Will the money to pay the tax rebate be borrowed from China or another country or will it just be printed?

It will probably just be printed and yes, it will cause the same problems you mention.

Reminds me of Germany, 1927. It was so bad people were actually burning cash because it was cheaper than buying coal.

Probably the taxes that people pay everyday? If we just printed more money into the economy then it would probably make things worse and make our dollars worth less than they are. They couldn't be borrowing it from China because they're actually smart. They give out 150 billion, people still pay taxes on that..if it stimulates the economy then the government will be getting all of that money back. The money soars up, people work more, spend more, businesses make more, therefor the government will get it back through all of the tax money that will be spent from everyone. The better off the economy is, the better off everyone is in including the government.

The source of monetary funds for the governement comes primarily from 1. Taxes and 2. Government bonds/debt that are usually sold to foreign treasuries like China, but as well as EU states and Arab countries.

The idea of the tax rebate was to have the American consumer spend it, which would spur sales. Also, businesses are getting tax breaks to build stuff, which creates jobs, spending, etc. The huge assumption is that Americans will actually spend the money and not just pay down their debt. What this is actually doing is driving up America's debt to the rest of the world and forcing America's next generation of tax payers to pay for this.

Yes, it will cause inflation. There has to be a trade-off between higher GDP (what they are trying to accomplish with the tax rebate) and inflation. They are seeing inflation as the lesser of the two evils.

However, if the government would use supply-side economics, there wouldn't be that trade-off. Unfortunately, the people would never vote for politicians that propose it (what politician would come out and say that he's taking money out of health care to invest in new technologies to increase the long run aggregate supply in the future?).

It's an election year and everybody wants to get in the act. All the rebates will do is increase the national debt. It will be paid by all of you under 30 folks for the rest or your lives.

The money will just be printed. Be smart and invest in the things that China is doing. Worry less about our economy.

The money would be printed. They just pumping more money into the economy to get us out of the deficit.

We will just print more and owe more to China and other countries.

it doesn't matter. We pay it back. Next year they take that amount from what we will get back in 2009.

PROBABLY BORROWED FROM JAPAN. THEN WE GO OUT AND BUY JAPANESE PRODUCTS SO THEY WILL BE MAKING MORE MONEY PLUS THE INTEREST OF THE LOAN THEY WILL CHARGE OUR GOVT.