The National Debt Of The United States Essay

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Introduction The National debt of the United States is currently sitting at over $19 trillion dollars. There are many public opinions on whether or not this is a risk to the US economy and if this will lead to our next economic collapse. The National debt is the amount owed by the federal government to all of those who hold the notes. The outstanding Treasury securities at a point in time that have been issued by the Treasury and other federal government agencies is the measure of public debt. When we talk about national deficit and surplus we refer to the government budget balance from year to year, not a cumulative total of all debt. I want to review the background of the US debt, how it has reached its all-time highs along with the components, our obligations, measurements, risks, and foreign holdings and also discuss if there are causes for concern.
Background
The “Nixon Shock” as it’s referred to, is said to have opened up the door for our large deficit. Before President Nixon removed the gold standard in 1971, one could redeem US currency for gold. In 1966 there was sufficient gold to back the dollars held in America though it was not enough to cover the debt held outside of our borders. When Nixon removed the gold standard it opened the door for Congressional overspending which happened to be during the Vietnam war. Over the last 116 years the United States has had a budget deficit 77% of the time, 89 out of those 116 years. A deficit year occurs when more money is

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