Final answer:
The large U.S. public debt does not threaten to bankrupt the federal government for two main reasons: refinancing and investors.
Step-by-step explanation:
The large U.S. public debt does not threaten to bankrupt the federal government for two main reasons: refinancing and investors.
One reason is refinancing. Refinancing refers to the process of replacing existing debt with new debt at a lower interest rate. When the government refinances its debt, it can reduce the cost of interest payments and make it more manageable.
The second reason is investors. Foreigners, including businesses and governments, invest trillions of dollars in the United States each year, and they are a major buyer of U.S. federal debt. This means that there is a steady demand for U.S. debt, which helps to prevent the government from defaulting on its obligations.