Why does the US sell Treasury Bonds abroad?

Question

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.

In: 1

Answer 1

Why wouldn’t they? Bonds allow the government to borrow money with very low interest rates. That money can be reinvested into programs that will (hopefully) generate enough tax revenue to cover the interest.

That virtuous cycle doesn’t care if the buyers are foreign or domestic.