"Elon Musk's Magic Money is Wrong" Top Economist Warns US

Someone put this retard, Elon, out of his misery. I'm tired Apartheird Andry!

Musk only wants a simple narrative and soundbite that can be "viralized" on social media and keep the audiences entertained and the 🔥 going...

Cool simulation!

A few questions if anyone has the chance to answer?
1) How would the outcomes of the simulation change if it included outside bond investors (ie foriegn investors) who are sensitve to currency, bond rating and interest rates etc?
2) Isn't the change in the value of the currency part of the issue (ie inflation)- where does the model reflect any change in the value of the currency?
3) Also, what would happen in the 2nd simulation if the Debt/GDP ratio was similiar to where the US is currently (it looked like only got to about 30%, not ~>130%)?
4) Also, how would including unfunded government liabilities factor into the simulation?
Thanks very much and best wishes!

Let me know if I got the right takeaways:

1. Governments should run a deficit in order to create both Credit and Fiat Money, AND to promote (nominal) GDP growth.
2. The fear that Fiscal Debt will spiral out of control and crash the economy is silly and based on a misunderstanding of the banking sector, and thus we shouldn't care about the so-called "Debt Burden".

It sounds like Elon is saying they should shut down the defence budget to save money

Super Important!! ❤🎉

Musk is a deeply disturbed mentally ill individual who has no business to interfere with the US government!

lolz applied vs theoretical economics, who is right?

Do you know how much debt Elon Musk has and his investors have?

Banks create money as a natural result of our fractional reserve banking system. This is a good thing if you like the concept of a loan. Most people like being able to buy things they don’t have cash for. It’s just the way we evolved out of the barter system. I guess we all just trust one another, and God too.

If Trump is advocating for economic chaos, it could be part of a strategy in which market crashes are perceived as chances for the ultra-rich to acquire assets at reduced prices. Annually, those with substantial capital tend to benefit disproportionately during periods of volatility

So running a government deficit can be beneficial to the growth of the GDP of a country. Is there a range where this is more or less effective? Or an upper limit where it becomes detrimental to the GDP of the country?

Well, you may be right in principal, but you are most certainly wrong in practice.

Let's start with some facts: Governmemt debt must be paid interest. Money paid as interest is not available to be spent elsewhere. The only way the government can get money other than debt is by levying taxes and fees. That's it.

Now if you keep increasing debt you will also keep increasing interest. That's an exponential function, i.e. it will reach a point where raising more debt means interest due implies raising even more debt. When the interest payments go beyond the level of taxes and fees + ability to rasie debt, the system crashes.

Thus the debt must be reduced so that interest is reduced.

The only two ways to avoid adding more debt, other than right-out defaulting, is by reducing spending levels, or by incressing taxes and fees. It should be both (e.g. tariffs and reducing gov spending).

I don't agree with the way Trump/Musk go about doing it - it is inhumain and very badly communicated - but he is fundamentally right in that the US debt must be reduced.

News Flash! The Feds do not pay interest on the national debt or deficit. (fact check me)

We can give up supplementing a billionaire and his projects. Why do we need to know about Mars etc now? Lower military spending, don't give breaks to oil (if you're not giving breaks to farmers). Don't give f-Elon Musk any money.

Yeah, but what he's not explaining is that his model is going to lead to the massive depreciation of the value of a dollar.. an inflation ends up destroying the value of currency in his scenario

Hey, your model is broken. Clearly there's a problem with it. Interest is taking upmore and more for federal budget. Currently interest is the fourth largest line item and rising. So long as the treasury creates more money.. that money still has to be loaned to the government with interest. Your solution requires the governement interest to be at or near 0. This is not a real solution. We cannot keep interest low forever...or we will have hyper inflation...

Double entry & the "accounting equation" never lies I'm sure Elon would know this, he could always ask his accountants both internal and external!

Because rich people like Musk aren't taxed like they should be.

losing count at the number of times this "genius" says something with such conviction yet is so wrong. Of course his little keyboard warriors just lap it up though.

Even if Melon watched this video, he would just call you a name, say you were wrong and then run away.

Ok, if this is true, why are textbooks not correct? This content isn't cutting edge. The creation of fiat through bank loans is well documented

YOU'RE MISGUIDED AND COMPLETELY WRONG 👎

If the top billionaires/trillionaires and companies do not fiddle with tax havens/tax "avoidance" and pay tax as they are supposed to , it won't even be an issue. It's the near monopolistic companies, dynastic wealth and cult personalities which are amassing huge amounts of $. Economy works when there is a circulation of money & a healthy middle class.

I think its fair to say that the USA along with the entire western world is fucked.

If you can't explain it in simpel terms you did understand it.
I don't doubt that this man is smart. It's just way to complicated explained. I didn't understand it after many re watches. In my mind the perfect example of someone making it way to complex and introducing way to many assumptions.

Please don't waste our time with Elon Musk. He may have a valid fear, but Musk is creating more problems than solutions and his drug addled mind does not care about anything but the destruction of our government and country so he can control the money coming to him.

As long as banks can pressure something or someone to create needs money will created but there's a catch, the speed of creating the needs and the money creation that's the secret of the blacksmith

What you have is a boost converter were the bank is the capacitor but you created a high top while the lower side have to deliver more volume making the inequality greater

If there is a strong correlation between oil prices and inflation, then, maybe, the government money printing and ZIRP help keep CPI (i'm not including asset inflation) inflation down as it allowed the US oil industry to use cheap capital to develop oil extraction methods that previously made no economic sense. There is also a difference between government fiscal and monetary policies. Didn't the airdrop of money directly to people correlate to the dramatic rise in inflation, especially when combined with rent and loan abatements and other factors like supply chain issues? All of sudden people had a lot of extra money to spend which then combined with the dramatic rise in oil prices because of sanctions. We still haven't fully recovered from all of that and now they want distribute a DOGE dividend to appease the masses.

Forgive me if I'm wrong BUT under the US model worker's taxes are given to Corporations in the form of tax cuts? 😂😂😂

too bad americans don’t even wonder what top experts in any field thinks. e get all out facts from politicians sound bites in a system where lying is completely unrestricted… unless you’re printing food labels… i guess calories are more important than national leadership

PSYSICS IS LAW?
MEANS MUSK GOT EVERYTHING
WRONG!
😂😂😂😂
PSYSICS IS COMPLETELY OUTDATED AND MISSINTERPRETED BY OBTUSE "SCIENTISTS".
😂😂😂😂
AND HE SHOULD "SAVE" AMERICA???

MAY THE UNIVERSE SAVE AMERICA FROM HIM INSTEAD!😂😂😂😂

SO YOU MEAN THAT BANKS CAN CREATE MONEY INDEFINITELY TO BORROW THE GOVERNMENTS?

THAT'S UNSUSTAINABLE.

AND IF THE GOVERNMENTS DO NOT FALL FOR THE DEBT ISSUE THEY FALL FOR DESTROYING THE SOCIETY.

HUMANS BECOME POORER AND POORER EACH DAY.

WHEN DO YOU THINK THE RECKONING DAY IS?

THE PAYDAY IS THIS YEAR FOR SURE.

People try to predict the economy not realizing it is not a capitalistic market, its a command economy, central planning! my concern is, instead of having much dollar in bank that could lose value to inflation, do I save in gold to reserve and grow wealth for now, or just hang on?

👏👏👏👏👏👏👏👏👏👏👏👏👏

It's not the fear of the government going bankrupt. It's the fact the US government will need to pay back the debt and interest with more printed fiat cash causing or maintaining inflation. At some point a sovereign debt crisis will emerge.

Do firms borrow from households? Or from the banks?

Elon knows this already, his statements were based on his public support for Trumpinomics (who doesn't know this), and to get the public deeply committed to the authortarian project.

What about focusing when Elon’s right? A lot of one-sidedness going on here and everywhere. It’s inexplicable.

I understand the concept of double entry accounting. I did not see what the impact of inflation was on that model. I have seen economies like Argentina and others fail, and i believe default on their debt because of high inflation. I presume modern monetary theory explains those examples that it was the inflation that killed those economies not the debt?

Elon Musk is a degenerate foreigner who is poisoning the blood of the American people.

With Trump's re-election will create market volatility. It does matter who's in government, not so much in the short-term, but if Americans can consistently elect people who are financially responsible and not corrupt, then we can turn this trend around. It will take a long time and Americans aren't known for electing financially educated people into office so it's more likely America will simply collapse under the weight of the stupidity of its people while politicians launder all the money they can through pet projects and wars.

Musk has a very odd smile, the one where it's a very prominent smile. His teeth show, his smile is extremely pronounced, and it looks creepy!! 😢😅😮

defense budget is huge.....and how much of it goes directly to one of musks companies and indirectly in his own pocket????

So base on those examples the only way to get a better results is to TAX the rich, like Musk 50-60%! But there is something your examples don't allow for, that is fail of credit. Obviously good economies cans absourb lower failure rates that accure. But as in 2008, when economies decline drastically. High Failure rates can create a domino effect that would even destroy your model.