A Bigger Crisis Is On The Horizon, And It Will Last For Decades

As most of the news talks about enforcing mandatory lock downs and handing out money to
citizens there has been a problem that has been rapidly expanding in the background of all of this
news and it is a problem that the world has never really seen before in fact it might create
a crisis that won't just be felt in the next week the next month or even the next year but it might be
felt for several decades to come during World War two Britain was in the thick of war against the Axis
powers.
However Britain ran into a roadblock they were quickly running out of money so they began
looking to borrow money from both their own future taxpayers as well as the United States and
Canada in 1941 Britain began accepting loans and taking on debt to fund the war and by 1945
Britain had taken on nearly ten billion dollars worth of debt from its creditors at this point in time
Britain's debt to GDP ratio was a whopping 200 percent meaning that the country had twice as
much debt as its entire
Market value of all of its goods and services it produces over an entire year and just some
perspective for you is that the World Bank states that once a country reaches above 77 percent
debt to GDP ratio its economy will begin to slow down from such a large portion of its revenue
going towards paying down its own debt so after the war ended Burton had amassed a debt that
was so large that they couldn't pay it back in one year five years ten years or even 20 years you see
on December 29th 2006 Britain made its last payment on its World War two debt to the United States
and Canada this means that British taxpayers from 1945 up until 2006 had a small portion of their
tax bill every single year go towards the debt that the country accumulated in the 1940s and for
about a decade after World War II Britain's economy was drastically hindered in part due to their
outstanding debt that they incurred however their economy eventually recovered thanks to an influx
of tax payers called The baby boomers as well as some economic reforms and in for structure
investments but you see Britney was a little bit lucky most of the time when a country accrues as
much debt as Britain did during World War II they are not so lucky in 2001 Argentina's debt to GDP
ratio reached a high of a hundred and sixty six percent which caused the country to default on over
100 billion dollars worth of debt this default made capital move out of the country and soon the
nation saw millions of people Enter poverty while unemployment reached a high of 19 percent and
to this day Argentina still hasn't fully recovered from its debt crisis that it went through nearly 20
years ago in similar stories can be heard around the globe there was Greece in 2012 Zimbabwe in
2006 Venezuela in 2017 and Russia in 1998 the point I'm trying to make here is that even though
debt can be a good thing to take on in order to solve today's serious problems it 
will

 almost always have serious long-term

Consequences that could 
last

 for years or even 

decades

 so now let's bring this back to the United States whether you know it or not America essentially
runs on debt historically America's economy has been so big and has grown so fast that taking out
tens of billions of dollars here or there hasn't really been much of a big deal because it was such a
small percentage of the country's overall economy for example in 2006 the United States had a
relatively healthy debt to GDP ratio
Of about 60 percent but then the financial 
crisis

 hit and during the financial 

crisis

 the United States began scrambling for ways to pump money into the economy so it began taking
at hundreds of billions of dollars in eventually trillions of dollars worth of debt and some people
might think that the United States along with every other country that took out debt to get through
the financial 
crisis

 has paid off some of the debt that they accrued in 2008 and 2009 but actually the opposite is true
You see since the financial 
crisis

 many developed countries throughout the world have been accruing more and more debt every
single year while economic growth has slowed this means that many countries may find it actually
more difficult to pay off their debt today than they did during the financial 
crisis

 and here's what I mean the United States debt to GDP ratio before the lock downs and this
pandemic was around a hundred and six percent Canada's was around eighty eight percent
Italy's was a hundred and thirty three percent Singapore's was at a hundred nine percent and
Japan's was at an astounding 237 percent what I'm trying to say here is that before this 
crisis

 even hit the governments around the world were in more debt than they had ever been in and then
of course the lockdowns happened and everything began accelerating have you ever wondered
how all of these checks that citizens are getting today are being paid for it's not from the
governments
Bank account because most governments don't have a lot of money right now and have little to no
tax revenue coming in for the foreseeable future all of this is coming from debt so yes all of the aid
packages and stimulus packages that every country in the world is giving out is essentially a form of
debt that its taxpaying citizens 
will

 have to pay over the next several 

decades

 in fact if you live in the United States right now roughly one out of every ten tax dollars that you
send to the
Federal government goes directly towards the interest payment on the national debt and not
towards any government programs and after this 
crisis

 passes that number 

will

 only get higher so this brings up a scary scenario many countries like the United States 
will

 accrue so much debt during these few months that they 

will

 be unable to pay for some of their government funded programs in the future so things like Social
Security which is already running low on funds education military health care
One or all of those things might be seeing major cuts in the future in order to pay for the stimulus
packages today and if a government wants to keep all of these social programs at their current level
without accumulating more debt in the near future it 
will

 have to do something that isn't popular with its citizens which is raise taxes now I would just like to
mention that it is highly unlikely that developed countries like the United States Canada or the UK 
will

 default on its loans which

Would send the countries into an even deeper depression but it is quite that the debt that's being
accumulated today 
will

 end up slowing future economic growth raising future taxes and reducing future funding for social
programs and this effect might radiate for 
decades

 to come meaning that kids born today in 2020 

will

 likely be paying for a decent portion of the stimulus packages when they become adults and the
government debt is not the only debt problem that we have in the world right now
See before the 
crisis

 ever began households were already racking up a record levels of debt to in 2020 households in
the United States had roughly 14 trillion dollars worth of debt which is the highest debt level in
history and the largest increase in household debt from 2008 to 2020 has come from of course
student loans in 2008 student loans accounted for roughly 611 a billion dollars worth of household
debt meanwhile today it is roughly 1.6 trillion dollars worth of household debt and when you
Throw this all together you 
will

 see that the average household has roughly $100,000 worth of debt meanwhile these same
households have on average only $8,000 worth of savings and for people under the age of 30 it's
even worse as they have on average just two thousand seven hundred dollars worth of savings that
is just enough to cover one month of housing food and insurance for the average person so what
this all means is that going into this 
crisis

 the average person was already living

Paycheck to paycheck with little to no savings and tons of debt and this was especially true for
younger people it also means that the 1200 dollar stimulus checks might be able to help some
Americans get by for an extra week or two but it won't be good enough for a long-term solution the
only way to help people avoid missing rent payments defaulting on their loans or being delinquent
on their mortgages is to lift at the lockdowns across the world but that might not happen for a while
and I
Can't help but think that as more and more households become unemployed that both individual
and national debt 
will

 begin to pile up in order to stay afloat and this 

will

 happen at record levels that we have never seen before and that being said we have already
surpassed the 2008 financial 
crisis

 in terms of employment levels and it looks like we might be heading for an economic dip that we
have not seen since the Great Depression and depending on what other policies are enacted in the
near
Future we as taxpayers 
will

 likely be paying off as one two three month period of time for the next several 
decades

 to come but this problem might be a lot worse in the short term for developing countries in fact the
IMF and World Bank have called for an immediate suspension of debt payments for the world's
developing countries as many are very close to defaulting on their debt this could create an
unprecedented debt 
crisis

 in the near future that would likely radiate throughout the entire
World now I would just like to mention that central banks are playing a major role in this debt 
crisis

 right now and are printing money hand-over-fist which is causing a ton of things like inflation and
currency devaluation but it also might help pay down the debt in the future through something called
quantitative easing but that could be a whole video in itself so who knows this might be the worst
debt 
crisis

 the world has ever seen but maybe not only time 
will

 tell what do you think about the

Debt 
crisis

 let me know in the comments down below also please click that like button because algorithms and
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will

 see you guys in a few seconds you 

Source : Jack Chapple