Who is the brokest man in the world? In this episode, Patrick Bet-David breaks down why the US is struggling with debt and the big consequences for consumers and the US as a whole.
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So let's define what the broke his man Is so think about what broke to me it's Broke to me is you have a lot of debt You can't make the payments you're Behind the eight ball you're stressed Out every decision you're making you're Making it from place of panic right I'm About to introduce to you the brokest Man in the world and they're making Desperate decisions and when a man of The household keeps making desperate Decisions guess who gets the biggest Price that they have to pay the kids of That father that's making all these bad Decisions financially right so before I Introduce this man to you to realize who This person this irresponsible person is If I give you value this video give it a Thumbs up and subscribe to the channel Let's get right into it America's in Debt 31.5 trillion dollars Uncle Sam is The brokest man in the world but here's A kicker do you know what is the biggest Interest payment we ever paid in the History of America Q4 of 2022 it was the first time ever where Our interest payment was 213 billion Dollars the quarter prior to that was The first time ever we paid above 180. Four quarters in a row was the biggest Interest payment we've ever paid in the History of America but here's a problem With that in 2020 the interest we were Paying on our 29 trillion was 0.5
Percent in 2021 was 0.1 percent in 2022 There was around 1.9 percent in 2023 We're going to be between four and a Half to six percent that we have to pay On our debt this will be the first year In the history of America where America Is going to be paying trillion dollars In interest on our loan on our debt of Thirty one and a half trillion dollars Here's a chart to look at okay our debt To GDP ratio is the highest ever at 124 America has never been here before by The way even after World War II if you Go to 1942 to around 1988 our debt National debt was around four and a half Trillion dollars to around six trillion Dollars for 46 years For 46 years we kept it around the four And a half to six trillion dollars for 46 years and then all of a sudden America got into debt spent spent spent Spent spent spent spent spent and now These interest payments are going to go So you know we just did the whole Inflation reduction area act that we Paid 1.7 trillion dollars oh my God That's so much money don't be surprised If 12 months from now our interest is 1.5 trillion dollars in 2023 the way They're raising rates number one country In the world with national debt is U.S For 31.5 trillion dollars look what Number two is UK 8.7 France seven Germany 6.46 Japan 4.36 trillion China
2.6 China is only in debt 2.6 Italy 2.5 Spain 2.26 Canada three to Australia 1.83 U.S 31 trillion dollars at 124 okay So what's the big deal with this pal why Are we talking about this here's why you Know how we always trash Venezuela for Their high debt to GDP ratio right 350 Percent my God look at Venezuela what They're doing how much GDP they have Versus how much you know debt they have Or will make fun of greens because They're at 206 percent as bad as Greece Isn't as terrible they are with their Finances we're at 124 it's not like We're way behind him at 30 or 40 Nobody's at 40 okay U.S is at 124 to 128 We are doing a horrible job so for Example and this is not a Democrat or Republican both sides want to spend Money right now okay back in the days Reagan used to say to Republicans Every Day's Fourth of July to Democrats every Day is April 15th but today both of them Are spending money this is not a left or Right thing here's where I wouldn't be Concerned if we have 31.5 trillion hours Our GDP right now is roughly 25 trillion Dollars right if our debt is 31 and a Half but our GDP is 62 trillion okay It's fine we're gonna be okay it's like You're making 65 000 a year but you have 31 000 of debt okay today we're making a Hundred thousand dollars a year but we Have 128 000 in debt that's a lot of
Money that's a real thing to be Concerned about we are the 12th highest Country in the world of debt to GDP Ratio this is not a good Leader's Bulletin to be on so my recommendation Which obviously I'm not in politics but If I was looking at this and how this Relates to how we are as individuals and Companies whether it's a company whether It's an individual or whether it's a Country pump the brakes on spending Let's figure out ways to increase GDP And then let's try to keep this thing Flat and cut it down a little bit and These interest rates can be scarier this Year with interest rates as it climbs Away it does and then if we increase This and this is here then let's invest They're all talking about right now Having to increase the debt limit so we Don't default obviously neither the left Or the right is going to allow us to Default that's a political catastrophic Event if they do that the market will Tank 33 percent to 40 if they do that The world economy is going to take it no One's going to allow America to get to That point but Just like individuals just like Countries just like companies we have to Pump the brakes on spending and figure Out a way through Innovation to increase GDP or else this debt payment this year That could be a trillion to a trillion
And a half Is going to be a scary sight and the Brokest person when you make payments Are insane your debt's not going down That's what America is going through Today so if you got value from this Video I want you to watch this next Video that I did on unemployment if You've not seen this click here to watch It it's a very very interesting data Take care everybody bye-bye bye Foreign [Music]
