I cannot get my head around it, what is it? I have heard it is not like debt we go into, who are the government in debt to exactly? And what are the consequences of not paying said debt? Could another country claim our assets or something?
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It’s similar, yet different, than debt “normal people” have. The government either borrows money from another government or entity, or moves it between departments (i.e. borrowing money from social security to help cover the costs of the dept of transportation). Or, they “pay” for a project with credit (like if you take out a home improvement loan). And, some of our “debt” is strictly for political reasons. We borrow or loan money between governments in these days in a similar fashion to how royal families inter-married in the past to establish relationships.
The term “government debt” covers a lot of territory, because not only are we in debt to other countries, the government can be in debt to itself.
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