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I really struggle to wrap my head around the idea that the largest holder of US debt is the US government itself: https://www.thebalancemoney.com/who-owns-the-
by jl6 4y ago
I really struggle to wrap my head around the idea that the largest holder of US debt is the US government itself:
https://www.thebalancemoney.com/who-owns-the-u-s-national-debt-3306124 https://www.thebalancemoney.com/who-owns-the-u-s-national-de...
- dkjaudyeqooe 4y agoWhy would the US invest in anything other than the safest bonds on the planet?
- qclibre22 4y agoHigher returns in equities.
- dkjaudyeqooe 4y agoHigher risk too.
- jl6 4y agoBut why is the US government investing excess cash in US government debt rather than paying down that debt?
- subsubzero 4y agoInteresting article, under foreign debt one thing that really stuck out to me is how a tiny country like Luxembourg with a population of only 632k people is the 4th largest holder of US debt at $306B. That to me seems very suspicious.
- boppo1 4y agoIf you imagine a 'simple' economy, the way to store your wealth is to buy gold and stick it in a safe. In a 'simple' economy, gold is the least risky commodity of exchange. Now consider that US treasuries are arguably less risky than gold, and are easier to exchange. US debt is basically like "big-boy cash".
- boppo1 4y agoIf you imagine a 'simple' economy, the way to store your wealth is to buy gold and stick it in a safe. In a 'simple' economy, gold is the least risky commodity of exchange. Now consider that US treasuries are arguably less risky than gold, and are easier to exchange. The FDIC only insures deposits of cash up to 250k, so US debt is basically like "big-boy cash".