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Summary: The government borrows money by issuing bonds that anybody can purchase, and the U.S. Treasury issues four different types of bonds. Learn about municipal bonds and their tax free interest with help from an online campaign manager in this free video on the government borrowing money.
Bill Scher is a professional political blogger and one of the six original bloggers to have famously met with Bill Clinton at his Harlem office. He works for several Washington DC...read more
"How does the government borrow money? The government borrows money by issuing bonds, which anybody can purchase. The U.S....the U.S. Treasury issues four different types of bonds that mature over different periods of time. The point of maturity is when the government has to pay the principal back to the person who purchased the bonds in the first place. There are also a municipal bond that states or localities issue that people can purchase, and the interest of the municipal bonds is tax free. So that is the basic way in which governments borrow money to fund their operations and plans."
eHow Article: How Does the Government Borrow Money?
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