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Protect your online privacy with CyberGhost VPN. Get 84% off, just $2.03 per month plus 4 months free, here https://cyberghostvpn.com/TheInfographicsShow Americaās $40 trillion national debt sounds like a problem that should simply be paid off. But what if eliminating it could create an entirely different crisis? This video explores the strange role U.S. government debt plays inside the global financial system. Treasury securities arenāt just IOUs sitting on a government balance sheet. Banks, pension funds, hedge funds, money market funds, and central banks use them as some of the worldās most important financial assets. Theyāre especially critical in the massive repo market, where trillions of dollars move between institutions using U.S. Treasuries as collateral. Remove enough of that collateral and the system could face serious liquidity problems. We also look at Americaās brief experience with zero federal debt in the 1830s, the financial turmoil that followed, Romaniaās extreme debt repayment campaign, and the surprising concerns policymakers raised when the United States appeared to be heading toward zero publicly held debt around 2001. None of this means unlimited debt is harmless. Rising interest costs can squeeze government budgets and create major economic risks. But reducing annual deficits and eliminating every Treasury security are two very different ideas. The U.S. national debt is simultaneously a liability for Washington, and one of the foundations supporting modern global finance. 00:34 - What Happened When America Paid Off Its Debt 01:46 - Why Government Debt Is Someone Elseās Asset 04:09 - Who Actually Owns the U.S. National Debt? 05:22 - Why Treasury Bonds Hold the Financial System Together 07:48 - The 2019 Repo Market Crisis 10:06 - Romaniaās Brutal Experiment With Zero External Debt 12:45 - When America Nearly Became Debt-Free Again 14:46 - What Happens If the U.S. Defaults Instead Narrated by: Josh Risser š Don't forget to SUBSCRIBE! š SUGGEST A TOPIC: https://bit.ly/suggest-an-infographics-video š¬ Come chat with me: https://discord.gg/theinfoshow š MY SOCIAL PAGES TikTok āŗ https://www.tiktok.com/@theinfographicsshow Facebook āŗ https://www.facebook.com/TheInfographicsShow š SOURCES: https://pastebin.com/GzvU5ApJ All videos are based on publicly available information unless otherwise noted.
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