Wednesday, July 14th, 2010

How is debt sold by our government to other countries?

debt
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?

Thanks, I need lots of details and really want to understand so thanks again for your help!

This entry was posted on Wednesday, July 14th, 2010 at 12:00 am and is filed under Debt Problems. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

3 Responses to “How is debt sold by our government to other countries?”

joe4912004 Says:
July 16th, 2010 at 5:13 pm

They buy our BONDS which are backed by the US Treasury. All BONDS are debt or I.O.U.s

Rhoda O Says:
July 17th, 2010 at 2:05 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.

buschgardens Says:
July 19th, 2010 at 1:04 am

Other countries buy bonds or Treasury Direct Securities from the US Treasury.

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