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Where is the $ coming from?
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Mill188
LIF Adult
Member since 3/09 3073 total posts
Name:
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Where is the $ coming from?
Serious question:
Where is the money for the COVID relief bill coming from? With the economy in the toilet, the federal government will not be getting as much income from taxes this year; even our local sales tax revenue is down; one of the causes of our state and local taxes skyrocketing.
The government is not in the business of making money so in all seriousness (and maybe I just missed it somewhere) but where is all this funding coming from?
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Posted 12/24/20 9:47 AM  |
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Re: Where is the $ coming from?
I am sure Hofstra can answer you as she is the connoisseur of politics. 
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| Posted 12/24/20 10:11 AM |
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Re: Where is the $ coming from?
Well now Republicans just blocked it. Sad that they are willing to send so much money elsewhere and not give it to Americans.
I blame both sides. It is ridiculous.
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| Posted 12/24/20 11:15 AM |
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Mill188
LIF Adult
Member since 3/09 3073 total posts
Name:
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Re: Where is the $ coming from?
but where is it coming from?
I don't want to debate the merits of the various proposed packages or what each "side" is doing. I just want to know - where does the government get this money from?
It's like in my house: if I run into an emergency (like needing a new furnace), I have to pull the $$ from somewhere in order to pay it or go into debt fixing it.
How much more debt are these various relief acts putting on us? Are they pulling from money that was earmarked for other things?
I haven't seen that mentioned anywhere. I'm just trying to get a complete picture
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| Posted 12/24/20 11:40 AM |
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Re: Where is the $ coming from?
Your kids, your grandkids, on and on will be paying it back. There is no money just sitting there to use.
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| Posted 12/24/20 11:48 AM |
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Mill188
LIF Adult
Member since 3/09 3073 total posts
Name:
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Re: Where is the $ coming from?
That's what I thought and was afraid of. I don't have a horse in the race: no kids so I'm not worried about saddling future generations with this debt, but this debt will be due and owing during my lifetime, and that scares the hell out of me.
Message edited 12/24/2020 12:05:31 PM.
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| Posted 12/24/20 12:02 PM |
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Re: Where is the $ coming from?
Posted by Mill188
That's what I thought and was afraid of. I don't have a horse in the race: no kids so I'm not worried about saddling future generations with this debt, but this debt will be due and owing during my lifetime, and that scares the hell out of me.
Yep I agree and I feel bad for all these generations who didn't ask for this debt.
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| Posted 12/24/20 12:09 PM |
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BFNY516
LIF Adult
Member since 7/20 1189 total posts
Name:
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Re: Where is the $ coming from?
Posted by Mill188
That's what I thought and was afraid of. I don't have a horse in the race: no kids so I'm not worried about saddling future generations with this debt, but this debt will be due and owing during my lifetime, and that scares the hell out of me.
The money comes from selling government and corporate bonds. And the Fed can create digital dollar credits.
Paying it back doesn’t work the way a citizen would owe on a credit card. Luckily.
Many Economists don’t foresee this being an issue regarding national debt. It adds about 9% but interest rates are low and NOT doing is more harmful than cutting people a check.
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| Posted 12/24/20 4:03 PM |
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soontobemommyof2
My boys...my everything <3
Member since 4/15 3635 total posts
Name:
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Re: Where is the $ coming from?
Posted by BFNY516
Posted by Mill188
That's what I thought and was afraid of. I don't have a horse in the race: no kids so I'm not worried about saddling future generations with this debt, but this debt will be due and owing during my lifetime, and that scares the hell out of me.
The money comes from selling government and corporate bonds. And the Fed can create digital dollar credits.
Paying it back doesn’t work the way a citizen would owe on a credit card. Luckily.
Many Economists don’t foresee this being an issue regarding national debt. It adds about 9% but interest rates are low and NOT doing is more harmful than cutting people a check.
Selling to who?
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| Posted 1/1/21 12:25 AM |
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GoldenRod
10 years on LIF!
Member since 11/06 26792 total posts
Name:
Shawn
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Re: Where is the $ coming from?
Posted by soontobemommyof2
Posted by BFNY516
Posted by Mill188
That's what I thought and was afraid of. I don't have a horse in the race: no kids so I'm not worried about saddling future generations with this debt, but this debt will be due and owing during my lifetime, and that scares the hell out of me.
The money comes from selling government and corporate bonds. And the Fed can create digital dollar credits.
Paying it back doesn’t work the way a citizen would owe on a credit card. Luckily.
Many Economists don’t foresee this being an issue regarding national debt. It adds about 9% but interest rates are low and NOT doing is more harmful than cutting people a check.
Selling to who?
https://www.treasurydirect.gov/kids/what/what_borrow.htm
How does the U.S. Government borrow money?
Here’s where the Government is different from individual people and businesses. When the Government borrows money, it doesn’t go to the bank and apply for a loan. It "issues debt." This means the Government sells Treasury marketable securities such as Treasury bills, notes, bonds and Treasury inflation-protected securities (TIPS) to other federal government agencies, individuals, businesses, state and local governments, as well as people, businesses and governments from other countries. Savings bonds are sold to individuals, corporations, associations, public and private organizations, fiduciaries, and other entities.
Here is how Treasury securities - such as savings bonds - generally work. People lend money to the Government so it can pay its bills. Over time, the Government gives that money, plus a bit extra, back to those people as payment for using the borrowed money. That extra money is "interest."
https://www.marketwatch.com/story/heres-who-owns-a-record-2121-trillion-of-us-debt-2018-08-21#:~:text=By%20and%20large%2C%20Americans.,information%20from%20the%20U.S.%20Treasury.
Some 70% of the national debt is owned by domestic government, institutions investors and the Federal Reserve. A shade under 30% is owned by foreign entities, according to the latest information from the U.S. Treasury.
China is the biggest foreign holder of US debt, but overall, US companies and individuals own most of the US debt.
My DC have Savings Bonds, so they own part of the US debt. We'll cash them in at some point and get the profits from holding the debt for X number of years.
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| Posted 1/1/21 9:03 PM |
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soontobemommyof2
My boys...my everything <3
Member since 4/15 3635 total posts
Name:
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Re: Where is the $ coming from?
Posted by GoldenRod
Posted by soontobemommyof2
Posted by BFNY516
Posted by Mill188
That's what I thought and was afraid of. I don't have a horse in the race: no kids so I'm not worried about saddling future generations with this debt, but this debt will be due and owing during my lifetime, and that scares the hell out of me.
The money comes from selling government and corporate bonds. And the Fed can create digital dollar credits.
Paying it back doesn’t work the way a citizen would owe on a credit card. Luckily.
Many Economists don’t foresee this being an issue regarding national debt. It adds about 9% but interest rates are low and NOT doing is more harmful than cutting people a check.
Selling to who?
https://www.treasurydirect.gov/kids/what/what_borrow.htm
How does the U.S. Government borrow money?
Here’s where the Government is different from individual people and businesses. When the Government borrows money, it doesn’t go to the bank and apply for a loan. It "issues debt." This means the Government sells Treasury marketable securities such as Treasury bills, notes, bonds and Treasury inflation-protected securities (TIPS) to other federal government agencies, individuals, businesses, state and local governments, as well as people, businesses and governments from other countries. Savings bonds are sold to individuals, corporations, associations, public and private organizations, fiduciaries, and other entities.
Here is how Treasury securities - such as savings bonds - generally work. People lend money to the Government so it can pay its bills. Over time, the Government gives that money, plus a bit extra, back to those people as payment for using the borrowed money. That extra money is "interest."
https://www.marketwatch.com/story/heres-who-owns-a-record-2121-trillion-of-us-debt-2018-08-21#:~:text=By%20and%20large%2C%20Americans.,information%20from%20the%20U.S.%20Treasury.
Some 70% of the national debt is owned by domestic government, institutions investors and the Federal Reserve. A shade under 30% is owned by foreign entities, according to the latest information from the U.S. Treasury.
China is the biggest foreign holder of US debt, but overall, US companies and individuals own most of the US debt.
My DC have Savings Bonds, so they own part of the US debt. We'll cash them in at some point and get the profits from holding the debt for X number of years.
Very interesting! Thank u!
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| Posted 1/2/21 3:49 AM |
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GoldenRod
10 years on LIF!
Member since 11/06 26792 total posts
Name:
Shawn
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Re: Where is the $ coming from?
Posted by soontobemommyof2
Posted by GoldenRod
Posted by soontobemommyof2
Posted by BFNY516
Posted by Mill188
That's what I thought and was afraid of. I don't have a horse in the race: no kids so I'm not worried about saddling future generations with this debt, but this debt will be due and owing during my lifetime, and that scares the hell out of me.
The money comes from selling government and corporate bonds. And the Fed can create digital dollar credits.
Paying it back doesn’t work the way a citizen would owe on a credit card. Luckily.
Many Economists don’t foresee this being an issue regarding national debt. It adds about 9% but interest rates are low and NOT doing is more harmful than cutting people a check.
Selling to who?
https://www.treasurydirect.gov/kids/what/what_borrow.htm
How does the U.S. Government borrow money?
Here’s where the Government is different from individual people and businesses. When the Government borrows money, it doesn’t go to the bank and apply for a loan. It "issues debt." This means the Government sells Treasury marketable securities such as Treasury bills, notes, bonds and Treasury inflation-protected securities (TIPS) to other federal government agencies, individuals, businesses, state and local governments, as well as people, businesses and governments from other countries. Savings bonds are sold to individuals, corporations, associations, public and private organizations, fiduciaries, and other entities.
Here is how Treasury securities - such as savings bonds - generally work. People lend money to the Government so it can pay its bills. Over time, the Government gives that money, plus a bit extra, back to those people as payment for using the borrowed money. That extra money is "interest."
https://www.marketwatch.com/story/heres-who-owns-a-record-2121-trillion-of-us-debt-2018-08-21#:~:text=By%20and%20large%2C%20Americans.,information%20from%20the%20U.S.%20Treasury.
Some 70% of the national debt is owned by domestic government, institutions investors and the Federal Reserve. A shade under 30% is owned by foreign entities, according to the latest information from the U.S. Treasury.
China is the biggest foreign holder of US debt, but overall, US companies and individuals own most of the US debt.
My DC have Savings Bonds, so they own part of the US debt. We'll cash them in at some point and get the profits from holding the debt for X number of years.
Very interesting! Thank u!
 Even though it's the Treasury department's "for kids" pages, I liked how they explained it. I learned a bunch of stuff in there, too.
The Marketwatch page has some helpful information in an easy to read format, too.
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| Posted 1/2/21 9:54 PM |
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