Who does the US borrow money from? Where does national debt come from?

Answer 1

The biggest lenders are the Chinese, Japanese; U.S. corporations and individuals and the Social Security Trust Fund. In 2006, the deficit was about 240 billion dollars, not including 186 billion dollars borrowed from the Social Security Trust fund, and about 100 billion dollars for the cost of the war - which president Bush prefers to account for separately to make the deficit look smaller. The money borrowed from the Social Security Trust fund came from FICA (social security) taxes on workers wages- It was supposed to be saved to help pay for the retirement of the baby boom generation, but congress has been borrowing it and spending it as fast as it comes in. - All this borrowing contributes to the total national debt. The Chinese and Japanese have money to lend the U.S government, because people in the U.S. buy more goods from China and Japan than people in those countries buy from the U.S.-

Answer 2

The US borrows money from the Federal Reserve System and pays high interest rates. this creates the National debt.

The Federal Reserve is neither federal nor is it a reserve. It is owned by the private banks.

Woodrow Wilson signed the Federal reserve act in 1914 to repay for favors to the bankers. This was in violation of the first Amendment of the Constitution of the USA.

Read the information below and learn how the Fed is stealing your money.

NOTE TO QUIXOTIC:May I suggest that you go read the sites I have listed...you are telling the half truths....and I do not believe for one moment that you can prove what I have said and shown incorrect. I welcome your challenge.

Answer 3

National debt comes from the government borrowing money - because of deficit spending.

Pinelake is deliberately giving you half-truths - The Federal Reserve BANKS are owned by their member banks, but the Federal Reserve SYSTEM is a part of the US government.

Answer 4

US government nowadays borrows a lot of cash from foreign banks. This is where the debt comes from. The other problem is that the government may be overprinting currency due to high debt, which is devaluing the US dollar currency.

Answer 5

They borrow from everyone. It comes in the form of treasury bonds. I believe they owe a lot of money to China as well as Japan. They do this to keep our inflation rate low. That way our dollar is worth more and we Americans can buy more stuff. Particularly Chinese and Japanese goods.