Eli5: How can some country have trillions of dollar in debt like Japan but still functional without any consequences?

Question

Eli5: How can some country have trillions of dollar in debt like Japan but still functional without any consequences?

In: 101

Answer 1

well most of the debt is actually owed to the citizens. Think of all the retirement accounts that are partially vested into government bonds. The accounts are sitting on those for 20, 50, etc. years. So its not like someone is banging on the governments door asking for the money right this second. Its owed at some point in the future and the countries are generally good for it in the long run.