There is a difference between our national debt (@$14 Trillion --- some analysts put this as high as $120 Trillion) and our federal deficit ($1.4 Trillion). I don't think most of our nation is aware that these are two different things.
We are in the "hole" at a minimum of $14Trillion in money we owe/loans.
However, we currently spend $1.4 Trillion more this year than we take in.
So, We aren't paying down our debts, currently... we are paying interest. And, we are borrowing $1.4 Trillion more, now, just to "keep the lights on." ...and borrowing it to pay the interest on the money we've already borrowed.
Note: We are having this trouble at near 0% interest rates. How are we going to handle higher interest at the current level of spending?http://finance.yahoo.com/focus-retirement/article/110034/deficit-moves-work-longer-fund-a-roth-and-avoid-long-term-bonds?mod=fidelity-buildingwealth
Washington is dithering over the deficit, but you can't afford to. Work longer, fund a Roth and steer clear of long-term bonds.
This is a monstrous son of a ****, this national commission," grumbled former senator Alan Simpson (R--Wyo.), cochairman of the panel that's supposed to deliver by December a plan to nearly eliminate the now $1.4 trillion federal deficit by 2015. "All people want to do is call and talk about the thing that's dearest to them and whether it's going to be cut," he added. Simpson's lament was part of a voice mail he left declining our interview request. Even though he won't talk, it's safe to predict this: If you're affluent, your taxes are going up and your Social Security benefits will likely be cut. Start adjusting now.