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Local and State in the US can't run deficits. They can put out bonds to fund projects but thats it. Its only the US federal government that can run deficits.
by acomjean 7y ago
Local and State in the US can't run deficits. They can put out bonds to fund projects but thats it. Its only the US federal government that can run deficits.
- interlocutor 7y ago>> They can put out bonds Isn't that what the federal govt does too? The US sells treasury bonds and China buys them. https://www.investopedia.com/articles/investing/040115/reasons-why-china-buys-us-treasury-bonds.asp https://www.investopedia.com/articles/investing/040115/reaso...
- adestefan 7y agoThe majority of US debt is special bonds owned by the Social Security Trust Fund. Only about 30% of bonds are owned by foreign entities. And the top foreign holder fluctuates between China and Japan.
- empath75 7y agoYeah the fundamental difference is that states can't print money to pay them the way the federal government can.