ok im wondering how the debt thing works cus we are like 9 billion dollar in debt so where does the goverment get its money from
i know i learned this in school but forgot it
2007-12-08 14:13:57 · 8 answers · asked by Anonymous in Politics & Government ➔ Politics
yeah i ment to say trillion
2007-12-08 15:12:56 · update #1
We're $9.3T in debt--and most of that debt has been financed by China.
They buy dollars and bonds--promissary notes that at some point we will reimburse them for allowing them to hold our account with them "open"--in exchange for trade or economic assistance.
But I really can't see how we will be paying them back--seeing how our dollar is near junk status with most of our foreign investors dumping the dollar in favor of other stronger cuurencies, and the stupid Fed keeps dropping interest rates in a desperate bid to head off an impending recession--due to the housing and credit crunch crises. (>shakes head<)
Just remember the German mark during the second world war. At one point in the middle of the conflict, the money was practically worthless.
That's where we are heading--seeing how disasterous this government's economic policies have been for the last 7 years.
2007-12-08 14:38:52 · answer #1 · answered by Anonymous · 1⤊ 1⤋
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2016-11-14 23:21:23 · answer #2 · answered by ? 4 · 0⤊ 0⤋
We are actually 9 trillion dollars in debt. The government still gets its revenue from taxes, but the government just doesn't pay the debt back to those we owe. It is a large reason why the US dollar is so lowly valued around the world right now.
2007-12-08 14:18:08 · answer #3 · answered by Anonymous · 3⤊ 1⤋
Other countries, mainly China and Japan, buy U.S. Treasury bonds which is an investment in the U.S. This money not only funds the wars, but also funded the home loans that are now in jeopardy. These loans will be paid at the current value of the U.S. dollar (worth about 68 cents), so even though the investors get over 2% interest, they are likely to be losing money on their investments. The endless supply of money may be coming to an end as we may not be seen as an attractive investment anymore.
2007-12-08 14:34:35 · answer #4 · answered by BekindtoAnimals22 7 · 2⤊ 1⤋
No, our debt is currently a trillion times three. And it's called overspending for the Iraq war and earmarks for Congress.
2007-12-08 14:18:53 · answer #5 · answered by Big Bear 7 · 1⤊ 3⤋
The debt is what your great great grand children owe our generation. Wait till Hillbilly gives us national health care your great great grand children will drown in debt.
2007-12-08 14:26:21 · answer #6 · answered by Nancy P 5 · 2⤊ 1⤋
your taxes..... your kids taxes....... your grandchildren taxes and so on down the line
the intrest alone on the debt ....... is $ 34,000.00 per second..................................
2007-12-08 14:18:45 · answer #7 · answered by Anonymous · 2⤊ 1⤋
China, ..........please might I have some more sir......
2007-12-08 14:17:42 · answer #8 · answered by Anonymous · 2⤊ 2⤋