Understanding the National Debt & Budget Deficit

We hear so much about the US national debt, the federal budget deficit, and plans for shrinking or eliminating the deficit. It’s all a bit confusing, really. Check out this viral video that helps explain why the United States’ sovereign debt hasn’t led us to an economic crisis, but instead why budget deficits need to shrink in order to ensure that credit remains inexpensive and the US continues to enjoy the trust of the world economy.