Who does the US actually owe this interest too? Is it not the not so federal reserve? Why are we paying interest to them to print money?
Who does the US actually owe this interest too? Is it not the not so federal reserve? Why are we paying interest to them to print money?
The Federal Government issues treasury bonds to cover the USA's Federal debt. The interest is owed to the people who bought these t-bills, which are individuals, pension funds, companies, etc who want a low risk bond.
The Federal Government issues treasury bonds to cover the USA's Federal debt. The interest is owed to the people who bought these t-bills, which are individuals, pension funds, companies, etc who want a low risk bond.
Ok, but I don't get why. It makes no sense to sell debt and then pay it back with interest. I don't understand how it ever became acceptable to run a country with a budget deficit. Budgets should be set based on yearly income period.
Ok, but I don't get why. It makes no sense to sell debt and then pay it back with interest. I don't understand how it ever became acceptable to run a country with a budget deficit. Budgets should be set based on yearly income period.
Ever tried telling boomer voters no because sovereign debt is theft? 97% of them will vote against you.
Ever tried telling boomer voters no because sovereign debt is theft? 97% of them will vote against you.