Governments worldwide make huge debt each year. From whom or what is the money ‘borrowed’ from, and is any of it ever repayed?

Question

Governments worldwide make huge debt each year. From whom or what is the money ‘borrowed’ from, and is any of it ever repayed?

In: 8

Answer 1

The governments’ debt is in the form of bonds that they issue to investors (individuals can buy, but most are held by institutional investors like mutual funds, pension plans, insurance companies, university endowments). Bonds have set terms w/ regard to interest and time frame. The US government has never defaulted on any of its debt. As old bonds mature, new bonds are issued. When more bonds are issued than mature, the debt increases. When the government issues fewer new bonds than mature, the debt goes down.