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Response to brush (Reply #42)

Thu Aug 15, 2019, 02:36 AM

43. OK...wait a sec...I know it's late....

"borrowed money not raised domestically"

What do you mean by THAT?

Because that statement or any sentiment, inference or anecdote that even resembles that idea appears nowhere in the article you quoted from and linked.

Here's where I'm going;

The money spent is a result of the sale of US Treasury bonds. ALL deficit spending of the US Government is gotten that way, with VERY few exceptions, and those exceptions are typically clandestine and relatively minimal (think Iran/Contra).

The idea that it was "not raised domestically" is not accurate to the extent that US Treasuries are auctioned at the Federal Reserve Bank of New York, and no one, not China, Japan or your Aunt Millie is required to purchase these debt securities and the US Government does not physically go to other countries or banks or sovereign wealth funds or whatever and ask for money.

These bonds are auctioned off and willingly purchased by entities who view them as a safe way to preserve capital and make some interest payments along the way.

We don't "Borrow money from China" as is so often mentioned here and elsewhere. China holds Treasury Bonds and they are free to buy and sell them at any time to any willing buyer. When any series they hold matures, the Treasury pays them the face value, in full (In US DOLLARS, mind you). What they aren't able to do is demand early redemption. In other words, they can not in any way, shape or form, demand the US Treasury pay them in full for bonds they hold before their maturity date.

Any such request and they would be laughed right out of the building.

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Yavin4 Aug 14 OP
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