National Debt in the United States Reaches 20 Trillion

The United States has officially reached 20 trillion dollars in national debt. An amount that the world has never seen before.

How will the United States reduce such a large amount of national debt is not exactly clear, however I would assume unless making it a priority to reduce in the near future, higher taxes are likely going to be the only solution to cover the extra costs of interest payments. In other words, if you are a US citizen and rates keep rising that you could expect that taxes may rise. At least for certain people in certain tax brackets such as the larger earners in the country.

Alternatively, there are other ways of reducing the debt without raising taxes such as increasing productivity of work options in the private sector (which increases tax revenue), lowering government spending by putting a limit on the yearly budget, reducing the military budget and reducing regulations, however these are often unpopular solutions.

national debt at 1.25 percent

Above – Above showing the current national debt interest repayment amount per year at the current 1.25 percent interest rate. Yes, that is a $250 billion a year interest payment at the current rate.

Above calculation of interest payment per year based off the debt figure of 20 Trillion.

Here is the current debt clock.

white house

Above – White House. The national debt in the United States doubled during Obama’s recent term in office.

Let me know what you think about the national debt in the United States by commenting below…

About Timon Weller

Timon Weller is the professional Writer and Trader behind the blog Forex Reviews. Timon Weller is also a professional Teacher of Price Action Trading and creator of the popular Training Series teaching people how to trade Price Action effectively called The Engulfing Trader. For other Forex Training available here at Forex Reviews click here.

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Comments

  1. Insolvency means that you no longer can meet your payment obligations on all your bills and living costs, as and when they fall due.
    United States has been insolvent for a very long time with reserve council finally admitting it.
    Shadow banking is a issue for me, i think its a great thing and it time the USA make a statement and start doing it. Trump I hope will bring in new regulation to allow it.

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