The US Federal deficit will hit 20 trillion dollars next year, the Congressional Budget Office reports. The report cites that the estimated figure for this year will be 560 billion dollars, an increase of 35% over last year. The US has held a net debt ever since getting off the gold standard in 1972.
Under Bill Clinton's administration, the year over year budget was a surplus from the years 1998-2000. However, a combination of the Iraq War, tax cuts, and the financial recession contributed to a rapidly expanding deficit under the administration of George W. Bush. Under the administration of Barack Obama, the year over year deficit has slowed slightly but has failed to make any meaningful progress towards hitting a surplus. The Budget Office also warned that as the debt continued to increase in the next decade, it could hold dire consequences:
"The likelihood of a fiscal crisis in the United States would increase...There would be a greater risk that investors would become unwilling to finance the government’s borrowing needs unless they were compensated with very high interest rates" -CBO
During his first year, President Obama presided over a record deficit fueled largely in part by the financial crisis bailouts of 1.4 trillion dollars. However, some of these loans have been payed back but the deficit has continued to remain high since then.