> This beg the question of where is the money coming in the current situation, where all the major countries are following the same policies. But you have to k

> This beg the question of where is the money coming in the current situation, where all the major countries are following the same policies. But you have to keep in mind what percentage of your debt is kept by your own economy (be it citizens or local companies). Think about it this way, you have X moneys in circulation tied to your economy performance. If the next day you emit X more moneys, it doesn't mean your economy performance doubled, it just means your currency represents a smaller fraction of your economy (50% less in this case). This affects everybody that is holding bags of your money. If it's only citizens of your country holding to your money then you will have big inflation and everybody is going to lose a lot of purchase power. If you have this spread around the world (say with international commerce pegged to your currency, or external investors) you're basically spreading the inflation throughout everybody and the fraction that affect your citizens is not going to be that much. This is a good way for US to transfer a local crisis to global markets, having not that much bad consequences locally, it's almost a global wealth tax that benefits only the currency owner and their country citizens. > At the same time, you are saying that "foreign investors" and "governments" are buying bonds with negative inflation-adjusted profits because they have "faith" in the US economy. So, in the last years, at the same time the deficit and the public debt went up, the "faith" has gone up as show by the interest rate. They don't have faith in the economy itself, They have faith on the promise that they're going to be paid back no matter what. That's how you justify having the biggest spending on defense in the world by a big margin. I may be too cynical at this point but more and more the US economy seems like the biggest Ponzi scheme we ever created in this world.