U.S. National Debt

A budget deficit is when you are spending more than you are taking in as income. When a government incurs several years of budget deficits, it then builds a national debt, which is the accumulation of the deficits. Government debt is the total amount owed by the central government, also called “national debt.” To cover the shortfall between spending and income, a government will issue government bonds and bills. These are promises by the government that the money it borrows will be returned, with an interest payment as the cost of borrowing. Since all government debt is paid by income generated by the citizens of the country, this debt is really the burden of the taxpayers. In addition to outstanding securities issued by a government, it can be said that unfunded future liabilities are also considered government debt, such as future pension plans and health costs. Currently, the U.S. debt is $15.5 trillion and rising.


The U.S. national debt is quickly rising. Don’t for a second believe that our country can sustain these debt levels without severe repercussions. At the time of this writing, the U.S. national debt stands at $18.15 trillion. (Source: Treasury Direct,…

Politicians and the mainstream will certainly love this… Last week, Moody’s Investors Service changed its outlook on the U.S. national debt from negative to stable. (Source: Reuters, July 18, 2013.) Despite the credit reporting agency’s “upgrade” on U.S. national debt,…

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