National Debt Now Tops $12 Trillion

(CBS/iStockPhoto)

It's another record-high for the U.S. National Debt which today topped the $12-trillion mark. Divided evenly among the U.S. population, it amounts to $38,974.34 for every man, woman and child.

Technically, the debt hit the new high yesterday, but it was posted on the Treasury Department website just after 3:00 p.m. ET today. The exact calculation of the debt is a 16-digit tongue-twister and red-ink tsunami: $12,031,299,186,290.07

This latest milestone in the ever-rising journey of the National Debt comes less than eight months after it hit $11 trillion for the first time. The latest high-point is not unexpected, considering the federal deficit for the just-ended 2009 fiscal year hit an all-time high at $1.42-trillion – more than triple the previous year's record high.

Much of the increase in the deficit and debt is attributed to government spending outpacing revenue – both exacerbated by the recession and the government response to it – including hundreds of billions in bailouts and stimulus spending and tax cuts along with decreased tax revenues due to rising unemployment.

In recent days, President Obama has spoken of the need to bring the rising deficit and debt under control.

"I intend to take serious steps to reduce America's long-term deficit – because debt-driven growth cannot fuel America's long-term prosperity," he said in remarks prepared for delivery to the leader's meeting last Sunday at the Asia Pacific Economic Cooperation summit.

The National Debt has increased about $1.6 trillion on Mr. Obama's watch, though less than $4.9 trillion run up during the presidency of George W. Bush.

But the White House budget review issued in August projects that by the end of the current fiscal year on Sept 30th, the National Debt could top $14 trillion.

It gets worse. The same document projects that by the end of the decade, the National Debt will hit $24.5 trillion -- exceeding the Gross Domestic Product projected for 2019 of $22.8 trillion.

The new debt number adds urgency to Treasury Department calls on Congress to quickly raise the statutory limit on the National Debt which now stands at $12.104 trillion. The debt ceiling was last raised in February as part of the $787 billion Recovery Act stimulus bill.

The debt also costs a fortune to maintain. In the fiscal year just ended, the National Debt cost taxpayers over $383 billion. And that amount means the government is only paying 3.3 percent interest. If interest rates go up, so does the amount paid on the debt.

And we're paying it to scores foreign countries which hold $3.5 trillion of the U.S. Debt.
China leads the pack holding nearly $800 billion in U.S. Government securities, followed closely by Japan with $731 billion.

Among the smaller nations lending the U.S. money are Luxembourg, Taiwan, Singapore and Ireland.

Mr. Obama has said he hopes the health care plan pending in Congress will serve to curb the growth in the debt by reducing the amount government spends on health care. But it's a claim disputed by critics who say it will have the opposite effect.

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(CBS)

Mark Knoller is a CBS News White House correspondent. You can read more of his posts in Hotsheet here. You can also follow him on Twitter here: http://twitter.com/markknoller.

[JWolfJohnson9090]

The debt belongs to everyone who has ever borrowed money not just bush not just obama it's simple to point fingers and blame but when it comes down to it if we as a nation put our heads together a problem like this can be easily solved . If the whole nation were to adopt simple ideas that other countries have adopted, like taxation of medical marijuana and even just taxation of marijuana for recreational use ,regulated of course, each state could easily be pulling in half a billion to a billion dollars a year. that's 25 billion dollars in one year of our debt cleared and that's a low ball guess because chances are when Marijuana is finally allowed out of hiding and ostracism a lot of closeted smokers come out of the dark as well (some of which are reputable figures you will come to find) and that half a billion annual income estimate is based upon the marijuana users that are gutsy enough to actually admit that they use marijuana, because this nation has made it such a taboo that a prison sentence can actually be achieved for possession of a small amount of marijuana in some states when a drunk driver can get off with a slap on the wrist and an ankle bracelet for half a year. Come on now America I know we are better than this whether you smoke marijuana or not please try and realize that this , among other solutions we CAN clear our debt as long as we all cooperate and make it happen. So you can slander this idea or you can agree with this idea, this idea that's widely held by much of the population , not just by "stoners" , but also by Physicians, by respected politicians , by celebrities and by fellow citizens of this beloved nation that don't smoke marijuana themselves, but realize that our nation is in trouble and that legalizing and then taxing marijuana can and will help if enacted, but whatever you decide to do after reading this comment , whether it be to say "I'll never even think of considering that" or "yeah that sounds like a reasonable plan with the right restrictions" or even if this has no effect on you at all I hope that there is something in your mind telling you , no matter what side you stand on, " I need to get involved and try to help this nations debt " because if we don't act soon it seems as though our nation will soon become the underdog, with no money to spend and too much debt for it to handle , when the other nations have already moved on because they weren't held back by an enormous debt that only gets worse daily. So if you're one of those who need to blame someone, blame yourself, and blame me and blame the entire body of people that make up this great nation but don't blame the presidents that WE have entitled to such a prestigious rank because the point of democracy is for the people to vote for what we want the presidents are merely poster child's for our decisions as a nation.

[gfulmore]

I think George W. Bush has to get the major credit for the federal debt we are in. He raised the debt nearly $5 trillion over eight years of relative prosperity. Much/most of this debt was because of the unfunded wars and all the money it took to support the unfunded wars. When George W. left office, the debt was at about $10.6 trillion, I think, so he nearly doubled it in eight years. He left with a huge interest-on-the-debt burden, plus the two wars still unfunded! What a mess he made of our fiscal responsibilities. It will take decades to dig out of the mess. President Obama is the guy to get that process started.

[pberry1_98]

This is big problem. Much bigger than most people realize. My father, who was an actuary, has written about this. He frames the problem well and lays out effective ways individuals can contribute to a solution.

http://29thday.org/book/chapter.php?chapter=9

[Omnivorous]

Total outstanding government liabilities (including all of the union pension liability we took over from the UAW) bring to total per household debt to ...

More like $448,000. And that does not include any private household (ie mortgage) or credit card debt.

And Obama wonders what's the big deal?

No more professional politicians of any party. We need competent leaders. The last 4 of these guys have been clueless and out of touch.

[justdatrooth]

Heck it's 12 Trillion now? It was only 8.6 Trillion when the Democrats took power in Jan 2007!!!

Obama keeps funneling money to his cronies at Halliburton, not to mention those $250,000 NYC dinners for Michelle!

[gboyd41]

Don't worry, the ADMIN is creating jobs-the problem is they are in districts that don't exist! Check out ABC and weep. At least, ABC has the gall to print the story. I'll bet you don't hear a peep from CBS on this one! Sounds like voting DEAD Chicago citizens in the past. Hard to deviate from your roots!

[mljohns00]

Incredible. Bush killed the country and Obama is burying it.

[stn_sage]

Excellent! I like this analogy!

[bubbadubba]

Under GW Bush, the national debt increased from 5.6 trillion to 9.6 trillion almost 100%.
If Obama did not have to deal with Bush's two wars and an almost total collapse of our economy due to Bush, the debt would be going down.
Actually the National debt has been increasing steadily since 1929.
Why? IT'S CALLED THE FEDERAL RESERVE, they get money from the government at a huge discount then lend it back to the government plus interest. We are paying interest on our own money to a private club that doesn't even own it. HA HA HA HA HA HA

[2012EOD]

Ok, so using math, Bush added 500B every year, and so far Obama in the last 10 months has added 2.4 Trillion. Hope and Change, or I hope for a change in 2012.

[stn_sage]

When the politicians do NOT listen OR follow the public will and agenda, but instead cow-tow to corporate America and their lobbyists funneling monies to them...WE, the public are NOT represented! And all bets 'are off'!

THIS debt is NOT the public's, it's Congress's! Let THEM pay for it out of THEIR own personal accounts! We, the public are NOT responsible for it, and should NOT pay it, either!

[RandomUser1886]

How can you tell when Obama is lying?

[dowell100]

This debt belongs to Obama. Blame him.

[the74blaster]

This debt belongs to Obama. Blame him.
++++++++++++++++++++++++++++++++++++++++++++

I will after we give him 8 years just like your buddy. Its really sad that Obama has done more good for our country in 10 months that Bush did in 8 years.

It must be tough being a conservative and watching your man lead us into a catastrophic economic meltdown, two wars and job loses.