[12.12.11] National Debt

Hope S.
Are there any solutions to help our country decrease its debt in an efficient manner? If so, what are they? 
How does our debt compare with other countries' debts? What does this mean for America? 

Eli P.
How has America gotten out of severe debt in the past?
[I previously chose Eli's question, but found no sources that told me anything...]


Kathleen Q.
What was the main cause of the national debt spiraling out of control?


Sources that will be consulted:
Here, here, here, here, here, here, here, and here.

Not serious but funny: link


Are there any solutions to help our country decrease its debt in an efficient manner? If so, what are they?
Limit the money spent on weapons and war; one site suggested that the US "should stop sending people and stop having wars" (the former of which we've started to do). That same person also suggested a change in the Social Security system - another way of funding it ("Social security should not give people extra income they do not need"). Yet another person suggested we make a gradual change to other energy sources, such as "oil, natural gas, clean coal and nuclear"; solar energy could also be an option.

How does our debt compare with other countries' debts?
Good news -- the US was the wealthiest nation in the world (in terms of GDP) in 2007, with 13,844 billion. Japan came in second with 4,384 billion and Germany with 3,322 billion. Unfortunately, the country in first place with external debt is - you guessed it - the United States, with 12,250 billion dollars. The UK followed with a close second with 10,450 billion, and, like last time, Germany was third with 4,849 billion.
CNBC has a pretty neat slideshow of the World's Biggest Debtor Nations. The United States was 20th on the list with its external debt (% of GDP) of 101.1%. The gross external debt, estimated for 2009, was about $14.66 trillion. Ireland stands at number one, its external debt at 1,382%. The estimated 2010 GDP is around $172.3 billion.

What was the main cause of the national debt spiraling out of control?
A website lists several causes:
*Expansion of the housing bubble (homeowners refinanced their homes at lower interest rates, took out second mortgages)
*Simple credit conditions
*Sub-prime lending ("the practice of dishonest lenders[...] to enter into "risky" loans for improper purposes")
*Deregulation
Just to name a few. GlobalIssues.org states that "in the 1960s the US Government had spent more money than it earned and to make up for this decided to print more dollars. So the world's stocks of dollars fell in value."