US debt hits all-time record $14 trillion

Source: Press TV
http://www.presstv.ir/detail/160352.html


US government debt has ballooned to an all-time record of more than $14 trillion, which is $45,300 for each and every US citizen if divided equally.

The US Congress must now decide whether to lift the debt limit or cut spending, although some political analysts say the real debt level is much higher than the announced figure, a Press TV correspondent reported from Washington.

US President Barack Obama has urged Congress to pass a bill allowing an increase of the debt limit to help protect the US economy.

However, the Republicans say there is too much money being spent on various programs.

After the Republicans won the majority of seats in the House of Representatives in the November election, they announced that one of their major objectives would be to cut spending.

The Democrats want the debt ceiling to be raised because they say the government programs are necessary.

They contend that in the period when the US is coming out of recession, cutting some of these spending initiatives would significantly slow down economic growth.

With the Republicans in control of the House and the Democrats in control of the Senate, political analysts predict some levels of concessions over the issue.

In 2006, when Obama was a senator, Republicans wanted to raise the national debt ceiling.

At that time, Obama argued that it was a sign of “leadership's failure” that the debt ceiling was being raised and was a sign that the US government could not pay its own bills and was dependent on financial assistance from foreign countries to finance former President George W. Bush's reckless fiscal policies.

Most experts say the debt ceiling cannot be raised until Democrats and Republicans reach an agreement on lowering federal deficit spending, reallocating funding for various programs, and making other spending cuts.