Question please

[danstar25]

On the subject of the US borrowing money from China or Selling government bonds in the open market, I have some questions if someone could be so kind to answer or atleast point me to some sources.

When was the 1st time this happened? Where was the idea born? During some point in our governments past history was there a group of politicians sitting around discusing the deficit and one stood up and said hey, I have a great idea, lets borrow from china....

Was this something that was sent to congress and was voted on?

Someone help me understand this process please.

[gaazn]

the u.s. borrows from china via government bonds. china buys the bonds with the promise of repayment and interest from the u.s. government. that's what it means by borrowing. this idea was pushed by alexander hamilton, who used bonds to finance the government's spending and keep the country financially solvent. other countries knew that the u.s. would be able to pay back over time due to it's power to collect taxes in the future. people like to say u.s. keeps borrowing from china because china is now the bad guy because it's economy is growing and the u.s. cant compete with the chinese in many areas. in the 80's, we would have said u.s. keeps borrowing from japan because that was when japan was the bad guy with a growing economy and real estate and u.s. could not compete with japanese quality, especially in electronics and cars. later, it might be india that is the bad guy. who is the number one group that the u.s. government borrows from? americans. but you don't hear people saying that the u.s. keeps borrowing from americans to finance its spending.

[danstar25]

Thanks gaazn
That put me on the right track.