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Very good question my Dear for a layman to understand the 800 doller package . 1. You have to understand demand supply logic of money in the banking system .All banks takes money from central reserve fund in case of USA and Reserve Bank for India with some token interest charges and interm all banks collect money from Industries ,business,people against loan ,deposites,NPA dues 2. The limit of money to be kept by the banks to central reserve determine by Reverse repo and CRR ratio .When both the factors lower by Central reserve allows all banks to have more liquidity of funds in the system so that they can release funds for more economic activities .More economic activities means rolling of more money with various acivities which generate more funds in the system 3. 800 billion doller is not all the more money given by the Gov to system .It is stimulas package to boost economic activities like say by CRR cut and Reverse Repo Rate cut is 500 billion doller coming to banking system ,some 200 billion doller release of reserve funds already there in the central reserve bank and lastly printing of 100 billion doller or taking loan from IMF and world Bank Rhode Island .I have just tried to explain as a layman to a question of a layman .if I am wrong then forgive me as I am not an economist .
Well i know they can't just print money because a dollar bill is actually a check and the money with this check is gold and silver that's in the banks, and i don't think they would borrow so i'd say its from taxes and they do this because when they give us this then we will buy more stuff so its all really just a cycle
Good question. The Bush's should have to give some of their greedy money to bail us out, since they got us so much into debt with a never-ending war. And the banks should have not given themselves bonuses with the money the government trusted them with!! I"m not sure, but good question. I thought now it was tax-cuts on employment checks at the end of the year? also couldn't we sell something of ours to other countries to make money or pay off some of our debt. Oh and charge them as much as the other countries charge us, so it balances! take care!