Where does the Federal Gov't go to get money?
I know that they borrow from the future, but I want to know other areas. Like from other countries: which ones? What else? Thanks!
I know that they borrow from the future, but I want to know other areas. Like from other countries: which ones? What else? Thanks!
Anonymous
Favorite Answer
Other countries, or individuals, purchase US Treasury bills. China is currently the largest holder of these debt instruments.
L3THAL_INJ3CTION
We borrow it from the Federal Reserve. At a interest rate that can be called due when ever they see fit. At one time this nations wealth was built on the value of gold. ow it is built on the value of interest. As much as I hate this Zeitgeist is right in this area.
EDIT:
OK for those of you that believe we can dip into the Federal Reserve to withdraw money just cause it is a reserve need to do homework.
The Federal Reserve is a bank for nations. And is not owned or has any pert of the US government. The US when needing money does the same thing every other person and nation does they take out a loan that has to be repaid. The Federal Reserve is actually ILLEGAL as it was never ratified by all 13 states. and was put into place anyways. However that is irrelevant in this question. But that is where we get our money from. All the taxes and such that we pay DO NOT go to our Nation it goes to pay off debt from previous loans from the Federal Reserve.
Congress initially defined a lawful money "dollar" as being and consisting of (at least) 371.25 grains of pure silver. Before 1965 anyone could exchange one paper dollar for one real silver dollar. However, in 1965 the united States' mint stopped minting silver dollars. When this occurred inflation began to skyrocket. Now it takes a whole fist full of paper dollars (i.e., "Federal Reserve Notes") to buy one real silver dollar.
http://www.middleeast.org/comments/1/5672.shtml
http://ezinearticles.com/?Did-You-Know-That-The-Federal-Reserve-System-Is-Illegal?&id=910712
http://www.healthfreedom.info/Federal_Reserve_Fraud.htm
Even here on our own government web site they state there are 12 Federal Reserve BANKS.
http://www.ustreas.gov/education/faq/currency/legal-tender.shtml
Anonymous
The Federal Reserve. From each dollar that we put in as taxpayers, that is supposed to go to the Social Security Administration etc. FICA.
Hopefully President Obama will redirect that money to make sure it stays where it is supposed to be.
Think of it. To keep a prisoner in prison costs about $38000 a year. And a disabled or elderly person receives benefits of an average of $8000 to $10000 a year. That's all because of the dipping into the Federal Reserve for 8 years to finance an unnecessary war. It is a mess that will take years to start fixing.
Bibigirl
Borrow from the future? That's what all financial borrowing is, you pay it back in the future. They are borrowing from China, printing some which leads to hyper inflation and going into the Federal Reserve.
No best Answer Al
Usually they take money from taxes or from other funds that are supposed to be used elswhere in the expectation they will repay it, such as SSI.
They also take loans out from other Nations as well as print what ever they want too but forget our paper is only good as the amount of gold reserve we hold at Fort Knox and the exchange rates. Printing NEW money with out the back up of Gold or Silver is a recipe for disaster.