...Natioinal Debt 1. What is the debt? How much is it? Examples The national debt has grown significantly in recent years due to rising annual deficits. A deficit occurs in any year the government spends more money than it takes in. Borrowing to make up the difference is added to the national debt -- technically referred to as the gross federal debt. The gross debt has two components: 1) Debt held by the public -- money the government borrows on the open market from domestic or foreign investors; and 2) Intra-governmental debt -- money the government owes itself, as in the Social Security trust fund. $15.7 trillion If you spent $1 million a day since Jesus was born, you would have not spent $1 trillion by now...but ~$700 billion- same amount the banks got during bailout. 1 trillion is 10ft high larger than a football field 2. Decrease politican pay. Examples The current salary (2011-2012) for rank-and-file members of the House and Senate is $174,000 per year. •Members are free to turn down pay increase and some choose to do so. Leaders of the House and Senate are paid a higher salary than rank-and-file members. Senate Leadership Majority Party Leader - $193,400 Minority Party Leader - $193,400 House Leadership Speaker of the House - $223,500 Majority Leader - $193,400 Minority Leader - $193,400 A cost-of-living-adjustment (COLA) increase takes effect annually unless Congress votes to not accept it. The most recent salary increase, to $400,000/year...
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...National Debt in the U.S.A Name Professor Institution Course Date ABSTRACT The fast increase in the National government debt is becoming of interest to decision makers and the citizens of the USA. This paper examines the implications of the increasing debt financing to the economy of the United States. The proportion of the U.S.A National debt is rising in comparison to the National GDP. In the past decade, the USA Treasury has been borrowing trillions of dollars from both foreign investors and its citizens to help fund wars save the financial system as well as promote the economic development of the country. Does the increasing debt have any impact on economy? This paper will explain that an appropriate analysis on the United States debt is important to cope up with this worrying trend. INTRODUCTION In general, debt can be viewed as something specific in nature which the creditor and debtor can’t control at will. The United States National debt has been increasing at an average rate of about $1.64 billion each day since September, 2004 (Lucas, 2005). Manuel estimates that every human being in the United States currently owes $56,651 for their share of the U.S.A public debt. As at 27th October 2013, the total National debt of the United States was $ 17,211,829,040,346.01 (Manuel, 2013). This is an indication of how the national debt in the United States of America has been rising in the recent years. Recently...
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...The U.S. National Debt Econ Problems & Issues: ECO405 Professor Myung Han Alex R. Scales June 10, 2012 The national debt is the total amount of money the United States Treasury Department has borrowed and currently owes to the federal government's creditors (Sylla). These creditors are mostly comprised of the public, including individuals, corporations, as well as state, local and foreign governments. They also consist of various government trust funds, such as Social Security and Medicare. Additionally, they include the Federal Reserve, mostly in the form of treasury bonds, bills and notes. Currently, the U.S. national debt is estimated to be $8.5 trillion (ZFacts). This ever-growing figure brings with it several social and economic implications. Therefore, the national debt is a frequently debated topic that has over the years produced various schools of thought on how the U.S. government should manage it. In order to understand how the national debt could ultimately affect future generations of the United States and the different ways the government can best deal with it, it is first necessary to discuss its’ history. The origin of the national debt dates back to the War of Independence. In 1775, the Continental Congress authorized an issue of $2 million of bills of credit called Continentals to finance the war. At the end of 1779, $241.6 million of Continentals had been authorized in addition to several U.S. loan certificates, foreign loans, and state-issued...
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...National Debt In my opinion the nation shouldn’t have as much debt as it does. I don’t really understand how the nation could be in so much debt, but still be able to constantly knock down building just to build another more expensive building bigger in size when there are already millions of unused buildings. In the city I live in on every corner they’re knocking down something and building something new and the schools are outrageously big, meanwhile are roads are horrible and the neighborhoods aren’t where they should be. I would understand the amount of debt there is if the moneys were being used to do something more productive and not spend it on things that really aren’t important. In September of last year alone the nation’s debt was at 17,824,071,380,733.82 ("Treasurydirect", 2014). Seeing this amount blew my mind it’s amazing how much in debt our nation is yet there is celebrities with and worth billions and millions of dollars. If money were spent and put toward the important things that matter in life the debt wouldn’t be so high. I personally feel like there is a lot of useless spending going on that just putting our nation further and further in debt. After reading this article I gained a better understanding of why the national debt is so high and what it really does and consists of. According to "Investopedia" (2014), "Insert the quotation” (What are the top reasons behind national debt?) National debt takes care of healthcare programs, social security programs...
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...How does the national debt affect us as a country? The US national debt is the total outstanding debt amount that our country has borrowed to fund its obligations. The Outstanding Public Debt as of May 24, 2011 is $14,358,571,459,323.88. The estimated population of the United States is 310,623,016 so each citizen's share of this debt is $46,225.07.The National Debt has continued to increase an average of $4.01 billion per day since September 28, 2007! The US national debt is calculated as follows: Add up all of the budget deficits that our country has experienced over the years. Then subtract any budget surpluses that we had. Finally, subtract any additional money that was used specifically to pay down the debt. You end up with a monetary figure that equals our national debt. The US national debt is composed of both “Public” and “Inter-governmental” debt. It is this fact that allowed President Clinton to claim a “budget surplus” for three straight years back in FY1998, FY1999, and FY2000. One must remember what was happening in our economy back then. Those fiscal years were the peak of the “dot com” boom. As such, citizens of our country were making very high salaries in the computer fields, and therefore paying in a lot of money to the Social Security and Unemployment trust funds of the Federal government. The government trust funds are required by federal law to use any funds, not needed for outlay in the current fiscal year, to purchase U.S. Treasury securities (a.k.a...
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...As I have stated before below is our protocols for transacting our business on the Euroclear Screen with instruments that are Beneficially owned with a Registered/Titled Owner:- Protocols:- 1) The Securities can be Corporately Invoiced with Copy of Euroclear Title Page 2) The Securities are screen-able on EUROCLEAR 3) The Securities are on balance sheet (Cashed Backed) payable with the full faith and credit of the issuing bank. 4) The Securities are Beneficially Owned /Titled (Registered Owner) 5) The Securities are issued by one or more acceptable Western European Money Centre Banks rated A/ AA or better by Standard and Poors, Normal Exclusions. 6) The Securities show no price on the screen (insert – Private Placement) SAME DAY SETTLEMENT FOR ALL INVOICING AFTER SCREEN VALIDATION. Our Clearing banks are Rothschild, Zurich, Credit Suisse Zurich, UBS AG, Zurich, Deutsche Bank,London, Tokyo Mitsubishi, London., HSBC London & HK, Goldman Sachs, London, and Kleinwort Benson London. PROCEDURE FOR SCREEN CLOSING: CLOSING STEPS ON SCREEN……. WINDOW 10 Closure where Called Funds are confirmed against the verifiable Corporate Invoice Below the Window-12 Steps Procedure which should be followed diligently through DTC or EUROCLEAR SCREENS. Some Bank terminals utilize systems that allow entering the CUSIP Number first and other ones allow to enter the Access Code first. In the procedure below, the Access Code and the CUSIP Number may be interchanged...
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...DEBT COUNCELLING (YDDC) Terms and Conditions Terms and Conditions * The Client refers to the person entering into the agreement. * The creditors refers to the company which is the client is enterin into an agreement with. * Fees means refers to the amount to be paid by the Client to the Company in accordance with agreement. * The services refers to the service to be provided by the Company to the Client in accordance with the agreement. * The repayment plan means the schedule of payments to the creditors as prepared by the Company in accordance with the agreement. Agreement * The Client hereby enters into an agreement to appoints the Company to provide the services of debt counselor and further authorizes the Company to negotiate with the Clients Creditors with a view to agreeing with them a solution to any outstanding financial issues which may include amongst others, a comprehensive repayment schedule and money management and disbursement plan The Company * The company will communicate on behalf of the client with all Credit Bureaus and Creditors that you have come under debt review with Debt Therapy in accordance with the National Credit Act. * Once we, The Company, receive all the information, we will access the details of the Clients income, outgoings, assets, liabilities, creditors and related credit agreements, as a provided to the Company by the Client in accordance with the agreement and determine the Client assets and liabilities and...
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... Although the company has experienced increasing sales and claims to be profitable, it has been experiencing a cash shortage and Mark feels that it is going to be necessary to borrow more money in addition to the debt that he has already incurred over the course of the past few years in order to continue business. The bank that Butler has been conducting business with, Suburban National Bank, has a maximum allowable loan value of $250,000. Mark has had a difficult time staying below this debt limit, and only has been able to do so by relying on trade credit. Suburban has also now decided that it will begin requiring Butler to secure any additional debt with real property as collateral. Another larger bank, Northrop National Bank, is a larger establishment and has discussed the possibility with Mark of possibly extending a line of credit to Butler of up to $465,000. Although Mark believes that the $465,000 is more than he will need to borrow, he likes the idea of having the flexibility of the additional cash. Mark is faced with the decision of whether or not to pursue borrowing a larger amount of additional funds from the new bank, Northrop National, which would result in having to sever ties with Suburban National, or continuing to bank with Suburban National Bank. Diagnostics: Butler Lumber Company is considered to be a successful business by the owners of firms that it has conducted business with, as well as by...
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...NATIONAL CREDIT ACT- 2005 Money lenders breaking credit act exposed Cape Town - In a bid to stem the abuse of consumers by lenders and ensure compliance with the National Credit Act (NCA), the National Credit Regulator (NCR) and the South African Police Service (Saps) conducted joint onsite investigations in an operation in Mpumalanga. The NCR partnered with the Saps in Middleburg, Barberton, Nelspruit and Witbank this week, investigating 37 lenders. This led to the arrest of ten individuals who contravened the NCA. "The focus of this kind of operation is primarily on credit providers, who are engaging in reckless lending, unlawfully garnishing, retaining pension cards, bank cards, identity documents and personal identity numbers (PINs) of their clients as surety," said Nomsa Motshegare, CEO of the NCR. "This is a contravention of the National Credit Act and it is a criminal offence", she added. Motshegare stated that this is part of the NCR's ongoing strategy to ensure that all credit providers, no matter where they conduct business, comply with the provisions of the National Credit Act. "The exploitation of vulnerable and unsuspecting consumers by credit providers will not be tolerated," she added. During the operation, ten people were arrested and as a result, nine criminal cases were opened. In addition, the suspects were found to be in possession of 851 ID books and 921 bankcards, six passports, two drivers licenses and 44 cellphones. Motshegare complimented the...
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...Strategies For Controlling Student Debt Jarett Lopez - 6385761 Dr. E. Bailey ENG 1100F October 5, 2011 Strategies for controlling student debt For those who attend college or university in Canada today, debt is inevitable. Many factors can contribute to this fact; the consistent rising of tuition costs, the marginal average income increase of middle-class families, perpetually rising interest rates, but most importantly, the lack of student debt relief knowledge. The Canadian Federation of Students has an ongoing debt clock which reflects the Canadian student loan debt of over 13.9 billion dollars, with an average debt per student upon graduation of approximately 25,000 dollars. This shouldn’t be surprising, knowing that since 1990, the average net income of middle-class families in Ontario has risen only 12.5 percent, all the while, tuition costs have risen from 2,500 dollars per year, to 6,500 dollars, an increase of an astounding 260 percent. This trend of rising tuition costs is consistent throughout the majority of Canadian provinces. Today’s Canadian post-secondary students are capable of controlling their debts, provided, they decrease their loans by minimizing their school fees and costs of living through being resourceful and staying informed. By being accepted to a post secondary institution, students have demonstrated that they have the intelligence and knowledge to succeed in their studies. Staying at university or college, however, takes...
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...Over the decades the USA’S national debt has risen to over $17 trillion, very close to defaulting, yet many countries are still keen to lend. Why do you think this is? Do you think this level is sustainable? Since the time of the Founding Fathers US leaders have believed in the concept of American exceptionalism, that the US is a special country with a special mission. It is a notion that continues to this day and when it comes to the threat that it’s deteriorating national finances present to the world economy the US is truly exceptional. We have seen a debt crisis grip Europe and worries mount over the financial state of Japan. These problems are scary enough but when it comes to terrifying debt crisis scenarios, the US stands in a universe all of its own. It is not because the US debt burden is the biggest, but because of the exceptional role the US plays in the global economy. US debt runs the risk of crashing the entire operating systems of the global economy. Not only is the US the world’s largest economy but it also dominates the global monetary system. In many respects, the entire architecture of global finance is built upon the US economy. The US dollar is very dominant in global financial affairs, more than 61% of financial reserves are held in dollars, 85% of foreign exchange transactions are conducted in dollars and 45% of all debt securities are dollar denominated. To reduce the dollars use in international trade and business, something else would have...
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...Matt Gibson Professor Moore The Effects Of Deleveraging An attempt to decrease the company’s leverage is widely known as deleveraging. If a company pays off any existing debt on its balance sheet, so it is considered as the best way for it to deleverage its sheet and become more liquid. The company may be facing a significant risk of defaults if it fails to pay off its existing debts. Deleveraging can be done both on micro-economic and macro-economic levels. At micro-economic level, decreasing the leverage ratio is known as deleveraging, of a single firm or single economic entity. Moreover, deleveraging on macro-economic level is when there is a reduction in debt levels in private and public sectors. Hence, this leads to a decline in the debt to the GDP ratio in the national account. There are several macro-economic consequences of deleveraging in an economy followed by severe recessions and financial crisis. According to some studies, deleveraging is considered as the main economic trend for the coming years. However, in contradiction to this, a lot of researchers show that this economic term can prove to be unhelpful. The most important step to reduce the assets to equity ratio is to reduce the amount of debt held by a company, government or household. This is the first way of cutting leverage. It is important to understand that assets must be reduced as well if the books need to be balanced; hence, not necessarily do assets support some kind of real economic activity...
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...thought. This had two effects, it caused interest rates to rise a lot, so that banker couldn’t lend out money and governments took on lots of debt bailing out banks. Some countries in Eurozone such as Ireland, Spain, Portugal, Italy and Greece all had very high national debts, either from overspending pre-crash, or bailing out their collapsing banks. High debts plus recession which is decreasing government tax revenue plus high interest rates equals threat of bankruptcy. So, all the above issues are specific to Europe, and we are discussing about the Eurozone economic crisis. Basically, all countries adjust their economies with monetary policy. With a unified currency, less productive countries e.g. southern Europe couldn't do this, so became less competitive and borrowed. They also able to borrow at cheap interest rates because of the currency union. This was part of why debts got so high in the southern of Europe. At the same time, Eurozone not only facing all those problem but also another problem. Normally a country almost no default because it can just print money to pay all the debts off immediately; but this also means devaluation or inflation, which reduces the size of debt. Until here, the problem is they can’t control to print money, because there is a unified currency. So they're stuck with high debts they can't relieve with national monetary policy. For the overall result, Greece is the only particularly culpable country, in the sense...
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...Alabama is dealing with bankruptcy and how it will handle the situation. Due to a sewer debt shot up during the financial turmoil of 2008, and the repayment schedules accelerated sharply, it left Jefferson County unable to pay. The repairs went unfinished as well. According to the article, the county also had other debt outstanding when it declared bankruptcy, for a total of $4.2 billion, making it the biggest municipal bankruptcy in United States history. Residents of the county are worried that the bankruptcy will make their property values lower and higher taxes for county services. Governmental bankruptcies are rare and usually involve small single-purpose authorities and districts, not large, complicated counties with a lot of debt. Experts in public finance have been watching Jefferson County closely to see what kind of legal precedent it will set. Some were concerned that the successful application of Chapter 9 bankruptcy rules to municipal debt could cast a pall over the municipal bond market. The article states that the refinancing agreement covers debt held by creditors that include JPMorgan Chase, which holds about $1.22 billion of the sewer debt, the biggest block; three bond insurers; and seven hedge funds, according to a term sheet circulated in a meeting of the county commission on Tuesday. The terms call for these creditors to receive about $1.84 billion for the $2.4 billion of debt they now hold. The concessions were weighted most heavily toward JPMorgan, the term...
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...| The High Costs of Medical Education Impacting Future Physicians | Module 5 Essay | | | 3/9/2014 | Jacquelyn Q | Summary Thousands of recent college graduates with medical educational loans to pay off are putting their plans for better lives on hold. Medical education tuition and medical student debt have increased dramatically during the past two decades, even though loans and grants are available on conditional terms, students continue to find it impossible to receive a medical education. As an investment, medical education is an excellent choice; its net present value is more than a million dollars. Cost is nevertheless a strong deterrent to potential physicians, such as myself. If tuition and indebtedness continue to increase while physician incomes does not, medical schools may have increasing difficulty recruiting qualified medical students. If tuition continues its rapid increase, potential physicians may find it extremely difficult to repay their medical school debts, and some students may be deterred from attempting a career in medicine. These decisions could have a devastating impact on our health care system. Recent increases in medical education tuition and high levels of indebtedness among graduates are matters of concern to me. Although concern about rapidly increasing costs is seen throughout higher education, the situation in medicine appear especially troubling in view of the much higher levels of indebtedness and the lengthy...
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