I’ve once heard that the USA owns most of its debt to itself, how is that possible? How can you owe debt to yourself?

Question

I’ve once heard that the USA owns most of its debt to itself, how is that possible? How can you owe debt to yourself?

In: 252

Answer 1

I don’t know how to answer the main question but I do know how you can owe debt to yourself

I have a savings account. A small one. In my family, I’m revered as “financially intelligent” because despite making similar wages, I can save. ANYTIME something comes up, like my dentist appointment next week which after my insurance will cost $350 (I’m in canada) I have to take from my savings account. The savings account is meant for school and eventually, hopefully pooled with my partners savings, a home. I have a document where I keep IOU’s to myself all the time. I have to slowly repay myself by saving a little extra next pay check until it’s paid back.