Accounting 437 - NarrativeEssay1 ,I .Ihave...

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Narrative Essay 1 After researching and writing on the solvency and fiscal situation of the United States, I  have learned that there is more to the national debt than I previously thought. I have  also learned about the trade deficit, the financial system, the financial institutions, and  the financial situation around the world. I have learned how the national debt is  calculated every year, as well as what causes it to increase every year. With this  research, I have learned about the different agencies that operate within the U.S.  government as well as the different types of financial institutions and what rules they  have to follow in order to operate.  In conclusion, I have learned what the United States  must do in order to manage their insolvency since it is currently impossible to pay all the  debts that they owe.
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1 In order to be solvent, a government must have the ability to pay all outstanding  financial debts that have been accrued.  With a little over two trillion dollars coming in as  revenue every year, it is impossible for the United States’ government to be solvent due  to its national debt of over fourteen trillion dollars. There are many reasons the United  States cannot be solvent and these reasons include but are not limited to: the rapid  growth of the national debt, “an insolvent financial system, and insolvent financial  institutions” (Martenson, 2009, min 30:00).  According to Chris Martenson, the government will need over fifty three trillion  dollars today in other to pay for all its outstanding debt. This is the Net Present Value of  the debt because the value of cash now is greater than the value of cash in the future.  Martenson also states that there is no possible way for the United States to come up  with over fifty three trillion dollars due to the fact that its economy is only one fourth as  large while the debt rapidly increases each year (Martenson, 2009, min 29:43). Reasons 
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