Executive Summary The U.S. debt and its budget surplus and deficit(s) has been an on-going discussion way back from the foundation of America. America started borrowing money during the American Revolution. It wasn't officially considered a national debt until the Independence and the declaration of the U.S. Constitution. By the year of 1835, they were completely debt-free due to several budget surpluses and an effective budget planning. However, the budget surplus didn't last that long as the borrowing of money started again right after a year. The U.S. borrows money from Federal Reserve, U.S. Individuals and Institutions, Social Security Trust Fund, and other foreign nations and governments by issuing bonds for sale through the U.S. Treasury. Throughout history, some of the key reasons for the accumulation of the national debt was due to wars such as; WWI, WWII, Cold War, etc., drastic tax-cuts, The Great Depression, economic recessions, military and defence spending, welfare programs, bail-outs of big corporations, etc. America is forced to borrow money every time when their expenses are more than their revenue. This borrowing of money ultimately puts a debt on the U.S. and its citizens. The majority of the U.S. debt is owned by Federal Reserve and other U.S. individuals and institutions like; Social Security Fund, etc. whereas the second largest holder of the U.S. debt is China followed by Japan. Both China and Japan own 1.1+ trillion of U.S. debt each. The major borrowing of the debt started from the Reagan presidency term. Before Reagan presidency, the debt was just under a trillion dollars. By the end of Reagan's two terms as president, the debt accumulated and tripled in size. It was largely due to defence spending, and drastic tax cuts due to a recession from the post-cold war era. For Clinton, his last two years of presidency saw the budget going into a surplus which was a good sign for the country and the economy. However, Bush Jr. coming into power with his drastic tax-cuts, and wars in Afghanistan and Iraq led to more debt and a recession to come in the last few years of his two year presidency term. Before Obama could take office, the economy was at an all-time low with the recession and massive bail-outs has been provided to companies like GM, Chrysler, etc. which resulted in more debt. Obama had no choice but to borrow more debt to clean the mess up which didn't succeed that well. His stimulus package spending, tax-cuts, health and welfare expenditures made the spending even worst. In overall, America has took the wrong path for years now and is at the verge of a potential bankruptcy. If major changes are not enforced and put into effect as soon as possible, the America that we knew would not be available for the future generations.
Introduction
The U.S. debt and its budget deficit has been in dilemma from the Reagan's time. It became even worst at the end of George Bush Jr. two term presidency. The U.S. views debt just as we view our credit cards- spend now and pay later. However, most of us as common citizens tend to keep track of our spending and pay the bills in time in order to not pay interest on it whereas for America, it is not the same. Throughout history, America has borrowed money from various investors by issuing bonds from the U.S. Treasury. Now, why would a country as big as the U.S. borrow money? Well, the answer is simple. The U.S. had more in expenses and spending than their generated revenue through taxes, etc. This was largely due to drastic tax-cuts, defence and military spending, welfare programs, Medicare, Social Security, and wars. These factors had led to U.S. borrowing debt year after year just to cover up their expenses and pay their interests from previous debts. If they planned their budget spending efficiently from before, they would have had a chance to organize and start paying their debt off their revenue. Currently, the U.S. debt is at 16 + trillion dollars which is more than the GDP of America. This not only puts the U.S. economy in dilemma, but it also forces the government to think seriously about what needs to be done in order to get into budget surplus and start paying their debt off more efficiently. At the current situation, going into a budget surplus isn't going to be an easy job for the U.S. government. They would have to go through major changes in their budget spending, tax policies, Medicare policies, Social Security policies, etc. In short, they would have to cut trillions of dollars in spending for things that aren't necessary such as wars and will have to worry about things that are important and necessary to an average American. Currently, each citizen of America owes $50,000 + towards to the national debt. That money can be money that a rich or middle class American has as his savings or it can be money that a poor or homeless American doesn't have. To end with, the major impacts of the U.S. debt is not just on the economy, but also on an American citizen, and the country's future.

Economy The economy would be the first and foremost field that would be effected by the U.S. debt. Right now, the U.S. debt is more than the GDP of America. That is not a good sign for the economy when your debt is more than your GDP. Growing U.S. debt literally means further collapse of the economy. Firstly, bad economy means less jobs. When there are less jobs, people wouldn't have enough money to spend or pay their taxes, etc. This would ultimately effect the debt as the tax revenue from the jobless citizen is not being generated anymore. On top of this, the government would have to spend more money to ensure his welfare through welfare programs or employment insurance, etc. Collapse in the economy in America will lead to a possible collapse of other nation economies around the world leading to a Depression.

Tax Revenue: Hikes and Cuts (Pros and Cons) Taxes has the been the most profitable and efficient way of generating revenue for numerous countries around the world. America is no exception to that. With approximately 300+ million people living in the country, the tax revenue should reasonably be a good figure. America has gone through tax increases and decreases throughout its history. However, at this current moment, neither the tax increase or decrease would benefit America or help the government. Increasing taxes means more money being generated for revenue but less money to be saved by citizens. This would ultimately hurt the economy as when citizens have less money to spend, it is highly likely they will just look after their basic needs and not put the remaining money back into the economy. Higher tax increases would also lead to chaos and revolts against the government by the people. On the other side, decreasing taxes will make revenue even less and at the end U.S. would have to go back to borrowing money again in order to compensate their expenses and spending.

Interest Rates, Inflation, Dollar Value Decline Interest rates control the flow of money in the economy. They are a major factor in the economy. High interest rates means a possible occurrence of inflation and slowing down of the economy whereas low interest rates stimulate the economy and keeps the flow of money moving. As the Federal Reserve is reportedly printing money in order to keep up with the spending, the prices of everyday goods and services will go up resulting in inflation. The interest rates will also be going up. An inflation would result in the decline of the dollar value. This decline would ultimately effect the whole world as the U.S. dollar is the most used currency around the world for various things. Decline in dollar value means we would have to pay more than what we owed before in the debt.

Social Security Social Security is a major trust fund that promises retirement pensions to the retired baby boomers and other old people. The problem with the Social Security Trust Fund is that it has loaned out its money to the federal government as debt and is now finding it hard to pay the baby boomers that will soon retire and ask for their pension. At one point in the past, the fund had surplus where it had a profit of 1 + trillion dollars. However, as time went by the surplus turned into a deficit and due to the 2008 recession and high unemployment rates, etc. When the baby boomers do come out of retirement and find out that their pension money is missing, there will be problems as to how these retirees will get along with their daily lives without having pensions. This will have another bad effect on the federal government and the U.S. debt as the government would now have to borrow more money in order to give pensions to these people.

Medicare Medicare is and has been one of the single largest budget spending of the federal government of America. There are hundreds of millions of Americans enrolled in Medicare currently. It is an efficient way of spending money for the health of American citizens. However, a lot of loopholes, fraud, etc. needs to be cut out off the Medicare in order to make it more effective. The current Medicare programs in America are working for most of the Americans. Obama would only make things worse by bringing in his Obama Care program that will make the spending even worst. This will automatically increase the debt by a huge amount as starting all over again with a new Medicare program means huge amounts of money needed to be spent. The U.S. debt already has an impact on the Medicare and now bringing in Obama Care would make it have more impact in the long run.

Conclusion In conclusion, in order to cut down on spending and move towards budget surplus, the U.S. would have to go through a lot of changes. Firstly, they would have to cut down on their defence and military spending. They already have enough nuclear and other weapons to destroy the whole world. Also, unnecessary wars in Afghanistan, Iraq, Syria, etc. needs to stop and the commander-in-chief will have to recall all of his troops back to home as soon as possible. Before they go into other countries and tell them what to do, they would have to be financially stable themselves. The U.S. Constitution never allowed invading of other countries or possible unofficial wars without the war declaration. Trillions of dollars have been wasted in wars that weren't needed to begin with. Those trillions could have been spent in America to stimulate the economy. Secondly, cut giving massive foreign aids to countries that are better off on their own. The money being given to these countries are not exactly being used for what it is being given for. Corruption has crawled its way up in politics in every single country. Therefore, why give American people's hard earned money to corrupt politicians abroad and make them even richer while an average American is struggling to make the ends-meet in his own country. Thirdly, reduce spending drastically by getting rid of programs that do not work. One of the program that needs to be cut to a certain extent is welfare program. Welfare has become more of a lifestyle than a necessity. In order to make this program, the government would have to be more strict and ask for more proofs, etc. while giving out welfare. Furthermore, another way of decreasing the national debt would be by launching a national lottery game with a high payout figure that would have the potential to pull huge crowds into spending money into it. This would not only generate revenue for the federal government, but it would also help the government with some of its other expenditures. Lastly, the U.S. government would need to start a National Debt Trust Fund where any citizen of U.S. can have the right to donate his wish of money into the fund expecting a possible return or benefit in the near future. This would collect the money for the U.S. to pay to a certain extent of its debt and at the same time stimulate the economy. To end with, it still is never too late for America to wake up and realize the truth. They need to react quickly in order to stand on their feet and continue being the dominant country in the world. In order to do so, they would have to get the debt out of their way. If they fail to do so, they will be in a situation of a potential bankruptcy. It is said that the U.S. is too big to fail. However, if the budget deficit and borrowing of money and accumulation of interest on the debt happens to not change and go the same direction, I'm afraid that saying will not be of any significance or have any truth to it anymore in the near future.