[acomjean]

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]

>> 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/reaso...

[empath75]

Yeah the fundamental difference is that states can't print money to pay them the way the federal government can.

[adestefan]

The 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.