Quote:
Originally Posted by Vendot
I just dont get how this will all be paid back and is the US government printing money or is this coming from the purchase of US debt?
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It's mostly being funded through Treasury Bonds right now though some speculate that the Fed may be printing up new money and discreeting using that to buy up the bonds people (e.g. China) are not buying on the open market thus keeping the low rates.
The US will not pay this money back unless there is a huge increase in taxes and/or a large devaluation of the dollar.
If Clinton had not repealed the Glass-Steagall Act we very well may not be in this mess at all......