Please see the video to get the context for my question.
https://www.youtube.com/watch?v=7yk_wiv53nA
In: 6
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.
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