Name: If Every Country Is in Debt - Who Owns The Debt?
Uploaded: 2025-11-17T18:07:14.000Z
Duration: 18 min 38 s
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Not a year, not a week, but literally a day.

That's about $20 trillion just in the last six months alone.

The United States, China, Germany, you name it.

And we have reached to a point where the global debt is growing much faster than the size of the global economy.

As of 2025, the global GDP is about $114 trillion, which means that the global debt is three times larger than the size of the global economy.

The average interest rate on the global debt is 5 to 7%.

The global GDP grows by about 3%, which means that the global debt is growing twice faster than the size of the global economy.

Mathematically, this debt can never be paid off.

You don't have to be a genius to understand that this is going to lead to a financial catastrophe.

So if there is so much debt in the world, who do we owe all this debt to?

Who is the puppet master behind all of this?

And how did we end up in a situation when there is far more debt in the world than the amount of money that exists?

We will answer all of these questions and many more.

So if you're ready, give this video a thumbs up and let's get right into it.

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This is how the global debt actually looks like.

At first glance it looks like a complicated system, but

it's actually much easier and much simpler than you think.

A debt is an asset for some people and a liability for another.

If you are the lender who is sitting on some spare cash, on some spare money, you can loan that money, that money generates interest.

But for someone else who borrows that money, a debt is a liability because he has to pay that interest.

Maybe you have taken that money to buy yourself a car.

Maybe you have taken that car to get yourself a house and you have to pay interest for the next 30 years.

The way it actually creates that debt is by creating a Treasury that is being sold to the banks.

These are commercial banks, JP Morgan Chase, Citi, you name it.

And in exchange, they will offer the United States a loan.

These banks are motivated to buy these Treasuries, first of all because they will receive interest from the US Government.

But secondly, which is most importantly, they know for a fact that the Federal Reserve is going to buy these Treasuries from them.

And they will make a profit by selling them to the Federal Reserve.

So it seems like the real puppet master is the Federal Reserve.

The Federal Reserve is the central bank of the United States that has the authority to create US Dollars out of thin air.

So most of the Treasuries will end up in the hands of the Federal Reserve.

And now the interest that the US Government will pay on these Treasuries will into the hands of the Federal Reserve.

So the Fed created the dollars and now the Fed is receiving interest from the US Government.

It seems like the perfect puppet master evil that controls the United States.

However, if you dig into the numbers, you realize that all the extra interest that the Federal Reserve generates from the US Government bonds, it pays it back to the US Government.

It's basically a system for the US Government to legally create money out of thin air.

The only reason that the Fed cannot directly buy Treasuries from the US Government is to prevent the US Government to abuse the power by overborrowing.

But they have mastered this system in such a way where the US Government can simply create Treasuries and the banks will buy them for a fact, knowing that the Fed is going to buy them from them anyways.

Any American can buy the Treasuries from the open market and receive interest from the US Government.

It says that whoever owns this piece of paper, the US Government will pay the interest.

So if I have some extra money, I can buy it and receive interest.

U.S. businesses, U.S. companies, mutual funds can also buy them and they will receive interest.

And that's why, for example, Warren Buffett is sitting on almost $400 billion worth of cash.

These are almost $400 billion worth of U.S. treasuries.

And that's why Warren Buffett this year will receive almost $14 billion in cash from the U.S. government.

Last year, Berkshire made about 16 or $17 billion.

When you pay Social Security taxes or the payroll tax in order to receive Social Security benefits, old the Social Security system or the trust fund, if it's going to have some extra money generated from the taxpayer's money, it will invest it.

It can't invest it in the stock market because these are the pensions.

They need to be able to turn that money into cash whenever they wanted to be able to pay the Social Security benefits.

So the Social Security trust fund only invest in the US Treasuries and will generate and receive interest from the US Government for holding those Treasuries.

This is how the vast majority of the debt in the system is created.

The second part is that the banks don't just make money by loaning money to the government.

You can go to the bank and get a mortgage to buy a house.

And now for the next 30 years, you will pay a mortgage because you purchased that house.

And that interest will go into the hands of the bank.

You might take that money and you might go and get yourself a brand new iPhone.

That money will end up in the hands of Apple.

Or maybe you're going to get that money and buy a car.

That money will end up in the hands of the dealer, that dealer, that Apple or that person that received that money from you.

They won't be sitting on hundreds of thousands of dollars worth of cash or millions of dollars worth of cash.

That money, one way or another will end up in another bank.

So they're going to go to the bank and deposit it in the bank.

Now Banks have more money so they can create more loans and generate more interest.

The people who receive that money will deposit it back in the banks.

So it's a never ending cycle where the exact same amount of money just circulates.

And that's why we have far more debts than the amount of money that exists in the economy.

But all other systems across the globe work pretty similarly to the United States.

But instead of US treasuries, they call them gilts.

They create the gilts and sell them to the commercial banks.

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If Every Country Is in Debt - Who Owns The Debt?

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