Where did the U.S. government get the money to pay for stimulus tax rebate?

Question

I heard that we had to borrow money from China...can someone please explain how this works? Did they take from Social Security or Medicare funds?

Answer 1

So far, we have borrowed 1.3 trillion dollars from China for the war and for the stimulus checks.

How it works is our government asks their government to give us money. They do and of course they expect it paid back and they add interest on it. So we won't owe back 1.3 trillion but much higher.

How are we going to pay it back? Hard to say. With little money staying in the country, with little economic growth in our country.... we're facing a huge dilema. One that most of our government does nothing about.

Answer 2

No, not true that we borrowed it from China, but it is money that's adding to the deficit.

Answer 3

Called inflation! All money government spend is borrowed money which they don't have to payoff but We the People pay the interest on all loans the feds take out. How it works? Federal Reserve gives them the money under the assumption the people will pay off interest on a loan which was created out of thin air.

Answer 4

Since the government didn't budget the rebates from current revenues, it was added to the national deficit.  The deficit is financed by selling Treasury Bills, Treasury Notes and Savings Bonds.  Anyone can buy bills and notes, including foreign governments unless they are on the State Department list of barred nations such as Cuba, North Korea, Iran, etc.  China holds quite a chunk of US debt, as do many other nations.

The national deficit is about $9 TRILLION right now -- nearly triple what it was when Bush came to office.  The interest alone on it is about equal to the entire Department of Defense budget for the year!