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

When you hear people invest in stocks and bonds. Those bonds are often US treasuries. Buying a US treasury, is giving the government a loan.