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National Debt, United States National Debt

A country's national debt is the amount of money its government has borrowed from the people of the country and from other countries. Governments often borrow money when they need more money than they receive from taxes and other normal sources of revenue.

National Debt, United States National Debt

Governments frequently borrow money from the International Monetary Fund. Members of this organization are shown here meeting in Istanbul, Turkey, they discuss about Debt Consolidation (click image to increase)

Generally, the money they borrow is spent on such projects as building roads, hospitals, schools or hydroelectric installations. In times of war a country's national debt always increases because of the vast amount of extra money that the government has to spend. Governments raise loans by selling bonds, certificates, and loan stocks to private individuals and institutions. Among the institutions, banks and insurance companies are often the largest buyers of government bonds and loan stocks. Many people invest their savings in government bonds or certificates to earn interest. The money that a government borrows from other countries or from international bodies such as the International Monetary Fund is called its external national debt. A large external national debt greatly strains a country's resources.

For example, the United States national debt is a measure of the obligations of the federal government of United States and is presented by the US Treasury in quantity of two components and one total: Debt Held by the Public; Intragovernmental Holdings and Total Public Debt Outstanding. More information about United States National Debt: history and other facts you can find at this page.

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