Where is all the Money ?
By jason1308
@jason1308 (1586)
France
January 23, 2009 5:47pm CST
As the world slips into a deeper recession, and the governments are borrowing money to give the banks, for back to work programs, saving Car manufactures etc, the question I can't work out is where are the Governments borrowing it from ?
Can someone tell me where all these Billions of Dollars/Pounds/Euros/Yen etc are coming from ?
2 responses
@mlh8087 (368)
• United States
24 Jan 09
Didn't you know, this is fairy tale land and the money is only make believe. Our government is taking the country deeper into debt trying to get the economy started again. Basically this economic "salvation" is putting us, the taxpayers, billions, if not trillions, of dollars in the hole.
@jason1308 (1586)
• France
24 Jan 09
Well for a while I know that the governments live in their own dream world, and you can't really believe what they say, and I know that they will use this borrowing as an excuse to control how much people will earn in the future through careful manipulation, but where actually is all this money coming from exactly, and where is it really going.
They say the biggest problem is that the banks won't lend to each other, but surely with all the money the governments have given the banking establishments, they don't need to now borrow from each other.
For me, I know that I am looking at it in simplistic terms, but surely it isn't that complicated.
@SpikeTheLobster (6399)
•
24 Jan 09
Probably out of your salary!
Governments borrow from all over the place: taxes mostly, plus things like savings bonds and so on. They'll cut back in some places (usually education, public services - you know, the unimportant stuff), fire some people, hire more managers and clever accountants...
@jason1308 (1586)
• France
24 Jan 09
Thanks, spikeTheLobster, for your response. I know that ultimately it will all come back and hit us in higher taxes, but until the higher taxes filter through, when everyone is back at work, where do they get it from.
All the banks, would be bankrupt without the Government Aid so they can't lend it, and we are constantly told that Everyone is feeling the pinch, so who has the money to lend it ?
Very Confusing if you ask me.
