National Debt

National Debt:
The national debt is over $14Trillion. It is large and most of the money is owed to US citizens, US pension funds, US mutual funds, cities, counties and other US entities. Now, some debt is owed to China, Japan and Saudi Arabia. The debt is large but as a percent of GDP it is low compared to when we WON World War II and other times in history. It is not unmanageable as our payments of $300B are about 3% of GDP. Now, I can think of a lot of things to do with $300 B. The argument against the debt is that it is approaching our income and we can't afford it. Well, think of your mortgage of $200,000 and your income is $50,000.
Can you afford the mortgage? Yes you can afford it if your payment is under 28% of your income. You can afford the mortgage even though the outstanding balance is more than your income. It is the payments that you have to be able to pay and maybe pay extra to pay off your debts. The Debt issue is something Democrats used when George Bush was President and Republicans ignored. Republicans are using it to hurt President Obama and make sure he is one term President. The National Debt does not affect your life. Interest rates have not risen. Prices have not risen and if some have it is not due to debt of the Federal Government. You are not getting loans due to the debt of US government. It is really a non issue at this time. Or, it is the Republicans way to make sure President OBama does not succeed. Republicans are putting their interest before the interest of the country or the people.