I know there are conflicting views on how much of an actual crisis the national debt is to us in the US. Looking for a clear way of understanding how the whole global trade, borrowing money through bonds works. Please don’t use this to soapbox your opinion, just need an explanation of the processes.
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The person buying the bond gives hard currency to the US government, which can then buy real things for Americans, and in exchange they get an IOU that has absolutely zero external enforcement mechanism. 100% of the risk is on the person buying the bond. Why *wouldn’t* we want foreigners buying a bunch of that?
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