- The Big Picture - http://www.ritholtz.com/blog -

Understanding the National Debt and Budget Deficit

Posted By Barry Ritholtz On December 3, 2012 @ 5:30 pm In Credit,Politics,Really, really bad calls,Video | Comments Disabled

In which John Green discusses the US national debt, the federal budget deficit, plans for shrinking or eliminating the deficit, and tries to provide some context to the political rhetoric and statistics that are constantly thrown around in an election season. Along the way, I hope you’ll understand why the United States’ sovereign debt hasn’t led us to an economic crisis, but also why budget deficits need to shrink in order to ensure that credit remains inexpensive and the US continues to enjoy the trust of the world economy. (Friendly reminder: Educational videos, by extensive precedent, are allowed to be longer than 4:00.)

 

 

 

Here’s why I think the gold standard is a bad idea: 1. By restricting money supply to the supply of gold, you risk shrinking the money supply just because of a shock leading to a disruption in supply from mining. This creates a lot of volatility in the money supply for no reason. 2. The gold standard limits a government’s ability to respond to changes in the market, which can (and has) led to unescapable deflationary spirals. 3. Far from inspiring investor confidence, its implementation would crush it: http://www.ocregister.com/opinion/gold-369936-standard-money.html

 

 

 

Posters and stuff: http://dftba.com
My tumblr: http://fishingboatproceeds.tumblr.com
My twitter: http://www.twitter.com/realjohngreen

HERE ARE A LOT OF LINKS TO NERDFIGHTASTIC THINGS:

Shirts and Stuff: http://dftba.com/artist/30/Vlogbrothers
Hank’s Music: http://dftba.com/artist/15/Hank-Green
John’s Books: http://amzn.to/j3LYqo

======================

Hank’s Twitter: http://www.twitter.com/hankgreen
Hank’s Facebook: http://www.facebook.com/hankimon
Hank’s tumblr: http://edwardspoonhands.tumblr.com

John’s Twitter: http://www.twitter.com/realjohngreen
John’s Facebook: http://www.facebook.com/johngreenfans
John’s tumblr: http://fishingboatproceeds.tumblr.com

======================

Nerdfighteria

http://effyeahnerdfighters.com/

http://effyeahnerdfighters.com/nftumblrs

http://reddit.com/r/nerdfighters

http://nerdfighteria.info/

A Bunny
(\(\
( – -)
((‘) (‘)
Category:

Education
License:

Standard YouTube License


Article printed from The Big Picture: http://www.ritholtz.com/blog

URL to article: http://www.ritholtz.com/blog/2012/12/understanding-national-debt/

Copyright © 2008 The Big Picture. All rights reserved.