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South Korea says North Korea has fired a seventh missile off its eastern coast, a violation of U.N. resolutions and an apparent message of defiance to the United States on its Independence Day.

GAFFNEY, S.C. — Terrified residents canceled Fourth of July plans and holed up in their homes Friday as investigators hunted a serial killer believed to have shot four people to death.

Tanya Phillips had been looking forward to a backyard barbecue at her brother's house but instead planned to stay home with her doors locked.

"I'm not taking any chances," said Phillips, 32, a mother of two who works in a day-care center. "I'll go out during the day, but not at night. I just don't feel safe."

Plenty of evidence links the killings, though officials have not yet determined how the victims are connected or if they knew whoever shot them, said Cherokee County Sheriff Bill Blanton.

"Yes, we have a serial killer," he said at a news conference in this rural community 50 miles south of Charlotte, N.C.

So far, all investigators have to go on is a sketch of a suspect and a description of a possible getaway vehicle, though police would not say who provided that information.

The latest victims were found in their family's small furniture and appliance shop near downtown Gaffney around closing time Thursday. Stephen Tyler, 45, was killed, and his 15-year-old daughter was shot and seriously injured. Tyler's wife, his older daughter and an employee found them in Tyler Home Center, County Coroner Dennis Fowler said.

A day earlier and about seven miles away, family members found the bodies of 83-year-old Hazel Linder and her 50-year-old daughter, Gena Linder Parker, bound and shot in Linder's home. Blanton would not say if Tyler and his daughter were also bound.

The killing spree began last Saturday about 10 miles from Tyler Home Center, where peach farmer Kline Cash, 63, was found shot in his living room. Blanton said the killer may have first spoken with Cash's wife about buying hay. She left and came home a few hours later to find her husband's body. Investigators said it appears he was robbed, but they have not determined if anything was taken in the other killings.

Cherokee County, home to about 54,000 people, had just six homicides in all of 2008, and half that the year before.

Residents have "their guard up and their gun handy," said state Sen. Harvey Peeler, R-Gaffney, who recalled the area being terrorized once before, in the 1960s, by a serial killer dubbed the Gaffney Strangler. Otherwise, Gaffney is most famous for a giant water tank shaped like a peach that can be seen from Interstate 85.

"There is no greater fear than the fear of the unknown and nobody knows. You can cut the tension with a knife," Peeler said. "People are locking their doors, even in broad daylight."

The Fourth of July is a busy weekend, with thousands of people expected to attend fireworks displays in several communities.

"You want to live a normal life," Phillips said as she stood outside a grocery store. "But you just can't."

Every available police officer will work the weekend, Blanton said, acknowledging that there is "real fear in the county." He urged people to take precautions such as going out in groups and calling 911 if their cars break down and they are stuck on the side of the road.

"If someone breaks into my house, I'm armed and ready," said Mike Daniels, 53, a retired Army sergeant. "And I won't hesitate to shoot first and ask questions later."

Hazel Smith, 47, said neighbors feel vulnerable.

"If he killed once, he'll kill again," she said sitting on the front porch with her friends. "Tonight, I'm going to stay inside and pray, pray a little harder that he gets caught."

The latest shootings happened less than a half-mile from the sheriff's office, where at least 30 investigators were already working on the case. Blanton said a profiler has suggested Tyler and his daughter might have been shot to taunt investigators, but he said his only concern is solving the case.

"We had a 15-year-old girl shot; he killed an 83-year-old woman," Blanton said. "The good people of this community don't deserve that."

The sheriff reminded people they have a right to protect themselves and advised salesmen and others to avoid knocking on strangers' doors with so many on heightened alert.

"People are going to start shooting at shadows," Blanton said.

___

Associated Press Writers Jim Davenport and Jeffrey Collins contributed to this report from Columbia.

WASHINGTON — The Founding Fathers left one legacy not celebrated on Independence Day but which affects us all. It's the national debt.

The country first got into debt to help pay for the Revolutionary War. Growing ever since, the debt stands today at a staggering $11.5 trillion _ equivalent to over $37,000 for each and every American. And it's expanding by over $1 trillion a year.

The mountain of debt easily could become the next full-fledged economic crisis without firm action from Washington, economists of all stripes warn.

"Unless we demonstrate a strong commitment to fiscal sustainability in the longer term, we will have neither financial stability nor healthy economic growth," Federal Reserve Chairman Ben Bernanke recently told Congress.

Higher taxes, or reduced federal benefits and services _ or a combination of both _ may be the inevitable consequences.

The debt is complicating efforts by President Barack Obama and Congress to cope with the worst recession in decades as stimulus and bailout spending combine with lower tax revenues to widen the gap.

Interest payments on the debt alone cost $452 billion last year _ the largest federal spending category after Medicare-Medicaid, Social Security and defense. It's quickly crowding out all other government spending. And the Treasury is finding it harder to find new lenders.

The United States went into the red the first time in 1790 when it assumed $75 million in the war debts of the Continental Congress.

Alexander Hamilton, the first treasury secretary, said, "A national debt, if not excessive, will be to us a national blessing."

Some blessing.

Since then, the nation has only been free of debt once, in 1834-1835.

The national debt has expanded during times of war and usually contracted in times of peace, while staying on a generally upward trajectory. Over the past several decades, it has climbed sharply _ except for a respite from 1998 to 2000, when there were annual budget surpluses, reflecting in large part what turned out to be an overheated economy.

The debt soared with the wars in Iraq and Afghanistan and economic stimulus spending under President George W. Bush and now Obama.

The odometer-style "debt clock" near Times Square _ put in place in 1989 when the debt was a mere $2.7 trillion _ ran out of numbers and had to be shut down when the debt surged past $10 trillion in 2008.

The clock has since been refurbished so higher numbers fit. There are several debt clocks on Web sites maintained by public interest groups that let you watch hundreds, thousands, millions zip by in a matter of seconds.

The debt gap is "something that keeps me awake at night," Obama says.

He pledged to cut the budget "deficit" roughly in half by the end of his first term. But "deficit" just means the difference between government receipts and spending in a single budget year.

This year's deficit is now estimated at about $1.85 trillion.

Deficits don't reflect holdover indebtedness from previous years. Some spending items _ such as emergency appropriations bills and receipts in the Social Security program _ aren't included, either, although they are part of the national debt.

The national debt is a broader, and more telling, way to look at the government's balance sheets than glancing at deficits.

According to the Treasury Department, which updates the number "to the penny" every few days, the national debt was $11,518,472,742,288 on Wednesday.

The overall debt is now slightly over 80 percent of the annual output of the entire U.S. economy, as measured by the gross domestic product.

By historical standards, it's not proportionately as high as during World War II, when it briefly rose to 120 percent of GDP. But it's still a huge liability.

Also, the United States is not the only nation struggling under a huge national debt. Among major countries, Japan, Italy, India, France, Germany and Canada have comparable debts as percentages of their GDPs.

Where does the government borrow all this money from?

The debt is largely financed by the sale of Treasury bonds and bills. Even today, amid global economic turmoil, those still are seen as one of the world's safest investments.

That's one of the rare upsides of U.S. government borrowing.

Treasury securities are suitable for individual investors and popular with other countries, especially China, Japan and the Persian Gulf oil exporters, the three top foreign holders of U.S. debt.

But as the U.S. spends trillions to stabilize the recession-wracked economy, helping to force down the value of the dollar, the securities become less attractive as investments. Some major foreign lenders are already paring back on their purchases of U.S. bonds and other securities.

And if major holders of U.S. debt were to flee, it would send shock waves through the global economy _ and sharply force up U.S. interest rates.

As time goes by, demographics suggest things will get worse before they get better, even after the recession ends, as more baby boomers retire and begin collecting Social Security and Medicare benefits.

While the president remains personally popular, polls show there is rising public concern over his handling of the economy and the government's mushrooming debt _ and what it might mean for future generations.

If things can't be turned around, including establishing a more efficient health care system, "We are on an utterly unsustainable fiscal course," said the White House budget director, Peter Orszag.

Some budget-restraint activists claim even the debt understates the nation's true liabilities.

The Peter G. Peterson Foundation, established by a former commerce secretary and investment banker, argues that the $11.4 trillion debt figures does not take into account roughly $45 trillion in unlisted liabilities and unfunded retirement and health care commitments.

That would put the nation's full obligations at $56 trillion, or roughly $184,000 per American, according to this calculation.

___

On the Net:

Treasury Department "to the penny" national debt breakdown: http://tinyurl.com/yrxrsh

Peter G. Peterson Foundation independent assessment of the national debt: http://www.pgpf.org/

"Deficits do Matter" debt clock: http://tinyurl.com/l6mvjb

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