How out of control is the national debt?
->National debt as % of GNP 1941-2011 (est last few years ), red areas are Republican presidencies.
It is certainly climbing, which is never a good thing. The best way to look at debt is as a percentage of income. A five thousand dollar debt is a very different thing to someone earning $30,000 a year than to someone earning $130,000.
Debt as a percent of national debt has been climbing since Reagan went on his spending spree. It slowed down and began to fall under Clinton, but W has also treated our money as something to be spent not saved.
But we have been in worse shape. Debt surpassed 121% of GNP at the end of WWII. We paid it down to a low of 32% of GNP before Reagan took office in 1980.
So should we worry about the debt then? Yes we should. We need to upgrade electric plants and grids, internet and cell phone access, and other things the future will bring that we can’t yet imagine. That will take money and usually only happens when the government jump starts funding. If we are to stay competitive and maintain the world’s best military we need to keep up with the times in infrastructure and in science. The government has been the largest investor in both of those sectors. That is why we need to force the federal government to be more responsible with our dollars.
The debt is more of a risk now than it was in past times. After WWII the United States was the best investment around. Now China and the EU are competing with the United States for investment dollars. It is more likely that our sources of debt funding will move on to more stable, higher growth economies to invest their dollars.
US national debt as I watch is $8,823,890,900,000 short of income
US Social Security is up $2,088,527,700,000 more in income than expenses
Other US trust funds are up $3,594,976,500,000 more in income than expenses
So the problem is not Social Security despite what the news media and federal politicians tell you. It is in the black.
Who’s holding the foreign debt ( in billions )?
Japan $627 ( 29%)
China $401 (19%)
UK $119 (6%)
Oil Countries $111 (5%)
Caribbean Banks $66 (3%)
Brazil $61 (3%)
Luxembourg $60 (3%)
Taiwan $58 (3%)
HK $57 (3%)
Korea $57 (3%)
Germany $48 (2%)
Mexico $35 (2%)
Switzerland $33 (2%)
Singapore $31 (1%)
Canada $29 (1%)
Turkey $25 (1%)
France $23 (1%)
Netherlands $22 (1%)
India $20 (1%)
Thailand $17 (1%)
Sweden $15 (1%)
Italy $14 (1%)
Israel $13 (1%)
Ireland $13 (1%)
Poland $13 (1%)
Beglium $12 (1%)
Norway $12 (1%)
Other $145
* Oil countries: Ecuador/Venezuela/Indonesia/Bahrain/Iran/Iraq/Kuwait/Oman/Qatar/Saudi Arabia/UAE/Algeria/Gabon/Libya/Nigeria
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