...what I want you to understand and what I  want you to think is 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 asks 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?'  

okay I'm back today we're going to talk  about Debt and the Fiscal Black Hole

Just as we predicted in the very first video on this channel "how the rich get richer from covid-19"

government debt has increased massively in the last 3 years also as we predicted at the beginning of this  

channel that is now being used by the conservative  government to justify a round of austerity cuts  

this is gonna mean less money for public services; hospitals, education, police, local services  

um these are all things which have  already been massively cut in the  

David Cameron/George Osborne  government 2010 to 2016.

In many cases these services are already cut to the bone, cutting them further is going to  

decimate services it's going to be less money  in your pocket if you work in the public sector  

um there's really a risk it's going to really  threaten the fabric of our country our basic  

services um and throughout all of that is going to  be justified by the idea that there is an enormous  

government debt an enormous fiscal black hole so  it's very important that you understand debt we're  

going to explain that today okay so government  debt the government debt has increased since  

Covid from £1.9 trillion to £2.5 trillion, now I think these really big numbers like trillions  

they're very very difficult to understand so  I think the easiest way to understand the size  

of the government debt is to look at it on a  per person or a per adult basis so the current  

government debt has increased to about £50,000 for every single adult in the country  

okay so that's a lot, that's a big number, £50,000 how do we understand that okay

the first thing is that government debt is not   the only kind of debt that exists in the country  

um there's also significant amounts of individual  debts the most obvious is Mortgage Debt so lots  

of people have a mortgage maybe you have a  mortgage the average amount of mortgage debt  

held by a UK adult is £35,000 so that's on top of the £50,000 of government debt and  

there's also other debts; student debts, consumer debts, which add up to about £5,000  

per adult in the country so for every adult  in the country you've got £50,000 of  

government debt £35,000 of Mortgage Debt  another £5,000 of other debts um  

so what is the total amount of debt per person in  the whole country if you add up everybody's debts  

you might think 50 add 35 add 5 that's £90,000 per person but what if I was  

to tell you that the total amount of debt in the  whole country is exactly zero exactly £0

you might think okay that doesn't make sense  there's all these debts how can I add up to zero  

well if I wanted to work out how much debt you  were in it wouldn't make sense for me to just  

look at your mortgage right if you have a big  amount of money in a savings account I should  

take your mortgage and I should also subtract  your savings rights so let's say you've got a

£100,000 mortgage but you've also got £50,000 in savings your total debt it's not 

£100,000 right it's 100 minus 50 that's £50,000 well whenever you have a debt it's very 

important to understand that that debt is to somebody the money that you owe is money that  

is owned by somebody that you owe the money to so  what that means is if we look at everybody's debts  

and also everybody's credits (money owed to them)  it always must add up to zero it absolutely must  

because if you owe money then you must owe that  money to somebody if if you didn't owe that money  

to anybody, then you wouldn't have to pay it back right, nobody would complain that is the way that  

debt works debt is always money owed by  somebody to somebody else what that means is

all of this debt that exists in the country £50,000 per adult of government debt  

£35,000 of Mortgage Debt another £5,000 of other debts

this £90,000 of debt per person must be owned  by someone which means the average amount of  

money that you control owed to you must be  £90,000 pounds per person I think this is  

I think this is kind of mind-blowing when you  think about it because when you think of that  

mass amount of government debt £50,000 per  person that massive amount of Mortgage Debt

£35,000 per person all the debts every single  debt you have every single debt everybody you  

know has everybody's mortgages is owned by  someone and the total amount of debt must be  

zero because if you owe it, somebody owns it. your  debt is an asset to somebody your debt is wealth to  

somebody your debt is wealth owned by somebody  so the reason that I point this out is because  

some of the ways that this debt crisis  have been described in the media  

are totally insane so we talk about  a black hole a fiscal black hole  

so if the government has generated a fiscal black  hole which the implication is the government  

has generated an enormous debt, it must be, it  absolutely must be that somebody has generated  

a fiscal massive f***ing pile of cash it's impossible  for it not to go like that and this is exactly  

what I said in the first video on this channel if  you haven't watched it please go and watch it how  

the rich get richer from covid19. I said  that Covid will cause a massive increase  

in government debt and exactly mirroring that and  offsetting it a massive increase in private wealth  

owned by rich people and if you think about it  it is not possible for those two things to exist  

without one another they are the same thing if  there is a massive increase in government debt  

then there must be a massive increase in private  wealth in fact the increase in government debt is  

the increase in private wealth and the increase  in private wealth is the increase in government  

debt the reason that the rich have got richer is  because the government owns the money the reason  

the government got have got poorer is because  they're running their own money to the rich  

it's so important to understand  this because the media descriptions  

are insane it's not a black hole it's a transfer  of wealth from the government to the rich  

and if we wanted to fix this crisis we  could easily do it by taking the money  

back from the rich it's still sitting in their bank accounts back to the government  

there was an article out a couple of weeks ago where the head of the IFS (The Institute of fiscal studies) 

uh which looks at government finance in  this country I think his name was Paul Johnson  

said we've all got a lot poorer  we've all just got a lot poorer and  

um I think he was referring to this increase in  government debt and if you sit think about that  

it's an insane statement because if the government  has gotten poorer by giving a crap ton of money out  

then we as a whole haven't got poorer right all that's  happened is the government has given money to the  

people of the country we as a whole have not  gotten poorer the problem is that all of that  

money that's been given out which is £600 billion so far since the beginning of Covid

£12,000 per adult in the country has  been accumulated by richer families and  

richer households so really we as a country  have not gotten poorer at all all that has  

happened is there has been a massive transfer  of cash from the government to the rich so  

what I want you to understand and what I want you  to think is 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? because the reality  of the situation here is that £600,000,000,000 

which has been lost by the government is exactly  pound for pound offset by 600 billion pounds  

accumulated by the rich of this country that is  how debt works you cannot owe debt to nobody if  

you have increased your debt by 600 billion pounds  someone has increased their wealth by 600 billion  

pounds that is twelve thousand pounds per adult  if you do not have your £12,000 somebody has it 

and it is in most people's cases the rich  that have that because we can see statistically  

that that money has been accumulated by the rich  if you don't understand why go and watch the first  

video on this channel how the rich get rich from  covid-19 which predicted exactly everything that  

has happened; that government debt would increase,  that private wealth of the rich will increase, that  

inflation would increase, that asset price would increase, that house prices would go up and that  

we would see a massive crisis of inflation and  living standards this was exactly predictable  

because during covid £600 billion went from the government to the rich so you need to  

understand that is not a black hole that is a pile  of money sitting in the bank accounts of the rich  

austerity is not an unavoidable choice it is  something that we are choosing to do because  

the government which is currently ruled by a man  whose father-in-law is one of the richest men in  

the entire world is choosing not to tax the rich  who have just seen the biggest and fastest ever  

increase in wealth but instead to raise your taxes  to cut your pay and to cut your public services  

every single pound in that fiscal black hole is  sitting right now in the bank accounts of the rich  

if we took that back there's no need for austerity  if we took that back we could give every single  

adult in the country £12,000 imagine that £12,000 in your bank account that is not making  

the rich poor that is just making them exactly  as rich as they were three years ago before covid  

every single thing that is happening here was  predictable at the beginning of covid if you  

understood the massive increase in inequality  and massive cash transfer that would go from  

the government to the rich if you don't believe  me go and watch my first video how the rich get  

richer from covid-19 because everything that  has happened I have exactly predicted would  

happen this austerity is not essential there is  no fiscal black hole every single pound needed  

by the government is held by the rich and  this austerity is a choice but a government  

led by one of the richest men in the world we  don't need to do this we don't need austerity  

every time you hear fiscal black hole think fiscal  pile money if anybody questions you send them to  

this channel show them this video make them watch  the first video how the rich get rich from Covid 19 

Austerity is a choice while you are struggling  to feed your kids and heat your homes the rich are  

getting richer at the fastest rate in history  we could stop this at the drop of the hat if  

we chose to tax the rich and we have to do it  thank you like the video share subscribe thanks

money currently is Flowing from the  government to the rich leaving the  

government with big powers of debt and the  rich would be part of money there's one other  

thing they can do with that mass amount  of income they can buy your mom's house

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