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?
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Imagine you save $500/mo for a family vacation planned for one year from today. After 6 months, your dog pees on your couch and you have to buy a new one. You could dip into your emergency fund, finance through the furniture store, or spend from your vacation account and promise yourself that you will put that money back within 6 months. In the third case, you owe yourself money, because you appropriated funds you will need in the future for another purpose.
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