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this post was submitted on 17 May 2025
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The American taxpayer.
Yep. Most people don't know most of our debt is held by US citizens, which is actually beneficial sometimes. The government gets to spend money now and then they pay these people, with interest, in the future. Ideally they spend that internally, promoting more growth. As long as there's growth it's a positive effect.
However, this post (not the comment above) specifies foreign debt holders. For some reason the media only talks about this, not domestic holders, I guess because it sounds scary.
One reason it's important is because changes in the amount of dollars outside of the US changes the value of the US in exchange of other currencies. As long as the debt is USD-denominated, the US government can always pay it back with the result of the USD value changing (probably depends on volume, speed, and many other variables).
Well well well, if it isn't the consequences of our own actions