Debt and The Fiscal Black Hole
"Whenever you hear in the media the term 'Fiscal Black Hole' I want you to hear 'Fiscal enormous pile of money', because it is not possible for debt to grow without private wealth growing. And whenever anybody tells you: 'How do we pay the debt back?' I want you to turn around and say to them: Where has the money gone? Who has the money now? Why don't we tax them?"
"How The Rich Get Richer From Covid 19" can be found here: • How COVID-19 MAKES the...
I want to quickly cover the idea of the debt being owed to foreigners - whilst some UK debt is owed to foreigners, there is also much ownership of foreign debt by people in the UK. Data shows that the amount of money flowing out of the UK actually REDUCED during covid, so we know that the vast majority of money giving out during covid stayed in the country.
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Performed by Gary Stevenson
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I was a pretty staunch conservative until this year where I came across Gary's videos and then the accumulation of tory incompetence with the economy. The one thing they always touted were they were the 'responsible' party when it came to national economics... which is now HILARIOUS to think about after the disaster of Liz Truss and Kwasi...
Check out the sdp
Incompetence or just plain recklessness?
Nice to hear someone coming over from the dark side
So what now, vote Labour? May be watch the Labour Files first and you can see there is no political choice, there is only the money changers and they never switch. They do however, in occasion, let a Gary out of the cave and in to a light which they can switch anytime they like. There is no political solution to greed
Takes a while to realise that Tories represent the most wealthy in society, and you simply can’t conceive of how much money they have. There is no middle class, only working class. If you work, you’re working class and the Tories don’t care about you - you are simply collateral they pledge to keep the money printers moving and the wealth flowing to their donors
Looking forward to the day Gary gets a spot on Question Time. Would love to see the politicians squirm and try to argue with his logic.
Never gonna happen. They may be stupid but they’re not THAT stupid. We can hope though. He’d tear them a new arse.
The viewing experience of the decade!
@@helenp7 amen 🙏🏻
They will keep this man off Question Time at any cost
2 years into consuming like 30-40 hours of this kind of content a week and I'm finally starting to intuitively comprehend things as they are explained. Thanks for your work, man! We're gonna change the world. It's coming Workers of the world unite
Any other videos you recommend?
@@boxingspark I'll give it a think and come back
@@boxingspark 😂👌
@@boxingspark The documentary "Inside job" was excellent about the financial crisis
I’ve watched a bunch of your videos in the last few months, but this one is the most succinct I’ve seen yet. This is exactly what people need to hear to understand the bullshit the government feed us about the deficit and that the only solution is to make ordinary people pay through austerity. Oh my days this shit gets me fired up!
And there it is, in plain terms. The curtain drawn back, the viel lifted, the Emperor is naked, ladies and gentlemen, not clothed so finely that the thread is invisible, just bare arsed and flapping in the breeze! Good job Gary!
You've done it again Gary! Brilliant explanation! I Never believed i would be interested or able to understand this corrupt countries economic system! Thank you 👌
Gary. You need to call these IBR economists out by name IMHO. The absolute lie of telling people “we’ve all got poorer” - not even nearly true. Some people are sat on a huge pile of cash.
This channel needs to be everywhere in the UK right now.
Commenting for the algorithm. Great job Gary, as always.
This feels like counter-brainwashing against way the media portrays financial news. Very clear, very concise, and feels very very obvious once you draw attention to it. Great channel!
It was obvious to me from 2010 that austerity was a huge con.
This is a hugely important message for ordinary people to understand. Well done Gary.
Need this man as chancellor. Quality presentation about some of the greatest fraudsters of our time. Baronesses Mone!!!
Mones the patsy loads of them at it shell be the sacrificial lamb to appease the peasants
Really important work - voters, especially working class voters, are so easily fooled into voting against their own interests time and again. Economics based class consciousness needs a revival.
That is so clearly and powerfully put. No wonder the BBC don't want him on any political programme. I've shared with as many as I can.
It's not just the people of this country, it's wealthy people from all over the world that the money has been given to
I am not an economist, I have been in the most horrendous debt my whole adult life and the thing that has drilled my brain for more than forty years is where on earth do people think this money is? It doesn't just disappear, as you so eloquently pointed out it is in the bank accounts of the obscenely wealthy. Thank you for your videos Gary.
Or it's in assets owned by the wealthy such as a house.
@@johnwright9372 what do political class & union leaders own alot of assets
@@coopsnz1 What makes you conflate “union leaders“ with the political elite and obscenely wealthy?
@@curmudgeon1933 they are the wealthy the union president in Australia a bilionaire
@@coopsnz1 Who is that? ...I'm guessing you mean Andrew Forrest, ex-CEO of Fortesque Metals Group. Another snake oil salesman who is currently trying to sell hydrogen 'green' energy around the world. It's another attempt to extract wealth from a dying industry by the super rich. He is an aberration...not the norm. But he is a convenient example for right-wingers to use ...like Bernie Sanders' houses or Eddie Dempsey's council house. Jog on, troll.
If I take out a car loan I'm in debt, but the car sales has the money. Follow the food chain and Tax them.
Because of private banking and fractional reserve lending the money is 90% fake.
@@yellowgreen5229 The car company owes money to the same bank. Who lends money to the bank?
@@yellowgreen5229 it's worse than that. Fractional reserve theory isn't actually true in real life. Money is actually created out of thin air by commercial banks. kzhead.info/sun/lNexpJeah4BunKc/bejne.html
@@petermanuel5043 Google the terms I wrote and u will learn something.
The government taxes your car
Another brilliant video, Gary. You're right, it's insane to think the money just vanished; it's tantamount to grand larceny on a nationwide scale. If ordinary people really understood this, they'd be appalled and (hopefully) willing to take action to redress the disparity. I've been pushing the 'tax the super wealthy on their UK-borne assets' message and sharing your videos on my Fb page but no one seems to be biting - perhaps I need other friends! I've also tweeted similar to the Chancellor, the Shadow Chancellor and other MPs but of course there's been no response. In fact the only reaction I've had is to 'stop being so political', because it pisses people off apparently. Then I find myself having to tell them that it's political because it's the political class that is choosing not to implement this, irrespective of political hue. I think the issue here is that often, people can't see it until it affects them personally, but by then it's too late because they're using all their resources to stave off an existential crisis and treading water leaves them with no energy left to lobby against the system which put them there. I'm thinking of writing to my MP, but my area is massively Tory and probably always will be. Maybe Ill target the party councillor most likely to challenge them in my area instead. Either way, guess I'll have to think of other ways to broach this with people. Thanks for all you're doing, I will certainly 'keep watching' 😊
Good idea on targeting councillors, another is to find a marginal seat nearby you and go there and join door knocking, leafleting, canvassing work from a party that does support this message. Flipping seats is the way to influence elections, sadly very safe seats are hard to crack.
If you throw money or any other kind of matter into a black hole, you don't fill it, you actually just make it into a bigger black hole. Why can't we have politicians with a better grasp of astrophysics?
In 2016 we had the vote. We knew it was decided. So although nothing had changed & nothing would for years. We were already over the event horizon of the damage. I knew you would appreciate this example someone told me. I think he is into space stuff to.
Government debt (known as 'gilts') can be owned by non-UK entities. Unfortunately UK citizens can thus very easily become poorer.
He is also forgetting about imports. Buy tten of million of Lateral Flow kits from China and the person getting richer is in China. I'm not saying buying them was a bad idea but the U.K.s inability to make many things these days hurts the balance of payments. Before Covid it was happening with cars. When was the last time you saw a U.K. made Police Car ?
But we also earn foreign exchange. Our creative industries were generating £13m an hour in 2018, much of it from worldwide earnings.
@Dnpe There has certainly been a lot of money printing, AKA quantitative easing, since 2008. On a similar subject, without inflation would there be a danger of one person ending up owning most of the money in the world ? I recall that an American Nelson Bunker Hunt came close to owning most of the silver in the world back in the late 1970s.
Remember those 'non UK entities' are much more likely to be uk citizens or non doms
I think the point that Gary was making was that the upward movement of wealth can find it's way anywhere in the world, into the pockets of those who are already wealthy. The consideration that the 'debt' (or upward wealth movement) is contained within the UK is wrong, that taken in consideration of our lax tax laws, means that even if 'foreign agents' were operating on UK soil, the lack of ability to recover tax from those agents, (off shoring company HQ's, tax haven bank accounts) ensures that 'National Debt' can only ever be described as non taxed wealth distribution upward, where ever it may end up.
Polititions, lawyers, royal families, Hollywood aso..they are all in the game..
Nicely said! I wish you could get a mainstream platform to explain to the electorate what's really happening.
Recommend to your favourite podcasts and other KZhead channels that they interview Gary.
TAX THE RICH! I’m skint! These people are playing life on creative mode while the rest of us are stuck on survival mode.
This is one of the best videos on this channel. People need to understand that money is debt, and the government debt is the private sector's financial assets. So the obsession with reducing government debt is idiotic. What we need is to redistribute the government debt from the rich to the poor.
Cheers, Gary. Every crisis is an opportunity for the wealthy. During the first round of austerity, the wealthiest families in Britain doubled their assets. At the cost of 160,000 excess deaths in the NHS alone, in fact, a recent article states "Austerity may have caused an additional 335,000 deaths in Great Britain between 2012 and 2019". Every banking crisis causes bankruptcy for small businesses and increases the problems in society. This means millions of people have to sell their assets, companies, stock, buildings etc at rock-bottom prices. Giving those with disposable wealth the opportunity to buy up all those bargains on the cheap. It seems to me a crisis is only ever a crisis for those without, for those with wealth it's always an opportunity. An opportunity that costs lives.
A crisis is most likely created for that purpose, to move more wealth to a few bunch of selfish and narcissistic people/families.
Great work Gary as always. Your ability to simplify a complex situation with accurate data is fantastic and the message needs to continue to spread far and wide 👍🏻
This should be mandatory viewing for every Member of Parliament (MP). I work in the Public Sector. It is so frustrating to hear (time and time again) that there isn't enough money to fund Public Services, or payrises for workers. The Government is not acting in our best interests, actually quite the opposite. They want us to be poor and to Thank them for it. We need to spread Gary's message and support Trade Unions, they seem to be the ones prepared to fight. Gary, have you reached out to Mick Lynch / Eddie Dempsey?
This is amazing thank you for this video. Change your battery in your smoke alarm.
I recommend this video to my son he has a maths degree from bath University first job was with Morgan Stanley commerce bank now BNP . We are a working-class family he is the first person from our family to go to university
😂changed the battery in mine thinking it was coming from here 😂
Lol is that what that was. For about a month mine drive me mental I assumed it had started up again 🤣
Absolutely brilliant. I'm going to educate everyone who says that we can't afford to pay public sector workers a decent payrise.
I have been talking about your channel with people at work and among friends. You are making a headwind here. At the very least everyday people are asking questions
Much love from Australia Gary! So many facts easy to digest to an average person!
the monetary system is tainted by greed; everybody is about themselves & theirs.
Making this, and similar arguments got me denounced as a Communist for over 50 years. Well done Garry, from a former postman, your dad must be proud.
Excellent explanation Gary, I have noticed a few 'mainstream' media types starting to get closer to this sort of explanation (Robert Peston, etc.) but the news announcements and papers all present the 'black hole' and the 'country's credit card' distortions. It boils down to we need a wealth tax in the UK, we tax income and consumption readily, but wealth only lightly. This embeds inequality.
Why are we not taught this in school!? Im 35 and it’s the first time this has been explained to me
Good explanation…economists that know the truth and fully understand can explain this in layman’s terms….yet most of them will either make it sound over complicated because they even don’t understand it themselves or choose to perpetuate the myths and lies !
Thanks Gary this is something I have been asking in the pub for a long time - who has all the money the country has borrowed - listening to you it is so obvious - many many thanks
Loved the opening statement man. I might try and memorise it so I can pretend to be intelligent 😂👏👏
We need a new Citizens Party that represents all citizens of the country and whose purpose is to re-distribute wealth to re-balance equality in the country.
Debt owed = everybody's credit if we look at the economy globally. However, you could owe £100 to someone in the UK but owe £10 to someone in the US. So in the UK somebody will benefit £100 but in total the UK will lose £110 since somebody in America is owed too. We usually talk about the economy nationally in which case debt owed is not always equal to the amount of credit.
Another excellent video. Just keep going, just keep spelling it out, Gary. Love your videos. The money is there, stashed away by the super wealthy. I am trying to spread your words very modestly here in France among people I know..
There’s an African proverbial. “The country is rich, it’s the people that are poor”
I agree. I note the related subject of interest payments is missing here. It would be helpful to explore its relationship to economic growth.
Never consider it this way, thanks Gary.
Hi Gary, As always, providing key nuggets. Thanks for the video. It was great seeing you last Saturday; cyling your way to the Leyton Orient game. I still can't believe it. Have a great week.
Haha that was you was it? Was nice to meet you - you looked very surprised!
@@garyseconomics Yeah I just did not think you would be cycling around near to where I coach and play. Keep spreading this key financial info.
The government debt = private wealth, so the right question - when you want to reduce government debt - would be, what wealth should be reduced or who should get poorer?
Absolutely superb - best explanation yet.
Brilliant discussion of a simple concept- which leads to an equally simple solution to the ongoing growth of wealth and income inequality.
so importatant that you are making these things clear, keep on!
Gary this analogy you’ve created for us is both enlightening and devastating. Thank you for educating us.
Thank you Gary more people need to hear this stuff. You make economics interesting and I didn't think that was possible.
Love that your channel is growing!
Me too!!
This is brilliant. I particularly like the questions you give that we can ask. Unveiling the excuses we hear in the media for the economic disaster (we kind of know it’s wrong but not quite sure why).
Love your intro and that question I will definitely use it in future!
Great video Gary, keep up the good work.
Thanks for these videos Gary
This is an incredibly powerful video
Glad you're back. i needed more content from you to keep sharing XD
Absolutely brilliant video Gary and people need to be aware. I will share to everyone I know. Keep up the good work sir.
You hear about Chinese debt-trap diplomacy in Africa, but you never hear about the UK being in a debt trap with itself.
Super video Gary, thanks for doing what you do, it is much apricated.
Learning, learning, learning thank you Gary ❤
Gary, quite right. I've now watched quite a few of your videos and in other ones, you distinguish correctly between "rich" and "wealthy". This is in this video a very important distinction, which suddenly you don't make any more. Where here you say "rich", you meant "wealthy". People who are rich own cash in hand. People who are wealthy own assets, one of which could be a pile of debt certificates. Like other assets, these generate a flow of money (cash in hand), but the focus is not on the flow, but on the ownership of the asset (the wealth). As you know from your City work, these certificates can like other assets be bought and sold, the price reflecting the strength of the future cashflow. So debt is not someone else's cash, it's someone else's asset.
This is the best economics explainer I've ever seen! 🔥@1.5 speed
Outstanding explanation. Thanks Gary!
This is actually brilliant 👏
Thanks bruv ,,more power to you man maximum boost!
Fantastic talking truth to power. Fabulous work.
Just the obligatory algorithm comment. 👍
Very clear message Gary, thanks so much, I never thought of debt like this. The media use misleading messages all the time and sometimes it is like hypnosis. I am telling all my friends and work mates about your channel. If enough people know the truth then we are united in what we want our future lives in the UK to be like. Thanks and keep going!
Excellent again Gary,we need to get your word out there no matter what it costs.
Like Truss and Kwateng did, they LOST the money but who profited and who pays the debt now. Does the government audit income, expenditure and money trail? If not, why?
Superb video mate. Thanks
Thank you, Gary for explaining this so clearly and so eloquently. The super rich and government prey on the ignorance of the public, and thanks to people like you we don’t have to be ignorant and believe all the lies they tell us anymore
They also call robberies "crisises". As if the economy was like the weather, impossible to comprehend and unaffected by public policy.
🏆 EXCELLENT! 🍻 Gary, you're a 🌟
Calling it as it is Gary, well done!
That was a really passionate video Gary. I couldn’t agree more with what you are saying.
You are a God end to us Gary. Thanks to you I have begun to question Every Government financial utterance.
Love this... Such a great video!
Thanks, I thought this one was good.
Thank you Gary 😊
'Somebody has generated a massive f*cking fiscal pile of cash...' Who could it be??
Direct Democracy is the only way to fight these Govts worldwide. The PEOPLE should have the final say on what gets passed. With todays technology, it would be easy to have system built in place. A Semi Direct Democracy would still have congress, senate etc. BUT they would have no power but to do as they are told by the people.
If you owe a mortgage and pay it back, you pay the debt plus interest as well so the person who you pay your debt back to increases the amount of money that the debt holder gains. I understand that the people who bought the faulty PPE are being paid to store it because it cannot be used, it's a shell game.
In plain English. You’ve made it as clear as can be, keep it up 👏👏👏
I love your enthusiasm for this topic Gary. And I feel your frustration of trying to hammer some simple facts home. But mate , you don’t need to repeat yourself so often. We have rewind on you tube. It’s not a pub conversation! - BRILLIANT VIDEO though. ❤ - without getting into semantics. I was blown away in 2008 ( I think ) by that first Zeitgeist film. Modern money mechanics. Isn’t it true that as bank credits are created out of thin air ( in fractional reserve banking ) that there isn’t even enough money in the system to pay the debt and this is also why the rich are scared because we might realise there really is a magic money tree 🌳
Thank you, Gary, for another great analysis. 👏🏼👏🏼👏🏼 You have opened so many people’s eyes to the understanding of economies.
Ohh my goodness, what a brilliant video. A lecture in common sense.
Great explanation. I just hope we can eventually kick these tories out and get someone to turn things around.
I've sent the link to my local MP, asking her to watch it and share with colleagues.
Thank you, Gary.
Brilliant. We just need a government with the simple balls to get the money back
Bro you just blew the lid off of this whole thing..wow...
I was wondering if you could explain what the tipping point is when assets no longer perform their original function. I'll give you an example. Housing for example. It starts in rental market when landlords stop maintaining houses because there is no return for them. I think that is often to do with the land becoming more valuable than the house but not exclusively. Where I live in Vancouver, there is a lot of money laundering by foreign interests through the Housing market. An area called British properties has more or less been completely rebuilt into massive Grey mansions and a large percentage of them are empty and are owned by people who live abroad. It seems their value is dictated by the amount of circulating money being laundered and they have no real value as places to live. The term McMansion has been termed to describe them, because they are built for appearances and to appeal to foreign sensibilities. They are not quality and will probably only last , maybe 40 years at best. All fur coat and no knickers. Assets like the NHS ( I grew up in the UK) having been surreptitiously sold off in chunks, seems to have lost its primary function in favor of profit for the wealthy, would be another example, perhaps. Although the deliberate underfunding is more of a Tory ploy to prepare it for privatization. I wonder if you can shed some light on this transition from functionality to money spin.
" All fur coat and no knickers " 😂😂😂 Scottish by any chance?
@@WhoAmEye_WhoAreEwe a phrase borrowed from a Scottish uncle.
The British Properties have immense value as places to live, they are massive homes on the side of a mountain near Canada's third largest city. There is tremendous demand for housing in Vancouver and limited supply due primarily to zoning.
Really useful info - thank you!
Governments and Markets go hand in hand, you can't have one without the other
Gary is a pretty sick guy isnt he. Legend status.
somebody change the battery in that smoke alarm ! cheep ! cheep! cheep!
Brilliant explanation, more people need to see this