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This AY-10 student research paper discusses the strategic significance of dealing effectively with the American debt and deficit, by first describing the background of our current government approach to the economy, then examining the current projections for United States' spending from 2009 through 2019 and examining what the future might bring given anticipated American demographic changes. The author describes the economic labyrinth in detail and examines alternatives to address the challenges to America of the national deficit and debt. He concludes that while a number of alternatives are available today to address the problem of deficit financing and the associated debt and thereby strengthen the economy of the United States, three examples that are predicated on the synergistic benefits associated with small reforms provide the best chances for long-term success.