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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Why not? The point of a bond is to raise cash now and one person’s money is as good as the next. The bond isn’t like a mortgage or something where the person who purchases that debt has some power or something they could foreclose on and claim. It’s backed basically by faith in the US government and the economy providing its taxbase.
So…there’s very little to lose in one person buying it over another. If significant chunks of debt are bought up overseas then that just means more people around the world have a vested interest in the ongoing solvency of the US government which is not a bad thing.
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