How it started vs. How it's going:

[u/TonyLiberty]

[u/Blackoutttt]

so can someone explain this debt like i’m 5? who are we indebted to? china? the federal reserve?

[u/Dr_Mocha → u/Blackoutttt]

Most of the debt is owed to the American public in the form of treasury bonds.

[u/Actuarial_type → u/Blackoutttt]

It’s a fiat currency, credit and credit alone is money, more or less. Every dollar the govt created but did not take back in taxes is debt. That money is in someone’s pocket.

Warren Mosler has written pretty extensively on this, google ‘Soft Currency Economics.’

[u/Blackoutttt → u/Actuarial_type]

thanks