US Debt: What is the US debt?

US Debt
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The United States debt refers to the total amount of money owed by the federal government (TreasuryDirect, 2014). By the conclusion of the 2013 financial year, the federal debt was $16.74 trillion, according to the United States Treasury. This debt arises from loans made to the people, businesses, and other foreign governments in terms of treasury bills and bonds. The United States federal government owes approximately one-third of the total debt. The United States debt grew by approximately $10 trillion dollars for the past ten years. The projections for the next 10 years show that it will have grown to 27.19 trillion dollars with an increment of about 11 trillion dollars. The debt affects the lives of American citizens as they are involved in paying for the loan. This translates to an increased cost of living due to inflation and high taxation. There is also reduced employment due to the decline of the economy. The overall effect is that the effect of the US debt will contribute to lowering of living standards which is associated with many negative effects (Warner, 2011).
Images showing US debt for the past 10 years and a projection for the next 10 years (adopted from treasurydirect, 2014).


End of HYPERLINK "http://useconomy.about.com/od/fiscalpolicydefinitions/g/Fiscal_Year.htm"Fiscal YearDebt (9/30, in billions)GDP (Q3, in billions)Debt/GDP Ratio2013$16,738$16,872 in Q399%2012$16,066$16,06699%2011$14,790$15,58795%2010$13,562$15,05890%2009$11,910$14,38483%2008$10,025$14,84368%2007$9,008$14,57062%2006$8,507$13,90961%2005$7,933$13,20560%2004$7,379$12,36860%2003$6,783$11,62558%.
About the US debt
The federal government borrows the money that comprises the debt from many sources. They borrow from the common citizens through the sale of treasury bonds, which are then repaid at a later date with interest (Kessler, 2013)s. The federal government also borrows money from foreign governments, world banks, and both domestic and foreign financial institutions. The federal government also borrows money from itself. This is in the use of trust finances that have been reserved for specific projects (Treasury Direct, 2014). The federal government utilizes that money and then repays it when the ...