1

national debt is different from the US government's budget

Submitted by ThePete on September 21, 2007 - 17:32.

Hey there, just wanted to point out that the National Debt is different from the US government's budget--the budget, during the Clinton years had a surplus. In other words, they had more money in government than they knew what to do with. The National Debt is the amount of money the US has borrowed to fuel its economy. Any cash you might have in your pocket technically has to be paid back to the Federal Reserve (including any money in your bank account). That's where the frighteningly huge number (approaching $9 trillion as I type this!) comes from. Yes, our economy, as I understand it, is based entirely on credit (debt).

In fact, just recently, Treasury Secretary Henry Paulson asked Congress to vote to raise the borrowing cap because the USG will run out of operating funds on October 1, 2007. Yipes!

BUT THANK GEORGE WE'RE SAFE FROM AL QAEDA!

Not.

Reply

Please keep the comments civil and on-topic. Abusive or inappropriate comments will be removed without warning. By posting here you agree to our terms of use.

The content of this field is kept private and will not be shown publicly.
If you leave a link (include the http:// part), your name will be linked to your homepage.

You may use some HTML for formatting: <strong>bold text</strong>, <em>italics</em>, and <a href="">for links</a>. Empty lines are automatically converted to paragraph breaks.

Or click the link above that says 'enable rich-text' to use the fancy editor.

Captcha
This question is for testing whether you are a human visitor and to prevent automated spam submissions.
18 + 1 =
Solve this simple math problem and enter the result. E.g. for 1+3, enter 4.

Have more to say? Join the discussions at Wise Bread's Finance and Frugality Forums.

Finance Blogs - Blog Top Sites