How is debt sold by our government to other countries?
interdependent globalized world asked:
How does the debt system work, what happens when the other countries buy our debt, can they sell our debt to other countries, can they force us to pay our debts at any given time, please explain how the national debt system works?
How does the debt system work, what happens when the other countries buy our debt, can they sell our debt to other countries, can they force us to pay our debts at any given time, please explain how the national debt system works?
Thanks, I need lots of details and really want to understand so thanks again for your help!
Tags: Buy Sell, Debts, National Debt
August 3rd, 2009 at 6:43 am
Yes, all bonds are debt. The ones we sell are backed by our Treasury or what’s left of it after this week.
August 3rd, 2009 at 10:27 pm
We sell bonds, like Treasury Bills. One silver lining of this whole debacle is that T-bills are so in demand now (because the market is unstable) that they pay well under 1% now, meaning that the interest we pay on our national debt is is growing a smaller rate.
China buys a lof of these bonds, but the more we buy domestically, the less profitable it becomes for other countries to do so.
Buying bonds is patriotic, again!