“Borrow from who?”
The Chinese.
““Borrow from who?”
The Chinese.”
One of the positive side effects of having a big trade deficit with the Chinese was that they used most of their trade surplus dollars to buy treasuries and thus fund our budget deficits.
In essence they were feeding and encouraging our bad habit of deficit spending. (No, I’m not blaming the Chinese for our bad habit).
That’s not going to happen this time around.
The Chinese don’t have any money at the moment. We simply print it.