I recently saw that the US has $12.1 trillion in intragovernmental debt – more than 1/3 of the total debt. I’m struggling to understand why this debt even exists? If it all comes out of the same national budget then why isn’t just considered a reallocation of funds?
In: Economics
>If it all comes out of the same national budget then why isn’t just considered a reallocation of funds?
Um. yes. but also no. It’s easier to think of a government budget as just this big bowl of money but it’s really not. It’s more like a pie. Every branch, office, agency, fund, etc etc has its own slice of that pie and sometimes they can borrow pieces off of other slices if they promise to give it back later.
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