https://www.cnn.com/2024/07/02/economy/global-debt-crisis/index.html
In: Economics
Have you heard of bonds?
When a person invests in bonds, what they’re really doing is loaning money to the bond issuer. In the USA, the federal government bonds are called Treasury Bonds, you may have heard of them. States, cities, and private companies issue bonds to borrow money, too.
Ultimately, we owe money to people who invest in debt. Those people earn interest and even sometimes a capital gain on bonds. I personally have shares in a mutual fund that invests in bonds. So “we” owe money to business and investors, including myself.
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