U.S. Debt Jumps by $500 Billion

The U.S. Debt is now at $9.2 trillion. This is $500 billion more than last year, and a 50% increase since 2000.

This large U.S. debt has been made possible by ongoing budget deficits. These deficits have been financed by "loans" from the Social Security Trust fund and from foreign governments, including China, Japan and many oil-producing nations. However, these sources of funds may not be available 10 years from now. In fact, many nations are reinvesting in their own countries, rather than U.S. Treasuries. This trend is accelerated by the declining dollar, which lowers the return of their investment. (See The U.S. Debt and How It Got So Large)

What It Means for You

In the long term, the large debt could mean there may be no funds for your own Social Security retirement. In the near term, the debt will slow the growth of the U.S. economy.

U.S. Debt Related Articles

• U.S. Budget and Spending Primer
• The U.S. Federal Budget Deficit
• A Primer on the Role of Interest Rates in the Economy

Protect your own retirement and personal finances with these articles from other About.com guides.

Basics of Financial Planning

• How to Create a Budget
• Retirement Planning 101
• 10 Steps to Building a Complete Financial Portfolio