Part 5/13:
This debt burden is a double-edged sword. On one side, the government needs to borrow to fund its operations, especially as tax revenues decline. On the other, US debt securities (Treasuries) are traditionally considered risk-free, so they constitute a primary investment instrument for both domestic and international lenders. However, in practice, especially under rising interest rates and economic uncertainty, Treasuries are no longer as risk-free as before.