Where Does the Bailout Money Come From?

PBS Newshour 3/17/2009 VCB
How is the government coming up with the hundreds of billions of dollars promised for the economic stimulus and financial industry bailouts?

In this report, NewsHour economics correspondent Paul Solman explains how the Federal Reserve and the Department of the Treasury fill different functions in the economic system and how they affect federal policy.

While the Treasury deals with collecting taxes and borrowing money in order to pay for government services, the Federal Reserve acts as a central bank that can actually create money when it is needed.

Category:

Education

Tags:

• Federal Reserve
• inflation recession
• Department of the Treasury
• Government Bonds
• taxes
• economics
• Money Supply
• Currency
• Definition of Money
• Money
• Characteristics of Money
• Functions of Money
• Interest Rate
• Monetary Policy
• Investing
• Savers
• SavingsInflation
• National Debt
• Tools of the Federal Reserve
• Discount Rate
• Federal Budget
• Fiscal Policy
• Open Market Operations
• Reserve Requirements
• Budget
• Budget Deficit
• Central Banking System
• Causes of inflation

[DomakChard]

I think an important distinction to make is that gold and silver are NOT inherently valuable. They're valuable only because they're valuable in our minds. The difference is we can just print gold and silver, mining them is difficult work.

[SethVandenberg]

Solman A complete WASTE of time ! The FRB monitized Trillions as in actual bills. The FRB also OWNS ALMOST 50% of our Debt. Ck the Treasury website ! Propaganda BS

[wtong89]

Well explained.

[proderivat]

greetings from Germany - thanks