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If the US economy is weak, how could the USD700Billion bailout be raised?
By Rose | July 15, 2008
Topics: US Economy | 3 Comments »
July 15th, 2008 at 9:26 pm
Consider that the US national debt is at 10 trillion.
July 18th, 2008 at 8:44 am
The Government will be printing new money… Here is how it will work.
a) US Treasury issues $700/billion in Treasury Notes/Bonds/etc…
b) The Federal Reserve Prints $700/Billion Dollars and buys those
Treasuries
c) The Fed holds the debt, the Treasury gets $700 billion in cash to
spend on saving the economy.
July 18th, 2008 at 10:10 am
The cash is borrowed from the IMF, international monetary fund to help bankrupt countries in the third world usually. But now since we are bankrupt we can get cash too.
It will be paid back over many years through increased taxation, our grandchildren will pay it off too, eventually.