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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It doesn’t really have a reason not to. If people abroad want to buy U.S. bonds, that’s more demand, which translates to a lower cost to the U.S. for the same bonds.
It’s pretty normal supply/demand. If demand goes up and supply is fixed, the price goes up (or since we’re talking bonds instead of a product, the yield goes down. They can offer a lower interest rate and they’ll still sell). Or if demand goes up, you can increase supply without changing the price.
The U.S. gets the money upfront, so it doesn’t have to worry about a default or anything
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