Why Are So Many Nations in Massive Debt? Who is Lending Them All This Money?
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Regular people are, as well as banks and other companies.
Owning sovereign debt is usually a safe investment. Governments borrow money a lot, so they will try to ensure they have good credit; that means paying back those debts (with interest) reliably and on time. So if you want a safe space to put money with little risk but also not great gains (like a retiree), you can buy government bonds to lend the government money.
Banks and companies will do the same thing. If there’s no good use of funds right now, might as well invest them so that they’re making a bit of interest.
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