Fluther: Is it true that we're borrowing money from China to pay ...

Is it true that we're borrowing money from China to pay the farmers for the effects the sanctions Trump leveled against China is going to have on them?

Asked by Dutchess_lll (8745

) May 14th, 2019
13 responses
“Great Question” (3

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Sorry….having an impossible time trying to research on my own.

If all this shit is true is it possible the US could get in so deep that we can’t get out?

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Topics: China, debt, Trump, sanctions

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Answers

It isn’t a direct pipeline of funds.

The Dept of Agriculture (USDA) will fund the US farmers. The USDA gets its money from the US Treasury.

The Treasury Dept. gets its cash through a mix of tax revenue and the proceeds from bond sales (borrowing). China is the largest buyer of US bonds. So, in an indirect way, we borrow from China to fund support for farmers hurt by tariffs.

But it isn’t that Farmer John is owed $500 so the Secty of Agriculture calls the Chinese Embassy and says, “please send a check for $500 to Farmer John and the US will pay you back.”

zenvelo (39408

)“Great Answer” (4

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Short answer is yup.

Tropical_Willie (31119

)“Great Answer” (3

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The more serious question ought to be: why are you and I (Americans) paying to bail out the farmers?

Isn’t that socialism?

elbanditoroso (33146

)“Great Answer” (4

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The Chinese are attempting to buy the US, one way or another. And it’s perfectly okay, seeing as how we are Capitalists.

kritiper (25757

)“Great Answer” (1

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Oh I.knew it wasn’t a direct pipeline Zenv. But why is China the largest buyer of bonds, and has it always been that way?

@elbanditoroso I have heard that too. It would a good topic of discussion here I think.

Dutchess_lll (8745

)“Great Answer” (0

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@Dutchess_lll The Chinese are willing to pay just a bit more than anyone else for the “safety” of US bonds. The Chinese have not always been the biggest buyers, but definitely so over the last twenty years.

The actual biggest holder of Treasury notes and bonds is the Social Security system.

Americans are paying to bail out farmers because they swing the votes in red states.

zenvelo (39408

)“Great Answer” (2

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@Zenvelo got it, in the first response.

MrGrimm888 (18992

)“Great Answer” (1

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No. Helping farmers in times of crisis is not socialism, not even close.
No, I will not hash the details, because I am not a teacher, and I won’t go into a long explanation just so it can be ripped apart, misunderstood, and questioned by half a dozen who will never “get it”.

Patty_Melt (17513

)“Great Answer” (0

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The government caused the crisis unnecessarily. It’s not like a drought or a flood crisis.

Dutchess_lll (8745

)“Great Answer” (2

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I’m sorry. I failed to say I was specifically responding to @elbanditoroso‘s secondary question.

Patty_Melt (17513

)“Great Answer” (0

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^Patty. How do you know that you “get it?”