US national debt is the largest debt in the world. The US treasury has reported that our national debt amounts to $12.9 trillion. In addition, we also have private debt, which include credit cards and mortgages, adding $16.5 trillion to our indebtedness.
Our national debt is growing rapidly. It is increased from $12.29 trillion on January 2010 to $12.87 trillion on April 2010. US Treasury presents the details of public debt and intragovernmental holdings. Public debt includes the financial instruments issued by the Treasury and intragovernmental holdings include funds like the social security trust fund. Most of us do not know about the magnitude of public debt. In his book Jobenomics, Chuck Vollmer explains clearly about public debt and the effects of debt on our future development. You can buy this book by simply visiting the site www.jobenomics.com.
Congress and the White House provide budget forecasts. The White House Budget Office (the office of management and budget) and the congressional budget office offer estimations for public debt. The White House forecasts that our national debt will be $18.6 trillion by 2020 and the Congressional budget office predicts that it will be $20.3 trillion by 2020. If we include intragovernmental holdings amounting $4.5 trillion, the total amount of national debt will be $25 trillion by 2020. The White House and the Congressional budget office also estimate the net interest, which the government has to pay to the Treasury securities holders. US annual interest payments will be $912 billion (as per the White House projections) and $916 billion (according to Congressional Budget Office). This amount is almost five times higher than the amount we paid in 2007.
Our national debt occupied 61st rank in the list of 126 nations. The debt to Gross Domestic Production ratio is 37.5%. This ratio will be increased to 109% by 2020, if the present situation continues. The budgetary proposals of President Obama states that the deficit would gauge 9.9% of GDP, which amounts to $1.4 trillion in 2010. National debt would increase 57% of GDP in 2009 to 82% of GDP by 2019.
International organizations, especially the International Monetary Fund states that both the White House and Congressional Budget office (CBO) estimates are understated. It adds that our national debt will be 107% of GDP by the year 2020. The Government Accountability Office agrees with the statement of the international organizations. It runs two simulations- baseline extended that follows the baseline estimates of the CBO for the first decade and holds revenue and spending constant as a share of our gross domestic production and the alternative simulation that is based on past trends and policy priorities. Under the Alternative Simulation, the Government Accountability Office forecasts that the public debt will be 200% of GDP by the year 2030.
Our government takes unprecedented steps to stabilize our economy. Addressing the challenges of the future requires looking at the whole range of federal activities. Jobenomics gives you clarity about the national public debt and helps you to know the ways to recover our economy. Get your copy of this book by visiting www.jobenomics.com