Post
Topic
Board Economics
Re: How the stimulus money is created
by
mu_enrico
on 10/06/2020, 09:40:04 UTC
There are three sources of getting the stimulus money by the Treasury Department

  • Public Sector
    Like other parts of the government

  • Private Sector
       This includes companies, businesses and other investors
 
  • Foreign Investors
       This includes the sources from other countries which invest in the US
You forget the 4th source: the Federal Reserve.
It's likely the sources you mention cannot absorb the securities, therefore the Fed has to "print money" via Open Market Operations (OMO) and buy it.
https://www.investopedia.com/terms/o/openmarketoperations.asp

It's recommended to watch the video till the end, both for OP and the doomsayers here to know what the "printing money" is all about.