To America where time is ticking for That country to deal with its debt Crisis with the world's largest economy Set to run out of cash apparently in a Matter of days this graph shows just how Diver situation in just a few short days The United States potentially is about To default on its debt that's over 31.4 Trillion dollars of borrowed money we Don't have and as a cryptocurrency Holder this affects you as you can see The national debt has grown Significantly since the early 80s under Both Republicans and Democrats number of Factors have caused her to creep up over The years but it's now reached a Whopping 31.4 trillion that's Trillium with the T U.S dollar joining me now CNN's business Correspondent Richard Quest questy how Serious is this let me share with you This full clip awesome perspective but In 90 seconds or less what is the debt Ceiling and specifically what date does This expire graded by Congress in 1917 The debt limit or ceiling sets the Maximum amount of outstanding federal Debt the U.S government can incur back In January 2023 the total national debt As well as the debt ceiling both stood At 31.4 trillion dollars meaning we Reached the limit months ago and Actually the U.S government has run a Deficit averaging nearly one trillion
Dollars every year since 2001 meaning it Spends that much more money than it Receives in taxes and other revenue and Why do we even have a debt ceiling I Mean why doesn't the government just Only spend what they have it was President Woodrow Wilson that needed More money to spend on World War one so Lawmakers voted that debt ceiling in and Congress at the time set a borrowing Limit of 11.5 billion dollars and any Increase after would require Congressional approval now the debt Ceiling is almost a joke at this point It doesn't really mean anything because Since World War II the debt ceiling has Been modified more than a hundred times So if you hold Bitcoin or crypto how Serious is this if we don't again raise That ceiling it is both extremely Serious bordering on catastrophic and Devastating and it is not serious at all Gosh because the debt ceiling is a Totally man-made fabricated artificial Ceiling the law says you have an Overdraft of 31.x trillion dollars and you can't Borrow any more until you raise it but All you've got to do is raise it and That's it and every so many years we Have this battle between the Republicans And the Democrats over raising the Overdraft limit just imagine you with an Overdraft I know that's hard to believe
Gossing I realize but imagine you with An overdraft and as you're getting Closer and closer to hitting the Overdraft the wife says or the bank Manager says would you like to pay it Down you say no thank you well shall we Raise the overdraft and that's where we Are at the moment but Richard the Numbers are extraordinary 31 trillion To an Australian it is they're doing a Trillion dollar budget deficit we're Doing we do we do we do your Surplus so Are they ever going to pay it down it's It's more than the value of their Economy Right more than jet to GDP but we're not Talking about the economy of a small Country you're talking about the 2025 Trillion dollar economy to start with Yes debt to GDP is now almost at record Highs and that's as a result of the Pandemic and as a result of spending That's had to take place on Infrastructure since but we'd all be in A much worse situation right if the U.S Had not spent that money now what needs To happen uh is the short answer because If they do default Goshi then you're Looking at Calamity catastrophe disaster Right in the world Completely because everything is based On a single premise that the US will pay Its debts and even if there was a Technical default say for an hour or two
Or something didn't get paid it's like Virginity once it's gone it's not coming Back and once the U.S virginity on debt Default has gone it's finished and every Bit of pricing in every single Market Would have to take effect because koshy There's the simple question if you've Done it once you could do it again I want to finish today's video by Sharing with you the latest news actual Audio from a Twitter space on where we Stand today but this CNN Australia News Correspondent had it absolutely right We're screwed if we don't raise the debt Ceiling and we're absolutely screwed Eventually if we keep raising that debt Ceiling so how much time do we have to Decide well while treasury secretary Jeanette Yellen has said a default could Happen as early as June 1st if Congress And the president don't act today the Bipartisan policy Center has placed the Most likely X date as sometime between June 2nd and June 13th so with this Potentially being just a few short days Away what does this mean to you if the United States defaults well first it's An immediate crisis if the U.S defaults It's a crisis for Wall Street it's a Crisis for Global markets crypto markets As they could drop or plunge and this Could also affect retirement savings 401K plan College savings and anything Tucked away and invested so obviously
Global markets could potentially crash Also certain federal programs will no Longer be able to be paid for Social Security Medicare Medicaid veteran Benefits SNAP benefits among others Could be among the first affected by the Default and if the timing benefits are Correct there's actually three big Government spends that won't get funding Number one 12 billion in Military and Civilian retirement benefits paid on June 1st number two one billion dollars In tax refunds scheduled to go out June 7th so you may not get your tax refund And three four billion dollars in Federal salaries payable on June 9th so Tens of thousands of government Employees if not more will be put out of Work the economy will surely be pushed Into a bigger recession yet on the other Hand if we raise the debt ceiling again The other crisis involved here is longer Term and slower moving if the debt is Allowed to grow at current rates it will Be unsustainable for example in just 30 Years just the interest on U.S debt Would be so unsustainable that U.S Taxpayers would be paying 50 percent of Their taxes just for the interest on the Debt and this would also lead to Dramatic Cuts in spending along with the Increase in taxes to make up the Difference and here's the Dirty Little Secret that most Financial experts won't
Share with you I will this is one of the Big reasons Bitcoin was created in the First place yeah so so now is an Incredibly interesting time from a Global macro perspective and it also is Is Um you know to borrow a phrase from the Old Testament it appears that that Crypto has been created for such a time As this so just to be clear Bitcoin is a Non-sovereign Hard Cap Supply Global immutable decentralized Digital Store value and that's a lot of Different adjectives but all of them are Very important and what that leads us to Is it is a hedge against monetary and Fiscal irresponsibility from central Banks and governments globally now the Latest update on a recent Mario nefal Twitter spaces breaking debt ceiling Deal reached through handshake Justin as Of this morning I have had conversations With three different people Across both parties One of whom is very close To the decision maker And it seems like the debt ceiling deal Is now imminent a handshake deal Essentially occurred last night And early this morning Uh now they're working specifically on Final language But I can tell you sort of
The the basis of the deal the one detail From the deal that seems to be very Prominent is that And again please no one act on this Jesus I'm just like some random dude on Twitter okay all right But one of the biggest parts of this That seems to be pretty well confirmed Across both party lines is that there Will be a three percent increase in Defense spending So a lot of people have been talking About how there might be defense Cuts But there that was not on the chopping Table that's a really big one That's a really big deal and I know it Doesn't seem like a big deal but the Market actually has been reacting to That for a long time and so you know and We saw that with companies like Boeing And Lockheed and others so take that for What you will to me I need a little more So like always click subscribe we drop a Daily video keeping you informed see you Tomorrow
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