United States Debt in Which They Are Responsible for

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The United States deficit contributes to its debt and the debt contributes to the deficit. We know the longest running uninterrupted surplus for the Unites States was from 1920 to 1930 but spent most of it combating the war. This will show how the U.S. deficits, debt, and surplus affect the following areas; the taxpayers, future social security and Medicare users, unemployed individuals, University of Phoenix students, The United States financial reputation on an international level, a domestic automobile manufacturer (exporter), and a Italian clothing company (importer). Taxpayers This will show how the debt and deficit affects taxpayers. Taxpayers get caught up in the government debt and are left to pay it off. Individual debt…show more content…
However, the debt that the United States owes to the general public and its creditors, this includes the American people, foreign countries governments and foreign individuals. The largest part of this debt is held by foreign investors, or central banks of other countries, which buy Treasury Bonds from the United States for investments. In 2010, the countries that the United States owed money to are: China which was the most ($1.1 Trillion); then Japan ($800 Billion); the Middle East Countries ($173 Billion); Russia ($168 Billion); Brazil ($164 Billion) and the last one is Taiwan ($152 Billion) it is higher now what the United States owes to them though. Then the next largest is to domestic investors, which includes institutions that include private sector banks and domestic investors (A private bank may invest some of their assets for Treasury Bonds.) From the private banks and the domestic investors a third of the Federal debt is owed to them. The remainder of the Federal debt is owed to state and local governments and the United States Federal Reserve Bank. These groups only hold 10 percent or less of the debt. (The government and the Federal Reserve are independent of each other, which are why the Federal Reserve has their own debt to the Federal debt. In the economy of the United States the Federal Reserve buys and sells the

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