Please see the video to get the context for my question.
https://www.youtube.com/watch?v=7yk_wiv53nA
In: 6
The bond market and basically any one in the world can buy Treasury notes, bills, and bonds. I didn’t watch your video, so sorry if that isn’t the answer you wanted.
I think there something about the buying and selling of bonds. I barely remember something about it on the podcast: civics 101 aug 2nd 2022 episode: “what is the national debt?”
The US issues bonds, which for these purposes, lets call them loans that anyone can buy and hold on the public market. This is more or less the “national debt”
The main holders are US companies, and things like mutual funds, pension funds, banks, and investors. State and local governments own some as well. These entities hold about 65%-70% of the debt. — Basically Americans and American companies own most of the debt
About 30-35% is generally owned by foreign entities. That can be both foreign governments and foreign companies. Japan and China hold the most, about $1 trillion each. However, $1 trillion is only about 3% of the total debt, so no individual country really does own that much, despite much discussion about foreign countries buying US debt, the biggest holders are other Americans
The government creates and sells bonds, which are just a promise to pay back the money with a bit extra (interest) over a set period of time.
These bonds are generally considered safe investments so it’s no surprise that about half of them are owned by retirement plans (social security, pensions, etc.) where investors want some return on their money but also don’t want to risk peoples’ futures.
The other half are owned by a wide mix, like foreign countries (Japan being the largest), US Banks, and individuals.
By issuing bonds. Anyone can buy bonds. Foreign governments such as China hold trillions in U.S. debt
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