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Debt held by US government accounts is an asset to those accounts but a liability to the Treasury; they offset each other in the consolidated financial statements. [25] Government receipts and expenditures are normally presented on a cash rather than an accrual basis, although the accrual basis may provide more information on the longer-term ...
Just like people, governments borrow money all the time and debt is not necessarily an indicator of poor financial health. But the last 30 years have seen a radical departure from long-held ...
Section 201 of the Social Security Act requires that the money in the trust funds be invested in interest-bearing debt securities issued and guaranteed by the federal government known as U.S ...
According to the text of the debt ceiling law, if the debt ceiling is not raised and extraordinary measures are exhausted, the U.S. government is legally unable to borrow money to pay its financial obligations. At that point, the law indicates that the government must cease making payments unless the treasury has cash on hand to cover them.
At $33 trillion and counting — actually, it's presently above $33.75 trillion — America’s national debt is astonishingly high. But government deficits don’t exactly work like household ...
An important reason governments borrow is to act as an economic "shock absorber". For example, deficit financing can be used to maintain government services during a recession when tax revenues fall and expenses rise for say unemployment benefits. [10] Government debt created to cover costs from major shock events can be particularly beneficial.
Redemption of Trust Fund claims means that the government will have to borrow an additional $2.4 trillion in total (based on the 2008 Trust Fund balance) over approximately 20 years, from the time the program payouts begin to exceed tax collections around 2015 to the time the Trust Fund is exhausted in the mid-2030s.
In a world where most people live their whole lives without ever seeing more than a few thousand dollars in the same place at the same time, $28 trillion is an incomprehensible sum. It's such a...