Debt Vs Federal Debt

With our Global Economy as of right now, the United States debt has reached infamous levels of expansion ; reaching an ascent of over $19 Trillion in Debt with an enormous fiscal gap of over $210 Trillion ( REPORTS ) ( The Federal Debt ). In this event and with our levels of debt, if the United States were to experience a macro economic and geopolitical event, such as the Great Depression of the 20th century, the U.S. Economy could reach its deadline (Foreign Holdings). Although some people may be convinced that this national debt is what keeps us as a global financial power, this debt is technically and actually excavating a larger crater that will someday bury us, as a global power.
Deficits and fiscal imbalances have both existed throughout
In this way, Deficit is related to Debt because the deficit is defined as what and where we spend our governmental money, whereas debt can be explained as what we owe to foreigners and other countries (Auerbach) (DiLascio). Relating to this on a national scale, we have a large fiscal gap that has totaled above $210 Trillion with a national debt of above $19 Trillion (REPORTS) (The Federal Debt). Both of these statistics will continue to grow today. With this data, calculations show that this fiscal gap is equal to approximately fifty-eight percent of the combined value of all future revenues (The Federal
When the U.S. takes part in this, and borrows money for foreign countries, interested on the borrowed money is liable to the U.S. as well. Because the United States is forced to pay interest on said borrowed money, the costs of many programs overall rises. This increased national debt affects the credit rating of our country and the ability to compete in the ever-growing global economy (DiLascio). With this in play, if the U.S. were to be pressured to cut back borrowing, by fifty percent to approximately $400 Billion per year, the U.S. dollar’s trade weight could easily decline anywhere from twenty to twenty-five percent ( Foreign Holdings