The National Debt of the USA
As of September 23th, 2008, the United States of America has a National Debt of almost $9.8 trillion dollars. That is not a typo. It is trillion starting with a "t". Just to give you the scope of this amount of money, a trillion is equal to one thousand billions, and a billion is equal to one thousand millions. It is a huge amount of money. For proof, you can get the current United States National Debt directly from the U.S. Treasury.
Furthermore, the estimated population of the United States is almost 305 million people. Using simple division, each citizen of the United States would need to pay an average of over $32 thousand dollars to pay off the National Debt. Keep in mind that America is not even paying off the interest of their debt, let alone paying off any of the principal of this debt. Therefore, the National Debt is exponentially increasing.
Additionally, politicians are still borrowing more money. Currently, President Bush has asked Congress to borrow an additional $700 billion dollars to bailout several more financial banks for the current economic crisis. If this loan is approved, that means the U.S. National Debt will be about $10.5 trillion dollars. In other words, each U.S. citizen would owe over approximately $34 thousand dollars. Keep in mind that this bailout is not guaranteed to work and may even increase in value.
I think we are only kidding ourselves if we believe that Americans donít have to pay off this debt. Approximately half of this debt is owed to foreign governments and banks, and they will want their money back. The other half of this debt is "publicly held." In other words, this money is owed to the U.S. from the U.S. through the process of putting more money into circulation.
The financial impact of just having this debt is huge. First, printing more money will cause inflation, quite possibly a very high inflation rate for a very long period of time. Second, the economy will most likely stall and cause a long and protracted recession or depression, even with a bailout. Third, funding for certain programs will eventually cease, if the U.S. can no longer borrow more money. Just see Social Security and Medicare for examples.
This article is not meant to scare anyone, but rather to inform. I can only hope that this information will be a strong enough motivation for the citizens of America to go into action. Before it is too late, please contact U.S. politicians to demand immediate fiscal responsibility through a balanced budget and a gradual decrease in the National Debt.
by Phil for Humanity