how can a country be in debt?
In: Economics
Most developed countries are in debt to their own citizens. Invest in treasury bonds, gilt-edge stocks or whatever they are called in your country and you are lending the government money. You might not do it directly, but most pension funds and other investments have a certain proportion of their funds in those safe but lower yielding investments to provide a certain level of security to back up the more risky share-based portion.
On top of that you have government to government lending and investment with foreign banks.
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