National Debt

The national debt is simply the amount of borrowing undertaken by the federal government. It’s the debt of the country and is usually referred to as a percentage of gross domestic product (GDP); the higher the national debt in reference to the GDP, the riskier the country’s financial state is to shocks to the economy. The amount of the current national debt is approximately $17.89 trillion, or about $56,052 per American as of November 2014. The national debt gets bigger when the government accumulates a deficit, which is then added to the national debt balance. The government raises funds via the debt market when there is a shortfall between spending and income. Debt exists in the form of government bonds and bills.

The problem at this time is that the federal government continues to run annual deficits. The amount of the national debt has already surpassed the legal limit and has had to be increased on numerous occasions over the past few years. The issue at hand is the government will need to address the rising debt as it has already impacted budgetary spending and has resulted in fiscal spending cuts across the board, which impacts Americans whether it is on social programs or government services. If left unabated, the debt will continue to grow towards $18.0 trillion. The concern is that as interest rates rise, the interest carrying costs will surge and make the national debt situation even worse.

National Debt Rising 2.3 Times Faster than Budget Deficit?

By Wednesday, October 29, 2014

National Debt Rising 2.3 Times Faster than Budget DeficitFor the U.S. government’s fiscal year ended September 30, 2014, the government registered a budget deficit of $483 billion—the lowest budget deficit since 2007. In fiscal 2013, the budget deficit was $680 billion. In each of the previous four fiscal years, it was more than $1.0 trillion per annum. (Source: U.S. Department of th… Read More

Where the U.S. Dollar Is Headed and What It Means to You

By Monday, September 29, 2014

U.S. Dollar Is HeadedFor the U.S. federal government’s fiscal year, which ends this Tuesday, the Congressional Budget Office (CBO) predicts a budget deficit of $506 billion. (Source: Congressional Budget Office web site, September 26, 2014.)
But just because our annual deficit is declining, that doesn’t mean our national debt is rising by an equ… Read More

The Sobering Issue

By Friday, July 25, 2014

Why Our National Debt Will Double From HereAccording to the U.S. Congressional Budget Office, next year, the government is expected to incur a budget deficit of $469 billion and then another budget deficit of $536 billion in 2016. (Source: Congressional Budget Office web site, last accessed July 21, 2014.) From there, the budget deficit is expected to increase as far as the p… Read More

Double Bottom in for Gold Prices?

By Tuesday, May 20, 2014

Gold Bullion Fear Index CollapsesWhile the Federal Reserve has cut back on its money printing program, the fact of the matter is that the “official” U.S. national debt is closing in on $18.0 trillion. The unofficial national debt (when obligations like Social Security, Medicare, Medicaid, welfare, and now Obamacare are taken into consideration) is closer to $… Read More

Sneaky New Taxes Way Government Debt Will Get Paid Down?

By Thursday, May 15, 2014

Getting Ready Mansion TaxAs it stands, the U.S. national debt has skyrocketed to above $17.4 trillion. With this year’s budget deficit expected to be around $500 billion, we’ll be at a national debt of $18.0 trillion in no time. In fact, a $30.0-trillion national debt is not out of the question by the end of the next decade.
Any way you look at these very big nu… Read More