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Essay / Is the US debt alive? - 1919
Countries around the world face a dramatic recession, forcing them to spend capital they do not have. Few sovereign states are immune from the financial deficit that even seems to afflict the world's superpowers, such as the United States. This is troubling because of the power and influence the United States holds on the world stage. However frugal the future budget may be and whatever future financial successes, how will the United States overcome a $14.7 trillion deficit? Faced with this harsh reality, there are two factions, one which considers the deficit to be a necessary evil. The other believes that such a large deficit can only be harmful to the contentment of the common American well-being. The national debt was not accumulated overnight, it is the product of many years of a government struggling to meet an ever-increasing budget. The national debt is the accumulated amount of money owed by the federal government. When it comes to the national debt, one must summarize all of the U.S. deficits accumulated throughout the country's history, including even the smallest amount of surplus the United States had and the growing interest on borrowing net. The result will be equal to the national debt (Rich). If the United States debt were divided into a pie chart, the largest portion of the debt would be owed to the Federal Reserve System, commonly known as the Fed, the other portions would be distributed among foreign governments, individuals, and businesses. The Federal Reserve is the central banking system of the United States. In response to a chain of financial panics, the Fed was created along with the Federal Reserve Act in 1913. The Federal Reserve Act is the...... middle of paper ......0 Mar 2011. Web. May 11, 2011. Rich, Brandon. "Causes and consequences of the national debt | Coping." Face up | to the nation's finances. Finances of nations. Internet. May 11, 2011. Stiglitz, Joseph and Linda Bilmes. "The Three Billion Dollar War | Joseph Stiglitz and Linda Bilmes - Times Online." Times | UK news, world news and opinions. The Sunday Times, February 23, 2008. Web. May 11, 2011. Unknown. “FRB: Monetary policy.” Board of Governors of the Federal Reserve. Federal Reserve, April 27, 2011. Web. May 11, 2011. “American soldiers each cost $400,000 a year. » Free democracy. Free democracy. Internet. May 11, 2011. Wolk, Martin. "Cost of Iraq War Could Exceed $1 Trillion - Business - Economic Outlook - Msnbc.com." Msnbc.com - Latest News, Science & Technology News, World News, US News, Local News - Msnbc.com. MSNBC, March 17, 2006. Web. May 11 2011.