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
It’s like when you’re too lazy to clean your room today and want to play video games instead, so you say you’re gonna do it tomorrow.
You got to play games today, but you’re gonna have to give up something tomorrow to clean your room.
But it’s not accurate that USA has debt to itself. It’s more like, US entities are owned X amount of debt from other US entities, but it all gets added up as “all debt in the US”.
It might also be possible that debt could net a total of 0 and there’s no debt, but no one followed the debt chain to show that.
Or it’s possible that there’s also debt that will never be repayed. Like in village, there’s a guy with a fishing rod. He gives to another guy who promises to bring a fish tomorrow. Tomorrow comes and there’s no fish and the guy broke the fishing rod. Now the village is in debt of -1 fishing rods.
Latest Answers