# Deficit and debt ceiling | American civics | US government and civics | Khan Academy

the debt ceiling, it’s important to
realize the difference between the deficit
and the debt. Because these words
are thrown around and it’s clear that they’re
related, but sometimes people might confuse
one for the other. The deficit is how
much you overspend in a given year,
while the debt is the total amount, the
cumulative amount, of debt you you’ve gotten
over many, many years. So let’s take a look, I guess
a very simplified example, let’s say you have
some type of a country. And that country spends,
in a given year, \$10. But it’s only bringing
in \$6 in tax revenue. So it’s bringing in taxes. It’s only bringing in \$6. So this country in this
year, where it spends \$10, even though it only has \$6 to
spend, it has a \$4 deficit. Def is the short for deficit. And well, let me
just write it out. You might think it’s
defense or something. It has a \$4 deficit. And you might say,
well, how does it spend more money
that it brings in? How can it actually
continue to spend this much? Where will it get the \$4 from? And the answer is, it
will borrow that \$4. Our little country
will borrow it. And so the debt, maybe
going into this year, the country already
had \$100 of debt. And so in this
situation, it would have to borrow
another \$4 of debt. And so exiting this year,
it would have \$104 of debt. If the country runs the same
\$4 deficit the year after this, then the debt will
increase to \$108. If it runs another \$4
deficit, than the debt will increase to \$112. Now that we have
that out of the way, let’s think about what
the debt ceiling is. So you could imagine, the
United States actually does. It’s continuing
to run a deficit. It’s continuing to spend
more than it brings in. And actually, for
the United States, these ratios are appropriate. For every dollar that the
United States spends right now, 40% is borrowed. Or another way to
think about it, it only has 60% of
every dollar that it needs to spend right now. So it has to go out into the
debt markets and borrow 40% to keep spending at
its current rate. And so if it’s
continuing to borrow, you could imagine that the
debt keeps on increasing. So let me draw a
little graph here. So that axis is time. This axis right over here is the
total cumulative amount of debt that we have. We continue to have to
borrow 40% of every dollar that we’re spending. And so our debt is
continuing to increase. And Congress has the power,
or Congress has the authority, to essentially limit
how much debt we have. So right now we have a current
debt limit of \$14.3 trillion. And even though Congress
has this authority, the way that it’s
worked in the past, is this kind of
just a rubber stamp. Congress has just always allowed
the debt ceiling to go up and up and up to fund
our borrowing costs. And if you think about
it, that kind of makes sense because right
now Congress is the one that decides
where to spend the money. What are the obligations. And so the debt
ceiling is like, OK, we’ve already agreed what you
have to spend your money on. Congress is the one that figures
out what we spend our money on, and what our taxes are. And so they say,
look, we’ve already determined how much
you have to borrow. It would seem kind of ridiculous
for us after we’ve determined how much you borrow to say
that you cannot borrow it. You cannot you cannot actually
do what we’ve told you to do. And so historically,
Congress has just kind of gone with the flow. They said, OK,
yeah we’ve told you we need to borrow more
money to execute– the executive branch has to
run the government– for you to actually run the
government based on the budget we told you. So they just keep upping it. And the last time the
debt ceiling was raised was actually very recently,
February 12, 2010. It was raised from
\$12.3 trillion, point actually \$12.4 trillion
to the \$14.3 trillion. And this happens
pretty regularly. It’s happened 10 times since
2001, 74 times since 1962. So it’s just a regular
operating thing. And right now the Obama
administration says, look, we’ve actually come up
against our debt ceiling. We want to raise it, and ideally
for the Obama administration, they want to raise it
by about \$2.4 trillion. So they want to raise
it to \$16.7 trillion, which will kind of put it off
the table for a little bit. Put it past the
elections so that we don’t have to
debate this anymore. The Republicans on
the other the side, want to essentially
use this, and this is a little bit unusual,
to use this as leverage to essentially
reduce the deficit. And not only to
reduce the deficit, but it’s in particular to reduce
the deficit through spending cuts. And so that’s why it’s become
this big game of chicken and why we’re going
up against this limit. Now, one thing that you
may or may not realize is that we’ve
actually already hit the debt limit, the
current debt limit. And we hit that debt
limit on May 16, 2011. I’m making this video at
the end of July in 2011. And the only reason why
the country’s continuing to operate, and the only
reason why the country has been able to continue to pay
interest on its obligations, and pay issue social
security checks, and support Medicare, and buy
fuel for aircraft carriers, and all the rest,
is that Geithner, who’s the Treasury
Secretary, has been able to find cash in other
places, cash normally set aside for employee pensions
and all the rest. And has essentially done a
little bit of a bookkeeping, taking money from one
place to feed another. But what he said, what
he’s publicly said, is that he won’t be able to do
that anymore as of August 2, 2011. So this right here is
the date that everyone is paying attention
to, August 2, 2011. According to Geithner,
at that point, he won’t be able to find random
pockets of cash here and there and shuffle it around. And what he calls
extraordinary measures. And at that point,
the United States will not be able to fulfill
all of its obligations. And so if you think about all
of the obligations of the United States, this is a huge
oversimplification here. So this bar represent
all of the obligations. Some of those obligations
are things like interest on the debt that
of debt, \$14.3 trillion. And things like social security,
Medicare, defense, and then all of the other stuff that
the country has to support, all of their other obligations. So if as of August 2, 2011,
we cannot issue any more debt, and Geithner doesn’t have any
extra cash laying around with these extraordinary
measures, then, if those are the only
options on the table, The only option is to somehow
reduce some of these things by 40%. Because 40% of
every dollar we used to spend on all of these
obligations, 40% are borrowed. And so something over
here is going to give. We’re not going to fulfill
our obligations to one or more of these things,
all of these things that we are legally
obligated to fulfill. That Congress has said,
these are the things that the United States should
be spending its money on. And so at that point,
it is perceived that we would have to default. And a default actually would
be on any of its obligations. But in particular, we
could be, especially if we have to cut
everything by 40%. And we don’t want
to see retirees not be able to get evicted from
their houses, or aircraft carriers not have
fuel, or whatever else. We might defer, or
try to restructure, or do something
weird with our debt. In which case, we
would be defaulting. And I want to be clear,
a default, it’s usually referred to not fully paying the
interest on debt that you owe. But a default would be
any of its obligations. The United States
has this AAA rating. If the United States says it’s
going to give you a Social Security check, you trust that. If the United States
says that it’s going to pay for that Medicare
payment, you trust that. If it says it’s going to
give you an interest payment, you trust that. All of a sudden, if
United States does not fulfill any of those
obligations, then all of the obligations
becomes suspect. And the reason why this is a
big deal, as you can imagine, if you borrow money, you’ve
always been good at paying back that money, you’re
going to pay lower interest than other
people would have to pay. But all of a sudden,
for whatever reason, one day you default. You either delay
your payment, or you say you don’t have the
cash to pay your payments, then people’s like, wow
you’re a much riskier person to lend money to. So now I’m going to increase
the interest rates on you. And so the perception
is if the United States were to default on its debt,
or any of its obligations, that interest rates would go up. And the reason why this
would really not great is because it would make
the debt and the deficit even worse. Then this chunk is
going to have to grow. Our obligations are on debt. As new debt gets
issued, we’re gonna have to pay more
and more interest. So it’s going to just
make matters worse. It’s going to make
the deficit worse. And on top of
that, it’s not just that the government’s debt, the
interest on the government’s debt will go up, but interest
on all debt in the United States will probably go up. Because government debt is
perceived to be the safest, it’s the benchmark. A lot of other debt
contractors are actually tied to government debt. So you’ll have interest rates
throughout the economy go up, which is exactly
what you do not want to happen when you are
either in a recession, or when you are recovering
from a recession.

## 100 thoughts on “Deficit and debt ceiling | American civics | US government and civics | Khan Academy”

1. echelecopao says:

@mestizzo See my answer to @SRImperio

2. Goohuman says:

While we are on the subject of jobs, I have a suggestion. I suggest the Gov get out of the business of taking over businesses. The Gov is notoriously inefficient and expensive. If we privatize everything exept the military, the executive, legislative, and judicial branches and maybe hang onto the secret service, I bet we could really cut costs. It would be chaotic at first, but it would settle into a lean, mean government machine. Then all the jobs would come back.

3. john galt says:

@Goohuman exactly we need a small government.. of they cannot pay for it they cannot have big government.. we should also end these "free trading" agreements which just let jobs to be sent to countries to benefit the wages for corporate hogs and stocks.. we should recoup our manufacturing capacity from china and the third world… start rebuilding our failing infrastructure.. and try exporting instead of importing.. how ever the cheap labor has spoiled every one with cheap crap we call goods…

4. john galt says:

ooh and also re issue a precious metal standard or take away the issuance of currency from a private bank, and give it back to the treasury as to retain the value of the currency.. and to not devalue it and loose its position as the worlds reserve currency, which is happening right now unfortunately…

5. TheHortond says:

Aircraft carriers are nuclear powered. But I get your point.

6. libertydogfight says:

Look all this debt ceiling stuff is SIMPLE-Obama is spending \$3 Trillion/YR-our tax dollars=only \$1.5 Trillion/YR, Tea Party wants to cut Big Gov Spending but Liberals want to keep spending on Hand outs &free everything to Non working-since only working middle class is paying taxes-Liberal spending will keep over spending to non working-that will erode the \$ to become worthless. The liberal attitude is a PLAN for Self Destruction & Economic Collapse & Civil WAR but that was always their PLANS!

7. Goohuman says:

@sirmarlonblack Yes. The US was at it's most free and prosperous when the government was small and stayed out of the people's business. If you like the way it's going now, just wait. With the powers the gov is giving itself (particularly the president), they will soon have the power to tell you where to live and what job to work at, even when you should die. I doubt it will get that bad, but that's the direction it's going now.

Me? I'd rather choose for myself. Let Freedom Reign!

8. Ak K says:

@Goohuman foregins involment is not only problem
-foreign involvement
-illegal people
-too much money on military( how could 1 country spend more money than the WHOLE EUROPE)
-education system
-people not paying tax
etc etc

9. Ak K says:

btw i think you were BORN to TEACH PEOPLE

10. c157d157 says:

I have this nagging feeling that Republicans (or the Tea Party in particular) WANT America to fail. They're essentially just saying "Let Rome burn"

11. Goohuman says:

@sirmarlonblack I think you are mistaking the intro of the ERA with voting rights. Slavery still exists, as does racism and poverty etc. Being imperfect and open about it is a sign of freedom. All injustice is open to see.

Though your interpretation is tainted, there was a law tying voting rights to land ownership. This was given up early on as racism and slavery took hold. A free country overcomes these problems as a people. No better way IMO.

12. Draelren says:

@lordcroesus Don't think taxing the wealthiest is the best idea. Who creates the jobs? The 'wealthy' people want to keep their lifestyle, they would just not hire anyone new if they got taxed more per employee or because they are successful. You don't get ahead by punishing people for rising above.

13. Shetland James says:

You should be a teacher. This video explained it brilliantly!

14. Shetland James says:

@Draelren

This is it: Unions have their uses but they scream for more jobs and job security while also campaigning for measures which inevitably make hiring someone more difficult.

15. Dwerden93 says:

so… bottom line is that america is screwed?… Good thing I live in Canada!

16. disisdkat says:

@Draelren Seriously! You are still buying that con job? The trickle down theory has had 30 years to prove itself and has failed to do so in a BIG way.

17. Ryan Simon says:

i want this guy as my teacher. hands down.

18. sleepyasthesouth says:

Ok, do you've explained why enforcing the debt ceiling is not the solution to our debt problem, but you have not exactly offered any kind of solution or end to national debt yourself.

@lordcroesus Congratulations, you're a Democrat. That solves everything!

20. Ralf Lippold says:

Excellent explanation of the Debt Ceiling by @KhanAcademy and sharing via @bendehghan #SystemDynamics #stocks #flows

21. RedGrobo says:

Long story short, get real, start cutting military spending….
EVERY other solution is a band aid fix that isnt going to work long term.

22. SpideysEvilTwin says:

@lordcroesus If I could give you a high five through the internet I would

23. pogokero says:

@sleepyasthesouth as a teacher, it's not his job to give you the answer. He gave you the tools of understanding so you could figure it out yourself. But I like @lordcroesus answer.

Step 1. Cut the 'Defense' budget / pull out of the wars

Step 2. increase taxation on the wealthiest section and close certain loopholes to bring﻿ a more balanced tax incidence

Step 3. Stop treating the majority of the population with such contempt.

24. TheBarcan says:

flat tax!!! 10% for ALL people, rich, poor, black, white, everyone!!! Then cut spending.

25. Drawn From Life says:

@lordcroesus
lol @ ignorant trolls from reddit

26. palthainon says:

thank you!

excellent – keep up the good work!

28. Goohuman says:

@sirmarlonblack Got all these emails, you musta learned your history from a liberal/socialist school or something, I can't figure it out, but I'm here to straighten it out.

Let me start with a disclaimer. My point is that freedom allowed for real ingenuity, which leads naturally to prosperity, so it may be more accurate to say that when we had a small government and were the most free, we grew the most rapidly. We stepped into the Industrial Age, starting right here in the US.

29. Goohuman says:

@sirmarlonblack Yes. Privatize everything that can be privatized. I would not privatize the military, as you want to keep that loyal and secure and specifically responsive to the US population as a whole, not business. Otherwise, privatize and keep it fair. Let the competition streamline the processes. Monopolies will arise. Some good, some bad. It is no different than big government out of control except you can legally compete against a business.

30. Goohuman says:

@sirmarlonblack It looks like you or the vid owner deleted some of your comments. That is unfortunate. An honest debate must include everything.
On that note, you dodged defending your own position. Do you believe a big gov is better than a smaller one? You seem to support the communist concept of calling it "power to the people" and actually handing all the people's power to a big government.

You better pray power doesn't corrupt if that is what you want. Is it?

31. Herr Fischer says:

@lordcroesus why should the wealthiest bear more of the burden? What is meant by treating the majority of the population w/ such contempt?

32. parkj238 says:

@Goohuman How do you legally compete against a monopoly, the definition of a monopoly is that it would not be cost efficient to try to compete against one.

33. Scott Spiegel says:

Khan dishonestly blurs the definition of "default" to encompass all of our expenses. He correctly notes that the conventional definition of default applies only to interest on our debt, then asserts that "default could be on any of our obligations: Social Security, Medicare, defense, etc…" He then trails off, as though to imply that not covering discretionary programs constitutes default. However, it does not. And we have more than enough revenue to cover interest, SS, Medicare, and defense.

34. Goohuman says:

@parkj238 Yet monopolies fall. If a business is run so well that they become a monopoly, then I am fine with that. If a monopoly exists because they manipulate the laws to kill the competition, then that is an example of a monopoly that should be dismantled by the government.
We've seen steel, oil and communications monopolies in the past that were broken up. Regardless, I believe they would have fallen anyway when the top guy leaves or passes on. Watch Walmart. I give it 10 more years.

35. parkj238 says:

I don't see too much of a difference between monopolies and dictatorship regimes. Dictatorship regimes fall too.

36. parkj238 says:

@Goohuman I don't see too much of a difference between monopolies and dictatorship regimes. Dictatorship regimes fall too.

37. Goohuman says:

@parkj238 You don't?
If we compare Microsoft to Edi Amin, you might get a small picture of how a dictator, any dictator, is far FAR worse for a countries population than a monopolizing company.
I personally find it amazing you don't see that. You have to ignore a LOT of stuff to equalize the two.
I'm trying to think of a justification for your thinking and all I can come up with is that you either don't know much about monopolies or dictatorships, or your socialist leanings are blinding you.

38. Goohuman says:

@spiegelscott Indeed. I would add that I've heard some Democrats say that a cut in any such program would also be considered a default.

I guess Mirriam-Webster should just start rewriting the whole language right away .. then do it again in 3 years.

39. parkj238 says:

@Goohuman Microsoft isn't a monopoly, are you crazy? You're the one who sounds like you have political leanings, if you assume my questioning monopolies is akin to socialism. Monopolies kill competition.

40. Goohuman says:

@parkj238 Alright. I don't care to debate with you as to what you consider a monopoly. Just tell me. Tell us all an example of a monopoly here in the US.

And then, if your willing, tell us what you consider a dictator.

I'm sure you will attempt to find the most horrific monopoly and the most mild dictator to make your point. Just know, the only person you are fooling is yourself.

41. parkj238 says:

@Goohuman I don't understand what you don't get about monopolies not being accountable for inefficiencies or lack of innovation. There is no internal check when you have total market power. We have an antitrust division, there are lawsuits filed against collusion and monopolistic behavior in the U.S. all the time to try prevent such a thing from coming into being. Go to a third world to see what a company with monopolistic control provides to its citizens in terms of service and support.

42. Dolphinsintheocean says:

Salman for president, I second the motion

43. Goohuman says:

@parkj238 At least the monopoly would be providing services while the dictator in that same 3rd world country is killing the people.

Never mind. I'm not defending monopolies. I'm defending capitalism. The worst case scenario under capitalism is far less destructive than the worst case under socialist rule.

Lets seriously get this guy as the president. Super smart and a great humanitarian.

45. TJ Heath says:

@lordcroesus I agree to cut the military, we have far more than we need and people can take care of themselves, but I believe income tax is immoral. Without it everyone could do whatever they want with their money, the nation would have a sane budget and would try to please donators. (no one gets rich by catering to the rich, the government would do what the vast majority wants) I hope you left-winger one day understand that some rich are honest and deserving and others cheat. I'm not prejudice.

46. TJ Heath says:

@aydarsh Good question. No. We have both here in Maine and the government still spends crazy, especially under the left. It hurts the poor (not as much as inflation) and is simply immoral. Most forms of tax are theft. We once just did user fees and tariffs. Tariffs are like consumption tax so I don't promote them. I would like to see the government depend on user fees and donations, but it would need to cut at lest 90% to work, maybe 98%. I think everyone would be richer if it did shrink.

47. Matthew Reynolds says:

Money is imaginary, and who are we paying interest to? Oh our masters, the banks, magic money makers.

48. animals0feel1pain2 says:

Man, I heard Sal said we had a Triple A rating, then I was like, "What?! We got it back?!!" But then I looked at the date this tutorial was made and my heart sank.

49. Nonet Splitter says:

Before talking about the debt ceiling it's important to realize the difference between reality and Leftist rhetoric. In reality, what Leftists and duped moderates call the "debt ceiling" isn't a ceiling at all. Ceilings impose limits on how high something can go. The "debt ceiling" has NEVER done that. Rather, what Leftists call the "debt ceiling" is really a DEBT TARGET. It's a level of debt Leftists aim for as they pursue their endless spending. Once reached, they set a new, higher TARGET.

50. DebtConsolidationCare says:

Good explanation

51. MogManDog says:

@happystance9able
Ronald Reagan was a leftist?

52. Cheryl Lovell says:

It would be nice if we could view this for what it is (a tutorial) and keep our politcal statements to our selves. If you are conservative or liberal no one is going to change your mind. Can't we all just get along, agree to disagree, and live in peace. Lets us be united, like the United States of America. Oh and by the way Mr. Khan, this was a good tutorial. The deficit and debt always confused me. Thanks good job.

53. HomoSapien2012 says:

Your channel is a precious gift for mankind, u r doing such a great job. I just want to request u to plz also add Electricity/Electronics lectures with ur channel It's the only important subject that i think is lacking at ur channel.

54. enermaster says:

If you agree with Ron Paul's Plan to Restore America, help him out on Dec 16th at ronpaul2012(dot)com or by helping him win Iowa supervoterbomb(dot)com

55. Kevin T says:

@happystance9able I've been fooled all along. REAGAN WAS A LEFTIST!

56. Kevin T says:

@happystance9able I can already tell this argument would go nowhere. But let's see: it wasn't until the aug2 raise that you rightwingers decided to be all cautious about raising the limit, despite the fact that the only reason why we need to in the first place is because of conservative policies. So you know what? It IS a debt CEILING. We only delay it because fucking idiots like Reagan and Bush put us in that situation.

57. Nonet Splitter says:

@waxrock >>the only reason…is because of conservative policies<<
That assertion is exactly the opposite of the truth. From 2004-2007, in response to Bush's 2003 cuts on capital gains taxes, the U.S. Treasury saw its revenue INCREASE by \$785 Billion; the largest 4-year increase in American history. Therefore, conservative policies were, in fact, a mitigating factor in the rising national debt. The debt took off when Bush began, in his own words, "abandoning capitalism to save capitalism".

58. Kevin T says:

@happystance9able I'm sorry? Conservative policies were a mitigating factor in debt? Bush put us \$6.1 trillion in debt. Why? Because of conservative policies like tax cuts while going to war in Iraq and Afghanistan at the same time. And to FURTHER put us in shit, banks gave out subprime loans because of Reagan's deregulation. And here we are: Obama inheriting Bush's incredible debt+deficit and having to make sure the banks wouldn't fail as a result of the 07-09 housing crisis.

59. shalcall says:

@mrusskevin What happened? The cynical Republicans in the house backed down when they realized that the crazy tea party caucus was actually serious about defaulting on our debt and throwing the U.S. into a depression. They negotiated a borderline unconstitutional deal with the president to set up a super committee that would identify cuts.

This committee failed to identify adequate cuts, mainly due to Republicans not wanting to raise taxes, so automatic cuts are now in effect.

60. theantiantichrist says:

No one wants to see pensioners aircraft-carriers go without fuel…

61. Nonet Splitter says:

After the Bush '03 tax cuts, the 4-year rate of growth of the national debt as %GDP was nearly halved; from 5.2% over the period of 2000-2003 to 2.2% over the period from 2003-2006. That rate of growth increased 31.6% (!!!) once Democrats took total control of Congress in 2007. Socialists are defined in part as people to whom such facts don't matter. They are people on a stupid ego trip and have no interest in reality. I can't fix stupid. Stupid is as stupid does. O-bots will do as they do…

62. Kevin T says:

@happystance9able You do realize those percentage increases were the result of conservative policies…? '07 was the start of the mortgage crisis which was a direct consequence of Reagan's bank deregulation. And you know what happens when the economy takes a nosedive? Fiscal policy. So, yeah, democrats did spend a lot during '07 and onwards. That's what you're supposed to do to fight the recession. Can't say Bush had to go through the same troubles though.

63. Nonet Splitter says:

@waxrock >>a direct consequence of Reagan's bank deregulation<<
Again, what you believe is the direct opposite of the truth as evidenced by this video:
watch?v=_MGT_cSi7Rs
There, you can see socialist Democrats in 2004 attacking Bush regulators who sought to imposed sensible restrictions on lending practices. Socialist Democrats are seen there leading the crusade for lax lending standards. Clinton's Justice Department literally forced lenders to make bad loans to Democrat-constituent groups.

64. apricotsnms516 says:

Sal for president!!!

65. Mary Marsh says:

Inclusion of Social Security in list of items that might have to be cut is interesting because it is SUPPOSED to be a stand alone fund. But it has been regularly raided over the years to pay for other things. Yes, it's filled with federal IOU's, but as this little video shows, will it ever be paid back. Unsustainable spending.

66. Mike Erik says:

Like George Bush…..

67. JiveTurkey0001 says:

Hmmm…interesting. I wonder why he didn't include a point on the graph indicating when ppl will start freaking out and killing each other…;)

68. Downfurlife says:

Why do you add in politics?

69. benneb1000 says:

8:15 Yea about that triple A rating…..

70. TBird4490 says:

Until I read your comment I thought that political brainwashing was just a joke. Now I am certain that it's true. Leftists ATTEMPT to reach debt? They want to accrue as much debt as they possibly can?

71. Gracie Arnold says:

Were there unexpected expenses that caused us to need more money to fufill our obligations? Or do we just naturally need to be raising the debt ceiling? Are there countries that lower debt ceilings? How is this done? Did republicans use this debt ceiling idea purley to affect the presidential race?

72. FLII says:

C.G.P Grey also compliments Khan video titled "The Debt Limit Explained " – C.G.P Grey

73. BoringFuckingCunt says:

"Leftists spending"? Like what? Healthcare, education, transportation, and infrastructure? Yeah, I'll take that over the endless wars Republicans want.

74. BoringFuckingCunt says:

Oh, you're completely insane and can't be reasoned with! OK!

75. BoringFuckingCunt says:

Preach!

76. tuck295q says:

LOL
Obama has been bombing more countries than Bush so far. His first 4 years, he bombed Pakistan, Afgan, Yemen, Somalia, and Libya while Bush bombed Iraq and Afgan…

The thing is Obama make it worse. What a naive fool. Why do you think the debt goes sky rocket faster than Bush time of 8 years?

77. tuck295q says:

I'm gay and pantheist and I completely agree with you….hope they at least know what pantheist is.

78. tuck295q says:

The only difference between your and those countries you mention is they don't spend as much money on every darn program that US seem to come up endlessly. Also, they don't put as much money bombing people around the world.

I hate to break it to you, but Obama bombed more countries than Bush whether you like it or not.

79. tuck295q says:

So pretty much everything Ron Paul warns about the debt ceiling is true…. and the GOP gave coronation to Mitt to automatically lose to Obama…..

Well, we will be investing in gold, oil and silver more over here in Asia continent just in case you Americans go broke due to super hyper inflation. (like how we've been doing for the past years, but we will invest more this time).

Good luck to us all. LOL

80. Diavolino1988 says:

shouldn't the US reduce it's spending instead of defaulting? Like selling a couple of aircraft carriers to the UK or something.

81. Zack Hawkins says:

Since we're taking about reality, I think it is important not forget that the monetary system itself is one conceived of absolutely no material value. Money and fractional reserve banking are what keeps society enslaved. Debt is conceived the moment the government exchanges treasury bonds (paper) for bills (paper). With compounding interest acting as the nipple from which the debt feeds, how is anyone supposed to get out of debt? It is not a matter of Left or Right, just simple economics.

82. carlostothe says:

You people are such idiots. Most of you are probably Ron Paul zombies that haven't ever even glanced at an economic scholarly journal.

83. Robeon Mew says:

How about cut some spending on military? This is a new world. a world with the hope and chance that noone fears another. A place of safety without guns.

If the US drops 40% of it's military spending, it will guaranteed have not just enough money to kill debt, but feed the poor EVERYWHERE

84. balinne says:

Our politicians need to take the Dave Ramsey Financial Peace course.

85. ikky159 says:

Unnecessary borrowing ends in war

86. tuck295q says:

You are actually right. Let's say they don't pay a cent for war, that spending alone would have save his all time high record of debt from 2008.

He's the commander in chief, remember?

87. tuck295q says:

The problem I have with the Libya war is not how appropriate it is to intervene, but it's the procedure of how the US did it to justify the rest.

If it is necessary to declare war, it should have been done base on the country's decision and that is congress and not UN. The reason why it was ended quickly may have other hidden factors such as wars in other countries, the rate of replacing regime was fast, etc.

Nevertheless, these tyrants are usually born from US interference. It's not cheap

88. Bobby Mucka says:

No. Drop Obamacare, it is ruining the health system. My cousin is a doctor of natural medicine and he is now doubting it because of the 7 foot tall regulation package from Obamacare. You might not get that life saving treatment for your mom or dad in the future if they need something fixed. It's all in the liability and the premiums skyrocketed in some states to over 150% Not to mention how do suggest we get rid of guns? lol force people at gunpoint to disarm themselves?

89. Igor Nasubulev says:

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90. mcrib10 says:

#AA+

91. DaProMach says:

so basically… we're screwed

Important to Keep Our Countries Running In all Countries around the World.  Peace

93. Vicki Bee says:

My friend said every member of Congress should be FORCED to watch this video so they can figure out that a damn deficit isn't solved like a household budget.
He cracks me up. He's been angry at the Speaker of the House ever since the Speaker shut down the government. He even went to the guy's Facebook page, called him an idiot and proceeded to point out that a deficit isn't the same as a household budget.
He thinks the guy doesn't know a damn thing about it.
I told him I don't know a thing about it either; he said I'm not in a position where I'm supposed to know.
That's good bc no matter how many times he explains this stuff too me, a month later I have no memory of retaining it. I have to hear it repeatedly for the rest of my life apparently.

94. Bremmer Mandrake says:

You never pay off all your debt you just keep it manageable to want to cut the nations debt by 40 % of the deficit is to pay off all your debt. all you need to do is cut it by 10% as the interest rates go up.
and that is easily done just cut the waste fraud and abuse in the system then get rid of big government we are a nation run by the people when you have big government it is the people run by government.
Americans own 75% of the us debt that means big government is putting every American in debt.
I think your share is now \$56,000,000.  that is every American owes.
If our government called in its debts do you have your share or are you ready to go to debtor prison and sent to mars,
That is what they did back in the day all the debtors were sent to colonize new lands.

95. Habibur IHaveSeenItAll says:

Barack Not that Hussein Obama that increased \$8.15 trillion dollar debt during his presidency so far and more to come. When Barack Obama took the oath of office, the U.S. national debt was 10.6 trillion dollars. Today, it has surpassed the 18 trillion dollar mark which will never be paid off unless we sell US territories. This stupid country is going to hell faster than I expected.

96. abhishek ravindra says:

I don't know why the heck American political class want to cut the spending there's a simpler way to solve the deficit just tax the 1% the way it was done in golden days.

97. Vikas Benoit says:

It's none Trump in America 😂

98. Vicki Bee says:

You PAID INTO SOCIAL SECURITY AND MEDICARE. I'm TIRED of people LYING and saying it's a "social" program. Social my eye. The money wouldn't even be there if I hadn't paid FICA. I didn't get that back and I'm the one who worked for it.

99. The More Ya Know says:

Watching this in 2021

100. Maze Gamerz says:

why the every video of urs work fine on my phone but on my pc there's no sound , my pc specs are super high just to know ,
also other youtube videos also work fine just urs