Where will the US government get the 700 billion dollars for the bailout?

Answer 1

The government will borrow the money to fund the purchase of securities outlined in the bailout. Since the government can borrow money at 3% - 4% and the securities purchased may yield a higher rate, the government can actually make money. Whether and how much the government will make depends on the overall health of the economy and the housing market. From the "THEM" that own the Federal Reserve, of course. Giving them further muscle power to overwhelm an already impotent government. For a comprehensive discussion of who actually owns the Federal Reserve - see the link below. The "charter" is like a license - just like Fannie Mae and Freddie Mac were "chartered". While things were going good no one disputed the assumption that it was the Federal Government that ran those "chartered" corporations. If they pull the rug out from under us there will be a lot of shocked people who will discover that GOVERNMENTAL OWNERSHIP OF THE FEDERAL RESERVE IS A LIE. This statement is incorrect. Nobody owns the Federal Reserve. The Federal Reserve is chartered by the Congress and that Charter can be revoked at any time. All the funding of the Fed comes from the US Treasury. In fact, the Fed returns any profits it makes by conducting their normal operations to the US Treasury every year. The comments on the Fed are not relevant here, the Fed does not borrow money, the US Treasury does so the Fed is not part of this equation. Please see the related question on Who Owns the Federal Reserve? below. The US is taking this money from their Treasury.

The Treasury is the country's reserve of cash (Includes the money collected as taxes) The government borrows money for anyone and everyone. Individuals, corporations, foundations, pension plans, state governments, foreign governments, foreign central banks...literally everyone. The US Treasury is giving the government this 700 billion USD.