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 Balloon Bearish for U.S. Dollar, Positive for Metals

By Friday, March 27, 2015

National Debt  turning into Debt crisisWith the U.S. government forecast to incur budget deficits year-over-year through to 2025, our rising national debt is turning into a debt crisis that will have long-term negative effects on our economy and currency valuation. In particular, two ticking debt time bombs are lurking nearby.
Official National Debt Figures to 2025
According to the Congressional Budget Office, the U.S…. Read More

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 the Treasury, October 15, 2014.)
On the surface, this is great news…. 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 equal amount…. 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 projections go…. 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 $200 trillion…. Read More