#USNationalDebt The national debt of the United States

The national debt of the United States is the total national debt that the federal government of the United States owes to the holders of Treasury bonds. The national debt at any given time is equivalent to the face value of the outstanding Treasury bonds issued by the Treasury and other federal agencies.

Related terms, such as "national deficit" and "national surplus," usually refer to the year-over-year budget balance of the federal government and not the accumulated amount of debt. In a deficit year, the national debt increases as the government needs to borrow to finance it. In a surplus year, the debt decreases by receiving more money than is spent, allowing the government to reduce it by buying back Treasury bonds. In general, the debt of the U.S. government increases as a result of public spending and decreases from tax revenues or other funds, both fluctuating during a fiscal year. The total gross amount that the Treasury can borrow is limited by the debt ceiling of the United States.

There are two components of the gross national debt:

"Debt held by the public": such as Treasury securities held by investors outside the federal government, including those held by individuals, corporations, the Federal Reserve, and foreign, state, and local governments.

The debt in government accounts or intragovernmental debt consists of non-negotiable Treasury securities deposited in accounts of programs managed by the federal government, such as the Social Security Trust Fund. The debt in government accounts represents the accumulated surpluses, including accrued interest, from various government programs that have been invested in Treasury securities.

Historically, U.S. public debt as a percentage of gross domestic product (GDP) increases during wars and recessions and subsequently decreases. For example, recently, during the