# Where is the 800 billion coming from? **URL:** \ **Category:** Factual Questions\ **Created:** [November 25, 2008, 10:04pm UTC](https://boards.straightdope.com/t/where-is-the-800-billion-coming-from/474487 "2008-11-25T22:04:05Z")\ **Posts on this page:** 8\ **Page:** 1
**Author:** ![Palo\_Verde](https://avatars.discourse-cdn.com/v4/letter/p/65b543/32.png) [@Palo\_Verde](https://boards.straightdope.com/u/Palo_Verde)\ **Post date:** [November 25, 2008, 10:04pm UTC](https://boards.straightdope.com/t/where-is-the-800-billion-coming-from/474487/1 "2008-11-25T22:04:05Z")
"The government has introduced a pair of new programs that will provide $800 billion to help unfreeze the market for consumer debt which Treasury Secretary Henry Paulson calls vital to supporting the economy. " Several weeks ago there was a huge congressional vote on $700 billion to prop up banks. Where is this extra coming from? WHy no vote on it? I don’t get it. ---
**Author:** ![Really\_Not\_All\_That\_Bright](https://avatars.discourse-cdn.com/v4/letter/r/e8c25b/32.png) [@Really\_Not\_All\_That\_Bright](https://boards.straightdope.com/u/Really_Not_All_That_Bright)\ **Post date:** [November 25, 2008, 10:05pm UTC](https://boards.straightdope.com/t/where-is-the-800-billion-coming-from/474487/2 "2008-11-25T22:05:32Z")
The additional money is coming from the Federal Reserve, which has heaps of money and can essentially lend it as it sees fit. The original money came from the Treasury, which has very little money but can issue T-bills and can spend only at the behest of Congress. The purpose of the FR is to fine tune the economy- to rein in growth (to check inflation) and to encourage it (to check stagnation). Congress isn’t in session most of the time, and somebody has to be around to adjust lending rates on a daily (or even hourly) basis; that’s why the FR only has Congressional oversight in a broad sense. ---
**Author:** ![Chief\_Pedant](https://avatars.discourse-cdn.com/v4/letter/c/a6a055/32.png) [@Chief\_Pedant](https://boards.straightdope.com/u/Chief_Pedant)\ **Post date:** [November 25, 2008, 10:08pm UTC](https://boards.straightdope.com/t/where-is-the-800-billion-coming-from/474487/3 "2008-11-25T22:08:18Z")
> [@autz](#): > > "The government has introduced a pair of new programs that will provide $800 billion to help unfreeze the market for consumer debt which Treasury Secretary Henry Paulson calls vital to supporting the economy. " > > Several weeks ago there was a huge congressional vote on $700 billion to prop up banks. Where is this extra coming from? WHy no vote on it? I don’t get it. In the short term it is borrowed money, added to the total national debt. The US debt ceiling was raised from about 9.5 to 10.5 trillion (in round numbers) if I recall correctly. It may be that some of the money will find its way back into the national treasury. Not all of it is a direct giveaway. Yeah, right. ---
**Author:** ![Duckster](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/duckster/32/1244_2.png) [@Duckster](https://boards.straightdope.com/u/Duckster)\ **Post date:** [November 26, 2008, 4:40am UTC](https://boards.straightdope.com/t/where-is-the-800-billion-coming-from/474487/4 "2008-11-26T04:40:39Z")
> [@autz](#): > > Several weeks ago there was a huge congressional vote on $700 billion to prop up banks. Where is this extra coming from? WHy no vote on it? I don’t get it. It’s a bit more than $700 billion here, or $800 billion there. [Think closer to $4.28 trillion](http://www.cnbc.com/id/27719011)! ---
**Author:** ![Sage\_Rat](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/sage_rat/32/399_2.png) [@Sage\_Rat](https://boards.straightdope.com/u/Sage_Rat)\ **Post date:** [November 26, 2008, 4:59am UTC](https://boards.straightdope.com/t/where-is-the-800-billion-coming-from/474487/5 "2008-11-26T04:59:26Z")
Technically it’s borrowed against the future. We assume that we will be able to pay it back in times of prosperity, so we loan it to ourselves. ---
**Author:** ![Prelude\_to\_Fascination](https://avatars.discourse-cdn.com/v4/letter/p/a183cd/32.png) [@Prelude\_to\_Fascination](https://boards.straightdope.com/u/Prelude_to_Fascination)\ **Post date:** [November 26, 2008, 2:25pm UTC](https://boards.straightdope.com/t/where-is-the-800-billion-coming-from/474487/6 "2008-11-26T14:25:46Z")
> [@Sage\_Rat](#): > > Technically it’s borrowed against the future. We assume that we will be able to pay it back in times of prosperity, so we loan it to ourselves. Right. Think of it like a version of the “Paycheck loan store” that the entire nation (or world, even, since everyone’s being affected) has gone to all at once. ---
**Author:** ![ratatoskK](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/ratatoskk/32/2987_2.png) [@ratatoskK](https://boards.straightdope.com/u/ratatoskK)\ **Post date:** [November 26, 2008, 2:46pm UTC](https://boards.straightdope.com/t/where-is-the-800-billion-coming-from/474487/7 "2008-11-26T14:46:49Z")
Also, they’re simply printing more currency. ---
**Author:** ![don\_t\_ask](https://avatars.discourse-cdn.com/v4/letter/d/e68b1a/32.png) [@don\_t\_ask](https://boards.straightdope.com/u/don_t_ask)\ **Post date:** [November 26, 2008, 2:55pm UTC](https://boards.straightdope.com/t/where-is-the-800-billion-coming-from/474487/8 "2008-11-26T14:55:31Z")
Check **your** pockets.