no means would I recommend watching one YouTube video and then immediately buying that stock. This video was made for educational and entertainment purposes only. Consult your financial adviser.