Interest Payments at Historic Low - There is No Debt Crisis

[Edward70707]

What needs to be done is cancel 100% of the money lent to to US Goverment created by the Federal Resurve and classifly it as DUET FREE Money . This would reduce some of the National Duet. And to us Deut free Money to ether pay down some of the nation Duet or us it to stimulate the Eccomony with instructure projects.

[ThisIsNotPictureTube]

excellent points

[iscorpio]

@ThisIsNotPictureTube i agree great unheard points even now

[kd1s]

And I can tell you where most of the stimulus funds went in my state. It didn't really create any jobs here per se.

What it did was purchase nearly 100 hybrid buses for RIPTA. It funded projects like sidewalk replacement, signal replacement, etc.

But it was all one shot.

[garvess]

The real question is 'Why is the government getting loans of money from banks at interest?'.

Another good one is 'How can a country get out of debt by getting lends of more money that has more interest attached to it?'

The reason you don't hear these questions asked is because elected officials aren't in control anymore.

[GetMeThere1]

Ah!!! Thanks for this video! I understand it now: the more we spend, the more we have!

[2011rcm]

Sure because they are keeping interest rates down at historic levels, although every other country has raised their rates on their bonds and central bank rates to keep confidence in their banking ssystem and economy. This is a false staement this man is making.

[danger0usknowledge]

Real reason for GOP refusal to raise the debt ceiling? To attack confidence in the US economy & to make O unelectable. The last 2 republican administrations: 1889 & 8 yrs of Reagan, Bush Sr is forced to spend 160 Bn of taxpayers $ to bailout 2000 banks & S&L's to save the US economy. 2008 & 8 yrs of Bush Jr, 12 Trillion of taxpayer $ to bailout banks & save the US economy again. From what? They blame Barney Frank, the gay guy. No? Well OK, how about Soros, the Jewish guy?-)

[danger0usknowledge]

In times of economic growth you pay down the

deficit.  In recession you spend $ for offset

unemplm't from the Bush recession.

[schmoukiz]

So no collapse of capitalist system? TheRealNews must be in tears.

[nilbud]

@schmoukiz You're not paying attention.

[elbowbiter1]

If every, or nearly every, country in the world is running a debt... who is all the money owed to? What are we borrowing?

[notthere83]

well... if i could only afford the interest on my mortgage but couldn't make the actually payment, i would consider that very troubling... in fact, if making my mortgage payment would result in me not having any money left in that month, i would be troubled already... what would i buy groceries with?

i think it should have been pointed out that the debts of countries don't really work like personal debts though...

[davidperi]

Frepi...I mentioned this also couple of months ago.

[jnicolarsen]

The interest rate is a monetary policy variable set by the Federal Reserve (Federal Funds Rate), correct?

I do not think that is properly conveyed here.

Nevertheless, interesting work regarding time profile of interest rates on Treasuries.

[anamarie8]

he hasn't heard it discussed in washington and that's ditto all mainstream media.....so yeah....let's ask what is the value of what we are getting for what we are borrowing?

what exactly are we borrowing for?

[green95gt]

i don't think the folks inside the beltway know what's going on and i'm not sure this guy does either. as far as i can tell pollin is saying that the media (or whomever) is wrong to call this current crisis (if any crisis of any sort actually exits???) a debt crisis. but overall he's agreeing to some sort of 'crisis'.

[IrradiateTheNWO]

Pollin, head for Jesus & his hedge clippers asap.

[sinekonata]

I have 2 questions:

Why would deflation be dangerous?

Robert says the crisis was bigger than expected, yet he said in the beginning that there is no crisis... Maybe he meant the crisis was big and now is over. I doubt it.

[mike6459]

the guest's hair is in crisis

[sarjulia]

Since when is 50% of debt no issue? You're kidding right? I am surprised that TRN would take this guy seriously. There is never a free-ride with "low" interest rates. There is a big difference between just paying interest and actually getting rid of debt to keep afloat. You can't just keep on printing cash to deal with debt you actually can't pay. You can't keep borrowing to "create" stimulus... That's madness! Macroeconomics, anyone?

[BassamMinFalasteen]

Get a haircut Bob Pollin... Jeez !! is the recession that bad??

[maabdou2000]

This prof.telling the truth and the logic. all this problem cam from the stimulus that bush urged for to lend the rich people more and more money.

Bush started two unnecessary wars to serve the rich people factories and business, then this wars brough this recession to the US economy.

not only that, it has destroyed the US image worldwide.

[thesparitan]

@maabdou2000 Simplistically put, but I guess I can agree with that statement.

[maabdou2000]

@maabdou2000 , again, after the rich people make a ton of money from the wars and the free stimulus money, they send money to switzerland and hide it there,. and then say bye bye to IRS??????

now they enjoy thier money , plus they close thier factories and business in the state to not pay any more taxes.

they were the people who encourage the illegal immigrant to serve thier business in the last 10 years. then now after the job is done, they are fighting the illegal immigrant.

[bboytrix1]

@maabdou2000 this is so true



[masterno111]

@maabdou2000 The debt problem started before the stimulus packages when the limit on how much money could be printed was removed and the banks increased the loan cap on money so that they could loan out exponentially more money to people, creating a debt black hole so vast that it's virtually impossible to pay off.

[frepi]

Note to Real News Staff: For multiple parts interviews, please keep the same title for the whole serie and add a suffix like "p\" ort "part #" for each part. Often we do not find the parts because the title of each part is different.

[patrickcorliss]

@frepi, @TheRealNews

Exactly. Please sequentially number the parts. Thanks.

[Fifty1stState]

@frepi Agreed, this doesn't even have part #1. This is a littlebug bear, but on the plus side you sometimes watch something totally random not connected to the series!

[philais]

The debt is being financed with short term notes and a very very low interest ratel The Fed[s QEII has officially ended. The FED purchased 70% of the notes issued the last 6 mo. Who will buy the notes now for the low interest rate expected by Treasury? Answer: The open market...and it will not except the low interest rates offered. Those rates will be raised and so will the interest payments due.

We are screwed and it is going to come quickly.

[rctube1958]

As long as the American people are considered gov't-owned milk cows, there is no level of debt that can't be justified. Gov't can always tax more: the rich today; everyone else tomorrow. However, I consider myself free. I recognize no right of gov't (i.e., politicians/lawyers) to indebt me and my progeny for its own schemes of how the world should work. Why can't socialists fund their schemes with their own money?

[MustacheVerra]

The bankster get to invest this free money abroad. What a scam! They are the ones who created the crisis which brought interest near zero and they are the ones benefiting from it.

Don't worry folks. Everything is going as planned.

[Zalahblue]

okay, so we have low interest payments. But the National Debt is gigantic. The main bulk of the Stimulus went to oversea Nations. Also American Companies used Stimulus to move plants and operations overseas or into Mexico taking jobs with them. We IMPORT from Mexico goods which are stamped 'Made in USA' now.

Kraft, Whirlpool, Hersey, Ford, GM, Solaris, Polaris, GE etc etc.

NAFTA killed our industries and Stimulus killed our finances.

[MrGAB4444]

What does Barack H. Obama have in common with Harrison J. Bounel ?

[MrGAB4444]

Their ‘regulatory /police’ is very dangerous and must be dismantled around the world locally by locals, but the locals must first understand how and why they are being ‘corralled’.

EPA ALONE is handing out grants in the BILLIONS every year to progressive left NWO compliant shills

Out of control massive funding& massively growing Regulatory& 'Federal' police state; TSA, HLS, DEA, FBI, ATF, EPA, FDA etc

it has been and IS about 'Cloward and Piven'

[bammbamm12]

Something tricky and misleading about his theory, but would rather have a pro debate him. If you ignore the principal and just focus on the interest, as if that's the only part of the equation, then you accumulate more interest on the principal you should be liquidating. Also, a flag should go up when you hear an economist use the word "egalitarian" - that word is outside the scope of an economist's field.

[TallFastLoud]

@bammbamm12 the fact that you think that that's outside an economist's field is the entire problem

[TallFastLoud]

@bammbamm12 "I am not saying that this is the only thing we need to consider" Pollin re: the interest rate. Did you even watch the video? Whatever you think of Pollin, he's not a dumb guy and he preempts your concern right in the video!

[bammbamm12]

@TallFastLoud - I don't understand your emotion. Are you one of his schills, or a student looking for an A? I heard what he said. I don't like the way he emphasizes the things he wants to emphasize and downplays the things he doesn't want you to focus on. He's a manipulator. He's in the wrong business. He should work on Madison Avenue.

[bammbamm12]

@TallFastLoud - he completely ignores the perils of borrowing, even if it's interest free. You're spending money you don't have. And rest assured, just like a kid with his first credit card, when you can borrow money, you're less concerned with the cost of things, and you buy stuff you'd never take money out of your wallet to purchase. All he's talking about is interest. He's deflecting; creating a ruse; a decoy.

[TallFastLoud]

@bammbamm12

what perils of borrowing? you can't just assert that. give me an actual argument. you do understand that China just keeps rolling over the bonds, right? why would they call in the principal? there's not really a better place to put it. hell, let me push even more and say -- what perils of default? Argentina's not doing so shabby these days, and nowhere near what VSP were predicting...

[bammbamm12]

@TallFastLoud - What are the perils of borrowing? Look, I don't want to play a game of stupid. The perils of borrowing are that you are taking in advance things that your children will pay for tomorrow. So they're working tomorrow for our yesterday. Instead of burdening the younger generation with our debt, we should be setting money aside for them. Now begone!

[TallFastLoud]

@bammbamm12 You again didn't answer my question, you instead continue to be vague and use moralism instead of actual economic theory. Who's going to call the principal in? If borrowing is so bad, why hasn't it been a problem yet? What evidence is there that borrowing in and of itself is a burden on financial growth? What level of debt/gdp ratio is an impediment to growth and how do you derive that? You simply assert that debt itself is bad. You don't have to play any games, just answer...

[bammbamm12]

@TallFastLoud - economics is moral you dolt. If you can't see that, then oink oink, meow, ruff ruff, cock a doodle do.

[TallFastLoud]

@bammbamm12 not a response to the actual content of my comment.

[MrGAB4444]

They (The Bilderbergs+ shills; William the virus, Kissinger, Clinton’s, Bush’s, etc…) know exactly what they are doing and they keep your focus on and going from one news bulletin to another; “extreme right wing”, “Al Qaeda”, false flags, and with a very compliant MSM (when will you entirely just shut off these farts?)

All the while continuing to put the police/regulatory state in place, then the ‘event’ , then ‘martial law’, then no more pesky elections or ‘Constitutions’

[timfmr]

Pollin doing UMass proud! Wish I had this guy for one of my grad classes!

[slatibaadfast]

the banking heads and their little cronies in the FED should have been treated in EXACTLY the same way China deals with Department heads that initiate MAJOR problems. A bullet, then bill the family for the costs.

[fiddleman31]

Stimulus does not work :)

things go out of business for a reason and giving rich people more money does not help things.

[Tippersnore]

There is no debt crisis, but we are certainly in a true-believer ideological crisis for power and more wealth of the privileged, namely and mainly, by the Repugs.

[EllasPapa]

and that is how interest rates remain low for speculators to plunder the savers

[EllasPapa]

The bail out money that the Banks got is " not just sitting there"

The banks are buying Treasuries " this is the fraud" this man is trying to cover up

in this interview

[PhilippineAmerican]

They want to sit on their gold.

[Lieu3C4]

The use of %ages can be misleading: if the repayments on debt are 5.5% of GDP and the overdraft, the deficit, currently stands at 9.9% GDP, the comparison is the 2:1 ratio, not the %age of GDP overall. The extension requested in the current bill I found unfortunately diffcult to discover trolling the internet, but simply: every 1% drop in interest payemnts is a 10% drop in the deficit .

[MadXMax187]

I'm not paying them hundreds of thousands of dollars for the bankers misfortunes. The current US regime and any members of surviving regimes that were in charge of budget owe the money. Except for whatever has been spent on on the people that has contributed to the debt. The "war on Terra" and "the war on drugs" trillions isn't the responsibility of the citizens. The federal reserve inflating the dollar is one of the major problems with our economy. Keynesian/Supply side economics are failures.

[bonnevie9]

@MadXMax187 friedman was an idiot

[MadXMax187]

@bonnevie9 You are an idiot. Did I mention Milton Friedman? No, I'm not particularly a fan of his either. Most economists are complete B/S including Keynes and Friedman. You lost this argument before the argument started because only a loser would resort to an ad hominem rather than attacking or disputing any of the original content of the comment. Milton Friedman = irrelevant, you attacking him doesn't dispute any of my state. Please folks, leave intelligent responses only.

[bonnevie9]

@MadXMax187 No your the idiot , because you are in denial of who your hero is .Ayne Rands ideas are just about the same as Friedmans conservative philosophiy . Your boy Ron Paul is a joke and is out of touch with reality . Do you live in the back woods some where ? That is the only place where your ideas would work . You have not said anything intelligent ,so refrain from commenting . Now what ? your mom lost the argument .

[MadXMax187]

@bonnevie9 Nope wrong again faggot, Ayn Rand is a fugly Jew piece of shit that nobody pays attention to anyways. I can punch holes in her ideology all fucking day. You sir are the joke, you probably live in the backwoods and fuck your cows and mom and think she is pretty hot. You are the type of FAGGOT who faps to videos by TheAmazingAtheist and Richard Dawkins because you think you are the smartest thing to walk the planet. Your ego is amusing, please go fuck yourself

[bonnevie9]

@MadXMax187 Nope ,I live in the in Boston you gun toting fool .Enlighten me with your economic theories so I can shoot them down . Wow another bible thumping midwesterner . Tell me how you can hide your greed by proclaiming jesus is your lord and savior . Then convince me how glorifying god will make me millions . Wow you are out there . Just another nut job like your mom .

[MadXMax187]

@bonnevie9 Nope I'm not religious either, I just don't agree with n00bs like yourself who go around bashing other people who may have faith. God is a myth, religion was created to enslave humanity, and its done a pretty good job judging by your extremist ignorance. I'm not greedy either, I don't believe in the capitalist system I support the second amendment because I'm not a retard gun grabbing Jew like yourself.

[bonnevie9]

@MadXMax187 I guess you don't stand for anything , people have faith because they are stupid .I have said nothing that proves I have extremist ignorance nor am I a jew . Long live Palestine but not their dipshit religions either . Tell me your economic theories numb nuts . What monitery system do you believe in ? You have said nothing that means anything . Alls I know is you hate jews and are obsessed with your guns . Did you go to college or are you educated by hear say on the internet ?Fool

[MadXMax187]

@bonnevie9 I am home-schooled so I'm definitely sharper than your average public educated (brainwashed) fool. I don't understand why the hostility towards me originally attacking me ad hominem then false accusations etc all turned out to be untrue. We are both probably atheist, we both support Palestine, I tend to agree with Marx more often than not when it comes to economics. I am however not an advocate of any totalitarianism, central banks or the use of currency. I usually vote green

[MadXMax187]

Under international law we (the American people) don't owe any money.

Search the term "Odious Debt"

Here is part: When a despotic regime contracts a debt, not for the needs or in the interests of the state, but rather to strengthen itself, to suppress a popular insurrection, etc, this debt is odious for the people of the entire state. This debt does not bind the nation; it is a debt of the regime, a personal debt contracted by the ruler, and consequently it falls with the demise of the regime.

[madiovich]

@MadXMax187 yeah tell that to china they will owe you whole

[MadXMax187]

@madiovich Fuck China, O-bomber & Bush can pay them back. I didn't get a fucking penny of that money they borrowed, so why should I give them a damn thing? They ain't going to do shit to me. Unlike the Chinese American citizens are allowed to have guns (full auto ones too)

[thisisbunk]

"NOT having debt or [NOT] paying interest" ... hmmm, and in what way will the "right of nations"' differ from these so-called "private central banks"? where will debt and/or interest payments disappear to?

[voicubogdan84]

Very interesting!

[SONGSBYMAX]

I think is insane that the concept of charging interest for anything it has been spelled into the masses. It's so stupid to see "real news" hammering the evil concept of usury and presenting it as something normal. How about NOT having debt or paying interest by destoying private central banks and retaking the right of nations to issue it's own interest free money.

[donnyforte2]

@SONGSBYMAX "How about NOT having debt"

You won't deal with debt any time soon without raising revenue or at the very least closing the loopholes on the wealthiest.

[jstncbllr]

@SONGSBYMAX I'm confused... "interest free money"? You're aware of the concept of "the time value of money" right?

[madiovich]

@SONGSBYMAX the banks would rather push us to start ww3 rather than let us live without debts

[TimmacTR]

the question is: who do you borrow from?

[AJSensei]

Go to sleep. Dont wake up. Nothing is wrong.

[donnyforte2]

@AJSensei Spamming the channel doesn't help your argument. I haven't even watched the video yet and I know from the description that they're talking short-term, not long-term.

[AJSensei]

@donnyforte2 3 quick comments is spam. Lol I seen the whole video before I commented and made sain judgment.

[donnyforte2]

@AJSensei "sain".... right. Pick up a dictionary for me.

[AJSensei]

So 14 trillion and the debt computer is wrong? 

[AJSensei]

So just keep spending? Oh so debt isnt serious? THEY ARE FULL OF IT.

[CazyDayz]

OMG i get it we are getting played !

[kaxitaksi]

RBE ffs!

[Ristar85]

... and the stock market or "economy" was at a high in the 2008 crash.

if the market has the ability to "look forward", then the DJIA, NASDAQ, S&P500 would have seen the crash coming and adjusted.

contrary to books written by ppl, the "market" is not "rational" and does not "look forward". it is a highly speculative beast.

if the US defaults, the interest rates will rise. if it doesnt, nothing will change.

until something happens, everyone will keep the charade going.