How do governments borrow money to finance their deficits?

[ahmadk]

Thank you John although you haven’t posted any videos in three years people still learn from your previous videos and you have left something good behind

[earlpierce]

If the government had it's own public bank owned by the people, then government wouldn't need to borrow money or take taxes from people to provide funding for infrastructure, healthcare, housing, education, etc. Doing this in every country would eliminate every country from being in debt to each other playing the debt swap game that many countries do not want to play anymore. The United States has the right to create money as stated in the constitution, so why that right was handed over to the private banks to create it for us while charging us interest is anyone's best guess.

[martytrain]

Yes but I got the first bit but when you said the government has to borrow from someone else to make up the shortfall thats the bit I don't get.
Surely there must be a better and different way to do that rather than going into debt?
Why not create a peoples bank an issue loans from that for small businesses and create money by making loans for large infrastructure projects? Why borrow from some individuals?

[thebestofallworlds]

does the Federal Reserve create money and loan it to the government at interest?

[johnybravo]

How does a government able to spend more money than its revenue as in your example?

[uberwebd]

If they can print it then why do they want to borrow instead?

[thing]

More shit we don’t learn in school that we definitely should.

[nikyabodigital]

Do all government works usually just like these? (Not talking about socialist and other that are structured differently)

I'm talking like president, vice president type of shit. I'm from ph

[Kyle-pjvc]

Doesn't explain why the national debt is still growing? How is the government is able to pay back bonds, while still spending in a deficit? Does the government pay these bonds with more debt and it compounds?

[jbouman]

Martin thanks for your question. Our government borrows money because there is a difference between what it generates from tax revenue primarily and how much it spends on all of its programs. The way it borrows this money is by issuing bills, notes and bonds. Loans made to businesses in this country are extended through private banks. Our government indirectly supports these private banks by lending money to them in case of a liquidity problem. it also supervises and regulates these banks. We don't want our government bank or central bank to make loans directly to businesses in this country because we feel that private banks should do this. We don't want our central bank to start competing with these private banks. It would be unfair to them

[isawaturtle]

If the deficit is “financed” then it’s not a deficit duh !

[finlayoshea]

The Goverment should only create a budget deficit if we are at war or in a resession but if we do borrow during these times we should at least maintain a decent credit rating. times

[isawaturtle]

This video is a croc !
It totally ignores who creates the dollars to spend in the first place.
The US creates the dollars through spending and the taxes are a drain.
Bonds are issued to match deficit spending to make it look like it is being funded from treasuries POV but what really happens is the bonds make the deficits add up to the debt.

To buy bonds you actually need govt debt in the form of dollars in the first place to but govt debt in the form of bonds.

Govt bonds drain dollars from the banking system, they don’t add them.

The govt always spends first before taxes can be paid of bonds bought.
The govt is the supplier of the dollars.
That is why it can always spend.

This video is a waste of your time.

[isawaturtle]

This video explains how the countries in the EU work.
The US is different as it creates its own currency.
It can’t “borrow” $23 trillion that it hasn’t created first.
And why would it borrow ?
Borrowing happens after it spends to control the fed funds rate.