Name: 希臘債務危機四分鐘解讀 (The Greek Debt Crisis Explained in Four Minutes)
Uploaded: 2021-01-14T06:29:31.000Z
Duration: 3 min 49 s
Description: 【看影片學英語】數萬部 YouTube 影片，搭配英漢字典即點即查，輕鬆掌握單字發音與用法，長久累積看電影不必再看字幕。

Good morning Hank, it's Friday you know in my hug bucket? Greece.

轉承詞

every time I see Greece just wanna give it a big ol' hug. I don't, however wanna give

them a 150 billion euro and therein lies a problem.

Okay, so I wanna to talk about sovereign debt today, but just to establish at the

outset that this is not a particularly political problem here the Chart of the

gross federal debt, by president as a percentage of GDP.

As you will notice, the fluctuations have nothing to do with whether the president

is blue or red. The same is true in other developed countries as well.

Okay so Hank, to begin let me tell you one of the great rules of economics. If you are

you have to be a idiot not to stay rich and if you are poor you have to be

This is true for individuals but also true for countries. Fancy Pants countries

with Fancy Pants currencies have all kinds of advantages over developing countries,

including that we are able to borrow money cheaply.

In fact, because the Fancy Pants countries can borrow money so cheaply it actually

And the reason for this is that in the long term our economy can grow faster

than the cheap cheap debt were requiring to pay for our economy to grow.

So that is not inherently bad for nations. The famous example of this is

that in 1945 the United States had a debt that was more than a hundred percent of it's

And our deficit was more than twenty percent of our GDP and that level with

immediately preceded the largest expansion of our economy in history. Also

the largest expansion of our waistlines in history.

Yes that's funny, we did get fat. So debt is not bad,

very bad. The trick of Fancy Pants countries being able to borrow money

cheaply has always been that the market assumes that fancy pants countries are

guaranteed to pay you back. And when I say the market assumes I mean the market

When it realized that Greece fancy pants country with a fancy pants currency

maybe can't pay back its debts. What's interesting is that Greece is probably

technically in a better economic position that America was back in

but for a variety of reasons, some of them  very legitimate the market is so that

Greece won't be able to pay back its debt, which in turn has led to new debt

being much more expensive, which has in turn made it completely impossible for

ever pay its debt. You see, Hank, it's a circle, and its vicious.

That's where they got the term.This raises the possibility that fancy pants countries

with fancy pants currencies might not pay back the money we loan them,

which will probably raise interest rates for a lot of fancy pants countries,

which could lead via the vicious circle to more defaults, higher interest rates,

higher interest rates, I could go on like this forever. Which will be very bad, like

we would yearn for the days of 10 percent unemployment. All of which is complicated by

the fact we're coming out of a worldwide recession in the total economic output

So there's less money coming in taxes but governments still need to spend

and for everybody that says the problem is wasteful government spending we aren't even close to a

a balanced budget. I mean the United States would have to eliminate both its two

biggest expenses, Social Security and Defense,

in order to even come close to balancing the budget. The only other way to shrink

the deficit would be raised taxes which is not generally seen as a good idea

during recession. So the problem with sovereign debt maybe not being as cheap

isn't the fault of any one political ideology, it's kinda everybody's fault.

So basically Hank, I don't want to alarm you,  but I do think we should all buy

pinatas and hide our valuables in them. Actually Hank the unicorn strategy

won't work because we have to keep loaning each other money,

and we have to figure out a way to loan confidently, like we did back in 1945.

That's where the EU the IMF are working so hard try to nail down a bailout plan

And if fancy pants countries can't continue to convince us that our money is as safe with

them as it is inside of a unicorn pinata  they will lose the cheap money

privilege they have enjoyed for centuries.

And history tells us that once a stupid rich man gets poor,

he doesn't usually get rich again, unless he is Donald Trump.

Hank, I told you I'd see you on Monday, that's your signal to stop watching but nerdfighters there is still

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