Eli5 What is world dept and how is it created?
In: Economics
World Department? Or Debt?
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When money is made. 10% is debt paid back as interest to the bank lending the money. Or something like that.
Debt is money borrowed and owed back to those who lended it. Many governments borrow money through the issuance of bonds, to fund spending beyond what they collect in taxes. They borrow from investors by offering interest in return for being able to borrow.
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