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

The right answer are the States within the United States that make up the federal government. They are the largest holder of US debt. They lend and borrow against the GDP of the United States.