[1Old Pro]

simply gets added to the federal deficit.

So who finances the government. Taxpayers?

[Dilbert San Diego]

I know the Federal Reserve bank buys government bonds, and creates money in that manner for the federal government to spend. Government bonds are sold to investors, many of whom are overseas.

We taxpayers pay our taxes, but we don’t pay enough to pay all of the ongoing expenditures of the federal government. Thus, deficits happen.

I don’t know if we have a national debt ceiling anymore. I think it was obliterated by the trillions we have spent on Covid 19 relief.