628-Federal Debt: The Ticking Bomb that No One is Willing to Defuse

Radical Personal Finance

Joshua J. Sheats, MSFS, CFP, CLU, ChFC, CASL, RHU, REBC, CAP

Finance, Retirement, Insurance, Business, Money, Education, Self-improvement, Financial, Independence, Growth, Advice, Investing, Family, Personal, Radical, Christian, Faith

4.4 • 1.9K Ratings

🗓️ 6 March 2019

⏱️ 57 minutes

🔗️ Recording | iTunes | RSS

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Summary

We face a massive problem in the United States right now. Put simply:

We are borrowing more money than ever before.
There's no plan for us to borrow less money in the future.
There's [almost] no mathematically sound plan that can be created to have us borrow less money in the future.
No major, national politician is loudly, consistently talking about how we can spend/borrow less money.
Rather, there are loud, vigorous, and strengthening forces moving in the direction of borrowing even more money.

The government has only three sources of funds:

Taxation (bad for you if you earn money or have wealth)
Borrowing (bad for you if you're a citizen, not an investor)
Inflation (bad for you if you're a saver)

There's enough evidence for honest, careful people to predict the strong probability of future crises.

The problem is, we can't know when these crises will occur.

But it's time to start preparing.

Joshua

"We've Never Had Deficits Like This During Peace and Prosperity Before" https://reason.com/blog/2018/10/17/budget-deficit-trillion-dollars-riedl
New Course: "How to Survive and Thrive During the Coming Economic Collapse: A Rational, Modern Approach" https://www.radicalpersonalfinance.com/store

Transcript

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0:00.0	Welcome to Radical Personal Finance, a show dedicated to providing you with the knowledge, skills, insight and encouragement you need to live a rich and meaningful life now while building a plan for financial freedom in 10 years or less.
0:11.0	My name is Josho and today we talk about the ticking bomb that no one is willing to diffuse.
0:17.0	Perhaps I should retitle that. The ticking bomb that no one is willing to talk about the possibility or desirability of diffusing, namely the US federal debt,
0:27.8	the growing federal debt, the current deficit, the amount of money that we borrow each year to fund our collective promises and the
0:36.1	increasing, ever increasing federal debt.
0:39.7	This is of course a common theme on radical personal finance.
0:42.0	I've discussed this many times over
0:43.2	the last five years of the show and today is no different. I have nothing as much has
0:48.9	changed. However I find it fascinating to look at what is not happening right now which is why I'm
0:55.7	repriezing this topic because I want to prove a point to you namely that no one
1:00.9	is willing to even talk about spending less money and if that is true
1:05.8	then why should we expect the future to be anything different? I'm especially
1:11.2	interested in this with discussions of the recent Green New Deal legislation
1:15.8	or proposed legislation which is has all the the political power right now in the world of politics is quite the interesting conversation.
1:25.7	The first, I want to first deal with a couple of big questions.
1:30.7	And there are two basic big questions that are really rebuttals or people saying
1:38.6	oh their objections and I want to deal with two objections. Number one, objection number one, is federal borrowing, is governmental borrowing a problem?
1:50.0	Frequently when I do these shows, I've received communication from listeners saying
1:54.4	Joshua listen you are wrong about the fact that federal borrowing is a problem
2:00.1	it's not a problem in fact there's a healthy level of debt that is good for a government to be engaged in.
2:06.0	And so, and don't you know after all, you can't compare, what might be tempting to compare the federal government with an individual household.
2:14.5	You can't do that because the individual doesn't, household doesn't have taxing ability,
	...

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