President Barack Obama has become the subject of criticism and negative beliefs because of the constant rise in the national debt of the U.
S.
Several Americans don't realize that the national debt issue is a result of the country's previous debt problems even before President Bush's reign.
A debt problem doesn't disappear immediately; it won't even be removed in 10 years.
As long as there's a nation to manage, there will always be a national debt.
The only challenge is how to maintain the country's debt at a lower level.
What is the national debt anyway? Amazingly, there are many U.
S.
citizens who do not seem to stress about their economy's present circumstance.
If you are one of them, you must know that a national debt is your country's debt.
It is money owed to private companies, banking institutions and other nations to help fund the requirements of a country.
Much like regular debts, it has compounding interest rates that increases the debt balance annually.
As long as the government can't pay back the amount they owe, the interests will continue to increase over time.
If you want to know what the national debt is based on the amount the U.
S.
owes currently, it's $14 trillion.
This amount doesn't even contain the unfunded liabilities.
This debt balance is predicted to get to a minimum of $16 trillion by 2012.
The NYC Times Square debt clock can't even fit this value and it has to be re-adjusted.
This is a warning sign that the U.
S.
economic system has gotten to an all-time high with regards to our debt problems.
The U.
S.
government is in debt for several reasons and the rise in national debt is the result of many factors.
For starters, when there's debt, there will also be a deficit issue.
What is the national debt deficit you ask? Deficits occur when you are investing more money than you are bringing in.
For instance, if the U.
S.
government invested $5 million on infrastructure and only earned $3 million, it will have a deficit of $2 million.
And given that there'll be a deficit every year; this is going to be carried over to the following year which raises the debt.
Another factor for the increase in national debt is the interest rate.
Pretty much all debts come with interest rates because this is how the lenders make their income.
And since the nation cannot pay back all their debts simultaneously, the amount borrowed will still be compounded with the interest rate every year.
This is the only factor that makes the debt amount grow faster and higher simultaneously.
Other factors include social obligations like providing benefits to people, which now have become higher.
The extra money the government is making is poured out on the domestic programs, which in a way are slowing down the payment of interest the U.
S.
must pay to the loan providers.
Simply put, the money the government is earning is simply not enough for the country's expenses.
Also, the government might have invested in something only to realize that they didn't earn as much as they'd estimated.
This all-time high national debt standing may also be caused by the U.
S.
spending on the wars in Iraq and Afghanistan which some political and economic experts say has wasted trillions of dollars in the past few years.
S.
Several Americans don't realize that the national debt issue is a result of the country's previous debt problems even before President Bush's reign.
A debt problem doesn't disappear immediately; it won't even be removed in 10 years.
As long as there's a nation to manage, there will always be a national debt.
The only challenge is how to maintain the country's debt at a lower level.
What is the national debt anyway? Amazingly, there are many U.
S.
citizens who do not seem to stress about their economy's present circumstance.
If you are one of them, you must know that a national debt is your country's debt.
It is money owed to private companies, banking institutions and other nations to help fund the requirements of a country.
Much like regular debts, it has compounding interest rates that increases the debt balance annually.
As long as the government can't pay back the amount they owe, the interests will continue to increase over time.
If you want to know what the national debt is based on the amount the U.
S.
owes currently, it's $14 trillion.
This amount doesn't even contain the unfunded liabilities.
This debt balance is predicted to get to a minimum of $16 trillion by 2012.
The NYC Times Square debt clock can't even fit this value and it has to be re-adjusted.
This is a warning sign that the U.
S.
economic system has gotten to an all-time high with regards to our debt problems.
The U.
S.
government is in debt for several reasons and the rise in national debt is the result of many factors.
For starters, when there's debt, there will also be a deficit issue.
What is the national debt deficit you ask? Deficits occur when you are investing more money than you are bringing in.
For instance, if the U.
S.
government invested $5 million on infrastructure and only earned $3 million, it will have a deficit of $2 million.
And given that there'll be a deficit every year; this is going to be carried over to the following year which raises the debt.
Another factor for the increase in national debt is the interest rate.
Pretty much all debts come with interest rates because this is how the lenders make their income.
And since the nation cannot pay back all their debts simultaneously, the amount borrowed will still be compounded with the interest rate every year.
This is the only factor that makes the debt amount grow faster and higher simultaneously.
Other factors include social obligations like providing benefits to people, which now have become higher.
The extra money the government is making is poured out on the domestic programs, which in a way are slowing down the payment of interest the U.
S.
must pay to the loan providers.
Simply put, the money the government is earning is simply not enough for the country's expenses.
Also, the government might have invested in something only to realize that they didn't earn as much as they'd estimated.
This all-time high national debt standing may also be caused by the U.
S.
spending on the wars in Iraq and Afghanistan which some political and economic experts say has wasted trillions of dollars in the past few years.
Source...