The United States Debt or Alive?

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Countries around the world are facing a dramatic recession, which is forcing them to spend capital they do not have. There are few sovereign states immune to the financial deficit that seems to even plague world super powers, such as The United States. This is unnerving due to the power and influence that the United States holds on the world stage. No matter how frugal the future budget may be and regardless of future financial success how will the United States overcome a deficit of 14.7 trillion dollars? Regarding this harsh reality there are two factions, one which believes the deficit is a necessary evil. The other believing that a deficit so large can be nothing but malignant to the contentment of the American common welfare. The National debt was not accrued in one night, it is the product of many years of a government that has difficulty abiding by a budget that is consistently growing. National debt is the accumulated amount of money which is owed by the federal government. To decipher the national debt, one must sum up all the U.S. deficits accumulated throughout the nation’s history, including even the most minuscule amount of surpluses the U.S. had and growing interest on the net borrowing. The result will equal the national debt (Rich). If the United States debt were to be broken up into a pie chart, the largest portion of debt would be owed to the Federal Reserve System commonly known as the Fed, the other portions would be dispersed among foreign governments, private individuals and corporations. The Federal Reserve System is the central banking system of the United States. In response to a chain of financial panic the Fed was created along with The Federal Reserve Act in 1913. The Federal Reserve Act is the A... ... middle of paper ... ...0 Mar. 2011. Web. 11 May 2011. Rich, Brandon. "Causes and Consequences of the National Debt | Facing Up." Facing Up | to the Nation's Finances. Nations Finances. Web. 11 May 2011. Stiglitz, Joseph, and Linda Bilmes. "The Three Trillion Dollar War | Joseph Stiglitz and Linda Bilmes - Times Online." The Times | UK News, World News and Opinion. The Sunday Times, 23 Feb. 2008. Web. 11 May 2011. Unknown. "FRB: Monetary Policy." Board of Governors of the Federal Reserve System. Federal Reserve, 27 Apr. 2011. Web. 11 May 2011. "U.S. Soldiers Each Cost $400,000 Annually." Free Democracy. Free Democracy. Web. 11 May 2011. Wolk, Martin. "Cost of Iraq War Could Surpass $1 Trillion - Business - Eye on the Economy - Msnbc.com." Msnbc.com - Breaking News, Science and Tech News, World News, US News, Local News- Msnbc.com. MSNBC, 17 Mar. 2006. Web. 11 May 2011.
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