Paying Down the National Debt via YouTube

by Catherine Mulbrandon on October 27, 2009

Homemade video trying to show why it is not a problem that China owns part of the U.S. government’s debt. Scroll 3 minutes into the video and you can see how he used low-tech paper to explain what would happen if we pay down the debt. No fancy graphics needed.

Tagged as: China, Debt, Federal Budget, United States, Video

  • Jack

    One could use that same argument to make the case that no amount of debt is too high as long as we have just slightly more cash available to pay it off. That’s nuts.

    The video was also made before the current explosion of debt during the current administration piggybacking on the relative mini-explosion that Bush Jr. started. We are in danger of being an unsound creditor and then the house of card collapses. The video also doesn’t take that into account.

  • Dylan

    “Mr. Moneyman” forgot to mention that we don’t have to raise taxes to pay off the debt. We could reduce war spending. That throws a rather large wrench in the works.

    Also, what happens when foreigners cash in that debt when we don’t want them to? They get to dictate US policy, like China did when it stopped the president from meeting with certain foreign officials that it doesn’t like.

    Not a very informative video. If someone thinks they can understand economics from a 5 minute video, then they are bonkers. It’s a bit more complicated than his bumper-sticker politics make it out to be.

  • DonnaBrua

    You neglected to mention the interest we pay on the debt every year which is working toward 20% of the budget. You have to add in the amount saved by not paying that interest rate which is money down a hole.

  • Steve Davis

    If it were only that easy. What about the interest savings that would have gone to foreigners and how can you make an assumption on extracting $6 Trillion in leaving it on the books to get your 12 Trillion argument at the end. I’m glad I’m not one of your kids.

  • http://www.uwlax.edu/faculty/brooks Taggert Brooks

    Yeah..almost a great demo, except he confuses the fact that the bonds are simultaneously a financial asset AND a liability. So our net position is the one to look at.

    TJ

  • HT

    I still don’t get it. Does this mean it’s never a good idea to pay back debt? Always better to borrow?

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