On Sixth Avenue in Manhattan, there is a national debt clock that shows the amount of the national debt of the United States. The clock was first installed in 1989 and can display up to ten trillion dollars. He ran out of money in October 2008 when the debt amount exceeded the amount. A new clock with two extra digits will be installed (Izzo 2). We hear about debt almost every day: the news talks about it, politicians discuss it, even President Obama makes speeches about it. So what's the meaning behind it all? In this article I will briefly explain what the national debt is, how big it is and what it has to do with us. The US national debt can be divided into two main parts: government debt and intragovernmental holdings. Government debt, which comes from stocks and bonds issued by the US Treasury, is responsible for more than 60% of the debt (“Debt Position and Activity Report” 1). These debts are held by the public inside and outside the United States. Over 25% of debts are held by foreign governments, of which China and Japan account for almost half of the sum (“Treasury Bulletin: September 2009” 60). Intragovernmental holdings are debts owed to public accounts. A major portion of this debt is owed to the Social Security bill, which will be paid when baby boomers retire in the next 20 years. All but four countries in the world have external debt (“Country Comparison: External Debt”). Having debt is almost as common as having a mortgage. Since its inception, the United States has always been in debt (“Outstanding Historic Debt – Annual”). America's national debt has had five sharp increases previously in its history. The reasons include the civilian car and the two World Cups...... middle of paper...... direct treasury. November 19, 2009. March 1, 2010..Izzo, Phil. “Signs of the Times: The National Debt Clock Has Run Out of Numbers.” Wall Street Journal.October 9, 2008. February 27, 2010. “The Budget and Economic Outlook: Fiscal Years 2010 to 2020.” United States CongressCongressional Budget Office. January 2010. 1 March 2010..The Public Debt Policy Committee. Our National Debt: Its History and Its Meaning Today. New York: Harcourt, Brace and Company, Inc, 1949. Print. "Treasury Bulletin: September 2009". The Financial Management Service - a bureau of the United States Department of the Treasury. September 1, 2009. February 27 2010..