Easy Overview of The Debt Clock
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What is the National Debt?
The United States national debt is a measure of the total obligations or amount owed by the United States Federal Government versus the amount of securities held. The National Debt is tabulated by the United States Treasury in two distinct components:
National Debt by the Public: This figure represents all federal securities held by institutions or individuals outside of the United States Federal Government.Intragovernmental Holdings: This figure represents all United States Treasury Securities held in accounts which are formally administered by the Untied States Government, such as the OASI Trust fund, which is administered by the Social Security Administration.
These two subcomponents, when combined, yield the National Debt figure. As of May, 2011, the Total National Debt owed by the United States Federal Government was approximately $14.3 trillion dollars. The debt has risen as a result of the increasing costs attached to various federal programs, such as social security and Medicaid as well income security and the net interest on debt--This money is predominantly owed to corporations and countries like China who have invested and lent to the United States to help fund the nation’s federal programs and war efforts.
In the simplest of terms, the National Debt is simply the ratio between the monies owed by the United States Government compared to the revenue obtained from investments, the nation’s gross domestic product and revenue generated from taxes.
When the United States borrows money from other nations or countries they initiate a loan offering with a high interest rate attached. For example, if the United States borrows $1 billion from China the Chinese Government will attach a repayment schedule or be given a treasury bond as a form of repayment. When the bond matures the money is owed or the federal Government will restructure the loan with a higher rate of interest. The money owed is
The National Debt is not to be confused with the trade deficit, which is the difference between the country’s net imports and net exports. Furthermore, all state and local government securities, issued by local governments, are not part of the National Debt.
The annual National Debt refers to the cash difference between all government receipts and spending of the United States Federal Government. The National Debt therefore increases or decreases as a result of the unified budget deficit or surplus. That being said, there is certain spending efforts that add to the gross debt but are excluded from the deficit.
Throughout history the National Debt has fluctuated greatly. Currently the debt is the highest it’s ever been; the United States is spending billions per month on defense and has their wars financed through interest loans from China. In decades prior, the United States operated with a budget surplus, meaning the nation was not indebted to other countries.
What is the National Debt Clock?
The National Debt Clock is a free resource offered online that reveals, by the second, the United States’ Federal Government’s National Debt. The Debt Clock takes into account all revenue, including monies generated via the Federal Tax, various state revenues, and the US Gross Domestic Product and matches it up with all government expenditures including programs like Social Security, funding needed for Defense/wars, income security, Medicaid programs, the net interest amassed from the debt and costs to run the nation’s federal pension programs.
In addition to the National Debt figure, the Debt Clock breaks the figure down by revealing how much debt is owed per citizen, how much the Federal Government is spending per second and the total federal budget deficit. The National Debt Clock can be located at HYPERLINK "http://www.usdebtclock.org/" http://www.usdebtclock.org/.
