What Is Public Debt Made Of?

National debt, also known as public debt or government debt. Public debt is measured by counting the total amount of treasury securities issued by the Ministry of Finance and its federal government agencies at a point in time. National debt issuance, also known as the cost of financing, has increased dramatically, causing the country's economy to deteriorate and the country's debt to be unsustainable. This is the national debt crisis.

National debt crisis

A country has to be in social welfare every year,

The national debt crisis

The essence of the national debt crisis is sovereignty under a high deficit

U.S. debt scale

Currently, the US Treasury bond issuance is 13 trillion US dollars, accounting for 74% of GDP. Together with borrowing from other branches of the federal government, the total debt is about $ 18 trillion, which is almost 102% of GDP.

Throughout history, the United States has held a considerable amount of debt. However, aside from during and after World War II, US debt levels have never been higher. If Congress does nothing, debt levels will continue to grow.

Source of debt

Source: CBO 2014 Long Term Budget

Especially in the last 40 years, the federal government has basically been living beyond its means. At this time, the government needs to issue debt to make up for the fiscal deficit. Generally, the government issues securities (such as Treasury bills) and promises bondholders to repay the principal and interest within a certain period. Over time, debts were built up. ^[1]