Social Question

Dutchess_lll's avatar

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 (7807points) May 14th, 2019

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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13 Answers

zenvelo's avatar

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.”

Tropical_Willie's avatar

Short answer is yup.

elbanditoroso's avatar

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

Isn’t that socialism?

kritiper's avatar

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

Dutchess_lll's avatar

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.

zenvelo's avatar

@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.

MrGrimm888's avatar

@Zenvelo got it, in the first response.

Patty_Melt's avatar

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”.

Dutchess_lll's avatar

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

Patty_Melt's avatar

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

MrGrimm888's avatar

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

Dutchess_lll's avatar

She just does. She can’t explain how, she just knows.

elbanditoroso's avatar

A bit strange to assert something which is definitely arguable, and then refuse to defend or even give a reason for your assertion.

Basically a meaningless assertion.

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