The United States is 22 trillion dollars in debt and no one is doing anything about it. This leads to countries around the world dumping U.S. treasury bonds. They know that with the amount of money that the U.S. has printed over the last decade is detrimental to the future of the U.S. Dollar.
What You Don't Know About Debt- Video Transcription
Patrick Brunson: 00:00
So this week, one of the things that we've been seeing a lot on the news and in mainstream media is a lot of talk about debt. Debt is a pretty interesting topic of discussion right now because of where we currently stand with our national deficit, as well as where we stand on a global aspect with how much debt we've accumulated over the course of the last decade. The problem is is that central banks are experimenting with our money. They're experimenting in a way that we have never actually done before as a society. We're printing money in excess to the tunes of trillions of dollars all around the world and people are becoming desensitized to the numbers of a million and billion and trillion. So what we've noticed here at US money reserve is that a lot of average consumers don't really have a good aspect or grasp on what debt is and where we currently stand with our national deficit.
Patrick Brunson: 00:55
So you have to make a bit of a comparison in order to truly understand it. So we've broken it down a bit to the normal civilian side. So for example, let's say you have an individual who is unemployed. They're collecting an unemployment check. The unemployment check that they get every month is $1,500 per month. In addition to that, their cost of living is double that. It's $3,000 a month, so if they're using the $1,500 to pay bills just to make ends meet, where do they get the other $1,500. they have to borrow it. That's when credit cards start coming into play and all of a sudden you have Joe, who's only bringing in $1,500 a month. He's racking up an additional $1,500 in credit card debt each month just to make ends meet. Before you know what, he maxes out the credit card and what does he have to do next?
Patrick Brunson: 01:47
He has to go get another credit card just to make the payment on the previous one. All of this happening at the same time while interest rates are going up. Eventually Joe gets to a point where he is using up his entire unemployment check of $1,500 to pay back the minimum interest on monthly payments for credit cards all together. That's where we're at as a country right now. We are $22 trillion in debt and we're not doing anything or making any strides towards trying to lower that at all. The problem with Joe is eventually Joe goes bankrupt. Right now we're in a situation, we're in a limbo position right now as a country with where we stand financially, which is why you have countries around the world dumping US treasury bonds, dumping US dollars because they know that with the amount of money that we've printed over this last decade is detrimental to the future of the US dollar.
Patrick Brunson: 02:42
For more information, click on the link below to pick up our latest report, the 2019 edition of 25 reasons to own gold. Talks a lot about the different reasons of why consumers should be protecting their assets. You'll notice that in the booklet, number 12, discusses the exact topic that we were discussing today, the mounting national debt, as well as many other reasons, but please click on the link, pick up your copy. You can also get a copy of all a lot of our other reports that we've done. If you're watching this from YouTube, subscribe to our channel so you don't miss a single episode. I'm Patrick Brunson and thank you for watching US money reserve's market insights.