National debt/deficit…. What do you think???

What is the National Debt?
The national debt is the total amount of money owed by the U.S. Federal Government to creditors who hold U.S. Debt instruments (like Treasury Bills and Savings Bonds). It includes all federal debt held by states, corporations, individuals and *this is the kicker* foreign governments. Yes, you heard right. We borrow money from other countries’ governments to finance our own. Which really means that we’re borrowing from their citizens to pay for programs for our citizens. It’s a head scratcher I know. By the way, that doesn’t even include the amounts we’ve promised to pay out for Medicaid, Social Security, and Medicare.

The National Debt is also known as the public debt or the government debt.
What is the National Deficit?
The National Deficit is a budget deficit of the federal government. If the government drew up a spreadsheet and subtracted all the expenses from all the income, they’d come up short. The amount of this shortfall is the national deficit. They spends more money than they earn. So, just like you do when you really, really, really want those Jimmy Choos, or the cool new bike, or the newest iPhone, the federal government takes out a loan. Where you use plastic, the government uses Treasury Bills and Savings Bonds. And this brings us back to debt. As deficits accumulate, they must be financed. That’s where the confusion with the terminology sets in.

Our national debt and federal obligations continue to grow at an uncontrolled pace. And although our politicians pay lip service to it, they are taking no steps to solve the crisis. To the contrary, they continue to pile on more debt at an unprecedented rate, setting the stage for a financial collapse of unthinkable proportions.
It’s imperative that we let our elected officials know how we feel about the federal government’s reckless borrowing and spending that is destroying the very foundation of our economy and our nation.


Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )


Connecting to %s

%d bloggers like this: