Other Statistics On Our 22 Trillion Dollars Worth of Debt
Preparing for an Uncertain Retirement
North Dallas i March 9, 2019
Put certainty back into your retirement by signing up for the Preparing for an Uncertain Retirement Workshop. The 60 minute workshop will be held on Saturday March 9th at 10 am in North Dallas. Click HERE to register.
As you know, we hit another milestone, when it comes to our national debt. Last week, we crossed the 22 trillion dollar mark. As I like to remind people, 1 trillion is 1,000,000 1,000,000's. That is enough to make your head spin.
Here are some other tidbits you might not know:
According to AMG funds
Foreign investors own just under 40% of our national debt. Countries like China and Japan own approximately 6.2 trillion of our government bond. Remember, a bond is simply a loan. One party gives another party money in exchange for a bond, interest paid for the term of the loan, and the promise to repay principle at a certain date in the future. The bad news is that foreign countries own that much. The even worst news is that is the lowest percentage held by foreign investors in the last 15 years. Why is that bad news? We depend on foreign countries to loan us money.
The US government has maintained financial records since 1789, i.e., 230 years. From 1789 to 3/16/09 (220 years), our government created $11 trillion of debt. From 3/16/19 to 2/11/19, the last 10 years, our government created another $11 trillion of debt, reaching a record $22 trillion (source: Treasury Depart.). The bad news is obvious. We are borrowing and relying on debt more than ever before.
The US government is spending $12.4 billion a day. If our government began running a $1 billion profit per day, i.e., tax revenues in excess of spending, and used that daily surplus to pay down our $22 trillion debt, the USA will be debt free in 60 years and 4 months. (source: Treasury Department). The bad news is that we don't have 60 years to get out of debt. The worst news is that we are not even close to getting to a surplus.
Finally, we are borrowing approximately 45 cents for every dollar we spend as a country. Thus we are extremely far away from a surplus. That would be like spending 10,000 a month and every month putting $4,500 on credit cards. (www.usdebtclock.org)
Yes, the problem goes way beyond the 22 trillion dollar debt and counting. Those stats just show how deep the problem really is. Who do you point the finger at? The buck stops with the politicians and they are doing nothing to fix it.