Fixing The National Debt Is A Coservercal Issue Within Our Government

1396 Words Jun 8th, 2016 6 Pages
Fixing the national debt is a coservercal issue within our government. Since the two parties have opposing views on how to fix it, it creates gridlock on the process of creating a plan to reduce it. (Perdue, 2015) Our federal government debt has extensively tripled since the year 2000 (see appendix A) (Historical Debt Outstanding Annual 2000-2015,2015), today our debt is a tad bit over nineteen billion. (U.S.NationalDebtClock.org , 2016) We have arrived at his point through the imbalance between revenues and spending, fueled by ever-high interest rates. Which will approximately result with us reaching ninety percent of GDP. (Greife, 2010) The government has no revenue. Therefore, the money it receives comes from the people and the government can only efficient way to save money is by shutting down and making cuts. (Napolitano, 2010) The government can also sell OUIs in the form of Treasury secretaries, which ordinary people, banks, government agencies, and foreign entities can buy to help the government raise money. In a way, this creates more debt, since the agencies are able to withdraw the money they contributed with interest at their leisure. The point of the debt ceiling is to make the process of borrowing money easier. Previous to 1917, treasury needed to congress to approve bond offering. Now congress borrows money as need to pay the bills until they reach the ceiling. The Federal Reserve holds the most debt at 2.5 trillion dollars China and Japan are runner up.…
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