The United States National Debt
The national debt of the United States is the total amount of owed by the federal government of the United States. Currently the debt of the United States is hovering above $19.9 trillion and this sum can be viewed by anyone who is interested to know how much The United States owes.
There are two categories where in the U.S. treasury manages, the Intragovernmental Holdings which is at $5.554 trillion and two-thirds of the national debt is held by the public. The Government owes this so called debt to buyers of the U.S. Treasury bills, notes and bonds.
The treasury owes this to various departments who is responsible for holding government account securities. By the record, America’s debt is the largest in the world for a single country. It runs neck and neck with that of the European Union which the total amount of the debts of 28 countries.
How did the U.S. end up Deep in so much Debt
The way analysts sees it, there are three major causes of the size of the national debt. The first one is the debt that is the gathered Federal budget deficits. These show up in budget deficits by the President.
The largest deficit recorded belongs to President Obama, when he added ARRA stimulus package, the Obama tax cuts and $800 billion a year in military spending. These deficits were beneficial to the country as it somehow halted the 2008 financial crisis.
The Second major cause is that every President borrows from the Social Security trust Fund. This money should be invested to be available when the baby boomers (people who were born between 1946 and 1964) retire. This fund is being “loaned” to the government in order to finance an increased deficit spending.
The Third major reason is when countries like China and Japan buy Treasuries so that they can maintain the low value of their currency when compared to the Dollar. These countries are more than willing to lend to the United States, so the country would be obligated to buy their exports.