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!
April 25th, 2009 at 2:10 pm
They buy our BONDS which are backed by the US Treasury. All BONDS are debt or I.O.U.s
April 27th, 2009 at 7:24 pm
Its a wash. Normally a nation, not normally ours but we drew the short stick, borrows 30 BN$$$, time goes by another disaster, more aid needed, whatever occurs, I’ve yet to see any nation pay its debts back. Of course they can sell it to other countries but the 3rd Party is beholden to the 1st Party, the 2nd Party is beholden only to the 1st.
April 29th, 2009 at 12:30 am
Other countries buy bonds or Treasury Direct Securities from the US Treasury.