The world is in debt, but to itself. Where does the money come from when a country borrows money, as we see with national deficits and debt?
National debts are typically borrowed from a variety of sources, including individuals, corporations, financial institutions, and other countries. In most cases, national debts are issued in the form of government bonds, which are essentially IOUs that promise to pay back the borrowed money with interest over a set period of time.
Individuals and corporations can buy government bonds directly from the government or through a broker. Financial institutions such as banks and pension funds also invest in government bonds, often as a way to diversify their portfolios and earn a steady stream of income. In addition, other countries may invest in the bonds of another country as a way to earn a return on their excess foreign currency reserves.
The size of a country's national debt can have significant economic and political implications, as it can affect the country's credit rating, interest rates, and ability to borrow money in the future. In some cases, excessive national debt can lead to financial crises and economic instability, as we have seen in several countries over the years.
60% Commission on Fast Credit Lines Inner Circle membership! Step by step guide from building personal credit to business credit. Business credit cards, Personal credit cards, rehab financing and flip real estate! NO PG Credit Card Millionaires.
