The US government (hence the people of the US) repay their debts all the time, and issue new debts all the time. Just like a home mortgage gets sold from the original lender to subsequent lenders, the borrower still usually pays back the mortgage.
If the debts were not paid back, then why would anyone want to buy the debts from the original lender?
I didn't mean the debts were not paid back. I used clumbsy language before. What I mean is as an owner of bonds you are not expecting to get your money back from the lendee necessary. Most likely your timelines wont match.
Say I lend you $1000 and you agree by contract to pay be back $1000 in 2030. I want my $1000 now. You have no obligation to give it back to me now. If you decide you wont, I will consider selling the debt it on.
If you are a government there is a market for me to sell it on easily.
>What I mean is as an owner of bonds you are not expecting to get your money back from the lendee necessary.
Yes, because purchasing a bond is just purchasing cash flow at various points in time. It does not matter who makes that cash flow happen, as long as you receive the cash.
> If you are a government there is a market for me to sell it on easily.
There only exists a market for you to sell on easily because similar debts have been previously paid back.
