Fixing the U.S. debt problem – Is it even possible?
 Marion Powell
Some of the most important issues to be addressed are:
1.Raising more capital – It is important to try and raise capital. This may help the government in borrowing less money than what it actually requires. There are various options for raising capital, including cashing in all of its overseas accounts. According to a recent report, cash that has not been repatriated is in the trillion dollar range.
Another option is to get cash from asset sales, such as treasury auctions and privatizations. There are many foreign investors, mainly buyers of U.S. treasury securities, such as U.S. bonds, who can help immensely.
2.Entitlement spending – Another issue to be addressed is reigning in entitlement spending. That is, the government will have to decrease the entitlement spending along with other government programs. Among them: Social Security, Medicaid and Medicare. If the government can reduce the money it spends on these programs, it may also be able to lower the amount of money it borrows from outside sources. The Federal spending in recent years has increased so much that it will have to lower entitlement spending, leading some economists to say that, by 2080, these forms of spending will eat up almost 50% of Gross Domestic Product (GDP).
The federal government also can restructure government debt to help relieve some of the debt pressure. If the federal government can handle these issues, they may be able to bring down the deficit level.
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About the author . . .
Marion Powell is a financial writer who reports on contemporary financial issues. He regularly contributes his finance articles to websites and blogs.
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