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Originally Posted by Seaver
We dont borrow from outside countries to fund our government, that's not how it works. We owe it to ourselves, the interest is from those who buy government bonds. So the money isn't going anywhere but back to us when it's paid.
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T-bills, usually.
Our economy has a history of being the most stable which makes it an attractive investment for other countries.
Other countries buy t-bills from us--we then have to pay the t-bill back when it has matured, with interest.
The money doesn't go back to us.
They were investing money in our economy, with the hopes of a decent return on investment.