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Why do you think people loan the US money when they know we have so much debt?

asked
User OrS
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1 Answer

4 votes

Final answer:

Foreign investors, businesses, and governments loan the US money because it is a stable economy and a strong market, and the US dollar is the world's reserve currency.

Step-by-step explanation:

Foreign investors, businesses, and governments invest trillions of dollars in the United States each year, which includes buying U.S. federal debt. Despite having a significant amount of debt, the United States is still an attractive destination for investment due to its stable economy, strong market, and the U.S. dollar being the world's reserve currency. Additionally, investing in U.S. debt provides a safe and reliable way for foreign entities to store their excess funds and earn interest.

answered
User DrLivingston
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8.0k points

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