Everyone’s Panicking About The Wrong Debt — We Had To React
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Special Thanks to Steve Keen: https://www.youtube.com/watch?v=28Gf4f-hIUc
Welcome to Impact Theory with Tom Bilyeu. In today’s episode, we dive deep into the economic insights of Professor Steve Keen—a renowned economist who famously predicted the 2008 financial crisis. Keen challenges mainstream economic models and reveals the fundamental misconceptions that lead economists to repeatedly misjudge the state of the economy, especially when it comes to debt.
We’ll unpack why conventional wisdom about government and private debt is dangerously flawed, explore the real mechanics of money creation in modern economies, and explain why ignoring private debt can leave entire nations blindsided by financial turmoil. Along the way, we’ll touch on provocative ideas like debt jubilees, the dangers of unchecked debt cycles, and the delicate balance between innovation, lending, and inflation.
Strap in as we question what you really know about economics, challenge widely held beliefs, and uncover the models shaping your financial future—whether you realize it or not.
@reginaldmathulekanyane7910
July 27, 2026 at 1:15 am
Wow I am seeing 666 comments. Mine is number?
@mugsmugwump312
July 27, 2026 at 1:15 am
Pulling money out of a system that includes goods and services only slows the production of goods and services temporarily as prices adjust over time. There is a long and a short term dimension to this.
@martinunger9545
July 27, 2026 at 1:15 am
If you watch enough Steven Keen videos, you will become seriously depressed.
@mugsmugwump312
July 27, 2026 at 1:15 am
When I learned Economics the basic concept was that money is a yardstick that measures goods and services. It is the central bartering medium. True value is in the goods and services, like Adam Smith's (hand-made) nail manufacturing operation. Prices, of course, are the measurements.
@paulhodges8288
July 27, 2026 at 1:15 am
GDP is total BS!
@thomasd2444
July 27, 2026 at 1:15 am
36:00 – . . . if
@thomasd2444
July 27, 2026 at 1:15 am
34:00 –
35:50 – [ The complexity is to know the difference between other-provided things which SUBTRACT from GDP & those which add to GDP
_______ those which are either other-provided human needs or those which are other-provided human harmless wants that are not needed ]
@iron1204
July 27, 2026 at 1:15 am
listening to a communist about money …. ooooh boy.
If printing money gets the GDP up, why ever stop with printing money?!
Money is just a ressource that represents the value its traded for. More money just means everything gets inflated.
@goru426
July 27, 2026 at 1:15 am
Tom Bilyeu wants more for the rich ans less for you! Quit watching this channel.
@trembrano
July 27, 2026 at 1:15 am
Steve Keen, the guy who called for the 40% drop in Australian real estate in 2019? The guy who, in a recent video, said that ETF stood for "Electronically Traded Funds" – that Steve Keen?
@bryanupton9872
July 27, 2026 at 1:15 am
Subsidized demand always equates to increased costs. That’s why gov interference in markets always drives up cost.
@thomasd2444
July 27, 2026 at 1:15 am
26:50 –
@lukeasacher
July 27, 2026 at 1:15 am
Only gold and silver are money. Full stop. I've watched tons of Steve's uploads and I've tried to see it his way… but IMHO it's both absurd and Statist. And… Marxist. Central bank? Fiat currency? Labor theory of value? Really? Marx was a joke. Ask Thomas Sowell. Read what he thinks about Marx. I'm 66. Steve Keen's father was a banker. He's just another spoiled upper middle class Marxist. Takes one to know one- just type my name into your search bar. My Great Uncle was Herbert Biberman…
@billybud9557
July 27, 2026 at 1:15 am
I assume Steve knows that the deficit is INCLUDED in the GDP calculation..so it drives the GDP up by definition, not by causality. And Tom, you meant to say trillion, not million at the intro.
@bryanupton9872
July 27, 2026 at 1:15 am
Adam Taggert with Thoughtful Money recognizes this stuff with his guests
@bryanupton9872
July 27, 2026 at 1:15 am
And PE lending is derived from institutions lending money but the PE didn’t scrutinize to the degree institutions would have
@sierraecho884
July 27, 2026 at 1:15 am
People still do not understand Money.
1. Sovereign Money (Kings used to have before we got FIAT money.
2. FIAT Money (the one we have now which is NOT the bad type of money we used to have which people keep confusing)
3. Sound Money (Bitcoin, which is NOT a better version of FIAT it solves a different set of problems and it can not replace FIAT)
@thomasd2444
July 27, 2026 at 1:15 am
26:07 – [ When the necessary amount of money-numbers have been FOOLISHLY removed from circulation ,
_______ then loans CANNOT be paid back : Evidence that money-numbers HAVE LEFT THE ECONOMY-BUILDING ! ]
@thomasd2444
July 27, 2026 at 1:15 am
26:00 – [ The loaned principal is removed from circulation ( or abolished or destroyed ) & a profit called interest remains & is moved from the borrower’s account to the lender’s account . KA—CHING ! ]
@EdwardGoering
July 27, 2026 at 1:15 am
Look 2008 Housing crisis Massive Mortgage extortion They just about gave homes away on Fixed Mortgage knowing they should have been on a Slide Scale [Countrywide Real Estate Inc ] Once the Banks began to fail & the Fed Ben Bernake "Too Big to Fail " Many Looted knowing Taxpayers would fit the BILL 10 Trillion DEbt
@thomasd2444
July 27, 2026 at 1:15 am
25:43 – [ see The Debt-Deflation Theory of Great Depressions by Irving Fisher ]
@thomasd2444
July 27, 2026 at 1:15 am
24:07 –
25:18 – [ Yes , may your god bless ProfSteveKeen ]
@thomasd2444
July 27, 2026 at 1:15 am
23:48 – A more sensible way to read that is — If a bank sees the economy is beginning to drag , if we lower interest rates . . .
@thomasd2444
July 27, 2026 at 1:15 am
22:00 –
22:23 – Tom Bil-yeu wonders about the effect of the rate of interest [ borrowing is done on the basis of an ability to repay ]
23:20 – psychological benefits
23:26 – Look at Japan [ Look anew at Japan with the right KNOWLEDGE of how money-numbers work ]
@UberGringo
July 27, 2026 at 1:15 am
Blame Dave Ramsey. He's making all the money go away. 😅
@SR-vf7bz
July 27, 2026 at 1:15 am
Finally Yes, yes , yes! When the interests rates were falling after the market collapse I refinanced my mortgages from my rentals. The loan officer I was dealing with gave me a rate but I knew the fed was about to lower again. I told him to wait on processing the paperwork. He called me greedy to wait to get another .25 to.5 on my interest rate. REALLY! a banker calling the customer greedy! I told him his bank created the money out of thin air and cost the bank nothing except administrative overhead. He said how do you know that! I said how do you not know that! No one seems to understand this it's absolutely insane. Then the bank get's to foreclose on your home or reposes your car on a loss that never happened to them. I learned this buy imagining the path of a dollar through the system each time it got more simple to understand it's life cycle. Trump can not reduce the debt. It will cause the GDP to shrink and spin the US economy into a depression. However if you shift the debt number over to the citizen side through inflation then the debt can shrink over time without a depression and shrinkage or slowing of the GDP. It is a sinister system!!
@agates9383
July 27, 2026 at 1:15 am
Great content Tom – this is IMPORTANT info to understand and its VERY hard to explain!
@edwinvanderknaap3445
July 27, 2026 at 1:15 am
Let Steve Keen debate Prof Hanky
@pinewood6340
July 27, 2026 at 1:15 am
this guy is saying nothing that we (some of us?) didn't already know. and he believes in debt jubilees. he's a clown that's just looking at the sky and saying "look the sky is blue". thanks bud.
@TheAntipartisan
July 27, 2026 at 1:15 am
My favorite part about consuming Steve's thesis is the roller coaster of "oh shit he's gotta be wrong" -> "oh shit he's right, ig the debt isn't bad" -> "oh shit then what about the debt that matters" -> "oh shit that's actually worse"
@agates9383
July 27, 2026 at 1:15 am
Interesting – there may not be a govt debt problem but there absolutely will be a devaluation problem when they print that money to satisfy those debts – people have a tendency to get restless when they cant afford to buy what they want/need because govt debases the currency
@pgiulan
July 27, 2026 at 1:15 am
The most insane thing to me is how politicians will just tell people what they wanna hear about things like inflation by just blaming the previous administration(s) or the other side. Divide and conquer economics lol
@edwinvanderknaap3445
July 27, 2026 at 1:15 am
When one borrows money it makes a difference whether it is used for asset building, business building or for consumption. When the loan is paid off, what value remains? One can’t say the money is distroyed, or maybe the currency is, but the value is not. Maybe the GDP measures the P&L of the economy but it doesn’t measure the balance sheet.
@user-lv4dz2bl3q
July 27, 2026 at 1:15 am
🥱
https://youtu.be/jQGHJa4Im4A?si=S_FPalzmtVNXmIUe
@thomasd2444
July 27, 2026 at 1:15 am
21:00 – System dynamic software program called RAVEL , to accurately model money stocks & flows
@thomasd2444
July 27, 2026 at 1:15 am
19:58 – 2014 Report : Money creation in the modern economy
@harbster2
July 27, 2026 at 1:15 am
Keen is a crazy leftie. He loves Russia and China and hates the US.
@thomasd2444
July 27, 2026 at 1:15 am
17:00 –
17:49 –
18:25 –
18:28 – For-money-profit lending firms are held accountable [ see Professor Black for the correct accountability of chartered banks ]
@watchjds5413
July 27, 2026 at 1:15 am
Why doesn’t he just move to China and why their banking system so screwed up? Tom I used to think you were pretty bright guy you were being completely fooled and bamboozled by this guy. He is truly an idiot if you don’t think that matters then you need to get a different job.
@thomasd2444
July 27, 2026 at 1:15 am
14:40 – . . . repay a loan , the asset & liability
_______ The RED INK Amount & The BLK INK Amount , are zero
Comments are closed.