If you live in the U.S. it’s much worse than you think.
The U.S. National Debt is 11,406,012,959,882.55 as of 06/16/2009. The number I mentioned doesn’t include the hidden costs of social security and medicare. We spent all our social security money on other debt instead of what it is really for (baby boomers). You can think of it like moving money from one credit card to another or refinancing your house as a simple metaphor.
So what does this number mean? Well, that’s how much money we owe. Like a credit card bill. So what is our income?
You can think of the income as a pay check per year. The government calls this the GDP (gross domestic product).
Our current approximate GDP this year is 14,068,000,000,000. Hey that’s good. We are making more then we are spending. Right?
Yes, but we are living pay check to pay check. As of June 2009 the debt was 82.5 percent of GDP based on current GDP. This level of debt has not been seen since 1951, with the nominal value the largest in recorded history.
Lots of the debt is owned by other countries. Like how the bank actually owns your house. The U.S. in some ways is owned by other countries. For example, In total, lenders from Japan and China held 47% of US debt.
So when that rainy day comes. What are we going to do? We have two choices to prepair for the future. Ether we raise taxes or spend less.
For a whole slew of debt numbers and GDP look at the US National Debt Clock.