Some from the taxpayers and some from loans from the Red Chinese. My company did business with the Red Chinese over a decade ago. Even way back then, they were energetically downsizing their massive bureaucracy and encouraging them to find work in the private sector. Those who had successfully made the shift turned into some of the best capitalists on the planet. I kid you not.
Bush had to sell bonds to the Chinese.
Baraq just has Bernanke and Lew create the fake dough electronically.