State governments bank at private banks. When they overspend, they borrow, and that debt compounds just like household debt. Federal governments bank at the central bank. When they spend more than they tax, they create fiat money that flows into the economy. Completely different mechanics. So why is California trying to fix a federal funding cut with a state tax? 🫤 Steve breaks this down in his latest video using Ravel©, showing what actually happens when you increase federal transfers instead. Spoiler: the state deficit vanishes and federal debt does NOT explode 🔥 He also walks through why the workers' share of GDP dropped from 64% to 58% in barely a decade, and what the monetary system has to do with it. Check it out here : https://www.youtube.com/watch?v=Ufn_Z2RqI_c&views

The GAO just told Congress that US debt is heading for 250% of GDP in 30 years. Sounds like a disaster waiting to happen, right? 🤔 Steve Keen digs into their model in Ravel© and finds something they got fundamentally wrong. They assume deficits take money away from the private sector. Turns out, it is the other way around. A deficit creates money in private bank accounts, and bonds go to banks first, not households. Fix that one detail and the exponential spiral they are warning about just does not happen What the GAO never even mentions is private debt. Velocity of money has dropped from 2.2 to 1.4 turns per year because households are buried in debt repayments. That is what is actually dragging the economy down, and it is what caused the 2008 crisis. Not government spending. Really clear breakdown, well worth your time so do check out the video 🔥

You know how everyone panics about government debt? What if the thing that actually crashes economies is not government borrowing at all, but the debt sitting in your bank account, your mortgage, your credit card, your car loan? In the textbook version, a government running a 1% deficit sees its debt ratio climb toward infinity. Steve built that model in Ravel©. The curve just keeps rising. Looks terrifying. 🫤 Then he changed one detail. He moved the bonds from households to where they actually sit: with the banks. Same equations. Same deficit. Same interest rate. The debt ratio stopped at 50% of GDP. No spiral. No crisis. One wrong assumption in a textbook. 50 years of austerity built on top of it. This one is a must watch. 👇 https://www.youtube.com/watch?v=5l5kROMYEcw&views

Kevin Walsh could be the next Fed chairman, and he's already got a "plan" to cancel America's $39 trillion debt. Sounds like big news, right? 🤷‍♀️ Here's the catch: he trained in the exact same broken economic models as every Fed chair before him. Models that leave out banks. Leave out private debt. Leave out money itself. That matters a lot right now, because 2026 has three separate disasters lining up at once: a war that just gutted global fertilizer and helium supply, a Fed about to raise rates to fight the wrong kind of inflation, and a record breaking El Nino that could wipe out even more of the world's fertilizer output. Steve breaks down exactly why raising rates here won't cool inflation, it'll just cause more bankruptcies. Same religion, different priest. 😅 Watch the full breakdown here 👇 https://www.youtube.com/watch?v=jAuEgIjGLcQ&views

Keir Starmer just became the sixth UK prime minister to resign without finishing his term. Every headline asks what he did wrong. Steve says that is the wrong question. Think about it: six prime ministers, left and right, all promised to fix the economy and all failed the same way. When that many people fail at the same task, the problem is not the people. It is something underneath them, and it is private debt. 😬 Everyone watches government debt. But private debt, what households and businesses owe, is what actually drives crises. In Britain it sat under 60% of GDP for a century, then trebled to 180%, pouring into housing and shares while wages stalled. That squeeze is what keeps breaking prime ministers. This video is worth your 20 minutes 👉 https://www.youtube.com/watch?v=TzvAtOOfhuo&views