Who’s Financing the Government? The Shocking Truth

Government is financed by treasury bonds. And who buys the treasury bonds? Mostly the Fed.

And how does the Fed buy them? By printing money.

But what backing does the Fed have for that money being printed? It’s the treasury bonds themselves.

So basically, you finance the government by printing money out of thin air.

Well, so if the government can print the limited amounts of money out of thin air, why do they collect taxes?

The answer is simple, but it’s very shocking. The real problem is that you pay high taxes only to uphold the illusion that you are funding the government, which you are not.

— Nayib Bukele, President of El Salvador